First things first: Let’s make sure we define global expansion so we can then delve into the benefits and the challenges. In a nutshell, global expansion is what is says on the tin—when a business starts operating on an international scale. Worldwide connections are made and, ultimately, ideas, information and products reach new markets.
Should your business expand globally? The benefits are huge, but the challenges can feel a bit overwhelming. That’s where Cintra Global comes in. We can make those challenges a little less challenging… Read on to learn more.
Global expansion benefits
1. Increased market reach
New countries invariably bring new relationships. Moving into new markets opens up the opportunity to access so many new clients, and with them, new revenue streams. If things are becoming saturated on the domestic front, it’s the perfect way to kick start new growth. Foster that growth-spurt in pastures new.
2. Access to new talent pools
We live in a global village. So, there’s no reason to limit your recruitment search to one country. Global expansion allows you to spot new talent from further afield. With new international hires your business is a melting pot of diverse cultures and experiences. Ideas are shared, insights are made, and all this keeps your organisation competitive and innovating at the top of its game.
3. Economies of scale
It’s all about efficiency—crushing those targets and increasing profitability. You have great resources, but you need to leverage all your assets. It makes sense – use what you have and expand globally into new areas, and you can spread the financial load, keeping the costs down and output up.
4. Increased brand recognition and reputation
It’s time to be a big fish in a big pool. Expanding overseas will take your brand into new corners of the world. Plus, a raised profile will bring an international reputation.
5. Risk diversification
We all like the sound of that. These are exciting times, but it’s good to have a safety net.
How does the saying go? “Don’t put all your eggs in one basket”. If one market’s looking a bit scrambled, another will surely be sunny side up perfection. Protect yourself against those bumps in the road – don’t rely on just one market or region.
6. Access to new technology and innovation
Technological advances can arrive in a flash, and speed is everything. Taking your company into new markets will mean you’re fully up-to-date and aware of the new innovations around the world. Keep ahead of the curve, be a part of those changes, don’t let new ideas pass you by.
Now this all sounds incredible. A no-brainer, right? You probably can’t understand why you haven’t embraced this overseas advancement years ago.
Global expansion challenges
1. Cultural and language barriers
New global members in the team will bring an exciting buzz: however, there are suddenly a lot of new cultural refences to be on top of, traditions to be respectful of.
Is your marketing strategy in tune with these? Can everyone understand each other? Is your Nepalese, your Swahili, or your Polish up to scratch? Do your suppliers understand the new workforce?
2. Legal and regulatory compliance
You have to keep it legal. No shortcuts, no note from mum saying, “the dog ate the visas”. That won’t cut it. The “t’s” have to be crossed and the “i’s” need to be dotted. And there will be a lot of them. Local laws can be convoluted, and you need to be up to date at all times. Mistakes can be costly bringing with them fines and a damaged reputation.
3. Infrastructure and logistics
If you move into a new territory, chances are you won’t know the lay of the land.
How will supplies get from A to B? How do you even know what those supplies are?
Supply chains, logistics networks, distribution channels… A list which spells headache when multiplied by 2, 4, 6, or 66 new countries. It all adds up to a lot of time, and a lot of money.
4. Human resources management
Good HR management is a nuanced, specialised job at the best of times. Now try rolling it out in far flung, new places. Throw in unfamiliar cultural and legal contexts, and a lack of multilingual staff. Things are going to get tricky. A heady combination of foreign payroll challenges and benefit idiosyncrasies, local labour laws, and strange dialects will have your HR department tearing its hair out.
5. Currency and financial risks
We have seen how challenging it is managing people and products around the globe … let’s take it to another level—try moving your money across continents. Global expansion brings financial complications and risks. Currency exchange rates and foreign taxes are in a perpetual state of flux and it’s hard to protect the company’s bottom line.
It’s hard being the new kid on the block. You’ll have to take on the established local players and the cards are stacked against you… inferior market knowledge, no long-established customer relationships, no home advantage.
As it turns out, that’s not just a few small challenges you could face. Global expansion is a major undertaking. This world domination lark is beginning to look rather daunting.
How can we help?
That’s why you need Cintra Global. Cintra Global provides a full range of advice and services to support your international expansion. That includes our market entry services, to get you up and running in whatever country you choose. We’re here to help.
Far flung places you need to explore to grow your business?
We can help you to enter new markets in a way that works for your organisation.
Nightmares about juggling all those currencies, trying to deliver the payroll from hell?
Never fear. We have all your international payroll covered.
New tax law causing you glitches in the Balearics?
We have your back there too, with our international payroll service.
So really, what are you waiting for? With Cintra Global, expansion really is the only choice.