With the pandemic ushering in the second digital transformation and sending consumers to make online purchases at much higher rates, businesses are realizing we’re transforming into a truly global market. Companies in the U.S. that have the necessary digital infrastructure for international sales and understand that two thirds of the world’s purchasing power is in foreign countries are now seeing few barriers to global expansion. If they can accomplish their growth beyond the U.S, statistics are on their side when it comes to success, since companies that export not only grow faster but are 8.8 % less likely to go out of business.
When it comes to expanding a business internationally, the first step is understanding which countries represent the best opportunity. To make this determination, businesses should consider a number of factors including, but not limited to:
– The size of the potential market
– The country’s infrastructure and digital connectivity
– Local regulations and barriers to entry
– The cost of doing business in the country
– Language barriers
Expanding globally is challenging, though. According to the Harvard Business Review, few businesses actually succeed at global expansion—on average, businesses reached a return on assets (ROA) of -1% after 5 years in the global market. This means expansion needs to be smart and strategic. There are several things you need to consider before making your move. Read all eight HERE.
As you expand, or even dip your toe in the global market by hiring international employees as a first step, you’ll need localized resources for both employees and potential customers in different countries. Contact TrueLanguage to make sure your transition is a smooth one by providing communications that are not simply translated, but localized to specific regions, making sure people understand what you have to say as easily as they understand when reading their own local newspaper.
