Despite the global economic slowdown due to COVID-19, a report by CFO Research found that 45% of respondents were either currently expanding their business globally or planning to do so within the next year. While the research pointed out that gaining greater market share was cited as the top reason for expanding internationally, companies were urged to expand their sales, diversify investments, and acquire talent from around the world. While companies are largely driven to expand their businesses overseas to generate more revenue, there are many benefits to going global, especially with the ongoing coronavirus crisis ushering in a new digital age and changing consumer trends.
Here are top 6 reasons to go global:
1. New Revenue Potential
By expanding your business operations into new overseas territories, you gain access to an entirely new audience, which means millions of potential new customers, and more sales.
2. More investment opportunities
Taking your business abroad can attract international investment. And you can benefit from opportunities that may not exist in your country. Many governments, for example, provide incentives for companies to do business in their home country.
3. Diversifying the company’s markets
You help create a safety net for your revenue stream by entering new markets. For example, if sales in your home market are declining, you are relying upon it to profit from sales in other regions.
4. Access to a Large Talent Pool
An international talent pool means you can localize your business to suit the needs of your new market. By employing a local workforce with local language skills and diverse professional backgrounds, your business will have the local expertise and experience needed to serve your new customer base.
5. Get ahead of the competition
If you can cater to an overseas audience, you can gain a competitive advantage by leaving a saturated market where your competitors don’t operate.
6. Global Brand Exposure
By successfully establishing your business internationally, you not only attract new customers but also nurture your company’s reputation and gain greater credibility.
What should a company consider before expanding abroad?
There are many factors to consider before expanding business internationally. As you set your vision on international expansion, also it is important to think about the attractiveness of the market. And whether or not your product is right for the country in which you want to sell. Other factors to be taken into account before starting international development are:
Affordability
Legal and compliance risks, including work and employment regulations
- Licensing
- Custom
- Shipping, Fulfillment & Returns
- Posture
- taxation requirements
- competitive advantage
- Cultural differences and language barrier
- economic and political stability
- customer service requirements
- buying habits
How to Choose a Country to Expand Internationally – Emerging Market Opportunities
By rebalancing exports to rapidly growing emerging markets, and away from underperforming developed markets. Such as the Eurozone, UK businesses can see significant trade-driven growth moving forward. Emerging markets account for about 59% of the total global GDP, and globalization is not just a trend, but an essential requirement for international expansion. Some top emerging market economies include China, India, Russia, Africa, and Brazil and out of China and India currently, position themselves as the top two emerging markets in the world.
Conclusion
The pandemic has changed the industry landscape altogether and new ideas are taking shape. New work and life behaviors have evolved during the pandemic and the global pause. But which can now work in favor of the entrepreneurs aspiring to take their business to the global level. Also, market pundits say that ‘the best time’ for entrepreneurs to grow their business is now!
