Going Global

How Entrepreneurs are Taking their Business to New Borders

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.”