Granted, the story you are about to see is probably not the most gripping piece of fiction you will ever read...or even the best you will read today, for that matter. Still, it is a tremendous little parabole that neatly illustrates the benefits of international expansion of your business. Let's take a closer look and use this example to see what we can learn from it.
A man discovers a new island. His eyes are ablaze with excitement. He explores this mysterious new territory and discovers a new fruit. To his amazement, it tastes delicious. Nothing can compare to it. So he fills his bag with as many as he can and starts selling them back home. Pretty soon, the whole town is buzzing with the news of this miraculous new treat. Word spreads, new orders start coming in, and business is going great. After a certain period of time, it is still going great, not better than before, but not worse either. Then, an economic recession hits his hometown hard. Exotic fruits are the first things to be wiped off the shopping lists. Things are going a little less great now. And only weeks ago, it seemed like he had hit a gold mine.
The Grass is Greener on the Other Side
This may not be entirely true, but there is certainly more of it to explore. You have conquered the local market, and it may seem like things are going well. It can be a trap. The development of your business is a never-ending process. If you are offering a high-quality product or service, it would be wise to use this to your advantage. How? By offering it to a broader number of people. The market you are currently in provides a limited consumer base. Through international expansion, you could expose your business to many new benefits. It offers the chance to enter new markets and explore new possibilities. The global expansion opens your business to a myriad of new opportunities.
Don't Put All Your Eggs in One Basket
International expansion of your business offers another benefit that is closely linked to the previous one. By entering new markets, you avoid the problem our protagonist had. If one market suffers an unexpected economic fall, you have other markets to fall back on. Do not underestimate the ability to weather the storm. The global expansion helps mitigate the risks inherent in relying too heavily on only one source of revenue.
Grow to Reduce- International expansion of your business can lower costs
Entering a new market can bring surprising savings when it comes to operating expenses. Costs of labor and materials vary from market to market. It could mean that you could be looking at additional savings by choosing a good region to start working in.
Expanding Your Business Internationally Offers Benefits in the Form of New Resources
New markets mean new customers. A more diverse customer base eases the pressure when a particular market suffers an economic shock. Going global offers more subtle advantages too. Let's take a closer look:
• New talent pools- It is not just new consumers you are gaining access to but also employees. A more diversified work environment has its benefits. There is a constant exchange of ideas and fresh perspectives. These new teams must be well organized and effective.
• Investment opportunities- A lot of countries can offer incentives for firms to invest in their region. Tax advantages are not that uncommon. It is vital to research the new markets you want to expand into and see what benefits they offer.
• Diversify your portfolio- You have a great product, but you want to explore new sources of revenue. You have a new one lined up, but there is already a similar one offered locally. This product is well-known, and it will take a lot of time and resources to try and grab a foothold in the current market. Expanding your business internationally allows you to introduce your new product to a market where this need has not yet been met.
• Brand- Through global expansion, you also nurture your company's reputation. You reach a wider pool of customers, and, as a result, your brand becomes more recognizable.
• Beat the Competition- See, the fantastic thing about strengthening your brand is that it has an unexpected additional effect. It will help you gain that much-needed edge over your competitors in the local market as well.
International Expansion Means Moving to New Locations
Expanding globally can offer your business a lot of benefits. It is also something that needs to be considered and planned carefully. What market to enter? What product to offer? And which country provides the best incentives? All of this is important. On a more practical level, global expansion invariably means office relocation.
Offices need restructuring and what this often translates to is that people, desks, and office supplies need to move. Fortunately, you are not alone here as you can hire movers to help you with your office relocation. By seeking the help of experienced professionals, you can focus on expanding your business and ensure there are no obstructions to your operations.
If You're Not Growing, You're Not Doing It Right
There is a strong belief among many companies that aim to be successful that long-term growth can only be achieved through international expansion. Recent reports suggest that a large number of companies create nearly half of their revenue abroad. 'Staying local' is just one of the mistakes entrepreneurs can make. Always think about how to improve your company.
Looking at all the benefits international expansion of your business can bestow upon your company, it's not hard to understand this train of thought. Do you have a fantastic new fruit that is worth its weight in gold? The worst thing you can do is keep it to yourself. Why not share it with the rest of the world? Purely for the satisfaction that it would bring others. The financial benefits are merely a lucky and welcome coincidence after all!
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