You’ve made it through the stressful early days, worked long hours, you’ve dealt with unexpected crises, you’ve celebrated the first time you realise you have a regular customer, you’ve hired employees, and your business is officially thriving. You might even have opened a couple more businesses around the country to add to your growing empire.
But now it’s time to take on the world.
If you want to take your business global, there are a few things you need to know about the impact of globalisation on business success.
Globalisation is when businesses begin to trade internationally or have international influence.
It means that countries are increasingly interconnected through goods and cultural exchange.
The car industry is a great illustration of globalisation in business. Once, German branded cars were solely manufactured and sold in Germany. Now, German cars can have parts that are manufactured all over the world and even have different divisions of the company in different countries. You can now buy a German car in almost any country in the world.
For businesses, globalisation presents a prime opportunity to expand.
There are many advantages of globalisation in business. Listed below are just a handful.
It might seem like an obvious statement to make, but moving your business into other countries and territories means you’ll have more competitors.
That’s not necessarily bad news though. Entering a different market is almost the same as setting up a brand new business from scratch. So your competitors are there as inspiration and research opportunities. They can teach you about the market you’re entering and provide you with the opportunity to silently learn how things are done.
Because of the sophisticated technology that’s now at our disposal, globalisation for your business is more accessible than ever.
Remember that you don’t need a brick and mortar shop to take your business global. By simply offering international shipping and making purchases available in local currencies, you’re participating in globalisation.
This in turn powers technological advancement as businesses look for more and more ways to engage with customers, provide better services, and identify new opportunities.
Setting up a website is a useful way to understand the new markets you want to expand into, without incurring as many costs as setting up a shop.
Globalisation is your chance to access more customers and increase your profits.
But it’s also your opportunity to access experts that can help your business boom. By entering new markets you not only have access to new customers but employees too who may have skills you can’t find in your home nation.
These skilled employees will also be able to give you valuable insight into the local market and will be an asset to your business.
Taking your business global also has its downsides.
By entering into a new market you’re opening yourself up to a lot of stiff competition which may impact your profits.
If a competitor in another part of the world can manufacture and offer the same goods you sell at a lower price, you’ll be forced to reduce your prices to compete.
Expanding globally is a big step that shouldn’t be taken lightly. Consider how you can better your business at home before entering the world stage, ensuring you’re happy with how it’s running. If you feel like you’ve exhausted your avenues, consider which new markets and countries you want to target.
The countries you choose may be a factor, especially if you have to import or export goods. You should also research tariffs and taxes too as these could influence your decision.
Don’t underestimate how much research and planning you can do. Globalisation is a fantastic goal to aim for and if you put in the preparation, set your expectations, and work hard, it’ll pay off.