SB Informer
Thursday, March 29, 2007; 02:48 AM
There are 6.5 billion people living on this planet. To the
environmentalist, that figure immediately conjures up fears of
pollution and global warning. To the true entrepreneur, however, 6.5
billion people means 6.5 billion potential customers.
As small business owners get caught up in the daily challenges of
running their company, they are often unable to see the vast range of
opportunities that are increasingly presenting themselves in the global
market. However, as entrepreneurship expert Evan Carmichael is quick to
point out, there is only so big a business can expand within its own
borders. “It doesn’t matter what your product or service is, eventually
your growth will hit a ceiling,” he says. “More and more, entrepreneurs
are recognizing that they live in a global village, and they need to
begin operating as such.”
According to Carmichael, now is the ideal time for entrepreneurs to
begin looking to tap into foreign markets. “Whether you’re looking for
cheaper labour and lower operating costs on the manufacturing side, or
to gain access to larger markets and boost demand, expanding overseas
is increasingly becoming necessary to compete in the globalized
economy,” he says. “For the entrepreneur who truly wants to gain the
advantage over his competitors, it’s not even a matter of choice
anymore.”
Few business owners would likely argue with Carmichael about the
advantages of expanding overseas, but they are all too aware of the
challenges in doing so. While the Internet has helped level the playing
field for small businesses wishing to compete internationally, taking a
company into a foreign country still poses a unique set of risks over
operating at home. “It’s not as easy as just opening up an office in
Beijing or Mexico City,” says Carmichael. “Entrepreneurs need to take
into account everything from language, to customs, to government
policies and regulations.”
Before business owners begin to think about expanding overseas,
Carmichael suggests a number of steps they should take to evaluate
their international readiness. “Businesses need to asses whether they
have the necessary financial resources and skilled personnel to venture
abroad in the first place,” he says. “If they do, entrepreneurs then
need to determine their markets – both where and how to target their
products – and begin building a solid local reputation.”
Entrepreneurs looking to enter international markets can either do so
directly or through distributors, with each having its own set of pros
and cons. “Selling directly is ideal if your product needs a lot of
customer support,” says Carmichael. “Using distributors, however, is
often cheaper and also easier in societies that are more closed to
foreigners.”
Whatever route they choose, small business owners need to be careful
not to expand too quickly, says Carmichael. “Let your revenue guide
your growth,” he says. “Don’t grow faster than you can afford or you
will find yourself back at home faster than you had planned.”
And, a final tip from Carmichael: “Join all the frequent flyer programs
you can find. If you’re going to be flying all over the world, you
might as well make the most of it.”
Evan Carmichael is available for an interview. Please contact him at [email protected].
Evan is an entrepreneur and international speaker. At the age of 19, he
became an owner and Chief Operating Officer in Redasoft, a
biotechnology software company. The company quickly grew to over 300
organizations as clients, including NASA and Johnson & Johnson, in
30 countries. He started Evan Carmichael & Associates with the goal
to give entrepreneurs the Inspiration to follow their passion and the
strategies they need to succeed. Evan has delivered over 100 keynote
presentations to entrepreneurs in North America, Europe, and Asia. He
has been interviewed by newspapers, radio stations, and television
stations including The Globe and Mail, CHUM FM, CityTV, Global TV, OMNI
TV, Enterprise, and the Toronto Sun. Evan's website, www.evancarmichael.com/ is the world's #1 website for small business motivation and strategies.
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