If you have read more than one of the previous articles posted by our organization, you may have picked up on a theme – YOU MUST KNOW YOUR MARKET. At one level that means simply knowing who needs, wants and will buy your product or service at your price. At deeper levels it means understanding the needs and fears of your customers, their acquaintances and their peers at other businesses, as well as knowing how to find them. Now, I would like to suggest that you take a step back and ask if you really know where you market is on a global scale?
First, I want to dig up a few facts and figures to point out that you may be in good company by looking ‘somewhere else’ to find customers. Next, the role of exporting in your business strategy will be addressed. Finally, a few resources will be provided to help you move forward in this thought process.
“Why would I want to go all the way overseas to sell what I can sell right here?” Have you already asked that question? It is true that not every business really can or needs to look overseas for customers. Obviously a physician can’t reasonably travel long distances to see patients, and a plumber isn’t likely to board a plane for a service call. But manufacturing and service businesses do have export potential. With some help from the SC Department of Commerce, here are a few export facts based on recent data from the US Department of Commerce and the USDA-Economic Research Service. It may pay to consider:
• Total dollar value of exports from SC in 2010 was over $20 billion.
• Leading markets in 2010 were Canada, Germany, China, Mexico & the UK.
• In 2010 the value of SC’s TOP 5 Agricultural Exports (excluding timber products) was more than $560 million.
• More than 28% of SC’s manufacturing jobs depend on export markets.
To address the role of export markets in your business strategy, let’s look at two key terms: diversification and growth. We have all heard that diversification is a key feature of a sound investment portfolio. But how diverse is your customer base? Do they all work in one industry, in one time zone, with a shared group of customers? How recession-proof is that market? Are there complementary regions of the world that may rise when our economy falls? The point is that exploring export markets is a key part of diversification.
Growth is the second element of strategy that begs us to address export markets. How much market share do you presently own? Is it growing? How saturated is the local market for your goods/services? Clearly there is a case for building a base of business where you are, but you may find that growth opportunities also exist elsewhere. If your product or service can be delivered in an economic manner to a market with critical needs or local capacity issues, you will quickly find your sales and visibility rising. A second dimension of growth to unlock, in addition to your customer base, is your contact base. When your products are sought by foreign markets you build credibility both here and abroad, and you find your network of contacts, referral sources and influencers will expand, which is always a good thing.
Last, I want to leave you with a few resources to explore for more information. Remember, there are very few “One Size Fits All” resources, and good decisions usually require collecting information from more than one source. Here are five that may be helpful:
•
http://sccommerce.com/existing-sc-businesses/export-development-services SC Department of Commerce provides research, connections, support and services to businesses.
•
http://www.greenvillelibrary.org/index.php/Research.html The local public library – often the first place to start with any research project – online or in person.
•
http://www.ers.usda.gov/Browse/view.aspx?subject=TradeInternationalMarkets Agriculture, food, forestry research resource.
•
http://export.gov/southcarolina/ Your local Export Assistance Center.
•
http://www.sba.gov/content/financing-your-small-business-exports-foreign-investments-or-projects The SBA provides a starting point for research on financing of export-related projects.
If you need assistance creating the strategic plan for your business, understanding more about your market or evaluating opportunities for connecting with customers outside the US, please contact the Small Business Development Center near you.
55 East Camperdown Way
Greenville, SC 29601
(864) 370-1545
www.clemson.edu/sbdc
www.greenvillesbdc.wordpress.com
By appointment only