During times of general uncertainty, going global with your business may be the last thing on your mind. Company leaders tend to find solace in what they know if they feel unsettled, which leaves opportunities to snag competitive advantages right at your fingertips.
There are ways to avoid risks that don’t involve throwing your global strategy out the window. These international growth methods include Employer of Record (EOR) services, also known as International PEO.
An EOR allows you to manage day-to-day operations (such as hiring employees and selling services) without the risks associated with a full commitment in-country. Essentially, you can run a compliant business overseas without investing in hard assets.
Despite our volatile business climate, now is the perfect time to take the leap and expand your business into an international market. We’ll tell you why below.
Going Global Now – Reason 1: Positive US GDP
Due to pending changes in the US administration, there were plenty of unknowns regarding the state of the US economy. Though we’re just getting started, Q4 of 2016 rounded out on a positive note with US GDP increasing 1.9%. Compared to the 3.5% growth in Q3, the final quarter of the year was not as strong, but positive growth is still a good sign.
As the US economy continues to sustain itself, your domestic operations will only benefit from going global. Even if your local operations take a dip, studies show that companies who expand overseas see compounding revenue growth that can actually make up for any losses from US operations.
Going Global Now – Reason 2: Untapped Consumer Base
According to a report by the U.S. Chamber of Commerce, 95% of consumers live outside of the US. As a result, exports of goods and services from the States is incredibly necessary. The Department of Commerce’s International Trade Commission states that in 2011, American exports of both goods and services totaled $2.1 trillion.
Your business can take advantage of the high demand of goods and services outside of the US by setting up operations in prosperous markets. Do your due diligence and find markets in which you can compete on a high level. Then, use an agile international expansion method such as Foreign Subsidiary as a Service (FSaaS) to enter the market without a heavy commitment.
When you work with a local sales team to sell your products or services in the untapped market, you can increase revenue and continue going global in new markets.
Going Global Now – Reason 3: Joint Ventures Lead to New Possibilities
Going global in uncertain times can lead to great partnerships. Times of uncertainty have a funny way of bringing people together. Consider potential partnerships, strategic alliances, or joint ventures that will benefit your business when entering an international market.
Other companies may be more receptive to joint ventures to ensure a sustainable business and support. International partnerships can lead to great opportunities for not only your bottom line, but also your company’s culture.
Overall, when going global with your business, keep a light footprint. Your company can exceed the performance of your competitors by limiting distractions, monitoring costs, and reducing dependence on singular markets. Diversification is key to a successful growth strategy, which is why we highly recommend going global now.
It’s our goal to help teams successfully take their business overseas. We build a compliant, prepared plan for your organization. We’re a trusted advisor throughout your global journey. Contact us today to talk about your global strategy!