Global expansion is no longer a trend – it is necessary for companies that want to remain competitive. One lesson that the coronavirus pandemic has taught us is that having a business that focuses on one region or market could be detrimental. There are some markets that have been left intact, and if businesses had expanded to these regions, many of them would be better off than they are now. Since the pandemic is here with us, it is important to look ahead and see how global expansion could help your business grow post-COVID-19.
Access to New Markets
Even with generous estimates, it is true that upwards of 95% of the global population likely lives outside your country. For companies that want to reach this other 95%, the solution is obvious: global expansion. Global expansion will not only give you access to these markets, but it could also give you an opportunity to diversify your products and services provisions to better cater to these new markets.
Business growth is not always about customer acquisition and increasing revenue; it is sometimes about asset acquisition and diversification. Diversifying this way helps a business protect itself from shocks and unexpected events in one region where they have a strong market presence. A good example is where a company uses its growth in one region to offset the effects of negative market forces in another region.
Access to a Global Talent Pool
Companies are built and driven by skilled employees. Expanding globally gives your company access to a bigger pool from which to choose talent. Doing this affords your business several advantages, including increased productivity, diverse backgrounds, which encourages new ways to solve problems, advanced regional understanding, and so much more.
Take Advantage of Business Incentives
Many countries offer incentives to international businesses that want to expand there. This is because these businesses bring revenue and employment opportunities. A common incentive is low tax rates. Many companies establish international offices and businesses for low tax rates, as this helps them lower their overall tax rate.
If you are looking to establish your business in countries that have lots of incentives, talk to GlobalPEO. GlobalPEO works with businesses to help them set up and establish a regional presence in over 160 countries. They handle everything for you and ensure you are up and running in a few days, as opposed to weeks.
Remaining competitive is one of the biggest drivers of business growth. Expanding internationally gives you a competitive edge over your competition. This could be by expanding into areas they are not in, which gives you a massive first mover’s advantage. Doing this allows you to build your brand in that market before any other similar business comes to town.
Expanding globally also gives companies access to new industry ecosystems and technologies, both of which can give a business significant advantages and help it improve its operations.
A global business operation helps build brand recognition, which helps with future business endeavors. These include contract negotiations, additional expansion, or even new marketing campaigns.
New Investment Opportunities
Companies consider expanding internationally because doing this opens up opportunities for foreign investment. This is done through forging new relationships by operating in a bigger market and developing new resources.
Some multinational companies also get access to investment opportunities that are not usually available in their home countries.
Faster Business Growth
Entering new markets introduces your products and services to those markets. This allows for faster growth of your business through increased revenue and access to a new market.
Provide Better Customer Service
If you want your business to grow, you have to provide stellar customer service. Sometimes, doing this online is not the best option especially for highly technical and hands-on products. If you want to provide better services, you have to establish a new business presence in the markets you are operating in. This global presence increases sales as people know where they can get help if they have any problems with your products or services, which incentivizes them to buy from you.
Lower Operational Costs
There are lots of different markets where the operating costs are lower. Some of the areas you could save money include hiring cheaper talent, getting cheaper supplies, and cheaper office space. Local tax systems also play an important role in helping you lower your operation costs, which is why countries like Ireland and the Netherlands attract so many companies. These savings can then be reinvested into other areas of the business, thereby helping with your business’s growth.
Diversification of Risk
Businesses find it hard to grow in markets that are unstable, either economically or politically. Global expansion helps businesses diversify their risks, and this is why businesses establish operations in different countries that are stable.
If you want your business to emerge stronger after the coronavirus pandemic is over, you have to start looking for opportunities for growth right now. One of these opportunities is expanding globally. Doing so affords your business so many advantages, and it should be part of your business’s growth strategy.
HR Future Staff Writer, United Kingdom.