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Grow Your Business Internationally

Globalization has opened many doors for entrepreneurs.  If you own a small business and have had success domestically in the United States, then you should look into expanding your sales and increasing your market by going global.  Entrepreneurs and small business owners have a potential market increase by entering international markets with their products and services.  Moreover, with the right strategy for breaking into this gold mine of opportunity, you can enjoy longer success of your products and services to earn huge financial rewards.

Reduce your manufacturing costs

Why enter international markets?  There are many reasons why a small business owner should contemplate going global.  The first and most obvious reason is the chance to expand your market size and increase sales.  Plus, if you are a manufacturer of a product, with an increased market you can reduce your cost per item for production with the economies of scale of global markets.  Reducing manufacturing costs and increasing sales are two of the basic goals of any business.  Entering additional markets to achieve these goals is a good strategy.

Before you begin promoting and selling your product or service, you should have performed an estimated Return on Investment, or ROI.  An ROI is an analysis of how much fiscal return you get back for the amount of money or capital you invested into the product.  For instance, if you invested $10,000 of your own money in getting your product or service on the market, and each year you receive a profit of $1,500, then your annual ROI is 15%.  

Extend your product’s life cycle

Another reason to enter a global market is to extend the product life cycle.  You may be experiencing one of the basic product cycle curves.  After a steady and satisfying growth of sales, your product may have reached a plateau or maturity of its life cycle where sales figures do not continue to grow.  Moreover, you may even have experienced a decline in sales.  Reaching into new markets internationally can give you the chance to extend that life cycle and inject some renewed life and demand for your product.

The reward of international diversification

The benefit of diversification of your market base helps tremendously in sustaining your revenues, especially if there is economic turbulence in your domestic markets.  In the event of a domestic recession, the international market of your business can pad your bottom line. 

Analyzing the risk-to-reward prospects

Are there risks involved with entering international markets?  Certainly, there are.  Entering new markets in other countries can be daunting.  You should secure an export agent or management company to help you set up with all the proper legal business arrangements and to expose potential risks of setting up markets in a foreign country.

Additionally, getting help with proper translation is important.  English may be the universal language, but you want people who speak other languages to feel comfortable with your product.  You should have a professional translator review your marketing material and web sites to ensure that your product is attractive to foreign speakers.

You as a small business owner and entrepreneur have invested a great deal of time, energy and money into making your business successful.  Any entrepreneur with dreams of expansion and growth must take a strong look at opening markets in foreign countries.  If entering international marketplaces promises to become a contributing factor in the success of your business, then make a commitment to do the necessary work and jump in!