SMEs Explore New Markets in Successful Years
SMEs Explore New Markets in Successful Years
- Germany abt. US$ 12.330,
- Austria abt. US$ 14.900,
- Switzerland abt. US$ 19.800 and
- Belgium even abt. US$ 25.900.
Accordingly there still is room for improvement, especially as the industrial basis of these neighbour countries are not really comparable with Germany.
Facts and hindrances
If one takes into consideration that the export
business in this case reflects abt. 30 % of the total GDP, the average German company should export roughly this percentage. As, however, bakeries, shoemakers as well as trading companies - if at all – export at smaller rates, a ’healthy average’ for the remaining industrial companies would be an export percentage of abt. 50 – 60 %.
This is by far not reached yet by SMEs as the local market was for quite some time sufficient for them. And for that reason they did not really care for foreign markets. Marketing and sales across the borders remained a field of growth which did not cross their mind: “Why should I bother for foreign markets, if I can sell without problems here ?”
From my own experience:
Who deals with international marketing and trade will certainly quite often have met this ‘disavowing’. I never forget that a company years ago told me ‘We are absolutely satisfied and cannot even supply what is asked for’. 6 months later I called them again and had to learn that they were shortly before becoming bankrupt. The reason: They concentrated too much on just a few large clients whose orders were cancelled due to the crises in Asia and Latin America at that time.
This carelessness in most cases is basing on the fact, that the companies are privately owned or owned by a small group of people. Unless they have already some experience in export sales one cannot assume that one can find internationally thinking personnel.
Advantages and support
The international trade picture is in a permanent movement and we have to participate – to our own benefit:
Exporting does not only create or stabilize working places in the home market but the respective enterprise will also become more independent from the local business climate and thus more healthy and resistant against economic fluctuations anywhere in the world. In general to export is a good sign of a vital and competitive enterprise which can resist a local recession quite well. And this will also be noted as well by clients (for their own security choosing a supplier) as by the competition.
Some countries do have quite good export supporting agencies – who even are active in other markets and give advice – as per their general knowledge – from the respective local market.
What they cannot do, however, is to accompany the companies practically into the different markets - and if, the company has to deal with quite some specialists for each separate market. This is mainly due to the fact that they do not have the insight into the company and its future plans, i. e. it is difficult for them to adapt the overall marketing procedures in a way which suits different markets (for this specific company and its specific products) at one time and also is oriented at the financial possibilities of the company.
Therefore companies may often have very good market information, however, do not know how to transform them into soon positive results as a proper coordination of all facts and figures with the internal and external possibilities of the company are not possible.
Especially for Europe – the biggest conglomerate of industrialized markets – with its different languages and mentalities. At this point in time consulting companies having specialised in international marketing and sales procedures begin with their support – focused on this specific company.
Seven rules before internationalizing
When preparing for export business the following focal points should be taken into consideration:
1. Look for professional support who analyses your business potential and identify what you should be able to handle in order to be successful in the international markets . and possibly also where.
2. Look for professional support to evaluate the potential of your personnel. Offer an incentive to the willing people so that they study further according to the needs of the international markets – for example through internal or external trainings and seminars.
3. The elaboration of a thoughtful marketing plan will give a lot of hints and facts and you can fall back on them and adjust your targets and procedures if need be.
4. Try to think ‚globally’’. Look at trends in magazines of your industry or ‚feel’ them during meetings of your industry groups. Take your time to learn more about international marketing and how the instruments can be used for the benefit and future stability of your company.
5. Do not underestimate international sales. It is not really easy – yet it is also no miracle ! In fact many companies err in their expectations just because they had a contract from another country once in a while.
6. Learn how to treat international clients/markets. Until you have your own employee with special knowledge you should rely on professional assistance which can also lay the basis for your future organisation and handling, thus saving a lot of time and money otherwise spent into ‘trial and error’. You do not do good to your company, however, if you cannot really rely on the assistance – i. e. sufficient proof of ability and testimonials should be available.
7. Set-aside a special budget for your internationalization. If you have a successful business in your home market right now it is reasonable to plan some of the profits for the future.
Conclusion: Undock from the local business climate
The best moment to prepare oneself is always the time when one is not forced to do it. As long as the business on the home market is successful it will be relatively easy and also the resources needed are available. Decision makers should use this security to work towards the future i. e. not to depend solely only on one market/region (or only a few big clients).
SMEs Explore New Markets in Successful Years - To learn more about this author, visit Michael Richter's Website.
