Business Expansion in Times of Crisis: Good Move, or Too Risky for Established Companies?

This article is specifically for companies that are selling physical products. If you’re a SaaS company, I hope this was helpful.

When a global crisis occurs, it can be easy to pull in and close down any non-essential operations.

However, there is a chance you might be overlooking an opportunity. There are new markets that have been opened up and need your products.

The 2020 changes are all about e-commerce, and how it’s a driving factor in the way that people get work done. It has an effect on where future sales potential lies.

Companies are learning that business expansion and growth to new territories is never easy, but the coronavirus has provided a wake-up call for them. They need to start looking at how their customers want to be sold and determine if it’s time just based on some fundamental questions.

Are New Privileges More Receptive to Your Now-Digital Growth and Business Expansion Push?

Going global always requires significant investment and research. It’s helpful to do this before a crisis because it will show you what the market may return to or beneficial areas relative to the current situation.

The US market is one of the most important markets in COVID-19. The rise in eCommerce sales means there are both risks and opportunities for companies expanding to this region.

B2B customers are looking for a more digital, self-service experience. As they get further down the sales funnel and process, this preference is even stronger.

The digital push has changed many markets, bringing some in-line with the sales channels you can make available to them. Brazil is an example of a market that may require less physical presence than they did before.

In 2021, we have data from three-quarters of the COVID era. Analyze your specific sales and market then look across the globe to see where you should expand

You may be having a hard time with the pandemic, but don’t forget about world events. Brexit is one example of an event that will affect your company and how you do business.

Will You Meet Regulatory Opportunities when Doing Business Expansions?

It can be cheaper for your company to do paperwork and regulatory compliance in a new country during or shortly after crisis. Economic countries might offer incentives, such as filing information electronically.

COVID-19 made it easier for companies to file paperwork as countries and new markets adopted digital processes.

You may have invested in new technologies and capabilities during 2020. Anything from a cloud warehouse or transportation management tool to traditional ERPs, digital document capture, live video for sales activities can encourage inter-department communications and streamline how you prepare for new regulations or required risk-mitigation efforts.

When I became more remote, digitalizing records and payments helped me be a better partner for carriers and 3PLs when looking to go global.

If a market is going international, you have to be prepared for regulatory changes. If they’re shifting from one country to another, it will make the process simpler and more beneficial.

Can Your Company Expansions Growth Be Simplified?

In a time of crisis, your business may experience an opportunity if it matches the changes experienced on a local level. For example, significant health crises like pandemics change how decision-makers interact with their businesses before and after those events.

In recent memory, we’ve seen a lot of change in the workplace. There was an increase in online purchases and technological adoption like video conferencing.

More products are being sold to people who work remotely, and this has made it easier for them to do business in other countries.

If your company has the funds to expand, explore how they can be used. You may be able to secure local talent and expertise at reduced rates if there is high unemployment in regions you’re considering.

Outsourcing and partnering with distributors may be the answer to some of your company’s problems. You can use these methods in many markets or countries, instead of having a physical presence there.

We expect there to be more commercial expansions and go-to market strategies in the future. This is because of how companies are preparing for COVID-19 by changing their internal structure.

COVID-19 Lessons Will Help You

The fear of a large-scale event is not always warranted. For example, during COVID-19, most companies made their plans or delayed them by less than one year.

Business expansion and growth is a long process and it’s hard to establish partnerships that support the expansion. E-commerce retailers benefited from building their supplier base during pandemic time because there was limited supply; sellers looking to expand would benefit by creating partners and redundancies in the business side of their expansion.

What you’ve done to protect your company locally in a recent crisis can be used as guidance for preparing business expansion plans, whether they’re good or bad.

The most important thing in business expansion is to treat your team well. Companies that are succeeding in this time of change are ones with a strong foundation where people were able to be flexible and proactive.

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Editors Note:

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Justin McGill
About Author: Justin McGill
Justin McGill is the Founder of LeadFuze - a lead generation platform that discovers new leads for you automatically. Get 25 leads free.