Time magazine recently published a very interesting article by Zachery Karabell. I wanted to share a bit of it with you because I think it makes some very good points on diversifying your income, and globalizing your business. Even if you are a small business, or individual, you can still have an international presence and create multiple income streams. Read on for going global business tips!
Here is what this article says, in so many words…
In the past, our stock market was a clear reflection of the state of the economy. When there was a dip in earnings, spending, or jobs, we would see that reflected in our stock market. But, while most companies have dropped (an average of 10%) other companies seem to be doing just fine. Many of the larger companies are actually doing much better–and are growing exceedingly well in this “down market”. An interesting shift is happening in our stock market, and it is something we should be paying attention to:
“With stocks, it’s not the economy–companies are no longer tied to their home GDP.”
Why is it that while our stock market should be failing, many companies seem to be growing?
“…firms such as 3M, Hewlett-Packard and Intel drive two-thirds or more of their sales beyond the U.S. That means even if the U.S. economy is a total wash, they can access other markets to maintain their growth.”
Going Global Business
The simple answer to this phenomenon is that most of the big companies are going global. They have realized the financial benefits of off-shoring (running their companies in other countries) and outsourcing (paying lower wages to professionals outside of the country). Obviously by lowering their overhead, they are able to increase their profitability. Additionally, they may be using this “economic downturn” to take advantage of making layoffs and downsizing the expenses on their home soils.
What this means for you:
What this means for you on a greater scale is that you might want to be thinking about your own ability to globalize. Namely, your positioning, ability to diversify your income in to different streams, and making a concerted effort to reach a broader, more global audience.
Positioning
Many of the big companies will focus on positioning. They want to run a low-cost company at a high profitability. When economic hardships strike, the best thing you can do is look at your overall positioning and determine how you can improve on your ability to cut costs and maximize your resources. This doesn’t necessarily mean that you have to live a less exciting or meaningful life. I’ve been able to reduce costs and improve my lifestyle just by moving to Thailand.
How can you lower your cost of living and increase your lifestyle at the same time?
Are you able to change or adjust your positioning to expand your opportunities?
Diversification
Many people believe that you need to offer something to everyone. I disagree. I think you can operate a particular niche, but layer your income so that you have a variety of streams coming in. Remember, it is not just one economy that you can draw funds from!! By diversifying Where Your Income Comes From, you are safeguarding yourself from the ups and downs of local markets.
What ways can you create additional income streams and position yourself for more success?
How can you diversify your offerings to bring in new business?
The Importance of Globalizing
In our lifetimes, we are likely to see a lot of change in business. I’d venture to say that the biggest change is going to be that of globalization. We no longer are tied to one economy, this is why we need to consider that The World Is Our Market. While this may seem daunting, I find it Very Exciting! It is the first time ever that an individual can go global! We just need to be smart about the fact that the jobs and economy are shifting, and in turn, we need to respond with our positioning, diversity, and globalization. We need to think beyond one market, because…
If big companies are succeeding with these tactics in a down market, why shouldn’t you?
Not sure how or where to get started? Sign up for my FREE eBook in the sidebar. Or, check out my Online Business Courses where I walk you through each step, one by one. There is no need to fear the technology, it is much easier than you think!
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