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The sheer total size of all exports is put into perspective, however, when looking to its neighbour countries with regard to the exports per inhabitant: Such figures show – as per to the CIA-Worldbook 2005 – the following results:
- Germany abt. US$ 12.330,
- Austria abt. US$ 14.900,
- Switzerland abt. US$ 19.800 and
- Belgium even abt. US$ 25.900.
Accordingly there still is room for improvement, especially as the industrial basis of these neighbour countries are not really comparable with Germany.
Facts and hindrances
If one takes into consideration that the export
business in this case reflects abt. 30 % of the total GDP, the average German company should export roughly this percentage. As, however, bakeries, shoemakers as well as trading companies - if at all – export at smaller rates, a ’healthy average’ for the remaining industrial companies would be an export percentage of abt. 50 – 60 %.
This is by far not reached yet by SMEs as the local market was for quite some time sufficient for them. And for that reason they did not really care for foreign markets. Marketing and sales across the borders remained a field of growth which did not cross their mind: “Why should I bother for foreign markets, if I can sell without problems here ?”
From my own experience:
Who deals with international marketing and trade will certainly quite often have met this ‘disavowing’. I never forget that a company years ago told me ‘We are absolutely satisfied and cannot even supply what is asked for’. 6 months later I called them again and had to learn that they were shortly before becoming bankrupt. The reason: They concentrated too much on just a few large clients whose orders were cancelled due to the crises in Asia and Latin America at that time.
This carelessness in most cases is basing on the fact, that the companies are privately owned or owned by a small group of people. Unless they have already some experience in export sales one cannot assume that one can find internationally thinking personnel.
Advantages and support
The international trade picture is in a permanent movement and we have to participate – to our own benefit:
Exporting does not only create or stabilize working places in the home market but the respective enterprise will also become more independent from the local business climate and thus more healthy and resistant against economic fluctuations anywhere in the world. In general to export is a good sign of a vital and competitive enterprise which can resist a local recession quite well. And this will also be noted as well by clients (for their own security choosing a supplier) as by the competition.
Some countries do have quite good export supporting agencies – who even are active in other markets and give advice – as per their general knowledge – from the respective local market.
What they cannot do, however, is to accompany the companies practically into the different markets - and if, the company has to deal with quite some specialists for each separate market. This is mainly due to the fact that they do not have the insight into the company and its future plans, i. e. it is difficult for them to adapt the overall marketing procedures in a way which suits different markets (for this specific company and its specific products) at one time and also is oriented at the financial possibilities of the company.
Therefore companies may often have very good market information, however, do not know how to transform them into soon positive results as a proper coordination of all facts and figures with the internal and external possibilities of the company are not possible.
Especially for Europe – the biggest conglomerate of industrialized markets – with its different languages and mentalities. At this point in time consulting companies having specialised in international marketing and sales procedures begin with their support – focused on this specific company.
Seven rules before internationalizing
When preparing for export business the following focal points should be taken into consideration:
1. Look for professional support who analyses your business potential and identify what you should be able to handle in order to be successful in the international markets . and possibly also where.
2. Look for professional support to evaluate the potential of your personnel. Offer an incentive to the willing people so that they study further according to the needs of the international markets – for example through internal or external trainings and seminars.
3. The elaboration of a thoughtful marketing plan will give a lot of hints and facts and you can fall back on them and adjust your targets and procedures if need be.
4. Try to think ‚globally’’. Look at trends in magazines of your industry or ‚feel’ them during meetings of your industry groups. Take your time to learn more about international marketing and how the instruments can be used for the benefit and future stability of your company.
5. Do not underestimate international sales. It is not really easy – yet it is also no miracle ! In fact many companies err in their expectations just because they had a contract from another country once in a while.
6. Learn how to treat international clients/markets. Until you have your own employee with special knowledge you should rely on professional assistance which can also lay the basis for your future organisation and handling, thus saving a lot of time and money otherwise spent into ‘trial and error’. You do not do good to your company, however, if you cannot really rely on the assistance – i. e. sufficient proof of ability and testimonials should be available.
7. Set-aside a special budget for your internationalization. If you have a successful business in your home market right now it is reasonable to plan some of the profits for the future.
Conclusion: Undock from the local business climate
The best moment to prepare oneself is always the time when one is not forced to do it. As long as the business on the home market is successful it will be relatively easy and also the resources needed are available. Decision makers should use this security to work towards the future i. e. not to depend solely only on one market/region (or only a few big clients).
SMEs Explore New Markets in Successful Years - To learn more about this author, visit Michael Richter's Website.
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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