A Company Would Like To Expand Overseas | What Are The Key Factors for International Expansion?

International Expansion

Globalization and the fourth industrial revolution have made international expansion much more accessible to businesses around the world. Technology has played a key part in these advancements, enabling companies to have an online presence, where they may not have had previously and reach a new audience or clientele.  The creation of apps now make it easier for companies to have a digital offering and present their products or services to engage and transact with their customers.

In the past, depending on their target market, language was one of the barriers for businesses wanting to expand globally. If a company would like to expand overseas, they still need to consider the language used by their customers and adapt any websites, apps, e-shops and collateral to the local language used, in order to get the most engagement.

The below image shows that Chinese is still the language with the highest number of 1st language speakers, followed by Spanish, then English. However, these weightings change when looking at languages being used on the web. In terms of percentages, English is king with 54% of the top 10 million websites being in English.

International Expansion most common languages. CXC local experts can help expand into new regions.

Startups and Global Growth

Startups have been steadily gaining more attention in the last few years, particularly in the digital arena. The adoption of ‘gig’ type jobs and online platforms becoming more prevalent and mainstream in the global business landscape has been made it easier to expand globally.  Technology continues to bring the world to your fingertips, making it one of the key reasons to expand internationally.  This in turn, has allowed startups to take advantage of global opportunities and cast their nets wider to ensure their global reach and growth.

When launching a startup company, some may choose to begin in their own local territory, where they already have an understanding of the market, their potential customers and associated costs of building a workforce, while others may choose to start operations in a region where they don’t have any presence whatsoever.

Whether starting a new business, or looking to expand globally the cost of hiring, training, managing and paying workers is a key consideration.

Many companies these days choose to take advantage of on-demand talent to allow them the flexibility to scale up and down as their business requires.

 

Startups and the Contingent Workforce

The Contingent Workforce Management and the On-Demand “Gig Economy” future is here and a reality that all companies must accept. Some of the key challenges now being faced by startup companies utilizing gig workers  is talent engagement/ retention, compliance and risk mitigation. There have been many articles, blogs, research papers, discussions, forums and social postings about how the “gig economy” has contracted or is expanding. CXC Global America’s having provided independent / freelance contractor payroll and compliance solutions to our “gig economy” clients for the past 6 years locally in the US, feels the true amount of Gig Workers is still unmeasurable.

Expand Globally

Becoming a global company is an impressive feat, and not every business that sets out to do it accomplishes the goal. To successfully convert your business from domestic to international, you’ll need to consider a new set of factors that might not necessarily affect a local-only company. For most entrepreneurs, building and maintaining a local customer base is one of the first steps on the road to success. Once they have achieved this goal, some business owners feel they’re ready to take on the next step: expanding internationally.

Reasons to expand internationally

Ever wondered why it might be a good idea to consider international expansion? Below we’ve listed 5 of the top reasons to expand internationally, all of which make good business sense.

  1. Increased revenue streams
    It doesn’t take much to realize that if you increase your business footprint, then you stand to increase your revenue.  Launching a business to new regions or countries means you increase your audience and customer base, giving more people access to your product or services, thereby increasing your customer base.  If the research is done right into new territories and customer base, then the increased revenue should follow.
  2. Increased investment opportunities
    Launching into a new country not only brings you closer to new customers and clients, but it also provides opportunities to partner with other businesses and could attract international investment, either from businesses wanting to invest overseas or from governments offering incentives to bring business and help their economy as a result.
  3. Diversification of revenue
    America is a great example of diversifying.  Within the country are so many micro economies that differ in products and seasons, that when one area is struggling, another area can be a kind of backup and strength. It’s the same with entering new markets for your company. If one particular region is not doing well, the strength of other territories may bolster and support overall revenue, allowing you flex with the markets
  4. Increased access to talent
    One of the key reasons to expand internationally for companies today, is to gain greater access to talent and increase their talent pool. International expansion enables companies to source talent locally in their new markets.  Companies can also access top talent remotely, even if they don’t have a local presence.
    Access to top talent and time to fill continues to be a challenge for businesses.  In recent times talent shortages have been further impacted by the great resignation and uncertain economic conditions. With the help of a global employer of record like CXC, you can now hire anyone anywhere, the right way.  Having a local team that speak the language and understand all the nuances of conducting business also helps with smoother operations and integration.
  5. Brand development
    Brand awareness and development are as much a part of global growth as setting up operations and selling into a new area.  Expanding into a new area assists with your global development and is a great tool to show your existing and new customers that your business is successful, giving you enhanced credibility.

 

International Expansion Challenges

Setting up operations in a new country or region can be a daunting and often challenging process for startups.  There are many aspects of the business to consider, from:

  • HR
  • finance
  • employee engagement
  • onboarding
  • payroll
  • back office
  • establishment of legal entities
  • risk management
  • foreign currency
  • conversions and management

International expansion made easy with CXC. Download our ebook to help you expand globally

How CXC Global can help

CXC has developed particular expertise in this field and have assisted 1000’s of companies to set up new legal entities and operations in over 65 countries globally for over 30 years and are considered the trusted advisor and preferred partner to businesses all around the globe.

Providing a solid base for startups is fundamental.  It enables them to focus on their core business execution and growth. CXC provides such a base, assisting enterprises to setup operations around the globe and entering new regions, as the needs of our clients determine.

Startups can now launch in new territories with maximum efficiency and pace underpinned by a strong compliance framework.

The establishment of subsidiary or new entities overseas is often a difficult and cumbersome process.

Having a trusted advisor with over 30 years experience, who can also provide “in country” HR services as well as employee onboarding services, not only enables startups to focus on their core business, but it also ensures their employees are engaged, productive and that most importantly, the company is fully compliant with local employment laws.

download our ebook on international expansion

CXC Global’s key services:

  • Global payroll – providing management of fully employed remote and hybrid workers, including compliance risk, tax reporting, and worker payroll in over 100 countries.
  • Contingent Workforce Management: including the management of an organization’s contingent workforce, extended workforce, and remote workers
  • Consulting Services: supporting organizations in all aspects of contingent workforce strategy design and implementation, including MSP services and vendor management
  • CXC Comply®: Global Workforce Compliance online SaaS platform and validation processes to screen and classify independent and self-employed contractors in all countries serviced
  • CXC Talent: direct sourcing, technology/IT recruitment, talent pipeline management, and recruitment vendor management

Contact one of our global team to find out more about how CXC can help you with your international expansion plans!