Types of Business Communication Skills

Business communication skills are a daily fraction of the business method and their effectual use can increase the likeliness of achieving accomplishment. Successful communication skills are second-hand to express a precise message that the receiver can comprehend.

At what time considering how to build a business victorious, high-capacity business society, high pressure surroundings and lots of currency may get nearer to mind. Even though these aspects may contribute to the go up of a industry, an assortment of essential skills is caught up in supporting that company.

Without business communication, it will be unfeasible to keep strong relationships with your employees and with your customers. In fact, deprived message skills can escort to mistakes, lost income and clients, plus displeased employees. Big business communication encompasses a lot of things. Advertising, marketing, speech writing, sales, product growth, and investor relations — the roll goes on. Apart from of the industry, the four most vital areas of business message are public speaking/presentations, marketing, social media and networking.

Big business Communication used to endorse a manufactured goods, service, or organization.Business communication is fairly dissimilar and matchless from other types of communication since the point of business is to make money. Therefore, to develop productivity, the communicator should expand good statement skills.

Being unbeaten in business is dependent on your talent to communicate successfully. Quite a few different kinds of communication skills are obligatory.

External business communication:

External communication refers to any communication you have with customers, vendors, and populace that are exterior the company. These people help to maintain your business prosperous by offering you low prices on unprocessed goods and purchasing products from your companionship. When you are dealing with external communication, it comes down to your skill to reach everyone approximately you. External business communication is just as imperative to the life and vivacity of a business as internal communication. External business communication places focal point on the relationships and a mixture of audiences that are outside of the company. External communication’s main phrase is through public relations, media relations, marketing management and advertising. Doing well businesses exploit effective internal and external business communication to achieve the company’s goals and task.

Internal business communication:

While you are dealing with internal business communication, you are working on the flow of the business. Internal communication is frequently harder to work on from external communication because you have a handful of different personalities that require your direction on a day by day root. Every person is going to come with their own preferences as to how things should be ended in the place of work and breaking them free of this state of mind can be challenging. Internal Communication, in a business framework, is the dialog procedure amid employees and employer. Where the ‘top-down’, employer-driven communication is immense for setting a communication program or conversation spot, it is the peer-to-peer employee communications that resolve the manner of the reply back to the employer. As a result, to sum up, ‘Internal Communication’ is the conversations that businesses have with their employees and those workers have by means of each other.

Beyond doubt effective communication only happens when substance and style are brought mutually in the best balance for the theme, the viewers and the event. The skill of communication in today’s culture can frequently be the difference between achievement and breakdown.

Doing Business With a Strong Offshore Combination Using a Panama Foundation With a Belize IBC

The nations leading the pack out of the recession are the second tier economies of Asia. Their currencies are predicted to advance against the dollar, Euro, and Yen over the next few years. Meanwhile lawmakers in the United States are talking about raising taxes. To those who have scrimped and saved for years to put together a nest egg for retirement this may be ominous news. The PIIGS affair lays a cloud of depression over the EU. For some the attraction of doing business outside of North America or Europe is increasing.

With current worldwide economic realities in mind where are you going to do business next? The United States and Europe do not need to be on either end of your supply chain. You bank does not need to be in the USA. Your company can be offshore. You can arrange your affairs in such a way as to make yourself the beneficiary of a Panama Foundation and enjoy the fruits of your labors in privacy.

The Argument for Moving Offshore

There are many tax advantaged jurisdictions such as Belize and Panama. Going “offshore” in these countries and you will not have any local taxes on international income. Using a combination of Panama and Belize entities there are legal vehicles for incorporation, for banking, and for Private Interest Foundations that help you keep your private business private. You can do business with the emerging economies of Asia. Sell to the emerging middle class of South America and never pay a cent of taxes from the profits of your international (offshore) business in either Belize or Panama

A Strong Offshore Combination

An effective offshore combination consists of banking and an offshore company in Belize, owned by a Panama Private Interest Foundation.

Panama Private Interest Foundation

A Panama Private Interest Foundation can own bank accounts, companies, royalties, jewelry, airplanes, and boats. This includes corporations can own corporations, and so forth. This business entity has no owner and its beneficiary, you, need never appear in any public record. A Panama foundation of this type (there are public ones too for different purposes) is an excellent alternative to a trust for passing inheritance to your heirs without tax consequences. Panama does not tax income that is not earned in Panama. In the matter of benefiting from international business opportunities, a Panama foundation can own a Belize corporation.

