Looking for a good reason to expand your business globally? How about solid revenue growth?
Revenue of International Small Businesses on the Rise
A new FedEx (NYSE:FDX) survey has found 65 percent of small businesses trading internationally see revenue growth versus 46 percent of businesses that haven’t gone international yet.
The newly launched FedEx Trade Index also revealed that businesses trading globally are 20 percent more likely to say they are hiring more employees.
Good for Business, Good for the Economy
A large number of small businesses (71 percent) also see increasing global trade as improving the U.S. economy.
“Even during this time of intense debate about the benefits of trade, these results indicate American small business leaders see increasing global trade as a way to help the U.S. economy as a whole, as well as their businesses,” said Raj Subramaniam, executive vice president of FedEx Services.
Interestingly, other recent studies also highlight the trend of small businesses going international. According to a study by foreign exchange company USForex, for instance, 58 percent of small businesses already have international customers.
“Going global is no longer an option for successful small — and medium-sized businesses — it’s a strategic imperative,” said Karin Visnick, head of North America, USForex.
Pros and Cons of Going Global
Many small businesses are going global because they want to broaden their horizons. International markets have more customers, which means more business for small and medium-sized companies.
Michael Levy, Product Manager at CenturyLink wrote for Forbes, “Businesses interested in expanding their footprint into international markets look to obtain the benefits of such growth — including increased revenue, enhanced exposure and brand recognition, global partnerships and a more diversified product and/or service offering.”
He also added that global expansion comes with its fair share of challenges for small businesses.
Complying with international rules and regulations is one of the top challenges faced by most businesses looking at international markets. Another challenge is to get used to working in the cross-time zones.
How You Can Win Globally
To make the most of a global expansion, you must take one step at a time. Identifying opportunities and challenges in the new markets should be on top of your priority list.
Thanks to technology, connecting to people around the world is no longer a challenge. You should use conference calls, video chats and instant messaging to stay in touch with people who work in international markets.
A well-defined expansion strategy can help you boost sales, gain new customers and attract more talent.
About the Survey
The newly launched FedEx Trade Index surveyed over 1,000 small business leaders to track the impact of international trade among the small business segment of the U.S. economy. Check out a full infographic on the survey below: