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4 Methods to Spice Up Your Direct Mail Marketing

Posted: 22 May 2020 10:25 AM PDT

We live in a world that is growing more digital by the day. To keep up, companies continue to invest heavily in digital advertising and marketing in an attempt to reach their user base. The advertisements you used to see when cracking open the newspaper in the morning now populate the websites you frequent to get information, or your Twitter and Facebook feeds. Advertisements are now everywhere on the internet, as companies desperately attempt to out-market their competitors. However, the rush to have the best online presence has obscured the fact that other viable marketing methods still exist. Take direct mail, for example. 

You may think that with email, instant messaging and social media all providing ways to disseminate advertisements or information quite rapidly, direct mail marketing has been rendered obsolete or ineffective, but statistics paint a different picture. According to a 2017 survey, direct mail marketing has a median return on investment of 29%, as opposed to paid searches (median ROI of 23%) and online displays (median ROI of 16%). The United States Postal Service found that 60% of customers who received a catalog in the mail were influenced to visit that catalog's website. The USPS also noted that 81% of delivered mail is read by the person in a household who is in charge of reviewing financial documents.

The allure of the digital world may make it easy to overlook direct mail as a viable and profitable marketing strategy, but those statistics make it easy to see that overlooking it can hurt your business's growth.

To be fair, It can still be difficult to make your advertising campaign stand out amongst the clutter of a mailbox. Here are four different ways to ensure that your direct mail marketing campaign stands out from the rest, allowing you to successfully diversify your companies' marketing strategy and grow your business.    

1. Pen machine addressing or hand addressing

A lot of advertising mail looks or feels impersonal, with your address printed in a generic typed font and generic statements covering the piece. Every piece of direct mail usually looks the exact same way! As a result, such advertisements often end up in the recycling bin right away, as recipients try to filter out pieces that don't appear to be personalized. That's why either pen machine addressing or hand addressing your mail can be a valuable strategy to increase the visibility of your advertisement, helping it stand out in a large stack of mail. 

These methods are simple and exactly what they sound like – writing recipient addresses on the envelopes using Sharpies or pens, or even a pen machine – but remarkably effective. Hand-addressed mail adds a personal touch to advertising, making people pause before moving on to the next letter and generating a positive emotional response in potential customers. Recipients feel more valued and appreciated when they see a handwritten address. In fact, a hand or pen machine addressing your mail has been shown to increase response rates by over 30%. 

 

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2. Post-it note mailing

Another fantastic way to enhance your advertising campaign is by using a Post-it note, one of America's most indispensable office tools. The method isn't tricky by any means: Simply attach a Post-it note containing a personalized message, website or phone number to your direct mail advertisement. As well as being part of your initial advertisement to each customer, the Post-it note can be kept for later, with the recipient putting it on a fridge or above a desk for future reference. This message on the Post-it note can also be hand addressed or pen addressed, maximizing the value and personalization toward the recipient. 

Why are Post-its a valuable marketing tool? For one, they stand out by taking up space on an otherwise plain postcard or letter. The human brain is drawn to the note when first scanning the piece of mail. Post-it notes are also a great way to personalize your mailings, and, as we discussed above, personalization can greatly increase your response and open rates. 

The numbers are in favor of using Post-it notes for your direct mail advertising campaigns. In fact, a 2015 survey demonstrated that attaching a personalized sticky note to a survey generated a response rate of 69%, while sending that very same survey out with no sticky notes led just 34% of recipients to fill it out and respond. That's just one example of how Post-it notes can improve your direct mail marketing campaigns.

3. Variable data printing 

We've talked a lot about personalization and how it can positively affect your marketing campaigns. Variable data printing (VDP) is just another way to add a personal touch to your direct mail advertisements. VDP is a method of digital printing that utilizes existing data to customize different elements of an advertisement, such as greetings, images, URLs, text and graphics. This enables you to target each piece of mail you send out to the specific recipient, allowing for a unique level of personalization that can grab each customer's attention. 

Giving your messages a personal touch resonates with a vast majority of customers. Studies say that around 80% of customers enjoy it when retailers or other businesses personalize suggestions or advertisements. Additional research has shown that personalized mail pieces have a response rate of 6%, while a generic piece generates a response rate of just 2%. 

