Imagine your business is thriving and you ask yourself, what is the next step? While there are numerous reasons to consider to “going global”, here are some of the biggest:
- More Consumers: By expanding into new markets, companies can reach a larger customer base and generate more sales. 95 percent of the world’s buying power lives outside of the United States, providing a compelling opportunity for growth.
- Diversify and Reduce Risk: Yes, your domestic market is thriving, but economic outlooks can change quickly. By going global, you can avoid seasonality issues that may arise by focusing only on domestic sales. Operating in multiple markets will allow you to reduce your overall risk and maintain a healthy bottom line.
- Global Brand Awareness: Expanding into new global markets allows companies to grow their overall brand and reputation. Having a global brand presents opportunities that are not available for those who focus only on their local market.
While the upside of going global is tremendous, it is not without its challenges. Here are a few items companies need to consider when they decide to go global:
- Cultural Differences: Depending on the market, cultures can be completely different than your domestic market. Being aware of the proper language, customs, business practices, etc. Is key to doing business in a new international market.
- Political instability: Political instability can make it difficult for companies to operate in certain countries. Being aware of current events is key to being successful in a new market. The International Trade Administration's Country Commercial Guide provides information on political / economic instabilities along with other information.
- Competition & Market Demand: Companies need to be aware of the competition in the countries they are expanding into. This includes both local and international competitors. U.S. made products are high in demand worldwide, but if the market is already saturated with similar items, you may want to reconsider enter that specific market.
Despite the challenges, going global can be a very rewarding experience for companies. By expanding into new markets, companies can grow their business, increase their profits, and build a global brand.
The Export-Import Bank of the United States (EXIM) offers solutions to make going global easier. “International Invoice Protection” also known as Export Credit Insurance can help reduce the financial risks of going global, by covering your invoice up to 95 percent in the event of nonpayment. If financing or cash flow is a concern, EXIM’s Working Capital Loan Guarantee can help solve that issue and get you the funds needed to fulfill your export sales.
To learn more, contact one of EXIM’s Business Development Specialists today for a free consultation and start to go global tomorrow!
