Thinking about international expansion, particularly when first starting out, can seem overwhelming and premature, but it could be crucial to the overall success of your startup.
New Stripe research shows a direct correlation between the speed of a business internationalising and its overall success. Firms that expanded internationally during the first year of existence grew 141 percentage points more quickly in revenue and 15 percentage points more quickly in headcount than those that were slower to reach new markets.
Correlation doesn’t necessarily imply causation, but businesses that feel global expansion is too far out of reach may want to think again. Seventy one percent of online businesses in Australia selling internationally plan to further expand into new markets in the coming years.
This particularly makes sense in Australia, where, with a relatively small market, Aussie startups need to weigh the opportunity cost of not internationalising. Australian businesses themselves cited an influx of new ideas and products, better long-term prospects, and access to a wider talent pool as key reasons for expansion.
International expansion can therefore be the catalyst businesses looking to scale and to solidify their growth. Luckily, going global from day one is completely possible.