For instance, let's say you own an auto dealership and would like to generate brand awareness in neighboring communities. VDP can print messages like "Hey Joe, our exclusive truck offer" and "Hey Alyssa, check our newest models of SUVs," addressing each recipient by name and with different offers.

4. Scratch-off mailing 

If you want another underused way to get potential customers to engage with your direct mail advertisements, try scratch-off mailing. By putting a scratch-off box on your advertisement, you induce the customer to interact directly with your product. The extra seconds they spend scratching may cause them to remember your product, contact information or company more clearly. Under the scratch-off material, enclose a coupon, discount code or subscription link to get them to take the next step toward choosing the products you are advertising. 

Research has shown that scratch-off mailing is a good way to increase your ROI and response rates, and you can even combine scratch-offs with VDP to add a more personal touch to your direct mail marketing campaign. 

Bottom line on direct mail marketing methods

People may still claim that direct mail marketing is not effective, but it continues to be an effective way to generate responses to advertising. Direct mail advertising is also a valuable avenue for businesses to diversify their marketing strategy and expand into other marketing channels. Of course, the above methods are just four of many ways to help your direct mail marketing campaign succeed. There are countless ways to tap into the potential that direct mail advertising provides. 

As an expert in the direct mail industry for over 30 years, I believe direct mail is an efficient marketing opportunity that most companies should take full advantage of. It is important to remember that direct mail marketing is still competitive, and every mailing campaign should make an effort to be different and stand out in a mailbox. Small differences go a long way in direct mail. Thankfully, there are direct mail companies that will walk you through your first successful direct mail campaign and offer unique mailing solutions. You could get ahead of your competitors by starting a direct mail campaign today. 

The Ultimate Guide on How to Get a Business Loan

Posted: 22 May 2020 05:20 AM PDT

The right type of small business loan may be all you need to launch a new venture or grow an existing business, but deciding what kind of loan is right for you isn't always a simple task. Understanding how business loans work and what options are available to you will help you determine which one you should pursue to get the working capital you need.

What is a small business loan?

Put simply, a small business loan is a type of financing offered to a company by a lender or provider. In exchange for capital, lenders charge interest and fees and require businesses to repay the principal on a set schedule over a standard period of time. However, repayment terms, interest rates and fees vary greatly depending on the type of business loan you take, who the lender is and various other criteria, such as your credit history, years in business and existing debt.

What to consider before applying for a business loan

What you need a loan for

Before applying for a business loan, you need to prepare a detailed business plan that explains how you will use extra capital to fund your business. Identify your specific business goals for the money, such as expanding into new markets, improving a product or service, growing your team, opening a new location, or simply having a safety cushion.

When to apply for a loan

The best time to apply for a business loan is when your company needs capital and, more importantly, you meet or exceed the minimum qualification. Lenders generally consider the following criteria: 

  • Credit score: First and foremost, lenders will evaluate your business and personal credit history and determine your level of risk. Lenders look for borrowers with a credit score above 680, though the exact minimum score is based on various other factors, such as your industry and the current economic trend.

  • Years in business: Most lenders require borrowers to have been in business for at least one year. Depending on the lender, the type of loan and the amount you want to borrow, you may need to have been in business for at least two years to qualify for a small business loan.

  • Annual revenue: Most traditional lenders require you to have a minimum annual revenue, usually between $50,000 and $250,000. Microlenders, on the other hand, may offer short-term loans as low as $2,500. Before applying for a loan with any lender, make sure your business exceeds their revenue threshold.

  • Ability to make payments: Finally, lenders will consider your ability to make payments. Carefully go over your business financials and make sure you have enough cash flow to make your repayments on time.

Amount of money you need

When you meet with potential lenders, make sure you have a specific amount of money you'd like to borrow. Make sure this number reflects the real amount you need to achieve your goals and that you have the ability to pay it off.

Types of lenders

When most people think of a lender, they think of traditional types, such as banks, credit unions and financial companies. However, there are other types of business financing that you can use to fund your business, such as these alternative lenders:

Loan terms

As you weigh different lending options, consider each institution's loan terms, or the total amount of time the loan will last if you make the minimum payment each month. Also, look for any additional terms and conditions listed under the loan terms. Loan terms vary by the type of lender and loan, from a few months to several years.

