In an increasingly globalized economy, global market expansion could be the next move for you and your organization. With advances in long-distance transportation, telecommunication, and more, economic globalization is breaking down the barriers between countries and making it easier to bring your business almost anywhere. In this blog, we’ll take a look at what it takes to expand into a global market, what you need, and how to find the right partners.
First, what is global market expansion?
Simply put, global market expansion happens when a successful business looks to enter overseas markets, by setting up shop in a new country. This can be incredibly important. The revenue that can potentially be generated is immense, and establishing a presence around the world can do huge things for your brand. Plus, a new country just might have the perfect market for you.
Advantages of global market expansion
The first advantage is obvious – global market expansion means that you don’t need to “put all your eggs in one basket,” so to speak. Instead of relying, for example, solely on business in the US, you can also branch out and sell to clients in India, Australia, Spain, and so on. This means that economic instability in one area won’t completely tank your business – any revenue lost can be made up elsewhere around the world.
Though this has become controversial, you can certainly slash expenses by operating abroad. Outsourcing can lower the costs of labor, materials, and so on.
However, it’s also possible that the talent that your business needs can be found overseas. Sometimes, the best workers are out there in the world, not just at home. One of the benefits of global expansion is being able to choose the best workers for the job, no matter where they come from.
There are also specific growth opportunities that might only exist overseas. It’s possible that a market in a foreign country is wide open for the taking in a way it’s not back at home. It doesn’t hurt to see what’s out there, at the very least.
What you need & what it takes
- Make sure you’re ready.
While this may seem simple, it’s certainly something you need to keep in mind. Before embarking on this journey, it’s good to have a realistic view of your own finances and the growth potential of your business. This will help you make sure you’re truly ready to move into a new market. Along with that, you should make sure that the customers in this new market exist, and that the demand for your product and/or service also exists. Make sure to educate yourself on the new country. It’s a big mistake to assume that everything that works well in your current area will also work in a new market. Finally, consider the financial impact of moving to a new area. Any big moves like this can cost a lot of money. Make sure you have a solid source of funding that you can draw from.
- Go lean into a new market
It can be a really good idea to enter a market with a lean approach. Simply put, this method allows you to “fail-fast,” and it’s that flexibility that will allow you to determine what works and what does not. Iterate on strategies and ideas until you have something that works. Don’t pump big money into infrastructure, labor, or other expenses too early in a new market.
Find the right partners
It can be hugely important to find the right International Business Development and Market Entry partner and possibly a Global PEO for your global market expansion. These consulting partners offer a lot of basic services that can take a lot of pressure off your back when you are considering a move into a new market. They handle things like local staffing, including the management of contracts, marketing, sales and other expenses, and also offer expertise and advice for your entry into a new region. To ease the transition, they take responsibility for potentially troublesome roadblocks like laws and bureaucracy in the area.
Of course, these are all things you could theoretically do on your own, but with these global consulting partners you’re getting years of experience and specific expertise in that area. You don’t want to slow your growth down to deal with things like payroll, HR, taxation, and maybe even a language barrier. It can be beneficial to have the experts do that work for you.
Global market expansion could be the logical next step for your business. If you take a good, hard look at your finances and do your research into a new market, then it could be a step that launches you into bigger prominence and huge returns.