8 REASONS TO EXPAND INTERNATIONALLY IN 2020
Have you been considering taking your business global?
If going global has been in your business plans for some time, here’s 8 reasons to start preparing for international expansion in 2020.
INCREASE REVENUE POTENTIAL
When businesses have exhausted growth opportunities at home, they turn to global expansion to help grow their business. For many companies, international expansion offers a chance to explore markets and gain access to millions of customers, thus increasing sales.
ENTRY TO NEW MARKETS
Once your company has been successful in your home country, it’s time to look at markets overseas. However, before you enter the new market, it’s vital to do research. Whether it’s looking at emerging markets in South America, advanced technology hubs in Asia or exploring developed markets in Europe, each region offers plenty of opportunities for expansion success.
NEW CUSTOMER BASE
Another benefit of expanding abroad is that it gives the opportunity to not only sell your current product or service to a new customer base but also to invest and introduce new products/services. With a much broader customer base, you can generate more business and increase sales.
EXPANSION ALLOWS YOU TO DIVERSIFY
Keeping your business in the home market can limit potential for profit. One of the downsides companies face when they operate in only one country is the exposure to market changes. Taking your business international allows you the opportunity to diversify your markets, so your revenue is more stable. If your domestic market is slowing down, having the advantage of a global market will help cushion the company during slower economic times.
GREATER ACCESS TO TALENT
Another excellent benefit of taking your business global is that you get access to a much greater pool of talent. Hiring international talent can bring many advantages including advanced language skills and diverse educational backgrounds. In addition, expanding globally also allows companies to employ local workers who have the expertise to communicate and serve your clients (within the same time zone) without any complications.
GAIN COMPETITIVE ADVANTAGE
Go to market before your competitors do. Expanding abroad allows you to get out of a saturated market. Expanding abroad gives you access to new customers and in a market where your competitors do not operate.
IMPROVE YOUR COMPANY'S REPUTATION
One of the reasons why businesses expand globally is to be able to provide a reliable service to their international clients. A good global reputation will attract new customers. Expanding abroad allows a company to build name brand recognition and establish credibility internationally.
By setting up in a new country, a business will be able to lower their operational costs and save money. Many companies have found its advantageous to move some of their manufacturing operations to other markets due to cheaper labour costs and more affordable talent.
When considering expanding internationally, many businesses think that the only way to achieve their global goal is by setting up their own entity in a foreign country. It is true that if a company is building infrastructure and has set long-term plans for the country, then establishing an entity may well be the best solution.
However, setting up an entity can take time and if a company is looking for a more cost-effective and faster way to expand their business and hire workers globally, then an Employer of Record (EOR) solution could be considered. With EOR, you do not need to set up an entity, and your workers will be employed legally and compliantly in a new country within a matter of days.
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