Small business has grown all over the US. There are now 5.48 million incorporated self-employed in the US, according to the latest data. Yet this is the group that is driving global business forward. It's no longer the exclusive preserve of the huge corporate brands everyone has heard of.
One could argue that companies don't go global people do, and to an extent this is true because personal brands are becoming more prominent in the global business sphere. So why are so many businesses going global?
Because They Can...Easily
The Internet has opened the door for companies to trade all over the world. Previously it was too expensive to do this. Now you don't even need to have a physical presence in a country in order to do business. You can be an international company from the comfort of your own home.
And the Internet is only going to make that easier as time goes on.
The Gig Economy
The gig economy is one of the reasons why companies go global. Many companies are now hiring teams they will never meet in-person. The freelance economy can help you get projects done without the need to have employees in the same room as you. It's also cheaper than employing a full-time employer to do the same job.
Cultures are Homogenizing
Again, this is the work of the Internet. Cultures are becoming more and more similar as Western influences are allowed to permeate. Think back to the state of the former Soviet Union. Thirty years ago it would be impossible for a Western company to appeal to this audience because they had little exposure to the West. Today they dress the same as the West and they love the same stuff as the West.
Your audience has increased without you having to do a thing.
It's Easy to Stay in Touch
You can easily manage a global empire without visiting the places you are actually doing business in. Solid Wi-Fi connections and software options like Skype allow you to stay connected at all times. Expensive business travel is a thing of the past.
Competition is Forcing People Away
There are more small businesses than ever before. When answering the question 'Should you go global?' it's often not because you've been an amazing success story back home. It's because competition is forcing you to take a look at unexploited economies. There might be less competition, thus giving your business a better chance.
Become a Trusted Brand
The fact is moving internationally will increase your prestige as a brand. It will increase your overall reach because customers are going to look at an international brand and assume they can be trusted. It's all just because of this added prestige. Rightly or wrongly this is how it works.
It's Cheaper to Do Business Elsewhere
Sometimes it's just a matter of cost. It's cheaper to do business abroad because you can reduce production costs and pay employees in more affordable countries less. There's a reason why Apple outsources the bulk of its iPhone production to Asia.
Save on Taxes
Tax havens are a gold mine for major international companies. It's a chance to save most of your profits for yourself, but this can only happen by expanding internationally.
Take note that for US companies you need to be careful with how you use tax havens. The US is the only nation that offers a double taxation system. Sometimes it's better to take your company completely out of the US and set its home as the tax haven. That way you will actually be operating as an international company in the US, rather than a domestic company. This can help you save on taxes.
Breaking the Glass Ceiling
What do you do when demand begins to slide for your product after a busy period?
Sometimes the best option available to you is to look for another market. Finding another country where demand for your product is higher is a far superior option to simply waiting out the slump in sales.
Create an Economy of Scale
To put it simply, expanding will enable you to produce more units. The more units you produce the lower your per unit cost. This can increase your profit margins, but you can only get the best of this through selling to more customers, which can only come through expanding to more countries.
These are ten reasons why you should consider going global right now. If your company has yet to explore the possibilities, it's time to give it a try. Which country do you think is the best for you to expand into?