Go Global to Increase Sales

Posted by: Rod Kurtz on December 4, 2009

Companies are looking overseas to tap into global trade for a number of reasons. Among these are avoiding the risks associated with focusing on a single market, capitalizing on new growth in emerging markets, and taking advantage of lower foreign costs as compared with domestic costs. If you are thinking of going global, consider the following tips:

1. Determine appropriate targets. Focus on one country at first. After things are happening there, then move to the next hot spot. Don’t try and expand internationally too fast as some businesses make the mistake of spreading themselves too thin in their global expansion.

2. Make friends with the locals. Determine whether there are individuals and companies who you can align with to help pave the road ahead. Each market is different in regards to business culture. For example, what works in Japan may not necessarily work in the Philippines.

3. Leverage local currencies to drive the cash. Leverage the appropriate foreign exchange (FX) strategies that can take advantage of currency fluctuations. Don’t view FX strategies as an operation function. When businesses simply look at FX as an operations function, often international transactions get treated by the accounts payable or accounts receivables department as just another payment that needs to be processed. This is dangerous as the foreign currency markets are volatile and if exposure is not actively managed, it can have a negative consequence for your firm.

Though your company may have many reasons to go global, the main motivation is usually to make more money. If your global business strategy is implemented properly, the benefits can be yours for the taking.

Ryan Gibbons
Managing Partner
GPS Capital Markets
Salt Lake City

Reader Comments

Laurel Delaney, Chicago, IL

December 4, 2009 4:00 PM


Great post Ryan! I challenge you though on your comment about the main motivation to go global is usually to make more money.

As a global entrepreneur, my motivation to go global is to always do what's fascinating FIRST (that's fulfilling the passion part of my professioanal life because if you don't love what you do, you can't sustain it -- money or no money!) and second to that is growth. Last but not least, the money follows (hopefully) and that makes it even more exciting, enriching AND rewarding!

Best,
Laurel
Chicago, IL U.S.A.
http://borderbuster.blogspot.com

Ryan Gibbons

December 16, 2009 11:20 PM

Laurel, you and I will both agree that passion plays a big part in the ultimate success of your business. As an entrepreneur it is one of the driving forces that defines us.

The article casts a wide net to an audience of entrepreneurs and non-entrepreneurs alike and tries to address the issues those passionate enough to venture across borders may encounter.

Our company motto has always been, "Do It Right and the Money Will Follow!" While we hold to those ideals and that is our passion. We understand that the bottom line is how most will ultimately be judged.

Thanks for your comment. I can't wait to check out your blog.

Ryan
Salt Lake City, UT U.S.A.

Ryan Gibbons

December 16, 2009 11:20 PM

Laurel, you and I will both agree that passion plays a big part in the ultimate success of your business. As an entrepreneur it is one of the driving forces that defines us.

The article casts a wide net to an audience of entrepreneurs and non-entrepreneurs alike and tries to address the issues those passionate enough to venture across borders may encounter.

Our company motto has always been, "Do It Right and the Money Will Follow!" While we hold to those ideals and that is our passion. We understand that the bottom line is how most will ultimately be judged.

Thanks for your comment. I can't wait to check out your blog.

Ryan
Salt Lake City, UT U.S.A.

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