A Belize Offshore Corporation

Belize is a tax advantaged jurisdiction. If your corporation does business outside of Belize it pays no taxes in Belize. You can set up a Belize offshore corporation and never have your name in a public record. A company headquartered in Belize can buy manufactured goods from Indonesia, and ship via the Panama Canal to the Colon Free Zone (CFZ) where 40% of Latin American container traffic passes. From the CFZ goods can be rerouted to ports from Cartagena, Colombia to Rio De Janiero, Argentina to sell to Latin American increasingly prosperous middle class. Likewise, agricultural products from Brazil and Argentina can be shipped to Singapore. None of this involves North American or Europe. Income earned on business operations will not be taxed in Belize and, if the Belize Corporation is owned by a Panama Private Interest Foundation, it will not be taxed in Panama either. Of course, with an international business you will need a bank to transfer money and to hold profits. For this situation banking in Belize works perfectly fine.

Belize Offshore Banking

Interest in an offshore Belize bank account is not taxed when paid. It is not taxed in Belize unless income was derived from Belize. A Belize bank account can be owned by an offshore corporation whose shareholders are not in a public record.

The combination of banking in Belize with an international business in Belize owned by a foundation in Panama can be a strong base from which to do business internationally.

Expand Your Business Internationally With eBay

One of the greatest advantages when selling online is that you can have customers from all around the world. Thus, the chances of making more profit increase with the increase of the areas you are covering. When you are selling things on a well-known auction site, such as eBay, the chances of having more and more customers from abroad are even higher, because of the increasing popularity eBay enjoys.

Thus, if you want to make money and extend your existing business you should try opening your auctions to people from other countries, too. This way, not only will you increase the chances of getting your product sold, but you will also gain more money, because the more people bid on a product, the higher the price gets.

However, there are some things you have to take into consideration before extending your business outside the border. The most important ones are the shipping method and the payment method. If you have been satisfied with the services offered by the United States Postal Office, you can go on using it for international shipping too. Do not forget to add the international taxes to the product’s price, as they are to be paid by the customer and it is their right to know what they are giving their money on.

If you are willing to try other shipping methods, you should first check the companies very well and only after a thorough investigation choose the one which is both safe and cheap. For your safety, you should always choose the companies which confirm the receipt. This way you will be sure that the package reaches your client, otherwise the postal office will pay for their errors.

When it comes to payment, two are the most recommended methods you should accept: wire transfer and checks. These are the safest payment methods when it comes to selling internationally. If you want to use another payment method, make some research and see which are its risks and its advantages.

The world’s market is very large and it is a great opportunity to be able to take advantage of it. So, after you have gained some experience in selling things on eBay you should upgrade your business and start selling things internationally.

International Duh Moments – Is This a Payment?

When you do business internationally, there are ways of paying that you might never have heard of when doing business solely in the USA. Some methods require extending credit. Pursuing payment when something goes wrong is more difficult than when you are entirely in the States, too. Avoiding payment problems is far better than needing to resolve such problems across a combination of distance, different legal systems, and in some instances political or economic issues–so how to pay or be paid becomes a crucial choice as soon as you begin doing business across borders.

This article outlines the most common methods that may be new to you. Among these, the least commonly used methods are toward the end. When negotiating an international contract, choose a method where each party is comfortable with its level of risk.

Payment In Advance

Payment occurs: Before shipment.

Usually done via international wire transfer from one bank account to another or bank-to-bank wire transfer (regarded as safer), which takes only a few hours to a few days. Can be done via credit card or telegraphic transfer. Note that it is possible for an imposter to collect payment at telegraphic transfer offices, and documentation via that method is limited. Check clearing time can be as long as two months, so checks are not commonly used.

Highly insecure for buyers, but very comfortable for sellers. Payment transfer services incur fees.

Documentary Letter of CreditThis comes in a variety of forms:

  • confirmed – sight
  • confirmed – date or time
  • unconfirmed – sight
  • unconfirmed – date or time

A letter of credit is a bank-to-bank guarantee to pay the seller (beneficiary) upon presentation of specific documents that comply with terms set by the buyer (applicant). The documents convey title to goods by showing that specific steps have been taken, or as of a maturity date, or a designated period of time after an event. Terms of payment must be specified clearly and completely to avoid confusion and delay.

International Chamber of Commerce (ICC) publishes “Uniform Customs and Practices” (document number UCP600) to govern letters of credit. Globally, more than 90% of banks honor these rules. There are revocable and irrevocable letters of credit, although UCP600 only accommodates irrevocable (terms and conditions can only be changed with explicit consent from all parties). If unconfirmed, the payment guarantee is by the buyer’s bank, and the letter of credit must be irrevocable. If confirmed, the guarantee is by the seller’s bank.

Banks charge a percentage of the transaction amount as their fee, which is usually but not always paid by the buyer. If fees are charged by both banks in the transaction, price quotes and the letter of credit should specify which party pays each fee.

Sellers tend to like letters of credit as a secure way to get paid. Buyers tend to be less keen about this because of the expense (typically one to eight percent) and processing can take up to a month, delaying order delivery. As parties become more comfortable dealing with each other, payment is likely to change to less expensive payment methods such as drafts.

