Unlock The Benefits of Expanding Your Small Business Internationally

In today's global marketplace, expanding your business internationally can unlock many new opportunities and benefits, especially if you're using the tools designed for businesses with international needs. Whether you're a UK-based enterprise considering expanding to the US, a sole trader setting your sights on the European market, an entrepreneur exploring business horizons in locations such as Australia, Singapore, or New Zealand, it's crucial to thoroughly research your new market, be aware of any risks, but also explore the compelling advantages of international expansion.

At Wise, we're committed to helping you grow internationally with our multi-currency business account but we're also here to help you learn more about the benefits of expanding internationally.

Benefits of Wise Business Account

Enhanced Market Opportunities

If your existing customers are pulling back spending amid rising costs and inflation, or you want to access new customers overseas, it makes sense to consider expanding internationally. For example, if you're in the technology sector, explore countries like Singapore, a hub for innovation and tech startups. If you're in the renewable energy industry, countries like Germany and Denmark have embraced sustainable technologies, making them excellent options for your international expansion. In the healthcare and life sciences sector, New Zealand's stable economy and well-developed healthcare infrastructure make it an appealing choice. On the other hand, the US has been known as a global technology hub for innovative software, apps or tech solutions.

Lots of UK brands have benefited from expanding business internationally. Consider the iconic luxury fashion house Burberry, founded in 1856 in Basingstoke, England, which has transcended borders to become a symbol of British elegance. Then there's Unilever, which traces its origins back to the merger of a British soap manufacturer and a Dutch margarine company. Today it operates in over 190 countries and is responsible for brands like Dove and Hellman's. Not to be overlooked is Twinnings Tea, a renowned British Tea company with a history dating back to 1706 who has established a strong brand image worldwide and is often associated with quality.

Diversification and expanding your business portfolio

Diversifying your business through international expansion is a powerful strategy, particularly in the face of rising business-related costs in the UK and rising inflation. This approach safeguards your business by reducing its dependence on a single market. While one market might experience a downturn, others may remain stable or even thrive, serving as a financial cushion that can help mitigate risks.

By tapping into different markets, you also have the opportunity to discover untapped demand for your products or services, while expanding your portfolio and potentially even leading to innovation of new products and services. Some regions may exhibit a more significant appetite for what you offer, allowing you to scale your operations and increase your sales potential. This not only increases your bottom line but could also enable you to test new business strategies tailored to these different markets.

Access to a larger customer base

One of the most crucial advantages of expanding your business internationally is gaining access to a larger customer base. Imagine you're a UK-based software company with cutting-edge solutions. Venturing into international markets, such as the US, allows you to broaden your horizons and cater to diverse demographics, needs and preferences, reaching a significantly larger pool of potential clients who might find value in your offerings.

One exemplary case of a business expanding internationally and to access a larger customer base is Amazon. Initially a small online bookstore, Amazon built a dedicated customer base by expanding its operations globally, allowing it to connect with diverse regions and broaden its range of products and services to what is now one of the world's largest multinational companies.

Access to Talent and Resources

Expanding internationally offers businesses several advantages in terms of talent and resources. Through expansion, your businesses can tap into a diverse global talent pool, gaining access to skilled professionals from various backgrounds, leading to new ideas and innovation. Additionally, international expansion often opens doors to cost-effective resources and raw materials, enhancing cost-efficiencies.

For example, a small software development company aiming to expand to India can leverage the country's extensive IT expertise and cost-effective labour market, enabling them to create high-quality software at competitive prices. A small UK architecture and design firm expanding to Italy can tap into the country's extensive architectural and design heritage, gaining access to local expertise, creative talents, leading to great innovation and enhanced reputation.

Competitive Edge

International expansion offers your small business a dynamic competitive advantage, especially if your products or services are innovative and distinctive. Imagine you run a UK-based eco-friendly clothing brand known for sustainable, ethically sourced fashion. As you enter the European market, your unique value proposition resonates with environmentally conscious consumers. While local competitors exist, they may not meet your brand's sustainability and ethical standards, positioning you as a pioneer in the field.

In some cases, small businesses find little to no competition in their target markets, allowing them to capture a significant market share quickly. Returning to our eco-friendly clothing brand example, if there are limited or no local competitors offering sustainable fashion in your chosen market and you are effective at marketing your business, you could become the top choice for local environmentally conscious consumers.

Improved Brand Recognition

Expanding internationally can significantly enhance your brand recognition and reputation. A well-executed global strategy not only attracts new customers but also captures the attention of investors, partners, and potential collaborators. This increased global presence generates a buzz about your business, elevating your brand recognition on a worldwide scale and creating excitement about your potential for growth. Additionally, improved international brand recognition can have a positive ripple effect in your domestic market, drawing in more local customers who perceive your business as a successful brand.

Numerous brands have successfully strengthened their recognition through international expansion. For example, Veja has gained international prominence due to their fashion, trendy, and organically sourced trainers which are made in Brazil and can now be seen on the streets of fashion and eco-conscious consumers from London to Rome. Similarly, a Czech brand called Dermacol has gained international recognition and is being used by the beauty industry for its makeup coverage, especially in the US.

Technological Advancements

Exploring international markets opens up opportunities for your business to embrace technological advancements, unique processes, and innovative ideas. Incorporating these international advancements into your business operations can provide a significant competitive advantage, improve operational efficiency, and position your company at the forefront of your industry.

For example, expanding into Germany could benefit a small UK-based e-commerce specialising in car parts due to the country's thriving automotive industry and consumer demand. With a robust market for quality components, the business can tap into Germany's automotive culture, potentially increasing its customer base and revenue. The efficient logistics infrastructure and widespread e-commerce adoption in Germany facilitate seamless operations and quicker deliveries, enhancing customer satisfaction.

Take your business to new places with Wise Business:

• No monthly subscription international business account
• Multi-currency support: hold 40+ currencies, send payments to 160+ countries, and get local account details for 9+ currencies including GBP, EUR, USD, AUD.
• Low-cost currency exchange: mid-market exchange rate with transparent fees
• Batch payments: pay up to 1,000 recipients at a time in multiple currencies with one spreadsheet
• Multi-user access: manage user permissions and choose from 5 roles to manage what your team members can view, access, and manage
• Business debit expense cards for you and your team: up to three digital cards per team member, and set spending limits according to your business needs
• Accounting integration: connect with Xero, QuickBooks, FreeAgent and more.