| By Evan Carmichael
The earth’s population has grown to some 6.5 billion people,
a figure which may strike fear into the hearts of environmentalists
but should excite the true entrepreneur.
6.5 billion people means 6.5 billion potential customers and as such,
it’s an ideal time to tap into foreign markets.
“Whether you’re looking for cheaper labor and lower operating
costs on the manufacturing side, or to gain access to larger markets
and boost demand, expanding overseas is increasingly becoming necessary
to compete in the global economy,” he said. “For the entrepreneur
who truly wants to gain the advantage over his competitors, it’s
not even a matter of choice anymore.”
But small business owners are often caught up in the daily challenges
of running their company. This makes it difficult to see the vast
range of opportunities that are increasingly presenting themselves
in the global market.
Though few business owners would argue about the advantages of expanding
overseas, they are all too aware of the challenges in doing so.
While the Internet has helped level the playing field for small businesses
wishing to compete internationally, taking a company into a foreign
country still poses a unique set of risks over operating at home such
as local regulations, language, policies and customs.
Before business owners begin to think about expanding overseas, Carmichael
suggests a number of steps they should take to evaluate their international
readiness.
“Businesses need to asses whether they have the necessary financial
resources and skilled personnel to venture abroad in the first place,"
he said. "If they do, entrepreneurs then need to determine their
markets – both where and how to target their products –
and begin building a solid local reputation.”
Entrepreneurs looking to enter international markets can either do
so directly or through distributors. Each has its own set of pros
and cons. Selling directly is ideal if your product needs a lot of
customer support. Using distributors, however, is often cheaper and
also easier in societies that are more closed to foreigners.
Whatever route they choose, small business owners need to be careful
not to expand too quickly.
“Let your revenue guide your growth,” Carmichael said.
“Don’t grow faster than you can afford or you will find
yourself back at home faster than you had planned.” |
English
