Three new reasons to expand your market horizons
More than ever, 21st century small businesses have reasons and resources to expand opportunities beyond local markets, including international trade, and specifically exporting. Yet even though 97% of all U.S. exporters are small companies, only a fraction of that sector are exporters.
But there’s good news that should cause the number of small exporters to increase. The convergence of new technology, a global “new economy” culture more inclusive of small businesses, and believe it or not, help from the government, are making it easier for small firms to expand their market reach. But easier doesn’t mean effortless, inexpensive or justified, which are three of the key factors of any export strategy.
Let’s take a look at the possibilities of creating a trade strategy by getting help with those three factors, with emphasis on help from the government.
Effort
For a long time, exporting was the domain of those large firms that could afford to have international professionals on payroll or contract. The education and prospecting process alone was daunting enough to dampen the ardor of even the most determined prospective small exporter, let alone the actual execution of doing business abroad.
But today, it’s hard to imagine something with so much potential being as easy as walking into one of the 100+ U.S. Commercial Service offices (a Department of Commerce division) around the U.S. and asking them to help you begin the education and prospecting process. They have the staff, information and resources to get you started, and will help you along your export strategy journey. And any associated costs are minimal.
Expense
It wasn't so long ago that someone had to physically travel to foreign markets, establish relationships with agents and customers, and then demonstrate the goods in-country. For most small businesses, those steps were financially prohibitive.
Today, that same Commercial Service office will help you find foreign prospects, coordinate introductions and demonstrations, and bring the parties together in the early stages of a relationship without prohibitive expense. It’s all done by video conference meetings in the Commercial Service office, between you and a prospect they likely helped you find. So by the time you make a significant investment, it will be spent a lot closer to fulfilling a sale. And you’ll consider any associated fees a bargain.
Justification
How do you justify developing an international strategy? Why spend time and resources trying to sell your stuff on the other side of the planet when customers are right next door? Consider these reasons:
- More than 96% of the world's consumers live outside the United States.
- This year millions of Earthlings will have a smartphone for the first time who’ve never before been on the Internet or owned a computer. Don’t wait until some of them find you online to begin your international export preparation.
- There are many examples of small businesses that minimized a downturn in the U.S. economy because their international strategy took up the slack.
New technology, new attitudes, new resources, and yes, help from the government, are bringing the world closer to your business’s door step. But you have to make the effort to meet the world halfway. Take your first step here – www.export.gov.
Write this on a rock ... Education, expense, justification – check, check and check.
Jim Blasingame is host of the nationally syndicate radio show The Small Business Advocate and author of the multi-award-winning book The Age of the Customer: Prepare for the Moment of Relevance.
