Worldwide surveys indicate that businesses with a global presence report better results than those restricted to the domestic market.
This research shows evidence that we are, indeed, moving toward a global economy, and that small businesses and large corporations alike should expand internationally to seize the most business opportunities, such as:
According to the International Trade Administration, two-thirds of the world’s purchasing power is located outside of the United States. And while many small businesses are too busy to consider exporting or establishing a presence overseas, it can actually make their sales grow faster and they would gain a competitive advantage over similar companies that either have not tapped into their businesses’ international potential or have already expanded globally.
In fact, 95% of the world’s consumers live outside the United States. Many companies limit their sales and services to a local area, which means that the majority of their potential market remains untapped. To increase sales, begin by conducting international research on your product or service to create a global strategy and discover the best way to market it in specific regions. Choose the region that shows the most promise for your industry, which can be determined examining the success of similar companies already established in that country.
It may cost a little extra money to create an infrastructure overseas, but if planned well, you can expand globally without overpaying.
In many countries outside of the U.S., it is actually cheaper to own and operate a business. This is made especially apparent by the growing number of manufacturing-based companies across Asia where both real estate and labor are significantly less expensive.
For more savings, you can temporarily rent meeting rooms and virtual office space internationally to avoid the commitment and costs of owning a physical location. This is a viable option for most industries, especially if you are concerned with the risks typically associated with expanding to international locations. This way, you can establish a global presence by having a virtual office address and a professional space in which to conduct business anywhere in the world for far less than a lease, and even less of the risk. Virtual office solutions also give you the flexibility to occupy multiple international locations at once, which may be a less financially viable option if you were purchasing or leasing property.
Diverse customer base
While it is good to establish a strong domestic customer base, it truly limits the demographics you are able to reach, and consequently, your potential revenue, as well. Expanding your business globally gives you the flexibility to market to as many unique groups as possible.
Additionally, some products and services that don’t fare as well in the U.S. may find unexpected demand overseas. Establishing a global presence can help leave no stone unturned. Track trends and consumer demands across the world to determine where your business will have the most success.
According to Entrepreneur.com, “entering the international arena can protect you against the risk of decline in domestic markets and, most important, significantly improve your overall growth potential.” For this reason, expanding to international markets is a good long-term strategy to ensure that sales are steady in the event that demand within one market decreases.
You don’t have to be a large corporation to take advantage of international opportunities to grow your business, nor should you be discourage by the financial risks of establishing a permanent physical location. Virtual office solutions offer small businesses the chance to tap into new markets without creating huge overhead. A global presence can help your business increase sales, save money, and tap into new markets in surprisingly places. It can also serve as a safety net should domestic consumer demand ever fall below the mark.Contact us to enhance your global presence today.