According to a recent report from Bloomberg, the UN says the world economy is growing at its fastest pace in almost fifty years. As the world becomes more “borderless,” it’s becoming both simpler and more complex to be an international business.
Simpler, because technology infrastructure makes it easier to reach new markets and supply new resources outside of a company’s country of origin – from setting up new websites and acquiring new customers, to accessing goods and services.
But more complex, because siloed systems and fast-moving regulations that differ per region require considerable time, money, and other resources to navigate. This can slow growth and divert time and attention from revenue-focused activities.
Remarkably, one of the hardest things for a business to do when expanding internationally is simply getting paid by a global customer base. That should be a simple task, right? A few roadblocks stand in your way…
Hiring The Correct Talent
We cannot talk about rapid international growth without talking about people. More staff are needed “on the ground” and in the new country to handle added difficulty. Each business will have unique situations so will need to be handled on a case-by-case basis. Furthermore, the acquisition of more and new talent is ALWAYS a gamble. As mentioned in the tagline, planning is key especially if worldwide growth is on the cards. A Forbes article states that “assembling an international team can be achieved these days through partnerships, alliances, and direct hiring. Review country-specific industry associations and begin connecting with leaders of their executive boards.” It goes without saying but looking after your employees and your employees will look after your customers and clients.
Small and medium-sized organizations face an uphill struggle when trading overseas in terms of taxes, fees, tariffs, and compliance. If that was not enough a business needs to be aware of the procedures and protocols of the country, they want to trade in. An answer is taking a practical, calm attitude and fully understanding what needs to be done so the enterprise does not get stung.
Supply Chain Risks
The pandemic has wreaked havoc across the world but none more so than our supply chain. Do a quick search on Google and a whole host of results appear on your screen including the effects in the sporting world. All multinational corporations have whole divisions dedicated to this one aspect. And for good reason! Cost, time, and expertise is some of the considerations involved when dealing internationally. According to a recent report from Shopify, the global eCommerce market is expected to total $5.55 trillion this year. To get a slice of that pie, businesses need to be prepared. A blog post from QuickBooks says that if you are not ready then you could “find yourself competing with an unexpected competitor, potentially over/understock on key products, and maybe even end up spending more than you expected.” You would not go up on stage to give a speech in front of thousands of people without preparing and rehearsing so having a blueprint in place will smash through the financial barriers to rapid international growth.
Linguistic and Literary Obstacles
Speaking the same language and having vast cultural experience is advantageous when moving into another market. Due to the internet, most of the world converses in English so going into a high percentage of regions should be stress-free. One solution is “Google Translate.” Although it is a powerful device to use, a company simply cannot trust translate to make sure their communication is being transmitted in the right way. The answer is pivoting to the situation and creating a go-to-market tactic. As your organization expands, it will become clear what is best for your company, clients, and customers. The technological infrastructure accumulated can build a market tactic that can be applied in several settings. Additionally, the need to be agile can be the fast track to success.
During a recent Meet the Boss roundtable in association with a global payments’ enablement and software company and the above points were echoed. The roundtable had representation from a wide range of global businesses including an enterprise software company, an advanced AI consulting organisation, and an international container shipping business amongst others. They believed that the dependency on manual should not be as heavy as it is today, and you should be able to see more of what is happening at any given point in time during that process.
GDS Summits are tailored 3-day virtual event conferences that bring together business leaders and solution providers to accelerate sales cycles, industry conversations and outcomes. Regarding the NG Banking Summit 80% of Solution Providers said they would be interested in sponsoring future events and that same 80% agreed that in this ‘new normal’, GDS Digital Summits worked well and met or exceeded their expectations.
For more, click here to hear from attendees on how GDS has helped them to achieve their business outcomes.
Continue the debate at GDS’ NG Banking Summits where we bring together senior financial executives who are actively seeking to share, learn, engage, and find the best solutions.