Want to sell and profit in dollar? Internationalizing company can be the way

Selling in dollars is not exclusive to multinationals. The internationalization of companies is an affordable business strategy of all sizes-from e-commerce sale to physical presence based in other countries.

According to a study by the Dom Cabral Foundation on internationalization, the United States is the favorite destination of most Brazilian companies that want to expand borders.

The country leads the export ranking, commercial subsidiaries, strategic partnerships, product licensing, virtual presence and access to the capital market. It only loses to franchises, where Paraguay is the favorite of Brazilians – but the United States are second.

From Brazil to the world

Guilherme Vieira, an international business consultant in the US, divides the main forms of internationalization into two large groups: commercial internationalization, which includes direct or indirect export; and productive and structural internationalization, which includes licensing, international franchising, joint venture and foreign direct investment. Each model has a specific structure and is suitable for a type of expansion strategy.

• Direct export: The company itself sells its products to customers abroad. This model is suitable for those who already have structure to deal with international logistics and regulatory issues, according to Renata Correia Cubas, Matos Filho Advogados Tax Partner. This is the case of Alpargatas, owner of the Hawaiian brand, which exports to several countries.

• Direct export via e-commerce: When a company sells to other countries through e -commerce platforms such as Amazon, Shopee and Temu. Alessandra Araújo, lawyer at Paschoini Advogados and a specialist in business law, explains that this form of internationalization allows companies of all sizes to test new markets with a relatively low initial investment, and can scale their operations according to the demand. Even MEI can export, with a limit of $ 80,000 per year. However, it is necessary that the company is enabled in the Siscomex radar, from the IRS and check if CNAE allows you to export, alerts Alessandra.

• Indirect export: It involves intermediaries, such as tradings or export agents. It can be a good option for those starting and has no experience in the international market, according to Renata Cubas, or for those who want to reduce costs. Among the examples are the Cocoa Show, which uses indirect channels in markets with lower structure; Coopercitrus, which exports the rural production of cooperatives; and the Salton winery, which uses international importers and distributors (intermediates), especially for secondary markets, explains Alessandra Araújo.

• Licensing: The company authorizes third parties to use its brand, technology or product in another country. “It’s interesting for business with valuable intangible assets that want to expand without major investments,” says Renata. Among the examples pointed out by Alessandra Araújo, we can mention Melissa (Grendene).

• Franchises: The expansion through franchises allows third parties to operate under the company’s brand. “It works well for replicable business models with strong brand identity,” says Cubas. An example is Spoleto, which has franchises in the US and Mexico.

• Joint Venture: It is the partnership with local companies to share risks and resources. It is recommended for more complex or regulated markets, where local knowledge makes a difference, explains Cubas. This is the case of BRF (Brasil Foods), which signed a joint venture with Al Yasra Food Company for food distribution in the Middle East. BRF has entered with products, brand and expertise and the local partner has entered with distribution and knowledge channels of the market, explains Alessandra.

• Direct investment: It is the opening of branches, subsidiaries or factories abroad. “It is usually the way for already consolidated companies, with resources to invest and interest in physical presence in the new market,” says Cubas. Among the examples is Ambev, which “establishes branches and subsidiaries to produce and distribute its brands locally, ensuring full control over quality and market strategy,” says Alessandra.

According to Vieira, Brazilian companies, including small and medium, can already access these models with less barriers than for 10 years, especially through digital channels.

“With less than $ 5,000 it is already possible to set up a functional structure in the US. And with certain planning, this is paid in a few months,” he says.

For him, expanding business out of Brazil is no longer a luxury reserved for large multinationals. “It is a strategy of survival and intelligent growth in the face of high tax burden, political instability and limitation of scale of the domestic market,” he says.

First steps to internationalize

Internationalization, in general, acts as a “catalyst” of business expansion, bringing brand visibility, explains Lucas Ramos, senior manager in strategy, mergers and acquisitions of Peers Consulting + Technology.

However, the strategy requires care for those who really want to go to this process. He highlights three important points for the strategy to bring results:

The main point is to have a very clear study of the market to know which countries have an interesting connection with the offer of value and what competitive dynamics, competitors, where they are positioned. “You have to understand what these input barriers are, what are the risks with this internationalization and the product. It takes a very clear view,” suggests Ramos.

Another point of attention is the regulation and taxation and the details of the business plan and financial risks.

“Being in line with the export process and the regulatory part is critical to the success of internationalization,” says Ramos.

Internationalization costs

Amid internationalization plans, the costs of the operation must be calculated. Especially for those who decide to internationalize through a company in another country.

Pedro Bresciani, partner of Utumi Advogados, says this includes costs of incorporation, maintenance of the company, and any licenses, involving the work of lawyers and accountants, for example. In addition, it will be necessary to choose which tax regime in Brazil will be on the profits obtained abroad.

“Although acting abroad is indirectly, through franchisees, representatives or distributors, for example, it is necessary to think of all financial flows involving goods, services and licenses and tax impacts in Brazil and abroad,” he explains.

No room for ‘Brazilian way’

For Vieira, the “golden tip” for those who want to “start the right way” is not to try to give a “Brazilian way”. He states that the best way is to study the markets and the laws involved, always with the support of specialized professionals.

Thus, the initial effort can bring good results. “With the right structure, the same effort you make in Brazil can be worth 4, 5 or even 10 times more outside,” estimates Vieira.

For him, the entrepreneur does not need to choose between one country or another, because there are no borders. “To expand the business is also to expand your worldview, your freedom and your legacy. You don’t have to choose between Brazil or the US. The game today is global – and those who understand it before, get ahead,” he says.