You studied and worked abroad when you were in college and you had the time of your life. You opened your business and it’s achieved better success than you anticipated in the United States. You want grow your venture, but should you head overseas once again? Yes, you should. According to Forbes magazine, selling overseas can become a very lucrative deal, you just need to plan smartly for it. Here are six things to take into account when it comes to entering the global business market.
1. New Markets
Entrepreneur magazine also chimes in on this topic, and its number one reason why you should consider expanding abroad is the additional marketplaces. Be honest, once you’ve saturated your niche in the U.S., there isn’t anywhere else nationally you can grow. You can offer new products or services, but you’ll still stagnate, and that is never a good idea. If you conduct extensive research of the international markets, you’re likely to find places overseas where your business will do well because there is a demand for what you offer, so don’t stick close to home. You can find additional markets abroad.
2. Market Dependency
Another important factor Entrepreneur brings out is your dependency upon the American markets. Even if you’ve expanded to Canada and Mexico, there is a point where you will cease to grow or the North American markets will stall. The more places you have to offer your product or service, the more sales opportunities you have. This extends your product or service life, which keeps the money flowing into your business and allows you to grow at a slower pace. Conservative growth is successful growth, as it allows for better planning and implementation of new products, services, and locations.
3. Your Dependency
Take reason number two a step further and think about market solvency in the U.S. Even during the 2007 and 2008 financial crises, some European markets weathered the storm, which made it easier for U.S. business with a presence in those markets to survive the Great Recession in the States and other affected places. It’s never wise to depend on one thing, no matter what that thing is. You can’t rely on just one friend all the time, nor can you always depend on one vehicle. This applies to business, too. If your business depends on success in one market only, what will you do when that market crashes?
4. Even Out Your Market
This segues into evening out your market presence. Perhaps you have a huge seasonal business in the States during the summer but that business tapers out in the winter. Perhaps your business would do well in the winter in other nations. Alongside riding any financial storm in any market throughout the world, the more global presence you have, the more able you are to handle profit and loss fluctuations. Conducting business internationally evens out your sales, which helps keeps you profitable during harder times. Demand might wane in one country but it might also increase in another.
5. Global Knowledge
Chris Sacca was a venture capitalist until his retirement in 2017, and he was a successful one at that. He helped companies such as Instagram, Twitter, and Uber expand, and part of how he did so was by tapping into global know-how and technology. Yes, the United States is a leader in many things, but Sacca knew that other nations also hold strong in certain industries, and he helped businesses take advantage of this strength. Sacca located opportunity no matter where it was, which is crucial to business expansion. Plus, that opportunity boosts you through the outside knowledge alone.
Finally, competing with foreign companies and winning gives you a stronger foothold in your niche. Competing with them in their territory is even better. When you battle foreign competitors on their own ground and win, you establish a global business presence that will take you to Fortune 500 status and beyond. The stronger your foothold in all locations, the more successful you will be. For example, Coca-Cola is a company that dominates the soft drink industry worldwide and one reason why is that it went overseas and conquered its competition on foreign soil.
Going global allows you to expand in ways you never thought possible. Venture capitalists and other financiers can help. When you balance your business domestically and overseas, you not only have an excuse and the opportunity to travel all over the world, you also protect your business against financial ruin for the reasons stated above. The more options you have to sell your product or service, the more ability you have to increase your profits and maintain your financial stability, which leads to a bonus reason: Financial stability generates more investor interest on the global markets.
You studied abroad in college and loved it, so why not plan to take your business abroad when the time is right. If you have big dreams for your company, you’ll need to open locations overseas to compete with the big guys. Don’t hold yourself or your profits back. Don’t set yourself up for ruin either by sticking to one market only. Global companies weather storms better, and that’s the bottom line.