About one-quarter of all global production is exported to other countries. This is more than 4,000 times higher than it was a century ago.
The world has become a global marketplace. If you’re only operating on a national level, then you’re missing out on an enormous piece of the pie.
But moving from a domestic to an international business model is a big step to make. You may have concerns that it’s more trouble than it’s worth.
So read on as we take a look at five key benefits of international expansion.
Table of Contents
1. New Sources of Revenue
The most obvious benefit of expanding internationally is the new markets that you open yourself up to.
In terms of pure population, 95% of consumers live outside of the US. Which means you are severely limiting your potential market if you’re only selling domestically.
In reality, you won’t be selling to the vast majority of those consumers. But the more countries in which you operate, the more potential customers you will have.
2. Keep Ahead of the Competition
If you’re one of the first to go international in your sector, then you gain a distinct competitive advantage.
Expanding into markets where your rivals don’t yet play means you have very little competition and can establish your brand before anyone else arrives. It also gives you access to opportunities that your competitors just don’t have, such as our next benefit.
3. Foreign Investment
Foreign investment is a rapidly growing field.
And it’s always far less of a risk when you have a greater understanding of the locale where you’re planning to invest. If you already do business outside the US, then you will have first-hand knowledge the customs, business practices, and marketplace.
This gives you a much better chance of making a successful investment.
4. A Wider Pool of Talent
Any business is only as strong as its employees.
And the same statistic holds as true for potential staff as it does for consumers: 95% of them live and work outside the US. So if you’re looking for the very best people to help your business grow, then going international gives you a far wider choice.
There is also a great opportunity to hire from emerging markets, which can lead to serious savings.
5. Prestige
If a potential customer is comparing two competitors, which is going to look better? The domestic company, or the one that has an international reach?
Reaching success as an international business shows you have the skills to overcome complex challenges. And that means your company is going to be thought of more highly.
If you have company registration in Malaysia, for example, your reputation as a business will be enhanced both at home and abroad.
Are You Considering International Expansion?
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