With so much focus on how the web has divided people over the past two decades, it’s hard to keep track of how it has benefited businesses around the world. Business is no longer local, it’s global, and individuals looking to stand among the best entrepreneurs need to scale to get ahead. For instance, a video production company can help you broaden the reach of your business. Could it help you to consider expanding your business into international markets? Possibly.
Extended Market Outreach
The main benefit of expanding your business globally is pretty obvious: you can enter new markets and increase your reach. Did you know that 96% of your customers live elsewhere? Of course, you should, because that’s a huge expansion of your customer base. Growing overseas allows you to capture some of that 96% and increase your sales. There are about 170 million potential new customers in Europe alone, which will be one of the reasons why mega corporations are also setting up locations in global locations.
Diversification of Activities
As with financing, the more diversified your company’s operations are, the less risk you have to take. If a U.S. site fails, your successful overseas sites will protect you from declining profits, or vice versa. This protects you in the volatile market that drives business today. If you were based in Turkey today, you might be in trouble, but your China site can more than makeup for the losses of the current financial crisis in Turkey. But it’s not just about financial diversification. You can also diversify your products and services. If you do your market research, you might find a market for your jewelry that you just know isn’t popular in the United States. The more you can diversify your small business portfolio, the better, which illustrates why many businesses have gone global. International locations protect your business from losses.
Advantage in Competition
An international business allows your organization to grow, and the more you spread to the rest of the planet, the more customers you control, but it’s not just about getting the maximum number of customers. You also gain an advantage in your work processes, as you take advantage of innovations and technologies that are inaccessible in the United States. Imagine, for example, that you are a manufacturer – wouldn’t you benefit from the technology that Japan uses in its manufacturing processes? Given that Japan is a world leader in this area, you could argue (and win the argument) that you would.
In the United States, customers will be surprised by its global presence. They will observe a thriving business here and abroad and will be more inclined to request your product or service because a solid reputation fosters consumer confidence.
To expand your business means you have to invest further. But in global market, these investments are great opportunities. When you do business internationally, you gain access to investors abroad who may also be interested in financing your company. Some countries are shareholders and offer incentives to attract U.S. companies to their area; just be careful not to violate U.S. tax laws. Consider each incentive carefully and discuss it with a CPA if necessary.