Repayment

In most cases, you are expected to pay back a business loan over the term of the loan with a regular monthly payment. The amount you pay with each installment depends on the amount you borrowed, the type of loan and lender, your credit history, etc. Failure to repay a loan is known as a default, and it can have steep consequences for a business's creditworthiness.

Interest

With a traditional business loan, the lender provides capital to a business, and the business repays the amount borrowed, with interest, over the loan term. Interest rates constantly fluctuate depending on the current economy, and they also depend on the type of loan you want, the type of lender, and qualifying factors such as your credit history.

Types of small business loans

There are many different types of loans and lenders, and deciphering the differences between them can be tricky. If you're considering a loan and you don't know where to start, this guide will help you determine what type of small business loan is right for you.

Small business line of credit

A business line of credit is a common financing option for small businesses that works kind of like a credit card. You can borrow money up to a certain amount and pay interest on the funds you borrow. As long as you don't go over your credit limit, you can borrow funds and repay as often as you need. 

A line of credit is ideal for businesses that require short-term capital to take advantage of a growth opportunity, bridge a gap, offset seasonal fluctuations in cash flow or meet an unexpected need.

Invoice factoring (or invoice financing)

Invoice factoring (also known as accounts receivable financing, invoice financing or factoring) is the process of selling your outstanding invoices to a lender, also known as a factor, in exchange for an immediate advance on the money your clients and customers already owe you. Companies often use factoring to improve their cash flow and secure funds on invoices. 

Factoring invoices is ideal for businesses with longer receivable payment terms, usually between 30 and 60 days. If you would like to improve your company's cash flow, factoring is a good method to receive your money faster.

Asset-based loan

An asset-based loan is designed to help businesses secure financing based on collateral, such as inventory or accounts receivable. These loans are generally easier to qualify for, and businesses gain quick access to capital to reduce or eliminate short-term financial needs. 

This type of loan is ideal for companies that need capital to keep normal business activities running and can use their own assets as collateral.

Small business term loans

A small business term loan is a type of short-term financing that is usually intended to fill one specific need to help your business grow. For example, if you need to upgrade your equipment, hire additional employees or expand to a new location, a term loan can bridge the financial gap to get you there. As the name suggests, this type of loan has a fixed term, ranging from a few months to several years. 

This type of loan is ideal for business owners who need upfront cash to fill a financial gap to complete a specific task, such as hiring seasonal staff or opening a new location.

Merchant cash advance

Also known as a business cash advance, this type of loan is funded from a provider based on a business's future credit card sales. You are required to repay the advance with interest based on a percentage of your credit card sales until it is paid in full. Because a merchant cash advance is paid through a percentage of your credit card receivables, there is no set payment term. Rather, your ability to repay the advance depends on how many credit card sales you make. 

A merchant cash advance is ideal for businesses that rely heavily on credit card transactions, such as retail storefronts and restaurants. This type of loan also doesn't require you to have an excellent credit score or make manual payments to repay the advance.

SBA loans

An SBA loan can be used for virtually any purpose. It's a long-term, low-interest small business loan that is partially guaranteed by the government, specifically the U.S. Small Business Administration. While the SBA does not loan the money itself, it does reduce the risk for the lender. SBA loans are sometimes more difficult to qualify for than other types of loans, and if a business does qualify, it can take several weeks to go through the approval process and receive funds. 

An SBA loan is ideal for small businesses that have been in business for at least two years, have a good credit score and have exhausted other financing options.

Business loan options and practices to avoid

Today, there are a plethora of alternative lenders and funding options that can get you the capital you need to grow your business. However, not all funding options are created equal. 

While traditional lenders tend to have strict requirements and can be difficult to qualify for, they are established and trusted entities that ultimately want your business venture to succeed. In many cases, if your business qualifies for a traditional loan, it makes sense to choose this funding method. 

