The international spread of capitalism and the ubiquity of the Internet mean you can run your business on a global scale. While the global economy means you have more potential customers, it also means you have more competition. Even if you’re operating your business in one country, you’re still competing on the global stage. Here are five things you must know in order to compete in today’s global economy:
- Innovation is Key
Because there’s more competition in a global market, you need to stay innovative in creating and improving your products or services. As companies around the globe attempt to serve your customer, you need to look for ways to take your product to the next level so that it stands out from the pack. Some of the ways you can be more innovative include asking your customer base for feedback on your products and holding regular brainstorm sessions with your staff to find new solutions to customer problems.
- Understand Other Cultural Landscapes
If you want business from people in other countries, you must be prepared to communicate with customers from different cultures. This may mean having your website and customer support line in multiple languages and learning cultural nuances when you adjust your marketing plan for other countries.
For example, Amway provides its 3 million Independent Business Owners (IBO’s) around the globe with the ability to sell products in their local community or on an international scale. As a direct selling company, the company relies on people to market and sell products in their local markets, rather than replicating the same marketing plan in every location. Due to a misunderstanding of this direct selling business model, many have been led to ask, “Is Amway a scam or pyramid scheme?” However, Amway IBO’s all over the world don’t earn any income from recruiting. They only earn money when products are sold. This empowers those familiar with their own local cultural landscape to market and sell in any manner they deem most effective.
- Know the Laws
Before you make business transactions across borders, you need to know the laws, tax rules and regulations your business is subject to. Even if your business is exclusively online, you’re still required to comply with each country’s laws. In each country you do business in, you need to constantly ensure your business is operating within the law.
- You Need a Diverse Staff
When you bring on new team members, look for people with global experience with cultural proficiency across borders. Their knowledge can help you succeed in international markets through their understanding of what works and what doesn’t in other countries. Depending on your business, you might hire someone to help you with language translation for your website or online store, or you may hire a marketing professional with experience running marketing campaigns in other cultures.
- Communication is Key
When you’re running a business across borders, you need a centralized system for communication. This is where cloud-based online communications systems come into play. When you use software that lets team members collaborate from any computer or mobile device in real time, it makes remote working easy and effective. While email or Skype may still be important, platforms like Asana or Slack allow team members to manage projects in one centralized place. Instead of having to switch between spreadsheets, sticky notes, calendars, emails and more, these platforms keep everything in one place and make it easy for everyone to be on the same page.
Embracing the Challenges
As the economy continues to globalize, there’s no going back. To leverage economic globalization for your business, embrace the challenges it presents you, whether they be cultural barriers, international laws or communication problems. Staying innovative, educated and adaptable will help your business be a successful participant in the global economy.
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