Looking to take your business to the next level in 2016? Your sales are flat or slowing? It may be time to look to global markets and broaden your horizon.
How can thinking and going global help your business?
Today we have a list of 5 reasons why this expansion will set you apart from the pack.
Accept and Hold Multiple Currencies
Massive giants such as Apple and Google are growing their overseas reserves of capital and holding it there. There are quite a few reasons for this, one being tax planning. They are building out these cash reserves. They then re-invest this capital back into further international growth and expansion.
Grow your business in a new market, and keep those profits in that currency. Re-invest that back to continued growth in the new market and grow a whole new business line.
Having this new currency held in your international account will help protect your business! Don't just rely on U.S. dollar currency risks as your grow in the new market.
Access to New Customers
While your customers around the world can pay you into a U.S. bank account, having an account in their home country makes it much easier. And not everyone in all countries has a MasterCard or Visa.
By having a bank account on the ground where your target customers are, they will see you are catering to their needs. Many people around the world see Americans as insensitive to international markets. Now you can show them you’re taking steps to change that!
In Europe, many people make bank to bank transfers in their home country. It is more convenient for them. This could be part of the reason your potential customers are choosing your local competitors over you!
If you notice customers in certain markets buying from you, dig deeper. If you don’t have a presence in that country, it is fair to say you should look into pursuing a local operation. This could be as simple as a company with a local bank account. Later you can invest in the full office and staff, take it step by step.
Access to New Talent and Business Partners
Investing in a business overseas is a big step, but once you make it - you start opening up a whole new world - no pun intended!
You can be legal and hire staff full-time in that country. The staff needs the local benefits in their home country and assure them you are in it for the long term. Let them build their career in your firm! Yes, you can get started with hiring staff overseas online in marketplaces such as Upwork and Freelancer. Yet building a full-time work relationship requires them to have a contract with a company in their home country.
On top of staff, you can also find new business partners. The traditional format is through a joint venture (JV) partner. They will have a shared equity stake in your business, but that is a much bigger decision. We suggest first signing strategic alliances with local companies. These alliances can be for sales channel development, cross promotions, or joint marketing efforts.
Having a local company established, you can re-assure your new business partners you are in this market for the long term. Forge these contracts with your local company, and have much more leverage in case any legal disputes arise later on.
The Ultimate Business Hedge
International conglomerates report their earnings, are you looking at where their sales are? Many are seeing more growth in new markets in Asia and other emerging markets. As a small business owner, you may feel limited to your local home market - but that is a misconception!
Don’t sit back and let these international multinationals take all the opportunity. There is plenty for you too!
We have dealt with some fun cases of local family owned businesses going global. Some include the son or daughter of the business finishing college and wanting to travel to a new market. They have the travel bug, and at the same time would love to see their family business grow.
With their family business’s approval, they budget a 6 month to 1 year expansion plan in that market. The first couple months is more research and development. Have them ensure their investing in the Chinese market is right for them. Once you are comfortable and have new potential customers and alliances lined up, make bigger moves. Invest in the proper establishment of the business, and lock in these business deals.
Stay Ahead of the Curve - 'Think Global'
Don’t let the big guys take all the opportunity - why can’t your business do the same? Creating an overseas company is more and more achievable for businesses of all sizes. Set aside a budget and make a special team. This can be a new hire or someone in the business looking to take on a new challenge.
We hope this has inspired you to think big, and tap into the emerging markets around the world. Key is to keep an open mind and treat it as a new business endeavor.
is an Asia business consultant with his firm GlobalFromAsia.com. To read more of his blogs, Click Here Now.
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