If your business does not qualify with a traditional lender, alternative lenders and clever financing options can fund your business, but you have to be careful. Here are some alternative financing options and what to avoid: 

  • Business credit cards: There are many reasons why your business should get a credit card, so long as you use it properly and sparingly. A business credit card can help you build business credit and doesn't require collateral (something new or young businesses may not have). However, if you use it incorrectly, you can hurt your credit score and quickly accrue more debt – and fees – than you can afford. A business credit card can help your business grow, but it can also sink it.

  • Invoice factoring: Like a business credit card, invoice factoring is a great solution for certain businesses in specific situations. Factoring has many benefits – it has a fast application process, it mitigates cash flow problems, and factoring companies can even help you with the collections process. However, interest fees can add up quickly, and if a customer doesn't pay, you may be on the hook to repay the advance.

  • Merchant cash advance: If your business receives regular payment through credit cards (such as if you run a restaurant), a merchant cash advance can provide you with fast funding with no monthly installments or collateral, even if you don't have a solid credit score. However, merchant cash advances are one of the most expensive forms of business financing; you'll probably save money with a different lending source.

Small business loan requirements

Regardless of which business loan you pursue, the requirements to qualify and get approved are often similar. Here are some of the requirements you can expect.

Personal and business credit scores

If your business has a credit history, some types of loans will require lenders to run a credit check on the business. If your business has an excellent credit history, you will have an easier time getting approved. Additionally, the cost of borrowing money will be lower, and your likelihood of securing favorable repayment terms will increase. 

If your business doesn't have a credit history, lenders will check your personal credit score and secure a personal guarantee that you will pay back the debt with your personal assets if the business fails to make a payment. 

Often, the best way to secure a loan is to build a strong personal and business credit score. Many lenders will take both into account when determining whether to extend financing to your business and on what terms.

Credit reports

In addition to your credit score, lenders will look at your credit reports to see if you have any missed payments, bankruptcies, foreclosures or accounts in collections. If your credit score isn't as high as you'd like but your credit report doesn't have any red flags, you may still be able to secure a loan.

Time in business

Many lenders are cautious about providing certain types of loans to newer businesses, as they don't have an indicator of how risky their investment in the young business will be. Many types of business loans, such as SBA loans and business lines of credit, require a company to have been in business for at least two years. Other types of financing, such as merchant cash advances and invoice factoring, are more available to younger businesses.

Business finances and collateral

Many lenders require detailed information about your financial situation and will ask for cash flow statements, profit and loss statements, future projections, and other financial statements. The stronger your business finances are, the more likely you are to be approved for a business loan. 

Many types of business loans require collateral, especially if the lender determines the business is risky. A lender will usually look for a physical asset as collateral, such as equipment, inventory or real estate.

Cash flow and annual revenue

Lenders will look at your annual revenue and cash flow to determine whether you will be able to repay a loan on time. Even if you have an excellent credit score and have been in business for several years, if a lender doesn't think you can afford the repayment terms, they won't provide capital.

Loan amount

Finally, business lenders will consider how much money you are asking for and determine the risk. If you are a new business or have a subpar credit score, you may be approved for much less than what you hoped for. However, getting your foot in the door with a smaller loan is often an excellent opportunity to prove your creditworthiness and build a strong relationship with the lender. 

Generally speaking, you don't have to worry about asking for more than what you actually qualify for. Business lenders want to work with companies, so they will often provide a counteroffer for a smaller amount to do business with you. Keep your expectations reasonable, but don't stress about asking for too much.

How to apply for a business loan

Applying for a business loan is a daunting prospect, but it can be very straightforward if you have all the proper documents prepared and you apply when your business qualifies for the loan.

What documents do you need?

The specific documents you need for a loan depend on the type of loan and the specific lender, but these are the most common forms you'll generally need: 

  1. Business plan: Many lenders don't require a copy of your business plan, but it's still best practice to have a detailed business plan ready. The business plan should include your plans to borrow a specific amount of money, how it will be used and how you will repay the loan.

  2. Bank and financial statements: One of the most important sets of documents to prepare for a lender is your bank and financial statements. Lenders want to know how much money is deposited and withdrawn from your bank account each month and how your money is being used. Your financial statements should include your balance sheet, profit and loss statement, cash flow statement, and any other specific form they ask for.

