Every business aims to grow. Otherwise, it won’t be able to survive. However, growth can be achieved in different forms. From widening the range of products and services on offer to entering new markets, including international ones.
Once established in their country of origin, every enterprise should consider whether global expansion is a good idea for their business.
As economies develop across the globe, there are more and more potential goldmines that spring up for growing businesses. So, what are the benefits that can only be found in a successful international expansion? Here are just five of them.
Defining the term
We’ll first try to define what global expansion means. Expansion is the natural trajectory of any successful business. Initially, this expansion tends to occur ‘locally’: The business will grow in its original location.
Over time, businesses will often explore expanding ‘nationally’: Expanding within their existing country. At a certain point, many businesses will look at expanding into other countries.
Even if it is simply an expansion into a neighboring country, this is known as ‘global’ or ‘international’ expansion.
Global talent acquisition
With new markets comes new talent and most companies have experienced problems hiring in their domestic markets in the past. On the other hand, hiring within international markets is the next step of business development.
Another benefit is that companies can employ multilingual employees, establish more business contacts, and acquire new perspectives.
Also, overseas hires can help to make sense of intricate cultural nuances and help to navigate the barriers to language and etiquette, which means they are the best way of gaining a first-hand understanding of a new market.
If the idea of hiring such a workforce may seem daunting, turning to experts who provide proven global contractor workforce solutions, could help you put your company on the international map.
Using international financial incentives
With developing markets trying to attract foreign businesses, there are opportunities for companies to receive financial incentives from governments for expanding business.
Typically, there is a reduction in corporation taxes or governments accept to pay part of the benefits for all employees over a certain period.
You need to do some research into what incentives (if any) are available in the country you’re interested in.
New sources of revenue
We’ve already established that growth can be achieved in different ways.
For example, introducing a product to an already saturated national market rarely brings good results, since there are already other well-known organizations trusted for that specific type of product, and making an impact with that kind of competition may take a lot of time and resources.
On the other hand, an international market may represent an easier opportunity to develop that new revenue stream.
When you evaluate a new market, you can find opportunities to diversify your product or service portfolio, and then adapt your business model accordingly to represent a new way of operating within that country.
This in itself could even make for a smoother and more cost-effective operational process.
Creating a better brand image
One more benefit of international business expansion is the ability to increase your credibility among a global audience. No truly successful company has achieved success without establishing a trustworthy relationship with a wide audience.
This helps expansion to be successful and secures the future of the company by guaranteeing that first-time buyers will become returning customers. However, for this credibility to be established, several conditions need to be met.
To begin with, a business needs to understand a market intuitively – this will grant unparalleled local knowledge. Next, it needs to create a market strategy that communicates its brand to a new audience.
Finally, it should provide access to prospective customers. This means a strong web presence, good customer service, and networking. All of these things, when combined, guarantee a stronger basis for future success.
Beating the competition
Where success in a domestic setting will set you apart from any competition, success on the global stage only widens the gap.
The international business expansion lets you develop new relationships, gain new customers, and corner markets and develop your brand recognition. On top of that, as you’ll be seen as a credible and successful company, you’ll be more attractive to new talent looking for job opportunities.
While some businesses expand internationally only for a limited period, there is no reason why a company can’t ensure that its expansion becomes long-term. That will set it apart even more from the competition.
These are just five of many reasons why international expansion might be the right thing for your company.
Needless to say, there are other reasons, perhaps equally valid, but these five are probably the most compelling arguments in favor of taking the plunge.
If you make your moves carefully and base your decisions on solid facts and calculations, your company could get a much-needed boost in this difficult time for the global economy, thus ensuring its future for the years to come.