The Growth Strategy That Most Small Businesses Ignore

BY BETH POMPER

What if I told you there was a way to capture more market share in your industry, diversify your risk, and gain a competitive advantage in today’s challenging business climate?

Let me tell you more about this strategy:

• The Fortune 500 have been doing it for decades and are still investing heavily in resources.

• Over 64% of US Small Businesses do this already, and it accounts for 20% of their profits.

• This strategy experienced a 17% growth trend in 2022.

Can you guess what it is? It’s international business sales, also known as “exporting.” Exporting is often a word that turns off many small business owners. But the truth is, it’s never been easier to export, and ignoring this strategy could mean missing out on huge revenue gains.

Capture Market Share

Only 5% of the world’s consumers live in the US. By not exporting, you’re ignoring 95% of your customers! According to Translated, you could reach 50% of the worldwide sales potential by translating your website into Chinese, Japanese, and German.

In the past few years, many Fortune 500 companies have invested in translation. Companies that translate their website or other digital content are twice as likely to experience an increase in profits.

Competitive Advantage

By exporting to foreign markets, your business can access growth opportunities unavailable domestically. For example, the standards for water testing in eight foreign countries are higher than in the US. There is tremendous potential for companies that provide water-treatment and monitoring-related services. Newark-based Aqua Science manufactures instrumentation and reagents to test water toxicity. Export sales account for the majority of this global-minded company’s business.

Risk Diversification

Exporting allows you to spread risk across multiple markets and customers. You’ve heard the saying, “Don’t put all your eggs in one basket.” Yet that’s what you do when you only sell domestically. As the United States economy fluctuates, your company can find stability from a customer base in other parts of the world. If you want to be in business for years to come, it’s riskier not to export!

In 2022, US exports increased by 17.7%. As the world rebounded from a global pandemic, savvy companies in the United States found ways to expand through exports.

Many resources are available to help small businesses grow their exports, including trade associations, government agencies, international business consultants, and more. The best way to get started is to identify an emerging market that needs your products and services.

Then, leverage the local resources available to you. Export Delaware has assisted over 100 small businesses with the education needed to sell their products and services worldwide. We are ready to help you every step of the way. To learn more, visit www.export.delaware.gov.

Beth Pomper is director of international business development at Export Delaware.