For many businesses, growing a brand internationally has the potential to increase sales, revenue and overall success. However, in order to create a global expansion plan for a business, it’s crucial for owners to consider all aspects of their business and their market to maximise the chances of international success.
Join us as we explain what exactly an international expansion is, and as we explore the benefits of globally expanding your brand. We’ll also share what aspects you need to consider when creating a strategy that could help your business to achieve success in a new market.
An international expansion is when your business establishes itself in another country as part of a long term plan. This could be simply selling a product online to various countries, or having a more physical presence with a property and workforce in a new country.
Going global has the opportunity to completely change the future of your business. When done thoughtfully by considering all aspects, you could see your business achieve a new level of success that may not have been previously imaginable.
1. Market strengths
The unpredictability and fluctuation of a market can hugely affect your business and how much it earns. Many businesses with international operations can offset the negative market in one country by successfully operating in another.
2. Staying ahead of competitors
For many businesses, the choice to go international lies purely with gaining a competitive edge over their rivals. For example, if your business entered a new market where your competitor doesn’t yet operate, your business could benefit from a first-mover advantage; this could allow you to build stronger brand awareness before your competitor joins the market.
3. International business doesn’t have to be high risk
The internet can present companies with the opportunity to conduct business globally, without needing a physical presence in the country they would like to trade in. If you run an e-commerce business – selling products through international sites such as Amazon and eBay can give you a good indication of how well your product is perceived and the market’s demand for it.
4. Potential to save on supplier costs
Expanding your business globally will usually widen your customer base, which could mean a higher number of sales. Before expanding your business, it’s always worth asking your suppliers if they would offer discount if you were to increase your orders, therefore reducing overall costs and increasing your profit margins.
5. You already dominate your market
If you already dominate your current market and you’re not looking to offer a new product or service, a global expansion could be the perfect way of growing your business in a country that could be in demand for your offering.
There are many approaches and levels of commitment to think about when it comes to taking your business global. Therefore, your international expansion strategy should be tailored to your business and what it sets out to achieve. You should always consider the below when creating your strategy.
If you’re considering taking your business international and want to secure a business loan to achieve this, get an instant quote with now. Here at Esme, we offer unsecured business loans from £10,000* to £150,000 that can be repaid over a 1 to 5 year period, meaning you choose a repayment plan that suits your business.
*From £25,500 for sole traders
For many SMEs, business expansion is a sign of success and the opportunity to increase profit. However, in practice, it can be an uncertain affair, involving large amounts of money being invested without an immediate guarantee of a return.
A downturn in your business could strike at any moment and preparing your business for a rocky period can give it the best chance of success. This is where a business continuity plan comes in.
If you’re looking to grow your business, one popular strategy is business diversification. This involves broadening your business's opportunities by entering new markets or offering new services to attract new customers.