Despite the travel restrictions that result from Covid-19, an analysis that the CFO conducted discovered that 45% of respondents were planning to expand their business into international markets.
The study found that capturing a bigger percentage of market shares was the most important motive for expanding internationally. Businesses also desired to increase their business, diversify investment portfolios, and recruit talents from all over the world.
Although companies are generally enticed to begin international expansions to increase income, there are many advantages to changing your business model and moving to an international one.
Not just because the coronavirus epidemic has opened an Era of Digital Technology that makes the process of connecting with potential clients in a foreign country even more simple.
What are the advantages of expanding internationally?
Have a look at our top six reasons to be global:
1. New revenue opportunities: By expanding your business model into new international territories, you get access to an entire new market. This means millions of potential customers, and even more revenue.
2. An increased range of investment options: Bringing your business overseas could bring international investors and gain opportunities that do not be available elsewhere in the UK. Many governments provide incentives to businesses to conduct business within their own country.
3. Diversify: The markets of your business Help create an extra security net to protect your revenue stream by expanding into new markets. For instance, if your sales are falling in your home market, you can draw profits from sales in other areas.
4. Access to a wider talent pool: having an international talent pool means that you can tailor your company to meet the new market's requirements.
By employing local workers that speak native English and have different experiences, you can ensure that your company will benefit from the local expertise and knowledge required to meet the needs of the new client base.
5. Beat the competition: If you have the ability to serve an international audience and gain an advantage in competition in a market that is saturated in a location where competitors do not have a presence.
6. International brand exposure: by having your business established internationally and establishing your brand internationally, you will not only draw new customers but also enhance the reputation of your business and earn more credibility.
What factors should companies consider before expanding abroad?
There are various things to think about when planning for international expansions. It is important to think about the market's appeal, and whether your product is suitable for the market you wish to sell it in.
Other considerations to take into account before embarking on international expansion include:
Affordability
Risks of compliance and legality, including employment and task-related regulations
Licencing
Customs
Returns, shipping and fulfillment
Currency
Taxation obligations
Competitive advantage
Language barriers and cultural differences
Stability of the economy and politics
Expectations of customer service
Shopping habits
For more details, take a look at our top 3 items to think about when you go global.
What country should you choose that can expand internationally?
The new market Moving towards rapidly growing emerging markets and away from more sluggish developed markets, such as the Eurozone, UK businesses could expect significant trade-driven growth in the future.
Emerging markets make up about 34% of world GDP (gross domestic product), and globalization is not just an idea but is essential to expanding international trade.
The most prominent emerging market economies are China, India, Russia and Brazil. China and India are both hugely capable of potential in international business, so we've outlined the factors that make them attractive to businesses that want to expand internationally.
China
China has seen rapid growth over the last several years, breaking down the boundaries of a closed, centrally-planned economy to become an international manufacturing, exporting and consumption hub.
The ability to operate in this vast and intricate market is now necessary for numerous businesses that sell and buy internationally.
Furthermore, the transition of China's economy from growth driven by trade to one driven by consumers could create substantial opportunities for a variety of exporting industries in which the UK is a leader, like financial services and luxury goods.
Expand your reach to the world by partnering with WorldFirst
Through WorldFirst's WorldFirst International Collections Account, you can transform your modest company into a global one.
