Did you know that there are around 8 million businesses across the United States?
Now many of these ever reach beyond the borders of the country. However, this is a sure way to curb your business's growth. Why limit yourself to one country when there are more than 200 across the globe?
Are you wondering how you can expand your horizons? Keep reading to learn all about how to create a strong global expansion strategy.
Assemble a Dream Team
The best global expansion strategy starts with a handful of passionate and skilled people who are working in sync. It's true that a business is only as strong as its weakest link. If you cut corners by hiring people who aren't qualified, then you can end up sabotaging your plans before they've even begun.
Anyone you're thinking about hiring should go through a thorough vetting process. If you take it seriously, so will the potential hires. For instance, you'll want to ask them the right questions during an interview.
If they don't see themselves working within your industry in the next 5 years, then they might not be a good fit for you. In essence, you need someone who is in it for the long haul but who is also ambitious and wants to move up the ladder.
Aside from the interview, it's important to do a background check. Thorough background checks aren't free, but you should see them as an investment in the future of your company. Don't forget to follow up with the references they've provided, too, because this is a great way to get detailed information about how they conduct themselves.
To make sure your team is truly ready for the future, it's a good idea to monitor and evaluate their progress on a regular basis. If you notice red flags, such as a lack of focus in their work, you can talk about that with them and get them on track. In the worst-case scenario, it may be necessary to let them go and replace them.
Choose Between Strategic Models
Once you have your dream team, it's time to form a global expansion strategy. You can start by homing in on the strategic model that's right for your industry. Put in the simplest terms, the way you globalize could be quite different from the way another company globalizes.
The exact strategy will depend upon a variety of factors, but it's worth knowing the basics of each so you can make a more informed decision. The first type of strategic model is one way that businesses are able to dip their toe into international waters, so to speak.
The international strategy involves keeping your main headquarters within your home country but also investing in importing and exporting products from one or more countries abroad.
A transnational involves having a headquarters in your home country as well, except you'll have multiple locations in other countries. These subsidiaries will be run by the headquarters.
Yet another strategy involves a lot more moving parts but can be much more successful due to its subtleties. The multi-domestic strategy involves having headquarters in each country your brand exists. Not only this but the brand and products you provide will change based on the markets you're occupying.
The largest global expansion plan involves becoming so widespread that it's not necessary to make changes in your brand or products. One of the best examples is the company everyone knows as Apple. Their products are universal and only need a few changes in the keyboard to compensate for differences in world languages, for instance.
Of course, not every brand is similar to Apple, so a global strategy of this nature may be as unachievable as it is unnecessary.
Scout Out Growth Opportunities
Every new global expansion strategy should be open to the possibility of taking advantage of unique opportunities that may crop up at the drop of a hat. These opportunities can make growth both quicker and easier. Business acquisitions and mergers are just two ways you can do this.
Since it can be hard to predict when and where these opportunities will occur, it's crucial to keep your ear to the ground and prepare for the general possibility. You should have one or more team members dedicated to keeping track of such opportunities and notifying you of the most promising ones.
That way, your brand can grow even bigger than you anticipated.
Audit, Audit, Audit
As you expand your business, it's important to perform audits on a regular basis. Audits are one of the best ways to learn about yourself as a company. Not only can you make note of what works but you'll also figure out what doesn't work or what can be improved.
All of this information will be priceless when it comes to expanding and setting up locations in other countries. Auditing these new locations is just as important.
The most crucial audit will come right before expansion. The reason for this is that the audit can give you detailed information about what you can expect as you expand, from potential snags to various forks in the road and so much more.
Ready to Launch Your Global Expansion Strategy?
Now that you've learned all about how to create a strong global expansion strategy, you can take your brand to the next level and beyond. Everyone has humble beginnings, but with enough know-how and plenty of experts in your corner, anything is possible.
We can help you expand into many countries across the world, including Canada, China, the UK, Greece, Germany, Malta, and others. Instead of setting up a whole new entity, we make things secure and simple with our expert PEO services.
Do you have questions? Don't hesitate to reach out to us for more information?