The COVID-19 pandemic damaged the global economy from the start. But remember: the virus’ varied impact means the economic pain is not evenly distributed geographically.
This reality exposes the inherent risks facing any business that is mostly, or exclusively, focused on one market. That’s why, even during this crisis period, any single-market business should seriously think about expansion. Geographic diversification can lead to not only growth, but stability.
Every crisis brings new opportunities. The pandemic has effectively shrunk the world as hundreds of millions, if not billions, of people work virtually. This effectively lowers barriers to entering new overseas markets. With so many people now comfortable operating in a remote-first environment, it can be easier to test new waters. Thanks to technology, it’s easier to build a new team in a new market and then spin up pilot marketing and sales efforts.
With vaccinations well underway, many economies are in the process of re-opening. Why not get a jump on the competition by laying the groundwork for success in a new global market now? The U.S. only accounts for 15% of global GDP. Why not tap the other 85%?
Four Reasons to Go International
Pandemic aside, here are four reasons it can pay off to expand globally.
1: You may have foreign competitors that are here in the U.S. competing against you. Why not go into their home markets overseas and bring your offense to them in their home markets?
2: You might have U.S. domestic competitors selling internationally. You’re at a disadvantage if they’re selling internationally and you’re not.
3: Expanding overseas is a way to diversify suppliers. Building a more diverse supplier network builds a stronger business.
4: Moving into new markets is a way to enhance your services and products. What you might learn overseas can grow your core business back in the U.S.
Fortune Favors the Bold
In times of crisis, a lot of companies only think defensively, and focus on cutting costs. But the smarter move is to take offensive positions as best you can. Don’t just shelve the expansion plan you had in mind before the downturn began.
A Harvard Business Review posted an article of how businesses fared coming out of global recessions and found that only 9% of companies flourished. Meaning they performed better in the three years after the crisis than before it, and outperformed rivals. Why did those companies break from the pack? They found the right balance between cutting costs to survive the crisis, and investing to power tomorrow’s growth.
So don’t put your head in the sand and wait for the pandemic to end. Look abroad for potential new markets and make a strategic move while your competitors are retrenching—and so much of the world is just a Zoom call away.
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