Tuesday, 2 July 2019
As the world becomes more connected through technology, it has become increasingly easier for U.S.-based companies to conduct business internationally.
A recent study showed that almost 60 percent of U.S. business owners see international markets as growth opportunities and have plans to invest and expand beyond U.S. borders.
For business owners who want to increase profits, it's worth a look globally. Almost 96 percent of the world's consumers live outside the United States, and two-thirds of the world's purchasing power is in foreign countries, according to the U.S. Small Business Administration.
Expanding internationally can help business owners even out seasonal sales cycles, access more revenue and reduce their dependence on U.S. markets. For Tru-Nut, a powdered peanut butter company based in Atlanta, selling internationally offers an opportunity to diversify its customer base and hedge the risks associated with selling in U.S. grocery stores, which have strict inventory requirements, chargebacks and price reductions. “If I only sold to American grocery stores, I would probably be out of business right now," Tru-Nut founder Reid Edgar told Global Atlanta.
In addition to adding new sales, expanding internationally can also help small businesses find new suppliers and talented workers. For a business facing a shortage of qualified employees or dealing with high prices from U.S. suppliers, international opportunities can help preserve the bottom line.
While expanding internationally offers positive opportunities, business owners must take deliberate steps to do it effectively. Here's what to take into account as you get started:
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