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 a 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!