Global expansion can be chaotic and stressful, but that’s no reason to defer from taking your business international. With today’s highly competitive business environment, global expansion is becoming a vital piece of an organization’s growth strategy. Based on our experience and research, we’ve compiled a list of the top five global expansion strategies.
1) Keep a Light Footprint
Many companies are starting to hold off on infrastructure investments or hard costs until their foreign operation has matured. This is a great way to justify expenses and assure the company of a long-term ROI. However, don’t be too distant; human capital is priceless. Strong, local employees can evaluate market penetration plans on a day-to-day basis, identify untapped opportunities, and make adjustments whenever necessary. The key to hiring is to do so with a light and agile footprint, but balance it against risk mitigation. Hiring international contractors tends to be incredibly risky. Consider using an International PEO to employ globally if you are unwilling/unable to establish a legal entity in-country.
2) Adopt a Clear Product Strategy
- Develop a ‘leading edge’ product that encourages you to expand into new countries and regions
- Test your product in the target country to ensure success and determine if adjustments are needed. Note that if a product is thriving domestically, don’t assume that it will do even better overseas.
- Utilize associates in overseas markets to monitor new developments, maintain contacts with decision makers, and identify opportunities
3) Revenue Gain, Reinvest, Repeat
Choose an international market to introduce your standard product or service where competition is low. This will help free up extra revenue to reinvest in a product domestically and continue to gain market share. Take a lean approach to help you keep outside capital sources at bay and increase your equity. This is an incredibly important strategy when lending and funding are scarce.
4) Partner Up
Before starting your global expansion initiatives, make sure to protect yourself by partnering with best-in-class companies whose primary focus is to recognize warning signs and understand potential risks. Rely on partners—whether they are local to you or local to your target country. Whether you engage a local attorney to protect, a consultant to advise, or Velocity Global to manage your entire hiring and global expansion process, you will avoid serious pain points in the future.
5) Be Proactive, Not Reactive
Global expansion is a major token of any business plan. Establishing an entity/entering into another country is a long-term plan. Therefore, you should take a proactive approach when entering a new market. Do your research and make sure your entire team is aligned with this long-term strategic plan.
Go Global With an Experienced Partner at Your Side
If you’re ready to begin your global expansion journey, Velocity Global’s International PEO (Professional Employer Organization) solution can help you establish a presence in new international markets in as few as 48 hours. With capabilities in over 185 countries and a suite of global expansion services to assist you each step of the way, Velocity Global can help ensure your first step in widening your global footprint is a steady one. Ready to take the leap? Let’s make it happen.
Updated February 20, 2019