  3. Tax returns: For pass-through entities, such as sole proprietorships and partnerships, you will need to provide your personal tax returns. If your business files a tax return, you will have to provide this return as well.

  4. Employer Identification Number: Your EIN is a nine-digit number assigned to you by the IRS, also known as a Federal Employer Identification Number or Federal Tax Identification Number. Many banks require an EIN to open a business bank account.

  5. Proof of collateral: If you have to provide collateral to secure a loan, you will need to provide proof that you own something of sufficient value, such as real estate, inventory or equipment.

Submitting a loan application

Once you have gathered all the required forms and documents, you may be tempted to apply for and submit several loan applications at the same time. However, it's best to choose your lender carefully and submit one application at a time. As with a personal loan, submitting several business loan applications at the same time can have a negative impact on your credit score.

How to increase the odds of a small business loan approval

Getting approved for a small business loan is difficult but possible. Here are a couple of basic steps to improve your chances of receiving a business loan.

1. Improve your credit score.

While not every loan involves an extensive credit check, many do. The best and most likely way to get approved for a business loan is to diligently improve your credit. Bad credit makes it harder to secure a loan and then makes borrowing money more expensive when you reach that point. Make sure your business is registered with the three big business credit reporting agencies – Dun & Bradstreet, Experian, and Equifax – on their respective websites to officially establish and track your business credit. 

If you apply for a certain amount and the lender gives you a lower counteroffer, consider taking the offer to establish a relationship with the lender. Be prudent with any business credit card or line of credit expenses, and pay off any debt as quickly as possible.

2. Provide a personal financial summary.

Before you speak with a lender, prepare documentation of all your personal financials, including all assets that may be used as collateral, such as real estate, vehicles and investments. Also make sure to prove all information regarding liabilities, such as mortgages, loans and credit card debt. Be as upfront as possible about your liabilities.

Know your small business loan options

Getting approved for a small business loan takes time and research. Before you pursue a loan, make sure you have a strong understanding of your business, your industry and what type of financing you qualify for.

Small Business COVID-19 Diaries: Part 3

Posted: 22 May 2020 04:26 AM PDT

The COVID-19 pandemic is a public health disaster and economic crisis rolled into one event. For many small business owners, the prospect of closing permanently became very real overnight. Business.com followed up with the entrepreneurs we previously interviewed regarding their experiences and concerns during the COVID-19 pandemic and applying for loans through the Paycheck Protection Program. Through the coming weeks and months, we will continue to follow their stories as they fight for the survival of their businesses in a world combating COVID-19.

Are you interested in telling your COVID-19 story? Join the ongoing conversation on business.com's community.

Edgar Comellas, owner of Aces Wild Casino Parties

Aces Wild Casino Parties is an entertainment rental business based in Orlando, Florida. Aces Wild brings the casino to your event, including dealer tables, dealers, decorations and even exotic animals.

Aces Wild Casino Parties has three full-time employees and works with about 80 independent contractors at any given time, owner Edgar Comellas said.

After applying for a Paycheck Protection Program loan through Bank of America on April 6, and then again through Merrill Lynch on April 9, Comellas was finally funded on May 5. He said he received $5,000.

"At the end of the day it's like a double-edged sword," he said. "I am glad I did not get a large amount of money, because you have to spend it, but you only have that one way to spend it."

Covering wages and salaries is difficult, Comellas added, when his employees are only working on a limited basis. Many businesses opted to return their Paycheck Protection Program loan by a May 18 deadline set by the U.S. Small Business Administration for similar reasons.

"I'm relieved in the sense that I'm not in a position where I'm worried about how I am going to spend this money," Comellas said.

At the moment, Comellas is concerned about the midterm economic recovery coming out of the coronavirus pandemic. Florida has begun the reopening process, but that also means certain relief measures are coming to an end.

"For me, in the event industry, it's a weird place to be," Comellas said. "I am getting requests and calls for quotes for events in October, late November and even some holiday parties already. But I'm also looking at how things are actually going to start shaking out now that doors have opened."

He said relying on reserve cash to pay certain expenses, such as rent, through March and April have left things thin for the traditionally slow summer season.

