It’s true that there are challenges that come with global expansion. However, technology is making the world a smaller place. Adopting a global business strategy is about staying relevant just as it is about lower costs per unit and higher sales.
As a business expert and consultant, Stan Bril of Feasterville, Pennsylvania, notices that many businesses are poised for global expansion if they had the proper mindset.
IMAGE: PEXELS
Brand Awareness In More Places
A business that has had either success or failure in their current market can increase brand trust on a worldwide scale. A brand that dominates a local market should expand for obvious reasons.
Less obvious are the brands that cannot get ahead of the competition locally, even though they’ve got a great product/service. Many businesses have successfully crossed borders and oceans to generate international brand awareness instead.
Product Development
More markets mean more product rollouts, says Stan. Every market will have its own set of problems and needs. This will bring a new level of maturity to a company’s product development. The iteration of new products across multiple markets alone can drastically improve that brand’s ability to put out more competitive and functional solutions for more people.
Stan Explains Diversification
As is the nature in business, while some markets experience downturn, others are growing. Businesses with a global strategy are not dependent on any one market’s financial stability. Not only that, if one product tanks in a county, it may in fact be a great success in another. Global businesses have many more options to maintain steady revenues and return on investment.
More Prospects
An immediate influx of new customers is perhaps the most obvious reason that a brand expands globally. Within a single market, leads dry up faster. Crossing a border instantly opens up the door for thousands more prospective clients. According to Stan Bril, a higher lead volume naturally leads to more sales. The demand then allows companies to buy materials and manufacture products in greater volumes, resulting in lower costs per unit.
Greater Diversity In Perspective
Establishing footholds in new markets means working with new sets of people. These include new employees, partners, and customers. As a business develops their global business strategy, leaders are forced out of their comfort zones. This is also true for managers and employees working alongside foreign teammates.
This is diversity in a nutshell, and the effect that diversity has on a business is sensational. It means more ideas and greater innovation. These benefits do not restrict themselves to any one market. A company is made more efficient and proficient by the many new perspectives. Naturally, companies that ignore these new perspectives will not last long in any new market.
Access To More Top Talent
Expanding globally often means setting up shop in new countries, as well, says Stan. The talent pool widens, and now that employer has access to skillsets that he/she may not have enjoyed in their home location. For those companies sponsoring work visas, a global presence saves them the hassle of red tape and administrative costs on top of employee salary and benefits.
As a side note, businesses planning a move overseas frequently start by bringing workers from that country as part of their transition plan. This means that they intentionally take on the burden of sponsoring work visas on a temporary basis.
Tax Savings
For some industries, the tax burden in the United States is far greater than doing business overseas. This could be true of international employers or of companies doing business overseas while remaining based in the United States. Stan encourages business owners to examine any possible tax benefits that might be available by expanding globally.
Technology Demands It
The reality is that many brands have already lost ground to competitors that have developed their own global business strategy. Technology is bringing various people groups together. Even streamed media has begun exposing today’s children to different cultures around the world.
For business owners, they should take these changes in civilization as a signal to examine the profitability of a global business strategy. With modern-day communication channels, virtual job boards/freelancer sites, and more, companies are in a place to do more for wider audiences than they were just a few decades ago.
With over 15 years of leadership experience in the lending industry, Stan Bril is CEO of MCG based in Feasterville Trevose, PA. In his role at MCG, he works with small business owners seeking to scale their businesses. As such, Stan guides his clients in creating business plans, financial statements, budgets, and more.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.
COMMENTS