Overseas expansion is an exhilarating prospect for many businesses — and a pressing, sometimes stressful, reality for others.
New markets. Fresh revenue streams. High returns on reinvestment. Revitalized product development. “Going global” is a strategic maneuver opening the next chapter for many organizations seizing the moment to expand their global footprint.
However, internationally expanding businesses should remember growth is a marathon, not a sprint. There are many nuances that go into cross-border expansion. We have put together a guide on how to execute a well put-together expansion venture for your B2B business.
Benefits of Global Expansion
The first advantage of international expansion is access to new markets. Once a company has been successful in their home country, it makes sense to take the business abroad. With access to new markets, a business has the potential to build a new customer base.
In addition, open borders provide businesses with access to more untapped markets quicker. For example, a business that expands into Europe has access to many more countries and customers via open borders.
Increased Business Growth
One of the biggest advantages of international expansion is increase in business growth. Entering overseas markets allows faster growth for businesses. By extending the businesses global footprint, new audiences experience your product or service. This could lead to further expansions.
Diversifying Company Markets
If your business only has one or two areas where it can sell services or products, what would happen if these markets experienced a dramatic shift because of a natural disaster or other unforeseen circumstance? Taking your business global allows you to diversify your markets so your revenue sources are more stable: even if your domestic activity is slow, your business will not take as large of a hit since your global market will make up the difference.
Going global has a number of advantages, but they do not come without challenges. If you can create an effective strategy for getting over the hurdles that globalization might present, the process can reap many benefits that your business will get to enjoy for years into the future.
Access to new Talent
Another excellent benefit of taking your business global is that you get access to a new pool of potential employees with unique skills and mindsets. You may even find that these potential hires have skills that are hard to find in your home country, which gives you an edge on other organizations in your field that have not yet gone global.
Signs that you need to expand
You’ve outgrown your domestic market
They say “there’s always room for growth,” but if your brand has already built a hearty national customer base, expanding internationally might be the next step to acquiring new customers and keeping your business growing organically. However, keep in mind that no matter how big your brand identity is at home, it may not translate well to a different language or culture. You’ll still need to provide a localized experience in your target global market that reflects consumers’ language and cultural preferences.
There is international market for your goods
Some brands and retailers first start entertaining the idea of going global when they notice significant and consistent traffic to their domestic e-commerce site from customers in other countries. However, many retailers learn the hard way that a product selling well in their home country may not have the same appeal elsewhere. Brands and retailers must do the market research to answer the questions: Do I have a built-in customer base in the foreign market I want to enter? And can I reach that customer base in the target market?
You’re supporting alternative payments
Domestic retailers who are already in tune with their customers’ checkout preferences will be better prepared for providing a wider array of payment options in global markets. Be aware that different countries have different payment preferences, and if you become an international business, it will be a requirement to understand which payment options are most popular in each region.
Where to expand
International expansion decisions don’t happen overnight. They’re the result of extensive research and planning inspired by market events promising a new revenue pathway for your products or services.
In other words, they start with spotting an opportunity but take significant time, talent, coordination, and oversight to execute. Also take into consideration to look into your geographical data to see where the majority of your audience and buyers are from and set off your journey from there.
Understand global expansion prerogatives and challenges to improve your growth goals, plus pick the best place to expand when that opportunity does arrive and the planning pieces are in place.
Business expansion strategies
Build a Sales Funnel
The first way to quickly grow your business is by building a sales funnel. If you don’t have a sales funnel, you’re making a monumental mistake. Sales funnels can help to automate your business. It helps you to scale and grow quickly and easily. Sure, there’s some front-end work involved. But, once those processes are in place, it’s smooth sailing from there.
Utilize customer management system
Manually tracking transactions is hard. No one wants to do that. It gets too cumbersome as the business grows. If you want to scale quickly, use a customer management system. There are plenty to choose from. But, it really depends on your line of work. Of course, a cloud-based software is always a viable option.
Identify new opportunities
Analyze new opportunities in your business by understanding your demographic better. Understand everything from distribution channels to your direct competitors, and even an analysis of foreign markets and other potential industries. There are likely dozens of new opportunities you could pursue immediately with the proper amount of analysis.
Form strategic partnerships
Strategic partnerships with the right companies can truly make a world of difference. It could allow you to reach a wide swath of customers quickly. Identifying those partnerships might be easier said than done. But, look out for companies that are complementary to your own. Contact them and propose opportunities for working together.