Five reasons to take your business global

 

 

 

It’s not until entrepreneurs begin to make the move from selling domestically to selling internationally that they realised what they’ve been missing. Today, new technology means it has never been easier or more cost-effective for a small business to expand into global markets.  

Here are the five main advantages, companies can gain by making the move to expand internationally: 

 

 

Increase your customer base 

 

It might seem obvious but making the move from a domestic market to an international one is a sure-fire way to ensure that your business is exposed to millions of new customers. Hopefully, your product or service will be in demand and provide a much-needed solution in these new territories 

 

 

It’s time to expand 

 

Apart from finding new customers, there’s another very good reason to expand into foreign markets. And that’s if you feel that you’ve already saturated your main market. If you’ve run out of targets in your domestic market, then the natural thing to do is look for new ones in markets overseas. That way, your business – and your profits – can continue to grow 

As an added benefit, expansion into new foreign markets means diversification which can reduce risk, especially if something unexpected happens to business in your domestic market – you’ll still have your overseas business to fall back on. 

 

 

Gain a competitive edge 

 

Most businesses have competitors in the domestic market. If that’s the case for your business, then you could actually do better in overseas markets where there might be less competition. More importantly, move into a foreign market before your rivals do and you’ll secure a foothold, making it much more difficult for them to gain market share further down the road 

What’s more, when you start selling overseas, you may reveal learnings and insights that you can apply in your home market for greater success. Regardless, the increased revenues for operating globally could boost your bottom line to the extent that you’ll be able to afford to invest in marketing and advertising back home – in order to steal further market share from your rivals.  

 

 

Economies of scale 

 

When you make the transition to creating product for one market to many, it won’t be long until you discover that you need a lot more product. This means you can buy in bulk and benefit from economies of scale. As the per unit manufacturing cost falls, profit margins rise. You may even be able to benefit from sourcing cheaper materials and labour in some overseas markets, cutting operational costs further. You can then pass these savings onto the customer to undercut competitors, or create a cash pile for further investment in the business.  

 

 

Seasonal ebb and flow 

 

If your business does better at certain times of year due to seasonal ebb and flow, then you might be able to pick up extra business overseas when business is slow at home. This is worth researching, as you can then divert your marketing budget in order to focus on those regions where it’s possible to gain the most advantage.  

In addition to this, you may discover ways of tailoring your offering in order to create increased demand and new revenue streams in certain overseas territories at different times of the year. 

 

 

Get the tools for success in overseas markets 

 

Of course, to really benefit from doing business globally, you need the capacity to take payments from overseas – and in different currencies. As a global payments provider, KoalaPays allows you to do business in more than 20 currencies at once in countries all over the world. We also have designed our services with business customers in mind, offering the tools you need to expand into overseas markets and full flexibility of your account. If you’d like us to help you succeed with your international expansion, please get in touch with our team today! 

Fintech: revolutionising the way we do business

 

 

Fintech might be still a relatively new phenomenon, but, already, it has radically changed the way we do business and in the coming years is set to do much more.  

The accelerating uptake in mobile banking, peer-to-peer (P2P) and omnichannel payments are all prime examples of how fintech firms, such as KoalaPays, are offering businesses and their customers much more when it comes to managing their finances.  

And, this is only the beginning. Hardly a month goes by when we don’t see a new services and innovations being brought to market by fintech firms committed to adding value for businesses looking to succeed in the marketplace. 

 

 

Cross border payments 

 

One of the biggest pain points for businesses has been the costs and inconvenience of sending and receiving cross-border payments, especially in different currencies. Fintech is providing more end-to-end services that are making this easier, cheaper and faster. Finally, the constraints of time zones and normal business hours have ended. Now it’s possible to do business with whoever you want, wherever you customer is, around the clock.  

In the case of KoalaPays, we constantly strive to give more choice, flexibility and functionality to our business customers. We already offer our clients the ability to hold more than 20 currencies at once, and we’re always looking to add more. 

 

 

Business has never been so efficient 

The two big benefits being offered by fintech are ‘accessibility’ and ‘speed’. That means efficiency, and an efficient business is a cost-effective business. Compared to older slow, expensive and bureaucratic banking systems, fintech is giving businesses the opportunity to automate labour-intensive tasks, cut costs and save time on a host of business processes. 