"The event industry goes down in the summer normally, so the fact that no events are being booked adds a grim prospect," he said. "It's very hard to even budget."

However, pivoting to remote casino parties via Zoom video conferences has offered Comellas an alternative revenue stream for the time being. He said he is offering special deals and discounts to encourage new business. Ultimately, though, he is preparing for a return to his more conventional events that look different than they used to.

"I need to be able to have the equipment for my staff and to provide basic safety, like masks," Comellas said. "One of the biggest challenges is going to be that an event space that used to hold 100 people is now going to hold 50 or 60. We can't cram the same amount of people into the space, whether operationally or because people don't want to be in close quarters."

Comellas echoed his previous sentiment that recovery is a marathon, not a sprint. He added that small businesses should consider how to build economic resilience into their business plans for the future.

"Rather than putting Band-Aids over it, let's see how we can restructure," he said, "whether that is employment, paid time off, how we pay our staff, how we provide benefits or even how we classify small businesses. Rather than telling ourselves we're out of the woods, let's prepare."

 

Editor's note: Looking for a small business loan? Fill out the questionnaire below to have our vendor partners contact you about your needs.

 

Todd Spodek, managing partner of Spodek Law Group

Spodek Law Group PC is a law firm in New York City that provides litigation services for criminal defense as well as divorce and family law. The firm employs 10 people.

Managing partner Todd Spodek, who is a business.com community member, was approved for a Paycheck Protection Program loan under the initial round of funding for the program. He applied through Chase Bank on April 6 and received $200,000 by April 17. Since then, he has worked on establishing a pro bono program for first responders, as well as an outreach campaign to check in on old clients and legal adversaries.

"Things are getting a little bit better in New York," he said. "It's still restricted, but certainly better than it was. A lot of people are slowly coming to the conclusion that life has to go on one way or another. We're nowhere near our normal workflow, but we are getting there. Every day it is getting busier and busier."

Spodek emphasized that his law firm is not at its normal anticipated levels of business, but he is optimistic and has retained 100% of his staff. The firm has been generating some new business even while the court system in New York has remained closed for litigation.

"Every single person is busy, and we have new business – not at the levels we want it to be, but it generates enough income that we can take a loss for a month or two, knowing we'll recoup it later on," he said. "There was a period of time when nobody was calling; there was no new business, and it was a ghost town. I'm grateful that is not the case now."

Leaning into a long-term marketing strategy has been essential to bring in new business during an otherwise difficult time, Spodek said. Embracing the idea that conversations and goodwill do more for service-oriented businesses like a law firm than hard sales pitches has thus far helped the firm to weather the storm of COVID-19.

"The long-term marketing aspect is that we're a law firm that does good work and cares about our clients and relationships," Spodek said. "For example, we carry a large [accounts receivable] on a monthly basis. We went through each one and made accommodations and worked out new arrangements and opened a dialogue about it. We weren't charging interest or late fees or sending them to collections. All those gestures pay off. It's incremental in improving your relationship with someone."

For small businesses struggling with the coronavirus pandemic, Spodek said it is worthwhile to adapt to the change in normal business patterns and plan for elements of your business you don't typically focus on. This could include cutting expenses, evaluating financing options or even considering whether physical locations are necessary. Spodek's firm is considering whether it really needs three physical offices in the future, potentially reducing monthly rent expenses significantly.

"Use this time to your advantage," Spodek said. "Forget about making money. You're not going to make money right now. Make sure you and your staff can eat; cut expenses and plan. At six months to a year, you might have to take a loan or restructure your business. You have to be prepared."

Are you interested in telling your COVID-19 story? Join the ongoing conversation on business.com's community.

5 Reasons Why Your Company Should Hire Multilingual Professionals

Posted: 21 May 2020 04:00 PM PDT

Multilingual workers in all industries tend to earn more than their monolingual counterparts. For some multilingual professionals, their proficiency in multiple languages is one among many qualifications that make them ideal for leadership positions. To some, being multilingual helps them stand out in the international job market, giving them the possibility of working remotely for reputable foreign companies. For some, being multilingual can be vital for them to become global thought leaders in their field.

