Performed well, Profit, Sales, Marketing, and Innovation, all add up to Growth.  But, what if there isn't enough room to grow?  When you put a plant in a pot and water it regularly, it will grow, that is, until it outgrows the pot and then begins to wilt.   

The pot you have planted your business in is your country.  Most countries, including the USA, eventually reach a point where markets have become so competitive that growth becomes harder and harder to achieve as markets mature.   

In this article, we are going to explore that larger pot called the Global Market, and share specific approaches that can work for you.  But first, let's consider whether you are among those who may be ...Starving in the Midst of Plenty.

A scientist placed a number of small fish in an aquarium and left them there for a few days until they became acclimated.  After herding all of them into one end, he separated the aquarium into two halves by placing a glass partition in the middle.  He then placed a large predator fish in the other half.

Within seconds, the big fish spotted the little ones and dashed after them.  Swimming at full speed, he smacked right into the glass partition.  Stunned, he hesitated and hovered in one place for a few seconds.  Recovering from the blow, he dashed toward the smaller ones again.  Once more, he smashed into the glass partition.

In a near frenzy, the predator assaulted the invisible barrier time and again.  Finally, reality sank in and he gave up.  After a while, he swam around his half of the tank ignoring the smaller fish at the other end.

A few hours later, the scientist removed the glass partition.  The large fish continued to swim around his half of the aquarium and never once attempted to cross to the other side.  He would have starved to death in the midst of plenty had the scientist not returned him to another tank where he was fed regularly. 

Lessons:

1. You can starve in the midst of plenty.
2. Circumstances change.
3. Obstacles are rarely permanent, but not trying can make them immovable.
4. Your mind is the only limit to the size of your market.
5. Don't quit; stay the course. 

(American companies all too often abandon markets as soon as they become difficult.  Then, a few years later, when they decide to return, local consumers remember how they were left stranded, and reject the product or service.)

Global Market, the Biggest Fish Tank

Today, the biggest fish tank of them all is the Global Market.  It is virtually without limit, filled with opportunities swimming around waiting to be gobbled up.  The question is: "But gobbled up by whom?"   

Abraham Lincoln is credited with saying: "All things come to those who wait, but they come sooner to those who hustle!"  Time continues to prove him right.

I believe that if you want to grow revenues and profits faster than US markets allow, you must go global.  Consider this: 95 percent of the world's population lives outside the United States. Not all of that population may be right consumers for your products and services, but when you realize that the total global population is over 6 billion, it still leaves a lot to choose from.

Further, when you look at the largest leading companies in the Fortune 500, most of them derive more than 50 percent of their revenues and profits from international markets.   Granted, these are huge companies, but they didn't start that way.  Whatever the size of your business, the global market has much to offer you and, although you may not realize it, you have a lot to offer, too.

Look at it this way, not all potential revenue streams are in our own country.  That is why many companies are in international markets, or thinking of getting into them.  When they do, after a while, certain patterns emerge.

Don't "Back Into" the Global Market  

Many companies seem to back into global markets rather than advance into them.  If a company has a good product or service, sooner or later it will become known beyond the domestic market.  In time, it is bound to receive inquiries from potential buyers in other countries.  These inquiries are what I call "Over the transom business."  Somebody throws it at the company.  There is no effort involved in developing it.

Most companies are geared for domestic business.  When international business shows up, they often don't know what to do with it.  As a client of mine says, "It's like dating a mermaid.  She's in the water and you're on land.  What do you do?"

I suppose the answer to that one is: "You learn to swim."

I know of companies that consider international business too much trouble.  Perhaps the amount of the initial sale may not be large enough to be appealing.  Although that may be true - for the individual sale - the first time, it is a short-sighted view.   

A Wrong Way to Approach International Business   

• Typically, an inquiry arrives from a foreign country, and offers the possibility of a new market.  Because the company lacks international experience and interest, what might have been considered an opportunity had the inquiry been from a U.S. source, in this case it becomes a problem, almost a nuisance.   There is no procedure in that company for handling international business. 
• Not having any other source of information (and not looking for one), the sales manager says, "Let's double our price and demand an upfront payment, and see what happens. That ought to take care of it."  Imagine his surprise when he later gets an order with a check included for the amount quoted.  He finally figures out how to handle it, and the order ships. 
• Sometime later, another order from the same source also arrives with a check.  Surprisingly, month after month, the orders keep on coming.  The sales manager is delighted, but does nothing to pursue the matter further; he never finds out how the foreign client can afford to pay twice the price, nor is he particularly interested in learning how the product is being used or distributed in that country.
• The pattern continues.  Eventually, an on-going relationship is established and, at one point, the client announces he will visit the company.  He is well received, given a tour of the plant, taken to lunch, exchanges business cards, and suggests broadening the relationship to a next stage such as an official representation or distributorship.
•  The company, without any further investigation or research, agrees.  After all, it makes sense - in principle.   A known customer with a good record, and a chance to break into a new market with little effort; why not?

