International business expansion is a big step for any company, and countless businesses have struggled to do it successfully. We all know the risks associated with international expansion. But what are some of the main benefits of taking your business global?
Here are some of the most essential aspects you can benefit from.
New Revenue Opportunities
This is perhaps the most apparent benefit of expanding your business internationally – new revenue opportunities.
Imagine you control 100% of your home market, where do you go from there if you want to increase revenue?
Of course, it’s not likely you control 100% of your home market, but you might find that it’s difficult to significantly improve your market share. Say you setup company in Singapore though, then you’ve immediately opened yourself up to a market of over 5 million people.
International expansion is a quick way to open yourself up to new revenue opportunities.
Not only does international expansion open your business up to new revenue opportunities, but it also opens up other talent pools.
Countries structure their economies in very different ways, which means the job market looks very different in say Thailand than it does in the USA. When you expand into a foreign country, you may find a very different talent pool with a wide selection of people whose skills you need.
You might even find that the workforce in your target country is more skilled in areas that are important for your business than in your home country.
Incorporating Cultural Elements
When you open a business in a foreign country, it allows you to see that culture up close. Within that culture and business culture you might find elements that you wish to incorporate into your business at home.
For example, in the 1980s, the world marveled at the production of Japanese factories at companies like Toyota. With US factories lagging in many key metrics, teams were sent out to discover the secrets behind the Japanese factories’ success.
However, if you’re already embedded in that country, then you’re going to be able to pick up those cultural elements very quickly and implement them in your home market.
If your business is reliant on a few key markets, then you’re really going to feel it if one of those markets suffers a significant drop for some reason.
When you expand into international markets, you’re less reliant on one single market and more protected against significant market changes.
If a natural disaster was to occur in one of your primary markets and your sales dropped off dramatically, at least you would be able to rely on some of your other markets to pull you through.
Foreign Investment Opportunities
When you establish your brand in a foreign market, it’s going to substantially increase your exposure in that country and make your business a more attractive proposition.
For people in that country who are looking to invest, this makes your company a much better option for foreign investment.