But what benefits do multilingual individuals bring to the organizations that employ them? Why do they reach higher than their peers? And how could multilingual employees drive growth at your company?

In this article, we'll take a look at five reasons why hiring multilingual talent can be one of the best decisions your business has ever made.

They welcome new perspectives

Whether your bilingual candidates were born and raised abroad, or they became multilingual in adulthood, they're very likely to have a broader worldview than their monolingual counterparts. Why?

Learning a language is also about immersing oneself in another culture. This immersion helps language learners acquire something called "cultural awareness." Cultural awareness is the capacity to put oneself in other people's shoes. Cultural awareness is about being able to ask yourself what it feels like being someone else, and understand how someone can have values, priorities and preferences that differ from one's own.

They're highly creative

Cultural awareness doesn't just make us more empathetic and understanding. It also nourishes creativity, since it encourages the kind of out-of-the-box thinking that characterizes outstanding creative work.

They're key to expanding your company internationally

Expanding your brand globally is a very local process. You need to know which markets to expand to and how. You need to know your competitors, your potential partners and your customers. You need to know their preferences and their culture.

During negotiations, a multilingual professional can connect with your potential partners on a deeper level than your usual representatives, who might need to study the local business culture before meeting stakeholders and might need to have their meetings mediated by business interpreting services.

They'll make your brand look local

One of the worst things that can happen to a foreign brand that's just entered a new market is looking like a tourist. You want your brand to feel close to your audience and become a household name. You want customers to feel as if the brand had grown from the ground up in their locale and is here to stay.

Having multilingual workers in charge of your expansion efforts can help you stand out from your competitors. It's worth taking a closer look at the importance that multilingual (and multicultural) workers have for an expanding business.

When you're expanding to a certain locale, counting on employees from that region can ensure insider insight into your new customers' culture and preferences. This insider knowledge can translate into great customer service. If you'll provide customer service in house, instead of outsourcing it, providing customers culturally sensitive assistance in their own language can make a world of difference.

On the other hand, when multilingual professionals with deep intercultural knowledge are in charge of marketing, they can craft effective campaigns that come across as fresh and innovative. 

They can make your culture better

Much like businesses thriving today are born-digital businesses (businesses that have technology at the core of their value proposition), experts often say that the winning businesses of tomorrow are born global. Born-global businesses are often defined as "business organizations that, from inception, seek to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries."

A born-global business needs a global, inclusive business culture that can make the most out of diverse points of view, needs and values. A multilingual and multicultural workforce can make this possible, fostering a culture of aligned objectives, tolerance, mutual growth and open exchange within diversity. 

What you shouldn't expect from multilingual employees

While multilingual employees can help your business communicate with foreign stakeholders, craft unbelievable marketing campaigns and play a key role in driving growth, it's worth understanding the limitations that multilingual employees might have.

For instance, it's wrong to assume that a multilingual person is necessarily a translator. Translation and interpreting require a whole set of skills aside from proficiency in a foreign language. Someone becomes an interpreter or translator after years of specific training and has to abide by a professional code of accountability and fidelity to the source material.

While a multilingual marketing manager might be able to produce a great localized version of a marketing email, it's wrong to ask that employee to translate legal, technical or similarly sensitive documents. And any mistakes they made could be very costly for your business. So it's best to leave that sort of task in the hands of a specialist at a reputable translation company.

Key takeaways

Hiring multilingual workers can help your company expand internationally, bring new perspectives to the table and foster a culture of inclusion.

When you're expanding your brand abroad, being represented by someone who speaks your target region's language can make a world of difference, making your brand feel local, welcoming and willing to make the changes necessary to fit in.

On the other hand, multilingual customer service representatives can give your business a competitive edge in foreign regions where customer service is rarely provided by highly-trained locals.

Multilingual professionals particularly succeed in leadership positions since their intercultural training equipped them with versatility, creativity and a worldview that welcomes diversity. But they can also succeed in performing the most demanding tasks within their field.

Remember, while a multilingual worker may be highly performing within their field, they may not be properly trained to meet all of your business's linguistic needs. Don't hesitate to reach out to a professional linguist for legal or technical translations.
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