You have worked tremendously hard to start-up your business and elevate it to a level where you have built up a loyal consumer base as well as gained enough capital to make your next substantial investment. Before you distribute this capital on operations domestically, consider your current position. Can you gain more consumers? Are there more competitors than ever before? Are your products and services consistently selling well? Are your business costs going to be sustainable enough for the near future?
If the answers are unfavourable to more than three of these questions, then you should really consider expanding to an international market – here are the top reasons for doing so:
New Customers
By entering a new market abroad, you open your business up to new customers. These new customers could be more attentive to your brand and have more of an appreciation for your products/services. This in turn could translate to an increased demand for your products/services. Likewise, this new-found customer base could lead to more consumers through their positive word-of-mouth and brand interaction.
Favourable Terms
With many economies realising the benefits international companies bring to their own country such as more jobs, increased investment and higher tax revenue – many countries therefore offer favourable terms for those companies considering setting their operations up in their city. From a business perspective, this can really help with finances.
Gaining lower corporation tax terms or being eligible for certain subsidies/grants, will mean the business has much more capital to invest in any operations that urgently need it. Not only that, but you can access opportunities from the surrounding regions.
For example, there are certainly beneficial for businesses who expand to Central America to engage in a belize company formation. Exemption from local taxes, private company registration, and minimum capital requirements are several upsides when setting-up your company in Belize.
New Opportunities
Your business maybe used to doing things in a certain way within the domestic market. For instance, making products in a certain style or have particular customer service protocols.
As you go into another country, it’s an important opportunity to explore the local culture and thereafter, adjust your products/services accordingly. Known as localisation, this could lead to new more innovative products and services as well as better business practises.
Fundamentally, it’s important to understand the local consumers and it show’s them through your products/services that you respect their wants/needs.
Less Competition
When selecting prospective countries to target, it’s always important to consider the other competitors in the market you are vying for. What many companies often find, especially in developing economics, is that there much less competition than in the domestic market. This off course is fantastic news, as it means you are better able to acquire new customers, secure suppliers, negotiate deals, attract the best talent and expand operations. It also may translate to your product being the first of its kind in a particular market thus experiencing exceptional demand and sales.
