Knowing the Benefits of Setting Up a Global Company
While many businesses closed when the pandemic started, there was an unexpected surge in startups as the health crisis progressed. These startups saw an opportunity in the situation as more retailers went online to connect with their customers. Startups focused on digital marketing to help these retailers increase their online presence.
When these startups consider expansion, they focus mainly on the domestic market. But they may be missing out if they do not think about expanding into the international market. Setting up a global company offers a lot of benefits for any US-based startup. Here are the benefits you can look forward to if you set up an international company.
Additional Sources of Revenue
A global company means your business will have additional sources of revenue. Aside from the US, you can look forward to payment from another country where you built your presence. With many startups offering similar products and services in the US market, the domestic market may become saturated. In this situation, your business will find it challenging to increase revenues.
Setting up a presence beyond the borders is a practical option since it will give your business access to another customer base. The revenue you generate from these areas may allow you to expand further into other areas. And it will create multiple revenue streams for the business. Going global gives your business a shot in the arm, which is necessary during the pandemic.
If you plan to expand globally, you can expand to Canada, Singapore, Sweden, and Australia. These countries offer vast potential for businesses that are planning to go global.
Wider Brand Awareness
Expanding globally also enhances your brand and increases its reach around the world. Your brand may already be well known within the US borders, but no one outside of the borders has any idea about it. So, expanding globally increases brand awareness and can boost your reputation in the domestic market. It also extends the reach of your trademarks, copyrights, and intellectual property in other places around the world. During the expansion, you should take note of the culture and traditions of other countries when you promote your products and services in different countries around the world.
Access to New Talents
When you expand your business to another country, you’ll have access to new talent abroad. You can set up work teams in other countries and allow them to work with your team in the US. Many companies already have this set up where they have a location in another country handling one aspect of the business. The setup allowed these companies to tap into a new pool of employees who have the skills they need for their business.
You can do the same thing and look for talents that are not easy to find in the US. It also gives you an advantage over your competitors that haven’t considered expanding globally. You can further attract potential employees by offering to reward them with the chance of living in the US. In this instance, you should get a reliable immigration lawyer. These attorneys know the different aspects of US immigration laws and help your employee get an employment-based immigrant visa.
Opportunity for Product Expansion
If you have a retail business, you can use your offshore presence to look for products that you can include in your lineup. When you were still based in the US, your product lineup may have been limited to products manufactured by US-based manufacturers. While you could have sourced your products internationally, you couldn’t be sure about the consistency of the quality of those products.
But a global presence allows you to send personnel to check the products offered in different countries. You may even find a product that isn’t offered in your home country but has a lot of potentials to impact the market. So, expanding abroad provides you with an opportunity to add to your product lineup and increase sales in the US market.
Protection from Market Risks
Having a presence in another country protects your business from risks in a specific market. A slump in the market of one region does not necessarily affect other areas. The recession may have been caused by domestic issues, such as new legislation or supply issues. Due to this, your business has a certain level of protection against these issues.
Additionally, your presence in other countries allows you to accumulate funds in different currencies. This can act as protection against the devaluation of one currency since a decrease in the value of one currency can increase the value of another currency.
Even as starting a global expansion can be challenging, it offers many benefits for businesses that go through with it.