Go Global Now. …Yes, Right Now.
Foreign markets can be big revenue drivers for business expansion. So why is it that far too many people can’t be bothered?
Why don’t people extend their business beyond their own national borders?
There are two main reasons:
Fear of the unknown
Lack of experience internationally
Despite these two concerns many of the most successful companies in the world know that when there is demand for their products and services outside of the local market they really need to step out and go international.
In the USA companies regularly expand across state borders and many work nationally, while never considering the excellent reasons for expanding beyond the borders of the USA. In the European Union the greater familiarity in dealing with cultural and language barriers gives more companies the confidence to expand beyond the business’ country of origin. Latin American and Asian trading zones also help support trade beyond borders.
When companies are in two or more countries, they join the ranks of the multinational corporations (MNC’s) and use proven methods to account for each of the following realities of international trade:
New Cultural Norms
Foreign Regulatory Standards
Currency and Exchange Rules
Varied Legal and Tax Processes
Despite the new issues to manage, market leaders persist in expanding internationally.
Why do market leaders go global?
The simple answer is that there is a demand for their products in foreign markets that will allow them to:
Leverage Economies of Scale
Maximize the Value Chain
Lower Average Production Costs
Plus it can help lower long term risk to the business by having different revenue and supplier markets, while enhancing revenues.
The Small Business Administration actually published a recent article encouraging businesses to go global for several great reasons, since US companies that export:
Grow Faster
Are 8.5% Less Likely to Fail
Have a Reduced Dependance on their home market and seasonality.
It’s time to start working on your plan to grow internationally today.
