Why You Should Expand Your Business Internationally

Global business expansion is a significant decision to make, especially when you’re likely quite comfortable taking care of customers locally, regionally, and nationally. However, after reaching a ceiling in your home country, there can come a time when global expansion makes sense from a financial perspective. Expanding your presence into other countries may also be worthwhile for some of the following reasons:

It’s Easier to Do Than Before

Putting a business or company on the global stage used to be quite complex, especially if you were trying to enter the US market. If you wanted to open an LLC bank account as a non-US resident, you had to travel to the state you were forming an LLC and open it in person. You also needed proof of address in the United States and couldn’t use your Registered Agent address.

While that’s still common, you can now open a Mercury bank account for foreigners, a far more straightforward process than most expanding businesses have been used to in the past. Such an account is available for non-US residents, and you don’t have to travel to the US. You can also use the Registered Agent address as your LLC office address.

New Talent Pool

Whether you’re just starting your business or are already a well-established company, international growth can often be worthwhile for greater access to talent. While you might have plenty of brilliant people in your home country, global expansion means you can tap into an entirely new talent pool with qualified and skilled people to help your company reach new heights.

More Revenue Potential

Some businesses experience such great success in their home countries that they feel they’ve reached a ceiling. They’ve enjoyed excellent brand recognition, have a majority market share, and are trusted by loyal consumers who will continue to utilize their products and services for as long as they’re provided.

At this point, global expansion can allow well-established businesses to capitalize on their success and enter new markets. While it can take some time and effort to become known and trusted in a new country, it might not be long until you’re enjoying more revenue and profit.

Diversification Opportunities

If the market you’re currently in is saturated, diversification opportunities can be limited. However, that might not be the case in a country you’re expanding into. After a considerable amount of market research, you might find an abundance of diversification opportunities that have the potential to take your business to new heights. This can be desirable during market downturns. If one part of your business is struggling, the other part can prop it up, and vice versa.

Cost Savings

There’s no denying that global expansion can be an expensive activity, especially with many legal hoops to jump through regarding permits and taxes. You must also spend time and money ironing out the logistics and ensuring new supply chains and employees won’t impact the customer experience. However, you might enjoy cost savings in the long run. Expansion into a new country might introduce you to cheaper labor costs that boost your profit margin.

International expansion is a huge step to take, and it doesn’t happen overnight. However, by exploring your expansion options and putting in the effort, there’s every reason to believe you can enjoy some of these lucrative benefits above.


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