Expanding your business abroad is one of the super-easy ways to build a multinational company. It might not be easy at first but is highly obtainable.
To go global with your American business idea, there are factors you need to consider. And in this article, we shall look at everything you need to know about increasing your global domination.
Before we look at the factors to consider before expanding your business overseas, let’s look at the benefits. Why should you take your business internationally?
Benefits of Expanding Your American Business Overseas
Most of the biggest companies in the United States became more successful after going global with the business. Below are the advantages of international expansion:
- New market entry
- Access to local talents
- Keeps you miles ahead of your competitors
- Unusual business growth
- Access to more investment opportunities
- Enhances your company’s prestige
You might need to tweak your business plan to suit the new business environment. If you don’t know how to write a successful business plan and can’t afford to hire an expert, you can use business plan writing software.
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Having seen the reasons why you should go global with your American business idea, let’s look at critical factors you should consider in order to have a smooth expansion.
Factor 1: Do your homework
No matter what the ease of doing business in New Zealand is, you can’t just move from the U.S. to NZ and start operating your business without following due process. You must do your homework.
Find out what the required documents for operating your company in a new country of choice are. Consult a business development expert to be sure you don’t flout local rules.
Factor 2: Carry your employees along while expanding your business abroad
Study brands like yours that have one of their branches in another country. One thing is common – they did it with the help of their existing team.
Your employees are your biggest asset. Don’t joke about that. If you take care of your employees, they will take care of your company. Getting them involved in your expansion plans is key to your growth. From your customer service to your purchasing, production and down to shipping, everyone should be carried along.
Ask members of your team if outsourcing customer service is a better option than setting up an in-house team. Follow their advice so long as it is in the best interest of the company.
Factor 3: Develop a business plan that incorporates your new expansion idea
I told you earlier that you can use a business plan writing software or template when you can’t afford to hire an expert. That statement is still valid till tomorrow. However, when you want to set up an international business, you will need a new one.
Develop an international business plan custom-made for the new market, putting the present status of your business into consideration.
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Factor 4: How do you intend to fund your international business?
Going global with your business won’t happen overnight. It will take time. However, someone must be funding it. If you don’t have angel investors like most startup founders in Europe and America, the ideal thing is to determine how you will raise funds.
To raise money with which you can fund your international expansion, you can do any of these: dedicate a percentage of your profit from your domestic business, look for angel investors or take a business loan from the bank.
Angel investors for startups might be willing to come in but if it was never a part of your international funding strategies, don’t be quick to accept.
Factor 5: Build a search engine friendly website for your international business
Even if you are living in the Yukon-Koyukuk Census Area in Central Alaska (the most rural area in the United States) and you have access to the internet, you can build a website with keywords targeting the United Arab Emirate before moving your business there.
How about moving your business to a new country where their official language is not English? Take Switzerland for instance. You can build a german-version of your website before expanding your business abroad. Focus on using the official language of the country you are moving to.
All you need to build a website is a domain name from Namecheap, a web hosting service from Bluehost and any company theme of your choice from Themeforest. Our team can also help you build a professional one that can help you generate more leads.
Expanding Your Business Abroad Can Increase Your Opportunities
In-depth market research will open your eyes to amazing international business opportunities. There’s no point competing aggressively with local brands in the United States when you can easily go global.
Look for American business ideas that are not yet popular or innovative enough in Europe, Asia or Africa, and build them. This might be that turning point you’ve been waiting for.
What are the examples of companies that have gone global? Some of the companies that have gone global successfully are Apple, IBM, Nike, Microsoft, Amazon, Twitter, Facebook, Shopify, Alibaba, etc. If you noticed, each of these companies is either tech companies or powered by technology.
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At What Time Did Different Companies Expand Internationally?
Apple expanded internationally on November 30, 2003. They opened their 73rd Apple Store in Tokyo’s trendy Ginza shopping district as their first retail chain outside the United States.
Nike became an international company when it opened an office in Taiwan in 1975. Today, they now have branches all over the world. Almost all of Nike shoes are made outside the US in Asia and Latin America.