In February 2020, COVID-19 plunged the world into an economic recession. Despite the negative impacts on various markets, businesses have been continuing to expand overseas or making plans to do so due to the many benefits of going global.
In fact, the shift in market trends and digital advancement and adoption that has happened since the start of the pandemic has in some cases created more opportunities for businesses, including in international markets.
The downside of establishing an entity overseas is that it can be costly and take a long time, which may put off company owners.
This is where an Employer of Record (EOR) like CA Global HR comes in.
Using an EOR cuts down the time it takes to establish an overseas workforce; we get your staff legally employed and onboarded in a new country in compliance with local legislation on your behalf. It also lowers the costs of expanding your company internationally because it removes the need of setting up an entity in a new country yourself.
Here we take a look at the advantages of expanding your company globally in 2021.
Why expanding overseas in 2021 is still a good idea
Market diversification and growth
Broadening the scope of markets you do business in will increase your revenue streams and establishing a business in diverse markets will also protect your company from changes in the market in any given country where your business is based. This is especially relevant in times when economies are slow or rocked by a large-scale event like the COVID-19 pandemic.
What is more, taking your business overseas can give you an edge over your competitors, particularly if your company currently only operates in an oversaturated market. This will allow your company to reach heights it might not otherwise.
Greater profit potential
Widening your company’s market base by going abroad allows you to continue growing your business once growth in your company’s initial country has reached its maximum potential.
Expanding globally and delving into new markets means your business will reach a whole new audience it can cater to. This will enable you to attract more clients and grow your customer base by millions, leading to higher sales and increased revenue.
International exposure for your brand
The more countries you establish entities in, the further your brand recognition will go. Becoming globally recognised gives your business credibility and improves its public appeal, which fosters further customer growth, increases your network, and cultivates stronger relationships with stakeholders.
Access to a wider talent pool
Going global gives you access to a whole new network of international talent, which means more possibilities and opportunities to find the best-fit candidates with diverse qualifications and native language skills.
This means your business can go multilingual, further increasing your company’s reach, improving your ability to communicate with foreign-language clients, and growing your company’s reputation in international markets.
New investment opportunities
Taking your company abroad may help it garner more investors and your business may gain incentives and benefits from international governments that aren’t offered in the country of your company’s original base.