Additionally, by reducing or completely eliminating the need for bricks and mortar premises, fintech is allowing small businesses to access and compete in global markets. 

 

 

Upwardly mobile  

But probably the biggest innovation as a result of fintech has been the rise in mobile payment apps, along with scan-and-pay features. While this has been good for consumers, it has been even better for businesses who are able to give their customers more options when it comes to payments. As a result, they’ve seen sales and revenues accelerate through this ever-growing niche of e-commerce. A recent survey showed that mobile payments crossed the $1 trillion mark in 2019.  

Millions of people around the world may not have a bank account, but they have a Smartphone and this enables them to purchase and pay, opening up huge new markets for businesses in every conceivable niche. 

Fintech has become a key game changer for start-ups and entrepreneurs, making it easier to secure loans, manage payroll, and process payments.  

What does fintech have in store for businesses down the line is anyone’s guess, but here, at KoalaPays, we’re always looking at new ways of adding value for our business customers. Right now, we’re already looking at a new generation of features that will make it even easier for our customers to attract business, take payments, provide better customer service and manage every aspect of their business finances.  

Five metrics you should track for business success

 

 

In business, information is power. It provides the insights you need to craft your strategy for improved efficiency, better results and helps you win more business. That is why metrics are so important. These KPIs (Key Performance Indicators) tell you how well your business is performing, as well as where you should focus your efforts in order to do better.  

Here are five key metrics that will help you make better decisions and take your business to the next stage of its growth. 

 

 

Marketing metrics 

 

Every good business needs a sound marketing strategy. How well your marketing performs will determine how many potential customers find you and do business with you. So it’s important to know what’s working and what isn’t. That way, you can focus your efforts and investment on areas where you’ll see most reward. 

When it comes to marketing metrics, there are several key areas to look at, but one of the most important is digital marketing metrics because it has the potential to deliver the highest ROI.  

Email, for instance, is one of the cheapest ways to market your business. However, simply sending out random emails isn’t going to elicit much success. You need to know how which email campaigns perform best by looking at open and click-through rates, conversions, unsubscribes and revenue per email. By carrying out A/B testing and segmentation, you’ll be able to see which campaigns work best. 

You can do the same with social media. Fortunately, these platforms come equipped with tools that can help you see how well certain strategies are paying off.  

Finally, your website is the core of all your marketing efforts, especially if this is where sales happen. By monitoring traffic and conversion rates, while making changes to landing pages and blogs, you can see what works best. And, of course, there is a range of useful measurement tools out there to help you do it, such as Google Analytics. 

 

 

Customer acquisition and churn  

 

It’s important to know how much it costs to acquire customers, especially if you’re targeting a number of different demographics or segments. This tells you what your ROI is and where you can win more business, more cheaply.  

Knowing what your customer retention or churn numbers are, is equally important, as this is a key indicator of loyalty. Here, you should be measuring key customer retention metrics such as customer lifetime value. This lets you see how well you are meeting customer needs. Making adjustments to products or services can massively improve loyalty as long as you know how your figures change in response to adjustments. The ultimate goal is to identify and focus on your most rewarding audience. 

 

 

Cashflow  

 

The more you know about your finances and cashflow the better. Which is why KoalaPays has integrated a number of features into our payment solution to help you manage your income. Your company’s cashflow statement should tell you a lot about how the business is doing. This is where you’ll see all the details of your income and outgoings. As a result, you’ll know how much you have left to reinvest into the business.  

On the flipside, it will also let you know if the company is losing money. In which case, you can put a remedial action plan in place as soon as possible.  

 

 

Productivity 

 

How productive your employees are will have a massive influence on how successful your business is. And this simply isn’t about how much work they can get done in a paid hour. This is more about how talented they are, and how much they contribute to overall business success. For example, one employee might be able to turn out more product than the employee sat next to him, but whose products are the better quality? 

Measuring productivity isn’t easy but it’s essential if you want to know that something is going wrong. It might be a lack of motivation or morale, or it might be that you don’t have the right employee incentives in place. Until you know where the issue lies, you can’t fix it.  

