What Are the Benefits of Going Global?
When you own a business of any size, from the sole proprietorship to the multi-state company with thousands of workers, there is an important decision to make as the company grows. Ask yourself and your partners, if any, if it's the right time to take the company international, which begins by expanding your market to the consumers in at least one other country. Consider the benefits of globalization before devoting tons of business planning to this effort.
Going global is an important opportunity for small business owners in the United States. Any entrepreneur can use the Internet to market products and services to buyers in foreign markets. He must build a system for satisfying the needs of foreign consumers, such as shipping goods overseas and paying appropriate export fees. Other types of businesses that provide all of their services through the Internet can go global, marketing to foreign consumers online, without some of the difficulties of creating a global supply chain and different distribution networks.
Another benefit of going global is enjoyed by companies of different sizes, not just small businesses.Your U.S. company can build relationships with local companies and individuals in foreign countries. These business partners can help you increase the company's global infrastructure. Many times, your company saves money because expenses (such as labor costs) charged by business partners overseas are cheaper. Also, foreign workers carrying out your company's operations are familiar with the needs of local consumers; they live and work in the same foreign culture.
Another benefit of globalization is that a company can diversify its consumer base and revenue streams. A company that markets only to U.S. consumers is especially vulnerable to domestic economic trends. With consumers in other countries buying your products and services from the international division, your company can maintain revenue streams in foreign markets. Your company can stay afloat even when the U.S. economy fails to provide enough consumers.
When you take your company global, it increases the ability of your business to attract large corporations as clients. These companies already have their own global operations, and they need to give their business to globalized companies diversified and structured to accommodate their needs. If you're trying to market products and services to large companies, globalization will get their attention, showing big clients that your company aggressively pursues growth in foreign markets.