Do sales need a kick start? If a small business is having trouble increasing this element, reaching customers and solidifying a financial plan, the answer may lie in exports.
Granted, the concept of exporting may be intimidating, especially for an entrepreneur or a start-up. However, according to the U.S. Small Business Administration, only 4 percent of all consumers live in this country – and roughly two-thirds of global purchasing power is located elsewhere. Therefore, a massive untapped market of potential customers awaits any small business that starts exporting.
Don't be scared of exports
The idea of a small business getting into exporting can be terrifying, but this sales strategy could be a major boost to business banking, and any financial investment might be well rewarded.
CNN Money reported that the U.S. is a good place to start a company, but those that want to grow often target outside this market. Common roadblocks tend to include language barriers, cultural differences, costs and fear of the unknown. However, the gamble is usually worth it.
"The largest untapped resource for American exports is small- and medium-size companies," Jody Milanese, senior director of government affairs with the Small Business Exporters Association, told the media outlet. "Although the number of small exporters has been steadily growing, [it] is still not as much a part of the business culture in the U.S."
In order to succeed in this aspect, CNN Money recommended that small business owners target markets with growing populations. These regions could have more demand, and a little foresight can go a long way.
Plan ahead before exporting
Thankfully for any small business owner, they don't have to go it alone when researching how to export their products. According to the U.S. SBA, the federal government offers training and counseling to help company executives figure out the most ideal opportunities overseas.
In addition, every venture should plan ahead before taking the plunge. A business strategy will determine current goals, levels of commitment and how to achieve those benchmarks. Market research for any targeted international sector is also a must. This can shed some light on how the product will fare in that location, and it will also help to identify if there are any buyers in the area.
Small business owners shouldn't be afraid to expand their companies. Exporting can be a great way to do just that, and all it takes is some courage, motivation and financing to make it all happen.