More and more businesses are looking for investors to fund a global expansion. More and more investors are looking for businesses ready to go globally. The business landscape is changing rapidly, and small businesses are expanding internationally right along with the big corporations. The internet can probably be named as the primary motivator for this trend because it made it so easy to communicate with people around the world. Orders can be placed with a click of the mouse. Governments recognized the opportunities this created and have created laws and regulations that promote global business.
Naturally, investors want a piece of the action. They are looking for companies that can successfully expand through globalization because the opportunities are unlimited. Of course, participating in international trade can be expensive so it’s not a decision made lightly. Yet there are so many advantages to expanding internationally that it makes sense.
What are those advantages? For one thing, a business can increase sales and thus profits which makes the company more attractive to investors. Other reasons include gaining greater market share, spreading risk by expanding market access, stabilizing seasonal sales cycles and establishing a foundation for unlimited growth. All of these reasons are exactly what can make a business attractive to investors.
Of course, expanding globally takes money. There are import and export fees, expanded production costs, higher shipping costs and the expenses associated with new promotions like marketing and travel. Investors will balance the higher costs to the expected increase in revenues and profits before making a decision. Investors will also weigh the risks associated with the global expansion. This balancing act though is one that the business should have already mastered in the business plan.
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