It has been a shaky year for international business. The UK economy suffered a significant downturn in 2020 thanks to the Covid-19 pandemic.
As some businesses were forced to shutter their global and domestic operations, particularly high street clothing retailers, others had their sights firmly on international expansion.
Capturing greater market share is a big driver for many businesses with a global outlook. Spurred on by the successes of international corporate behemoths, burgeoning businesses the world over are hoping to capitalise on the shift to digital and online shopping in the last year.
Other companies are hoping to expand their sales potential and bring exciting products to a new market. Global talent acquisition is another driver for international business growth. Expanding the talent pool and cultural diversity and awareness of a team can pay dividends down the line.
The biggest driver for international business growth in 2021 looks set to be revenue. Aiming to capitalise on pent up savings after global lockdown and quarantine restrictions, unlocking shifts in consumer spending trends, and advancing in a digital age makes shrewd business sense.
What to consider before expanding internationally?
There are some important considerations you need to make when expanding your business internationally.
Market research is only one step in the process, albeit an important one. Yet, there are other considerations to make.
Trading across international borders requires being compliant with all the laws in the countries you trade in. Including tax and employment laws.
You might also need to outsource help initially. Employing the services of an international corporate consultancy group can help. From tax audit support to litigation and outsourcing a good consultancy can help you expand in the right way.
6 Reasons to expand internationally this year
New revenue potential
A global audience and customer base will help your business open new revenue streams. A bigger audience means more sales leads and potentially more sales.
A global business could attract a wider range of international investors to your company. Some governments even offer investment opportunities for businesses from overseas who want to trade within their borders.
A wider range of revenue streams from all over the world will help to support your income. If your sales are booming in one territory and not in another, diversifying your market can help.
Access to a larger talent pool
Local knowledge and cultural understanding are essential for companies who wish to thrive on the international stage. Opening up your company to a global talent pool make sound business sense.
Beat the competition
An expanded audience and a global community of loyal company customers or clients gioves your business a competitive advantage. Taking your product somewhere your competitors don’t operate for example can give you the edge over them.
International brand exposure
A wider audience on global scale is important for your brand exposure. The more your company is seen in new markets the more chance it has of thriving.