The world is growing smaller every day, thanks in part to global business agreements and the power of the Internet. With the fantastic opportunities available, it’s incredible that some businesses decide to turn a blind eye to the unrestricted growth in front of them.
There are three distinct strategies to grow your business: online business services and eCommerce stores, managing an online presence as a form of lead generation, or operating a physical location in a foreign land.
To fully benefit from the interconnected global economy and run a business overseas means you should have a strategy in place to harness the power of the Internet in some function.
Creating a 24/7 Business Platform
The benefit of an interconnected world is the opportunity to reach as broad a potential customer pool as possible. Think about it, there are an estimated 7.7 billion people, and if ⅔ are adults, then over 5 billion are of adult age and able to make some level of purchasing decision.
Now, consider our little exercise further. If 60% of 5 billion can access the Internet, that means more than 3 billion people have online access and reach. Imagine your business having 3 billion potential customers, and you can understand the power of online business.
Not having an online presence is operational negligence for your company with such potential. Moreover, even in B2B markets, having an online presence can build upon your brand awareness, and with highly-targeted advertising, it can potentially increase your company’s sales and market share.
Managing Clients Abroad
China is poised to be the primary marketplace in the next century. The growing economy will quickly overtake the United States in GDP, but conducting business in China requires understanding the laws, regulations, and nuances unique to China.
As you look to expand into the Chinese markets, the first thing you’ll need to decide is the type of business entity you’ll operate in China. There are three distinctions for businesses to operate in China. The first is a Wholly Foreign-Owned Enterprise (WFOE), a joint venture (JV), or Representative Office.
There are different advantages to each distinction. A WFOE allows for 100% ownership of a non-Chinese citizen, allowing complete control and revenue. With a JV, you’re working with the local government, sharing ownership and management of your operations. Finally, the third, a representative office, is recognized as an extension of a home office from a foreign country. It shares some advantages with the other two but has an extensive list of regulatory limitations.
Whether you’re looking to expand your reach into China or other foreign countries, how you manage your information and data is crucial for proprietary security but also personal and business operational security. These security concerns are especially poignant if your business is a B2B service provider and manages a list of clients’ operations, IT, and other services.
If that’s the case, how you manage and secure their information and devices is crucial. In that case, select the right RMM software that allows real-time data management so that you can address any issues or risks immediately. Being compliant with foreign regulations and protocols and keeping your client’s devices and information safe requires constant diligence on the part of the service provider. In addition, having suitable operations and software in place is a crucial component toward securing your clients’ data.
Executing a Compliant Growth Strategy
Understand that utilizing the Internet isn’t going to guarantee an exponential growth in sales, but to not use the potential is being negligent. Creating well-designed online business models coupled with a strategy to see a broader reach of potential clients will require you to strategize how to find those individuals, connect with them, and offer your products and services that fit their purchasing needs.
Additionally, having protocols in place that are compliant with various foreign laws and regulations is crucial to avoid any penalties or run afoul of foreign laws. To grow your business effectively, you’ll need to develop a growth strategy. In that strategy, you should focus on securing funding for growth, operational and logistic hurdles that may occur, staffing concerns, having security protocols in place, and being in compliance with local and foreign laws and regulations.
The most critical consideration in executing your growth strategy is securing funding to avoid dipping into limited cash reserves. Consider private lending options such as bank loans or personal equity options, raising funding through share purchases, or public lending such as from the Small Business Administration.
The next concern is in securing you and your client’s data and managing that regardless of in-person or through cloud services. Finally, you must know the local regulations and protocols to remain compliant and operate, whether in another state or country.
Whether you choose to operate in a physical location of a foreign country or operate solely online, your growth strategy is the same. Having security protocols to manage your operations safely and being compliant should be a considerable part of your executing a growth strategy.