Why It’s Best to Break Borders and Expand Your Customer Base Globally!

Signs Your Business Should Go International!

You have to keep in mind that our world is interconnected. Honestly, this is only going to become more prevalent. Just think about it: it’s so interconnected that you can send money to Mexico all the way to the other side of the planet, like Japan.

Since it’s so connected, you need to see the potential for business growth extends far beyond local markets. Why only focus on your locality if you’re running an ecommerce business? 

Sure, if it’s a cafe or restaurant, then you can only stick to the locals, but if you’re running an online service? Shipping products? Well, with those, you can hands-down target people from anywhere!  Basically, the best ways to grow your business are to think bigger, target bigger, and try and get more!

As you can probably see, the advent of technology, improved logistics, and a globalized economy has made it increasingly feasible for businesses of all sizes to expand their customer base on a global scale. So, with all of that said, why not instead focus bigger?

Well, here are the compelling reasons why taking your business beyond borders can be a strategic move with numerous benefits.

Why Shouldn’t You Only Focus on Locality?

It was somewhat mentioned above, but basically, attracting global customers rather than confining efforts to a local market is a strategic move with manifold advantages. You can’t always expect to grow if you only target a small pool of people. While local customers form the bedrock of many businesses, expanding the reach to a global audience opens doors to unprecedented growth and opportunities. 

Besides, the global marketplace offers diversity in consumer preferences, allowing businesses to adapt and innovate in response to a variety of needs. There are other things you really need to think about as well, like brand recognition on an international scale creating a positive feedback loop that attracts new customers and establishes a reputable presence.  Again, not every business is going to be able to do this, too. Barbers, hotels, spas, delicatessens, cafes, and so on won’t be able to. 

Essentially, in-person services or those that are strictly in-person just won’t be able to do it. But that’s okay; it doesn’t mean that your business will fail if you can’t expand, and sometimes, these businesses will find ways to expand to other localities (like multiple branches or franchises, for example). 

Reasons to Not Only Focus on Your Locality and Look Beyond

It was already mentioned before you just need to grow and look towards something bigger, but are there any other reasons? Well, actually, yes, there are! So, here are some major reasons that you should keep in mind. 

You’ll Have More Access to a Larger Market

So, the most apparent advantage of expanding globally is gaining access to a vastly larger market. Just think about it for a moment: beyond the confines of your local or regional audience, there are millions of potential customers worldwide who could benefit from your products or services.

You’re Potentially Diversifying Your Revenue

You really need to keep in mind that relying solely on a local customer base may expose your business to economic fluctuations and regional market changes. Think of it this way: a natural disaster hits your area, and your customer base is going to be suffering right with you due to the natural disaster.

But if you’re also targetting people outside of that, who this disaster hasn’t hit, then your business will be just fine ultimately. So, expanding globally allows you to diversify your revenue streams, reducing the impact of local market challenges and creating a more resilient business model.

Potential to Capitalize on Emerging Markets

Some of the fastest-growing economies are in emerging markets. Just by expanding globally, you position your business to tap into these regions, potentially gaining a foothold in markets that are experiencing rapid economic development and an increase in consumer spending. 

Give You the Chance to Learn Other Cultures

It’s so important for businesses to get the chance to learn about other cultures; if you want to expand your customer base specifically to other countries (such as an American brand wants to expand to Germany), then you’ll have to get a solid idea of the culture, and that includes the variations of regional culture too. 

So, think of it this way: operating in diverse global markets provides invaluable insights into different cultures and consumer behaviors. This understanding fosters innovation by allowing you to tailor your products or services to meet the unique needs and preferences of various customer segments.

You’ll Have a Competitive Advantage

One of the reasons why businesses prefer expanding globally is for that fact that it can provide a competitive advantage by allowing your business to offer unique products or services that may not be available in certain regions. So, this distinctiveness can set your brand apart from local competitors and make it more appealing to a global audience.

Increased Productivity

So, this one is really going to depend because it’s more about your business model. Are you just one person making and selling the items and shipping them out all over the world? Are you going to store everything in a fulfillment center like Amazon and have them ship it out worldwide?

Are you going to hire people in another area instead for them to take care of it? It’s a lot of questions, but it’s all going to depend. But ultimately, you are technically increasing productivity this way. 

So, with that all said, operating in different time zones enables your business to maintain continuous operations. With teams strategically located across the globe, you can provide customer support, conduct business activities, and enhance productivity around the clock. Again, if you’re opting for teams, then the operations can be 24/7, but of course, if it’s only you, it’s not really going to be possible. 

Connectivity

So, there used to be major barriers, not just to entry, but just reach in general. The closest thing to global expansion is maybe getting franchisees or getting your business so big that it could actually expand to another country (which was super rare). It’s not like anymore. Honestly, wth the rise of digital technologies has significantly reduced the barriers to global expansion.

Plus, with the internet and everyone always having a smartphone in their pocket, businesses can easily connect with customers, collaborate with international partners, and manage operations from anywhere in the world.

It’s Easier to Build a Good Brand Reputation

When it comes to your locality, you can do one small thing wrong, and then word can spread around quickly. You’ll have to face social media posts, word of mouth, and even the local news potentially covering what you did wrong. It’s scary in a way; basically, when you lose the trust of the locals, it’s next to impossible to get that back. But a global presence can enhance your brand’s reputation. 

If you accidentally do something wrong in one area, it’s not going to spread around as quickly or effectively (unless you did something really bad). Plus, there’s another perspective of it: the more reach means, the more successful you are. So, operating on an international scale often signifies stability, reliability, and a commitment to providing quality products or services, which can positively impact how your brand is perceived by customers worldwide.

Risk Mitigation Might Be Easier

This somewhat goes hand in hand with the natural disaster example that was mentioned earlier. If one market faces difficulties, your business can still thrive in other areas, providing a safety net against localized risks. Essentially, if you keep all your eggs in one basket, there’s a higher chance of them breaking, but it’s less likely in

Less Likely to Worry About Market Saturation

When it comes to a lot of markets, both large and small areas, in general, just mature markets, businesses will often encounter saturation. While saturation isn’t a bad thing, it’s not always a good thing either, thus making it challenging to sustain rapid growth.

If you have too much competition, it’ll just become more challenging to stand out. So, by venturing into new global markets, you unlock fresh opportunities and untapped customer segments, reigniting the potential for substantial business expansion.

More Social Responsibility

Does this have to be a bad thing? Honestly, it’s not; instead, a lot of businesses should see this as a good thing because you can make a positive difference! So, just by embracing corporate social responsibility on a global scale, your business will contribute positively to various communities, fostering goodwill and enhancing your brand’s image.

You really need to think of it this way: expanding your customer base globally is not merely a strategic option; it is a strategic imperative in today’s interconnected business landscape. The world is changing, the business world itself is changing, and it seems like more and more, you’ll need to focus on bigger markets and more markets in order to actually thrive!

By embracing a global mindset, your business can position itself for sustained success and resilience in the face of an ever-evolving global marketplace.

Article and permission to publish here provided as Contributed Content. Originally written for Supply Chain Game Changer and published on January 8, 2024.

Cover image by Mediamodifier from Pixabay.