The idea of expanding globally is enticing for any growth-hungry entrepreneur, but it’s also been said that good things come in small packages.
It’s crucial to weigh the benefits of staying local vs. expanding globally so you can make an educated decision about what’s best for your business.
Expanding your business globally
One big advantage that comes with taking on an international market is the ability to tap into a larger consumer base. There are many potential customers around the world who you can reach if your business has an international presence.
One of the easiest ways to establish your business presence in international markets is to use a virtual office service like iPostal1. It allows you to immediately create a professional presence in any market where you want to plant your flag. The virtual office can intercept mail on your behalf as well as give you a local phone and fax number, so you can manage your new expansion from the comforts of home.
Another benefit of expanding globally is the ability to gain access to a new pool of talent. You can hire employees from all over the world if your business reaches international customers. You’ll also gain the ability to find suppliers worldwide that meet any requirements you may have around cost or availability.
The downsides for this type of expansion are that marketing can become a lot more complex, and employees may be scattered across time zones, making labor-management difficult.
Keeping your business local
The first benefit of keeping your business local is that you can provide better customer service. You’re able to respond more quickly and efficiently than if you had customers around the world.
Another advantage is having all of your employees in one place. The team can schedule meetings and solve problems faster than if you had to navigate around time zones and remote work. Often, the result is that you can innovate more quickly than if your employees were working remotely.
The final benefit of keeping your business local is that marketing remains simple. You can use the home-field advantage to cater marketing efforts to your community.
The downfall here is that you will reach a limit to how much the company can grow, and your team may not be as diverse.
How to expand your business internationally
The first step is determining the resources you need for expanding globally. Make sure you have enough capital and employees qualified to take on international markets.
It’s essential to determine how you’re going to reach these new customers. You can do that by creating a marketing plan for both your home country and the international markets you want to expand into, including a new search-engine-optimized website.
You should also develop a plan for how you’re going to handle any legal issues that may arise, such as taxes or regulations. Make sure you hire an accountant with experience pertaining to the local laws in each market.
Wrap up
Now that you have seen a comparison of remaining local vs. expanding internationally, it’s decision time. Take your time and make sure your final decision makes the most sense based on where your business sits currently.
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