Market research indicates that a large majority of manufacturing and distribution companies have historically focused on a very small percentage of their total potential markets. For small and medium-sized businesses (SMB’s) located in countries with large domestic markets, the primary and oftentimes the only focus has been to increase market penetration and build market share solely in their home markets. When there are efforts placed on the global markets, it usually involved focusing on neighboring countries or those in close proximity. Further, a common initial path into international business started at the request of an existing domestic client. These minimal efforts at international expansion have worked well in good economic times, but this passive approach to global business growth will mean many companies will never reach their peak potential.
Every manufacturing and distribution company with a minimum of $2 million in existing domestic sales needs to develop a comprehensive plan to identify and nurture their highest potential international markets. The ease of doing business abroad and speed of communications is leveling the playing for every company no matter where they are located. Companies that continue to rely on their domestic markets for their primary source of business are already experiencing new competition from industry players located in foreign countries. The world grows smaller every day because new technologies enable small businesses to use the techniques and tools formerly reserved for the largest multinational companies. By creating a detailed growth strategy, recruiting the right team to execute the plan and detailing the timelines and milestones for targeted expansion, each company can build a path towards top-line revenue growth and bottom-line profits. Any delay in preparing your business for the new global business paradigm will put your company further and further behind your competition with each passing day.