The Business Case for Going Global

If your trusted business advisor told you to disregard 95% of your potential customers possessing roughly 3/4 of your customer base’s potential buying power, how would you react? Understandably, most executives would question the wisdom of that advice. Yet, if your company is not thinking about exporting to international markets, you are overlooking significant growth potential and opportunities to strengthen your firm’s competitiveness.

There are strong arguments to incorporate exporting into your company’s growth strategy. This is the first in a series of articles designed to position you to start or grow your international sales while highlighting the resources available to support your international success.

Why Grow Global?

With many of your potential customers and revenue streams located outside of the U.S., international markets offer a wealth of potential. Here are four reasons to grow a global company:

Mitigate risk. The same principles that apply to your investment portfolio hold true with international sales – diversify to mitigate risks. While business cycles are inevitable, spreading your revenue streams across markets can help weather the downturns in any one country or region. In fact, companies that sell internationally grow faster and are 8.5% less likely to go out of business than those that focus solely on domestic sales.

Exporting drives innovation. Exposure to international customers’ needs and challenges and global competitors helps companies to drive innovation and maintain their competitive edge. Increase the value of your company. Selling globally can also increase the value of your company to potential investors. Demonstrating that your solution has global demand—and that you have a path to capitalize on those opportunities—can increase the attractiveness of your firm as an investment-worthy enterprise.

“Made in U.S.A.” brand recognition. International customers recognize and seek U.S. products and services for their quality, innovation and value. Our region’s unique strengths (workforce, research and technology) are among the many reasons why Pennsylvania exporters strengthen that brand. This U.S. competitive advantage isn’t only for the “big guys” either – 98% of U.S. exporters are small and medium-sized companies and 60% of those have fewer than 20 employees.

Despite these facts, only 12% of the U.S. GDP is generated through exporting today, underscoring the vast room for growth. There are a wealth of resources and tools in place at the local, state and federal levels to help companies accomplish their export growth plans.

When to Think Global

For most early-stage companies in the iteration phase, the focus is on learning and development. At this stage, international markets may not be the primary focus, and can seem daunting. However, it’s important to be aware of their potential and start to develop a global business acumen. As firms move into the business planning and scaling phase to focus on rapid growth, companies can start to leverage available resources to incorporate exporting into their growth plans. Depending on the industry sector, with a validated business model most companies are global ready when they are prepared, educated and equipped to capitalize on export opportunities.

Where to Start?

Pennsylvania companies have a wealth of resources and expertise available to grow globally. In western Pennsylvania, there are Small Business Development Centers that offer counseling and training, the State of Pennsylvania’s Office of International Business Development works through its 10 statewide Regional Export Networks to support PA companies, and on the federal level our U.S. Commercial Service Pittsburgh Office, part of the U.S. Department of Commerce’s International Trade Administration and the export promotion arm of the federal government, can assist with counseling, market intelligence, matchmaking and commercial diplomacy via our network of global trade professionals located in more than 180 offices around the world. We stand ready to help you navigate the global marketplace.