Actually, there can be many reasons for not jumping into a commitment that, in effect, turns over an entire market to one individual or company in the area. 

• What is the client doing in that market? 
•  What kind of reputation does he have in his country? 
•  Is the company's product being sold properly? 
• Many companies that got started in international business this way later discovered they were in the wrong country, with the wrong distributor, and did not have a solid representation there.

Well, there may be a lot of "Not's" that need looking at.  But, the basic point is - a little planning and strategizing in advance of international commitments can save a lot of headaches later on.  This is not hard to do, but it does take some discipline - mostly restraint and some analysis.

There are two more points I would like to stress:  

1. When you begin to think about your international business, don't think small.  My experience has been that most companies make mistakes because they think too small.   
2. It is okay to start small, but don't think small.  Set big, long term goals, but do your homework first.   

A Matter of Perception

A lot is in how you look at things.  There is a story that's been around for quite a few years about two shoe salesmen sent to a Third World African country (talk about tough territories - it makes you wonder what they did to deserve that honor).  One salesman e-mails back to his office: "Returning home.  No prospects of sales.  Natives don't wear shoes."  The other salesman has a different perception and sends the following wire: "Send all possible stock.  We can dominate market.  Natives don't wear shoes."  When you look for opportunity, you are more likely to find it.

The Challenges and Opportunities Presented by Changing Times

We hear and read a lot about climate change, and it is important, but so is the change that is taking place in the business world.  The following factors are for your consideration; you may want to discuss each of them with your team to determine how exactly it will or could affect your business. As you go through them, keep in mind that every challenge hides opportunities

• Challenge. Supply exceeds demand for the first time in human history, especially in manufacturing.  Opportunity.  If you are in manufacturing, global competition is still growing chances are you might have some uniqueness that is not yet global, which would give you an edge in a number of foreign markets.  And, if you are innovative, the whole world is now demanding new products and concepts.
• Challenge. Quality is a given, and today's consumers are quick to abandon suppliers whose quality does not stand up to expectations. Opportunity.  If quality is one of your strengths, you have an advantage.
• Challenge.  For every product/service there is an equal and opposite product/service somewhere; in business, uniqueness tends to fade quickly.  Opportunity.  All the more reason to get out there before your uniqueness fades.
• Challenge.  You will be under-priced consistently.  No matter how low your prices, someone will always offer a lower one.  Opportunity.  That is why the perception of value that you create will open global doors for you.
• ·       Challenge.  Most products and services are look-alikes.  Commoditization is a global factor.  Opportunity.  The more you can differentiate your product and your service, the more money you can make everywhere.
• Challenge.  Borderless markets invite competition.  The more markets open, the more competition. Opportunity  But, while it is a mistake to underestimate local competition, local markets are always open to new and different offering that match their need, wants, and preferences from a cultural point of view.
• Challenge. Telecommunications level the playing field; they have substantially increased information and reduced lead times.  Opportunity.  This works in your favor if you can use all media effectively.
• Challenge.  Lowest price is no longer sustainable because, as the global economy grows, raw materials and ingredients will become scarcer and more costly, thus raising production costs. China is already heading that direction.  Opportunity.  This means that even though your costs and your prices may be higher than local ones abroad, low price strategies are weakening everywhere, which opens the door for your products and services.
• Challenge.  Business growth is increasingly difficult, especially in the United States where our markets are maturing and competition is more aggressive and sophisticated.  Opportunity.  All the more reason to think and act global.
• Challenge. Foreign competition is not always obvious because it can be part of a domestic product, or carry an English brand name.  Opportunity.  On the other hand, you can now make your products and technology parts of foreign companies' products and services.
• Challenge.  Businesses everywhere must now FIGHT to stay in business as economic cycles have become more frequent and impactful, which also increases the intensity of competition.  Opportunity.  But, having survived in the American market of recent years gives you a sophisticated edge for competing in other markets - as long as you can adapt it to local cultures and preferences.

If you go about it the right way, your international business should equal or surpass your domestic business in ten years or less!I would like to encourage you to keep that thought in mind.

Make the most of this information

·       Set a specific goal

·       Establish a timeline

·       Think ACTION!

Everywhere around the world competitors are starving for your job and your business! A little paranoia can be a healthy thing! Time to Fight Back!  If foreign competitors have learned how to penetrate and thrive in your markets, you can do the same in theirs.  

The rewards can be gigantic -- if you keep at it and learn along the way!

A thought for you to consider: there may be global brands, but there is no such thing as a global customer.  CUSTOMERS EVERYWHERE ARE LOCAL!  Your product or service will do well provided you take into account local cultures and preferences. 

Accelerate and increase your global business. Michael Wynne helps companies access and grow in foreign markets; he will help you

1.  Identify the key characteristics of different cultures
2.   And successfully adapt your approach to the preferences of local markets.

Contact Michael now at (630) 420 2605, or mykwyn@aol.com.