How to Participate in Globalization As a Small Business Owner

Facebook

Twitter

Google

Guest Article

As a small business owner, globalization presents an opportunity for growth, expansion and investing abroad. Although many small businesses are learning how globalization can significantly expand and impact their business operations, some are still hesitant to embrace this new business opportunity. Globalization and investing are equivalent in many ways and work together simultaneously; implementation of both requires money, effort, research and time. Both involve establishing relationships, partnering, focusing on consumers, putting monies out to test the market, visiting a targeted market for development, and most importantly, considering the long term goals before and after positioning the small business.

The “fear of the unknown” and the risks are frightening for many small businesses. Small business owners must contemplate the probability of success instead of focusing on fear and failure. If done properly, investing in a new market can reap substantial rewards. If you take the “leap of faith” with proper planning, you will make informed decisions. These steps will help alleviate the pitfalls some businesses experience because of lack of knowledge.

Here is a list of steps for small businesses to use when considering globalization and investing.

Research new and emerging economies to better position your small business for expansion and growth – Reports are published via International Trade Administration and U.S. Commercial Service. They offer insight into these economies and forecasted sales of different industries, products, demographics, etc. They also hold conferences to learn about the different industries in each market. They have representatives located and residing in numerous markets throughout the world to assist organizations with trips/visits, establishing partnerships, joint ventures, and B2B relationships. Organizations can even purchase distribution lists for potential business relationships as well as have these businesses vetted (so to speak). Of course, utilizing the services of the Trade Administration/ US Commercial Service comes with a cost. Planning is key and by having a vision, the monies can be set aside to follow through at later dates.

The Internet is a powerful resource to conduct research – Many industries publish reports with information about areas or markets of growth. Small businesses can locate potential business partnerships; seek out joint ventures, or B2B relationships. There are many organizations to join and members are local, national, and international. The small businesses have access to legitimate businesses/owners who are members via distribution lists (some may require fees). The executives or management can reach out to some of these individuals to see if they are interested in joint ventures, partnerships, and or B2B. Locate events and trade shows to gather more information about competitors and how some other entities are successfully navigating growth and expansion via globalization and investing.

Review costs of production, export/import costs (including taxes, shipping, import duties) – You must make sure products are priced competitively and along the baseline of competitors. Is it feasible to enter the new market? Once placed into new market, how will the organization maintain and sustain a competitive presence?

Marketing and PR – Marketing includes public relations and research. Some businesses just want to establish a business relationship or partnerships for export/import and distribution. They do not focus on the marketing to consumers and/or brand management, only placement to increase profits and revenue. If that is the objective, there is no way an organization will be successful long term.

It does not matter if the organizations are offering services or product; make it known who and what your organization is about, goals, and future involvement in the new market. Establish a rapport within communities and with other businesses. Organizations must establish relationships and advertising campaigns can be significant. Learn what types of social media are prevalent in these new markets (various countries have similar social media platforms to Facebook, Twitter, etc.). An organization must take the time to learn about the new markets; likes and dislikes instead of focusing on just expanding for growth. Marketing to a different culture, target segment or demographic requires understanding the consumers.

It is very important for small business owners to recognize and realize the opportunities that exist in various markets around the world. Small businesses/SMEs must acknowledge and understand that globalization is international business and international business is an investment in today’s business operations. Make a commitment for the long term to establish secure and sincere business relationships, customer loyalty, and respect.

About the Author: T. Conswello Davis is the principal of TIGER Marketing, LLC/TIGER Athlete Management. She holds a BS degree in Psychology and MBA/Marketing. T. Conswello’s areas of focus are athlete representation, marketing/pr, and international business. Follow her on twitter @tigermarkllc.