Today we live in a world that is shrinking, as far as communication and reach is concerned. In the fast changing world, it is more or less necessary to have a global presence. There are many ways which you can choose to go international. Most companies partner with distributors who already have a good marketing network and are well established so that their product can go directly into the hands of customers. It must be noted, that the visibility of a company in the global market does not need to depend on its size but on the quality of the products and services provided by the company which increase its credibility.There is a misconception that small and medium businesses do not possess the potential, capacity and infrastructure to conduct business in a global market. The main reason for this is the limited finances available at their disposal and the small size of operations. But on the contrary, it is the small businesses that are thriving in the export market and doing a brisk business in their specialized fields.
Small businesses have a flexible strategy
The strategy which most small and medium sized businesses follow is simple and flexible. They first gain reputation and recognition in the domestic market and when they have won adequate credibility and established their brand in the domestic markets, they begin to export their products to the markets abroad. In this way, the companies not only earn greater respect in the domestic market but also earn higher profits, besides making their presence felt at the global level. The experience and expertise earned in the domestic market gives them the competitive edge in introducing innovations and improving their product using world class technologies and marketing strategies to foster global growth.
Advantages for small businesses in going global
Small businesses, as a rule, are prompted to target international markets, because it has been noticed that when there is a larger market to cater to, the cost of production per unit comes down. Moreover, when small companies take the risk of diversifying in a proper and well planned manner, they invariably earn higher profits. Such companies who have operations abroad are not at risk and are secured even when there is a downturn in the domestic market. Businesses which export their products get higher prices in the international markets also, as compared to the domestic markets, and can even sell off their stock of goods in the international markets, when they may not be highly in demand domestically. Thus, entering the international market augurs well for small businesses which have proven successful at home.
Establishing successful foreign partnerships
When your business diversifies internationally, irrespective of its size, it enjoys the benefit of building relationships with local companies and individuals in foreign countries. Some of these may turn into collaborators or partners in business and help strengthen your company’s global infrastructure. In fact many a business has been able to save money by way of labour expenses, since business partnerships overseas are cheaper, and also foreign workers are familiar with the needs of local consumers. Finding and establishing good foreign partnerships are certainly an advantage for your business.
Going global is easier today
Expanding your business to foreign countries may offer tremendous market potential for a number of small companies. However, one must be prepared to conduct a good market survey for developing and implementing an international expansion plan. Moreover the advent of the internet has made the daunting task of going global easier. Today’s small business owners are successfully adding international components to their marketing programs. The most commonly used strategies are establishing a relationship with a business or an individual overseas, and developing a web presence that makes products and services available worldwide. So, if you have a small business, and you are a success at home, …there’s nothing to stop you from taking on the world.
Entrepreneurial Learning
The article tells us that in the fast changing world, it is necessary to have a global presence. Though there are many ways to go international most companies take the route of partnering with distributors who already have a good marketing network and are well established so that their product can go directly into the hands of customers. It must be noted, that the visibility of a company in the global market does not need to depend on its size but on the quality of the products and services provided by the company which increase its credibility.
