International trade and presence are essential for any growing business, whether you are a business-to-consumer or business-to-business firm. Not only does international business expansion provide you with an entirely new market of consumers but it can help you diversify investments and get access to a larger talent pool.

Despite the challenges of Brexit and the COVID-19 pandemic, businesses have shown a determination to expand overseas. In fact, 70% of UK SMEs plan to expand into foreign markets within the next five years.

If you’re looking to grow your business abroad in different markets, you might be wondering where you get started. We delve into what expanding your business internationally means, the benefits and how businesses can achieve overseas expansion below.

What is international business expansion?

International business expansion is when a company increases its sales, assets, or operations in a market outside of its origin nation. This is key to a business staying competitive and brings new sources of revenue to capitalise on. It is also known as internationalisation and a multi-level strategic growth process undertaken by many companies.

What are the benefits of overseas business expansion?

1. Access new markets – Expanding across borders means you can access a previously untapped customer base. Your product or service can reach more people to reduce reliance on a single market.
2. Increase your revenue – New territories mean you could attract opportunities that may not exist in the UK which could result in more sales. According to a study by HSBC UK, this is the main reason behind the expansion of many businesses.
3. More talent options – By establishing your presence abroad, you have access to global talent pools. This brings fresh perspectives and ideas that foster creativity and inclusivity within your organisation.
4. Staying competitive – Getting the competitive edge strengthens your position as an industry leader and demonstrates your ability to understand foreign markets. This sets you apart from your competition.

How can you expand your business internationally?

For many businesses, going international isn’t easy. It takes a thorough research of the culture and language of the country in question, alongside an understanding of the target international audience. Here are some of the best tips for businesses considering international expansion:

Acquisitions and mergers

Merging with or purchasing an existing business is a common way for businesses to assimilate into new markets. You can gain expert employees who not only speak the local language but understand the customs, culture, and desires of the consumer market.

International accounting

You’ll need to work closely with international business accountants to ensure your expansion overseas is successful. They can outline the new tax implications and take away the stress of dealing with local currencies and exchange rates and navigating foreign accounting laws and regulations.

Market research

Businesses will need to do in-depth research on the market they are expanding into to gain a good understanding of its demographics and any gaps that would be profitable to capitalise on. This will also help advise as to whether a product or service needs to be tailored or altered for new audiences.