Running a business is stressful enough without considering international expansion, so the advantages of doing business internationally really have to outweigh the cons for you to pull the trigger.
In this article, we will give you some points on what the pros are so you can see if they outweigh the cons you are facing.
From boosting the value of your business to tapping into the potential of a million dollar-sized market, there are tons of benefits to expanding internationally for you to contemplate.
Let’s review some of them in detail here!
1. Increase the Strength of Your Company
Just focusing on doing business in your home market isn’t always the smartest move. If there are issues in your domestic market, like a recession, your business may take a big hit. When you expand your business internationally, you can diversify your risk from local economic issues.
Instead of putting all your eggs in one basket, put them in two or more; that way, if something bad does happen in your domestic market, you might be able to make up for it in foreign markets.
2. Gain Access to International Talent
Intelligent, talented people aren’t just in your home country; they’re all over the world! Why limit yourself to the talent pool in your backyard when the world is your oyster. One of the advantages of doing business internationally is hiring people from many countries.
For example, if you decide to expand into Brazil, you can hire Brazilians who know their local market and have so much to offer in your expansion efforts.
3. Explore Untapped Markets
Consumers outside the U.S represent 3/4ths of the world’s purchasing power. Why should you stick to one market when there are so many opportunities abroad?
Untapped markets mean that no one has met the demand of consumers in that market.
If you are the first to satisfy that demand, then your consumers will think of your company when it comes to that product or service they need.
Even when other companies decide to get in on the action, you were the first, and consumers will remember that. Being first means you can attain higher brand awareness. This will eventually lead to more profit for your business!
4. Boost the Value of Your Business
One of the best advantages of entering a foreign market is that it increases the value of your business. Should you ever want to sell it, all that hard work of doing international business on the front end pays off.
If you stay domestic and end up selling your company, then you’ll have to settle for a smaller paycheck!
5. Expand Your Business’ Visibility
If you stick to one country, they will be the only market that knows you. Doing business internationally is a great way to build up your reputation in a global market. If you are successful in one country, your positive reputation can spread to businesses in surrounding countries.
For instance, if you break into the Argentinian market successfully, you are more likely to have success in neighboring countries like Chile. Your visibility across different regions can increase with the right market penetration plan in one country of a specific region.
6. Make the Most of Exchange Rates
Isn’t it great when you travel to another country and see your dollar go farther?
Depending on the country you expand to, your home currency might be stronger than the currency in the market you are trying to enter.
This means you get more for your money when investing and setting up operations in the new country, which allows you to take less of a risk when testing your idea in the foreign territories.
7. Learn About New Cultures
Mexico. Brazil. France. China. Who doesn’t like traveling and learning about other cultures?
One of the advantages of doing business internationally is the opportunity to explore new cultures. You can learn a new language and learn about the customs and traditions of the country.
Not only do you learn about others, but as you hire employees in the foreign market, your company becomes more multicultural. Hiring people from various countries and backgrounds teaches others how to work with each other and results in a more tolerant and accepting work environment.
Excited to do Business Internationally?
Do you know any other advantages of doing business internationally? Perhaps you know some cons to consider as well? Let us know in the comments section below.
Tackling foreign markets is an exciting time for any business owner. Contact us at email@example.com to work with experiences market entry strategists who will help you succeed in international markets.