Confirmed – Sight

Payment occurs: Typically linked to time of shipment.

Example clause: “$15,000 US net 15 days from shipment.”

Seller has risk with the confirming bank and documentary risk. Buyer must trust seller to make certain goods are delivered after payment is transferred.

Confirmed – Date or Time

Payment occurs: At maturity.

Example: “$15,000 US net 15 days from acceptance.”

Seller has risk with the confirming bank and documentary risk. Buyer must trust seller to make certain goods are delivered after payment is transferred.

Unconfirmed – Sight

Payment occurs: Typically linked to time of shipment.

Example clause: “$15,000 US net 15 days from shipment.”

Buyer has assurance that shipment occurs, but must trust seller to ship the goods described in the document.

Unconfirmed – Date or Time

Payment occurs: At maturity.

Example clause: “$15,000 US net 15 days from acceptance.”

Seller has risk with the issuing bank and documentary risk. Buyer has assurance that shipment occurs, but must trust seller to ship the goods described in the document.

Documentary Draft (Bill of Exchange)

This comes in a couple of forms:

  • against payment – sight
  • against acceptance – date or time

A draft is like a foreign buyer’s check. As with a domestic check, there is a risk that it might not clear. It differs from a domestic check in that title does not transfer to the buyer until the draft it paid (or at least legal steps are taken to ensure that it will be paid when it is due).

Documentary drafts fall under the category bills for collection. In some markets (particularly in Asia), these methods are favored as a cost-effective way to satisfy Exchange Control Regulations. ICC publishes “Uniform Rules for Collections” (document number URC522) to govern these. Globally, more than 90% of banks honor these rules.

The documentation requesting payment is sent from seller’s bank to buyer’s bank, instead of directly from seller to buyer. The banks can sometimes help resolve any disputes that arise and threaten to disrupt the transaction. If the buyer fails to meet conditions specified in the documents, in some situations the seller can keep title to the shipment and may be able to recover the goods.

Drafts are often used when buyer and seller regard each other as trustworthy, there is no doubt about the buyer’s ability and willingness to pay, no constraining foreign exchange controls need to be dealt with, and the buyer is in a politically and economically stable nation.

Against Payment – Sight

Payment occurs: When draft is presented to buyer (often a verbal notification).

With a sight draft, the seller keeps title for the goods until they reach their destination and payment occurs. If shipment is by sea, the ocean bill of lading is endorsed by the seller. Then the seller’s bank sends it to the buyer’s bank, along with the sight draft and supporting documents such as invoices, consular invoices, certificates of insurance or packing lists. The buyer is notified when these documents arrive. When the draft is paid, the bank turns over the bill of lading so the buyer can claim the shipment. (Air bills of lading and railway or road transport have less rigorous requirements before the buyer can take the shipment, so a sight draft brings more risk if shipment is not by sea.)

The buyer could have a change of mind between the time when the goods are shipped and the time when the draft is presented for payment. The bank is not obligated to pay in this case, or in a case where governmental policies change and interfere with delivery. When such problems lead to the buyer not paying for or not receiving the shipment, the seller is stuck with the problem of what to do with the goods.

Against Acceptance – Date or Time

Payment occurs: At maturity.

A date draft stipulates a date on which payment is due.

A time draft stipulates that payment is due by a specific amount of time after the buyer accepts the time draft and receives the shipment, such as “20 days after acceptance.” (When the buyer writes “accepted” on the draft, that is trade acceptance.)

Open Account

Payment occurs: As agreed.

Goods are shipped. Seller sends a bill to buyer and buyer is expected to pay under agreed firms. This is much like having an open account for a customer within the States. Some large companies will only buy this way. There are markets, notably Europe, where buyers often expect Open Account. However, open account is appropriate only when the buyer has a long, good record as a payer and is definitely creditworthy.

Open account can be thought of as meaning “open to risk.” The ongoing nature of an open account raises the odds that political or economic situations may deteriorate. Legal enforcement to collect payment may be hindered because the extensive documents and banking involvements of other methods are missing–not to mention that pursuing collections abroad tends to be expensive and difficult. Factoring or export credit insurance may be advisable to reduce risk.

Highly insecure for sellers, but very comfortable for buyers.

Standby Letter of Credit

Payment occurs: If necessary.

This is a bank guarantee of payment that is triggered only if the buyer fails to pay in the normal manner, such as defaulting on payments due under Open Account. Note that this lacks the documentary controls in Letters of Credit.

Consignment Sales

Payment occurs: After sale of goods.

On the surface, this looks like consignment sales within the States. The seller sends goods to a distributor in another country, and the distributor sells them on behalf of the seller. The seller keeps title to the goods until they are sold, after which the distributor pays the seller.

