Small to midsize companies need to think global and consider international expansion to reach new heights. Today’s business environment is highly competitive, and global expansion is quickly becoming a vital piece of an organization’s growth strategy.
There are many benefits associated with international expansion that reap high rewards with little risks if you use Foreign Subsidiary as a Service (FSaaS). This option allows business owners to focus on their success while reducing headaches like time to hire.
Consider the following benefits and principles when determining if international expansion is the right choice for your business.
Access to a Unique Talent Pool
Global expansion opens the door to top talent that is not available in the United States. Employees around the world have various skill sets that may be perfect for your business. Plus, if you’re selling a product or service, a local salesperson is an effective way to produce new leads and increase revenue streams.
New Market Means New Customers
If you’re successful in the States or experience weak sales, global expansion can help. A well-performing business plan may soar in the new country, leading to significant results, but it’s also the perfect opportunity to give your method a makeover.
Entering a new market opens the door to a unique customer base with different wants and needs. Do your research and develop a regional business plan that stays cohesive with your corporate strategy. Forbes suggests defining short, mid and long-term strategies to set reasonable goals while tracking your progress. After your determined time allotment, develop a cost-to-benefit analysis and reevaluate.
Access to an International Partner
Do not consider international expansion without developing a solid relationship with a local, trusted partner. Strengthen that relationship by building a board that can assess that lead’s decisions and keeps your business’ interests at the top of the list.
Look for an international partner with an extensive network. A big reach positions them as a trustworthy individual with an ability to build strong relationships with many people. Your partner may end up developing new business opportunities if you’re not readily available to travel overseas, which makes their network incredibly valuable.
In addition to a partner and board in-country, develop relationships with local legal providers, human resource leaders, benefits brokers, and recruiters.
Think Global to Create an Edge on the Competition
As previously reported by Velocity Global, 45% of middle market companies make more than half of their revenue overseas. International growth is part of many companies growth strategies and viewed as a stepping stone, not an option. The research said that 56% of middle market companies include global expansion into the growth strategy.
To stay in the game, companies need to seriously consider expanding internationally. It presents growth opportunities by expanding options for talent, customers, and creating cost-savings for imports and manufacturing.
We hope this article helped you understand the benefits associated with international expansion. If going global is part of your company’s strategy, Velocity Global’s FSaaS (Foreign Subsidiary as a Service) solution can help you achieve or avoid almost all the steps needed to get you in-country in a matter of days. Let us know if you have any questions, we are always happy to help!