Set clear objectives and goals for workers, carry out regular customer surveys to make sure customers are happy with the quality of your products, as well as the service they receive. At the same time, engage with your employees and make sure they have everything they need to do a good job and be happy at work. 

 

 

Cost of revenue and profitability 

 

Cashflow might give you a good idea of how your business is doing but costs of revenue can offer real insights on where you can take action to improve profitability. This is defined as the total expenses to make a sale. It’s the cost of producing your product, along with the business expenses and marketing expenses required to sell it 

Business owners are often so focussed on numbers of sales that they neglect this important metric. Aggressively reducing the costs required to make a sale can turn out to be more effective than making several extra sales. Alternatively, look at it as an easy way to boost profits without making extra sales.  

All of these metrics allow you to evaluate the overall health of your business. Doing this regularly allows you to see what’s going right and where you can do better. The insights you gain along the way give you the information you need to make well-informed business decisions and adjustments that help your business succeed for the long term. 

Five innovative ways to grow your small business

 

 

Starting a business is daunting. There’re no guarantees and, if you haven’t run your own business before, you’re in for a steep learning curve. However, once you’re up-and-running and you’re confident that your business model is working, the next thing is to consolidate your work to date and plan for further growth. Here are five strategies proven to work when it comes to taking your business to the next stage of its evolution: 

 

 

Understand your customers 

 

Winning customers is only the beginning. Once you have them on-board, it’s all about keeping them there. Doing that, means finding out more about who they are and what they want, so you can learn to service them better and sell more. There are many ways to do this throughout the customer journey. It can be as simple as offering a feedback form or a survey. Look at the best ways to gain insights that can help you do better, both when it comes to existing sales and acquiring new customers.  

Your customers can also help with your marketing efforts, by recommending you to others, providing a testimonial, or just by leaving comments on a review site so make sure that you have a mechanism for asking them to do that. 

At the same time, make sure you focus on customer service. Exceptional customer service is one way of guaranteeing business growth. 

 

 

Leverage the power of social media 

 

Creating an online community is one way of getting your message and your brand out there. Social media doesn’t have to be expensive or complicated. Simply start with a business profile on a platform such as Facebook and direct your customers there for news, special offers, or even a discount. You don’t have to post every day but try to create a schedule to keep customers and potential new business checking in from time to time.  

Social media isn’t just a great way to engage customers and showcase your expertise, it’s also where you can find out more about your customers and get insights that can help with your sales strategy. 

 

 

Bring in new talent 

 

Now that you’re up-and-running and making a profit, think about what expertise you need to bring on board to increase your revenues. This isn’t just about people, it could be technology or software you bring in to increase efficiency and drive sales. For instance, opening an account with a payment service provider such as KoalaPays, would allow you to choose from a variety of services to suit your specific needs. 

Don’t forget the staff you already have with you. Look at how you can develop them and generate more productivity and value for your business while keeping them happy and engaged. Make sure they know that you value their contribution. Remember, the way you treat your employees will be reflected in the way you treat your customers – which, in turn, will impact your bottom line and your plans for growth. 

An alternative way of bringing in expertise is to form partnerships with other businesses that can bring something extra to the table.  

 

 

Develop new revenue streams 

 

This one might seem obvious but until your business is established and you’re able to understand your market better (see ‘understand your customers’), you don’t know for sure what products or services you should be offering, or what add-on extras might create new revenue streams for youThis might be a completely new service or a new version of product, an innovative pricing model, or even passive income from ads. Ask your customers what they’d like to see and don’t be afraid to experiment 

 

 

Measure and react 

 

Which brings us nicely to our final tip – metrics. If you don’t measure and track successes (as well as failures), you won’t be able to hone your business strategy for growth. Look at what is working well and what isn’t. Examine the reasons why and put together an action plan for better results. Likewise, if something isn’t working, don’t be afraid to let it go. Focussing on the areas which are delivering results is a no-brainer when it comes to growing your business. 

Finally, continue to research and identify possible opportunities for growth. If you see something that interests you, update your business plan and your forecasts before taking action. Make sure the initiative is viable and your business can handle any potential outcome, whether that’s good or bad. 

Growing your business isn’t easy. It takes time and effort, but if your business model is good, and you plan for every situation, you can use these strategies to your advantage and take your business to the next stage of its development. 

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