Despite legally having title until goods are sold by the distributor, the exporting seller has considerable risk: practically no control over the merchandise, and delay before payment arrives. Appropriate insurance is highly advisable, including property coverage over the goods until they are sold and payment occurs.

International Countertrade

Payment occurs: Variable.

One party accepts goods, services, or something else other than money as partial or complete payment. Beyond that vague description, there are many variations.

Most forms of countertrade can be thought of as forms of barter. However, direct barter is not common internationally. The two parties rarely have balanced needs for each other’s products, and agreeing upon the value of goods may be difficult. To get around that, the parties can trade through an intermediary. (There are brokers and export management companies that handle such transactions.)

Transaction cost and risk are often higher than with other types of international transactions. However, countertrade may be the only way to do business with a company that does not have access to foreign exchange or is in a nation whose currency is not readily exchangeable.

Escrow

Payment occurs: As agreed, typically after acceptance.

Buyer deposits funds, property or other tangibles in an escrow account that is supervised by an escrow agent (a neutral third party trusted by both buyer and seller). When the terms of the escrow agreement are met (such as satisfactory delivery of goods to the buyer), the escrow agent releases the funds to the seller.

This mechanism is low risk for both buyer and seller if a reputable escrow agent is used. However, it adds cost (the escrow agent’s fee), takes time to set up, and can be difficult to set up internationally. It is normally only used for large transactions. Caution against fraudulent escrow agents is advised.

Remarks

Whenever payment relies upon presentation of documents attesting that specific conditions have been met, the shipping and documentation requirements in the sales contract and letter of credit or draft must agree precisely. If they do not, the bank may refuse to pay. Reportedly, more than half of document presentations for letters of credit have discrepancies. This is expensive–banks charge extra for each discrepancy, and resolution delays payment.

If this overview leaves you needing to know more, your commercial banker can help you sift through the options and set up the method that best fits your situation.

An Introduction to International Trade

The primary reason most companies trade internationally is to reduce risk, if you think of the old adage of not putting all your eggs in one basket, the same applies to the business world and international trade, if you’ve got a stable market here in the UK it might prove prudent to look at how you can grow your business internationally.

The first step you would take when looking into international trading would be examining your business here in the UK, this would make it easier to start looking for a market internationally that might compliment your own. It’s simply a case of thorough research

One of the main factors to take into consideration when trading internationally is finance; this is again going to involve thorough research. Whichever country or countries you choose to trade with you will need a very comprehensive knowledge of their currency both in relation to your own currency and the value of your product or service. One of the more secure ways to trade internationally is with letters of credit, these are a banking instruments you use to insure that you’re paid, if you have a letter of credit against any transaction you are guaranteed to get the money as long as you adhere to a set of criteria that you agree with your customer at the outset.

When it comes to international trade, you should always make sure the export price has been carefully researched and you understand the different elements of that price, this means your product or service is very unlikely to be marketed at the same price you might charge in the UK. There are several factors you’ll need to take into consideration before concluding a price you wish to market your product or service at. The first is how much it might cost you to collect and convert any foreign currency. Secondly you’ll need to make sure all your logistics are covered and thirdly, you will have to do some form of market research too and this cost will also need to be covered in some shape or form. These are just three very generic points and you may come across many more especially when you start to deal with the specifics of individual countries.

Preferential trade agreements are agreements set up by trading blocks, an example of a trading block would be the European union as it’s a block of countries that work and trade together and have agreements. Basically, it means it’s easier to do business with some countries than it is with others.

European Union regulations have dramatically changed the very nature of international trade. In terms of distribution, you are no longer allowed to sell exclusively in any specific market, you can’t be restricted, but your marketing activities can be. As far as agents are concerned, they actually have employment rights and you have to be very careful about how you appoint them. When it comes to international trade it would advisable to research very thoroughly before you signed anything.

It’s not just the business world which you’ll need to research when trading internationally, you must also understand local customs, cultures and etiquette too. One of the nicest things you can do is actually be observant of the business etiquette you’re looking at. For example if you were to spend a period of time working with the Japanese, you would learn they are not very keen on hard sell, you’d also learn they have a tendency to nod their head and say yes a lot as you’re talking, this doesn’t necessary mean they’re agreeing with you but that they understand what you.

Punctuality can also be a major area of importance with international trade, culturally we tend to vary in the way we treat our meetings, in the UK we like to be punctual and we try very hard to keep our meetings down to about an hour, if you went over to Italy, they’re not so punctual and it’s not an offence not to be punctual. In Germany it’s a huge offence to be late for a meeting, some Germans will not see you if you’re more than ten minutes late. These things need to be looked at and planned into any visit you make.

International trade can be a very complex but very rewarding business venture. As with all business ventures, thorough research and due diligence is essential. There are plenty of organisations out there which are designed to help you, whether it’s step-by-step assistance you need or just a general nudge in the right direction.