In today’s interconnected world, businesses of all sizes can expand their reach beyond their local markets. Expanding worldwide allows you to take advantage of global growth opportunities. But, taking your business global can be daunting, especially for small and medium-sized enterprises (SMEs) with limited resources. However, with the right approach and tools, taking your business global can be achieved in just one step. It can be the fastest way to expand your reach and grow your business. Our article presents some tips for taking your business global in one step.
Why Take Your Business Global?
Entrepreneurs in growing economies in Asia, Africa, and Latin America continue to see potential in more developed markets. More importantly, business owners continue increasing their comfort level operating outside their home market. In March 2023, VinFast, a growing Vietnamese electric vehicle maker recently, began selling electric vehicles in the US markets. Similarly, companies in developed markets are taking advantage of opportunities in growth markets around the world. Moreover, these business opportunities better align with their products and services.
Taking your business global can offer several benefits, including:
- Access to new markets and customers: By taking your business global, you can tap into new markets and customer segments. This can lead to higher revenue growth and increased profitability.
- Increased revenue and profitability: Entering new markets can help you increase your revenue and profitability. Many domestic markets remain highly competitive and global expansion provides an edge.
- Diversification of risks: By operating in multiple markets, you can diversify your risks and reduce your dependence on any one market or customer.
- Access to talent and resources: Expanding globally also gives you access to a wider pool of talent and resources, including suppliers, partners, and investors.
- Competitive advantage: You can boost your competitive advantage over other market participants, especially if they only operate in a single market.
Globalization and Global Investment Flows
Globalization refers to the interconnectedness of economies, societies, and cultures worldwide. It has been a significant trend over the past few decades, driven by technological advancements, transportation, and communication. Despite opinions to the contrary, globalization continues to thrive. Admittedly, geopolitical events in Europe and elsewhere have questioned future trends in globalization. However, the world remains too interconnected to decouple. Today, businesses of all sizes can participate in global markets and tap into emerging economies’ growth opportunities.
According to the United Nations Conference on Trade and Development (UNCTAD), global foreign direct investment (FDI) flows in 2021 were $1.58 trillion. This represented a 64% from 2020 levels. The strong growth reflected stronger mergers and acquisitions activity. Additionally, international project financing due to favorable government stimulus funding in multiple markets also supported the growth. Investment flows related to the Sustainable Development Goals rose by 70%, bolstered by investment in renewable energy. Strength in renewable energy offset slower growth in other sustainable sectors such as food, agriculture, and WASH (water, sanitation, and hygiene).
Some of the more popular sectors to capture global growth opportunities include:
- IT Services
- Education and Professional Services
- Consulting
- Food Processing
- Sustainability Product & Services
- Healthcare Products & Services
- Automotive Parts
Over the past several decades, multiple trade agreements have been signed between developed and emerging markets. China has signed a number of bilateral trade agreements as its economic power has emerged. Each of these trade agreements provides useful insights into sector opportunities and economic incentives to guide your decision. The websites below provide useful information on global growth opportunities in the agreements.
- Export to Africa – How to Export to Africa | Prosper Africa
- Trade agreements | Access2Markets (europa.eu)
- Trade Agreements | United States Trade Representative (ustr.gov)
- China FTA Network (mofcom.gov.cn)
Technologies to Use for Taking Your Business Global
In today’s fast-paced and hyper-competitive business environment having that edge is critical to creating value. To take your business global in one step, you need to leverage the right solutions and tools. The following solutions can help you achieve your goals.
Firstbase.io
Firstbase.io: For companies seeking to enter the US market, Firstbase.io provides a range of services. These services include company formation, legal support, and physical infrastructure. This can be especially valuable for companies that do not have a physical presence in the US. Some of the key advantages of using Firstbase.io include the following:
- Streamlined process: Firstbase.io offers a streamlined and efficient process for company formation, with step-by-step guidance and support from experienced professionals. This can help you save time and avoid common mistakes and pitfalls associated with setting up a new business.
- Compliance and legal support: Firstbase.io provides comprehensive legal and compliance support. The support from Firstbase.io ensures that your new business is established properly. Moreover, it ensures your business complies with all relevant laws and regulations. This can help you avoid costly penalties and legal issues down the line.
- Access to essential business tools and resources: With Firstbase.io, you can also access a range of essential business tools and resources. These tools and resources include business bank accounts, tax registration, and domain registration. With these tools and resources, you can get your business up and running more quickly and effectively, with everything you need to succeed.
Alliance Virtual Offices
Alliance Virtual Offices: Alliance Virtual Offices offers virtual offices and meeting spaces in more than 1200 locations around the world. With Alliance VO it is easy to establish a corporate presence in a new market quickly and cost-effectively. Some of the key benefits of using Alliance Virtual Offices:
- Professional business presence: You can establish a professional business presence in a prestigious location using Alliance Virtual Office. More importantly, the virtual office enhances your brand image and credibility, which is important if you are a small or new business.
- Flexibility and convenience: With an Alliance Virtual Office, you can work from anywhere with access to a range of business services. These services include mail handling, phone answering, and meeting room rental. A VO gives you the option to travel or work from anywhere. More importantly, you can maintain a professional image and access the necessary resources.
- Cost-effective solution: Renting physical office space can be expensive, especially in prime locations. By using an Alliance Virtual Office, you avoid the high costs that come with traditional office spaces. A VO provides similar services and amenities you need to run your business effectively. Consequently, this can save money to be reinvested in other areas of your business.
Deel
Deel: Deel offers rapid onboarding services for global employees, including payroll, compliance, and taxes. This makes it easy to hire new employees in new markets without having to navigate complex legal and tax requirements. The main benefits of using Deel include the following:
- Easy and efficient global payroll management: Deel makes it easy for companies to manage payroll and compliance for remote employees and contractors. Deel services are available in over 150 countries. With Deel, you can automate payments, taxes, and compliance, saving you time and reducing the risk of errors or penalties.
- Simplified onboarding and contract management: Deel also provides tools for streamlined onboarding and contract management. For example, you can use Deel to create customized contracts, collect digital signatures, and manage contract compliance and renewal. This can help you save time and reduce administrative burdens associated with managing remote workers.
- Expert HR and legal support: Deel provides access to a team of HR and legal experts. These experts can offer guidance and support on a range of issues related to hiring and managing remote workers. If you are new to remote work, this can be helpful.
Some final thoughts on taking your business global
In conclusion, taking your business global can be challenging. Likewise, it also presents an opportunity to grow and expand your reach in new and exciting ways. As you consider sectors and regions to target, make sure you fully understand your pie. Also, be aware of your challenges in forming partnerships in these new markets. Refer to our post on partnership failures. By using the latest technologies and understanding globalization trends, businesses can establish a strong global presence quickly and efficiently. As such, with the right tools and strategies, taking your business global can be the fastest way to expand your reach. You can unlock new opportunities for growth and success with your business.
Disclosure: At ClearSky 2100 Ventures, our portfolio partly consists of affiliate partnerships. We may earn a small commission from buying links on our site at no cost to you.
