Globalization is not simply a trend: it’s now a necessity for companies to remain competitive in their space. For companies that want to pursue international expansion, there are many opportunities to take advantage of. These include gaining access to new markets, growing teams, and increasing revenue.
1. Establish New Revenue Streams
According to a recent report, 45% of middle market companies make more than half of their revenue overseas. If your business is doing well domestically, you’re already a step ahead to succeed globally. With a new customer base, you can identify and create unique opportunities in local markets for your business to fill in the gaps. Just be sure to consider the cultural factors before expanding into a new market.
2. Gain a Competitive Advantage
Thinking globally is becoming less of an option and more of a requirement when it comes to outpacing the competition. In fact, 56% of middle market companies include international expansion into their growth strategies. Taking your business international presents growth opportunities by expanding options for talent, customers, and creating cost-savings for imports and manufacturing.
3. Access a Global Talent Pool
Whether you run a startup or a 50-year-old enterprise, finding skilled workers who can help drive your company is crucial. Expanding globally gives your company the opportunity to access high-quality talent from around the world. Hiring global employees can provide unique insights into local cultural norms. Additionally, many workers from emerging markets may be less expensive than workers from Western countries.
4. Find New Global Customers
When you have been in a local market for a while, it can be tough to find new customers. They are used to your product and your competitors, and new sales can be a battle hard-fought.
An international expansion opens new doors and gives you access to a whole new set of customers who have never seen your product or service before. But sourcing global talent can be an overwhelming task, even for seasoned internal recruiters. A global talent acquisition partner can help alleviate some of these challenges.
5. Utilize Government Incentives
Many countries around the world offer incentives for companies looking to expand their operations internationally, as it brings new business to their countries. One common incentive is lowered taxes after deductions. Because of this, many U.S. businesses take the opportunity to expand overseas in order to lower their overall income tax rates.
Include International Expansion in Your Strategy
The reasons above are five great benefits that your business could experience when you think global and expand internationally. Once your team is aligned on your global initiatives, you are ready to start developing a strategic plan.
Be sure to incorporate the overall vision for your business in your global expansion strategy, and address the goals you want to achieve by expanding into each new foreign market. Working with a partner like Velocity Global that provides an International PEO solution can help you streamline the process and expand overseas today.