Small Business Mojo: Avoiding The Pitfalls Of Globalization

Is your small business ready for the global economy?

According to the GEI small business owners around the world are very optimistic in their global economic outlook. Out of the 7,500 entrepreneurs in 38 countries surveyed, 62% have seen a significant improvement in profits over last year and 72% of these same respondents expect greater returns over the next 6 months.

While this survey paints an optimistic view, it is wise for business owners to consider the potential downfalls of globalization and to think ahead about what they can do to thrive over the next decade. 

Failure to know your product or to adapt to your customers needs. 

This may seem like a simple and redundant step, but some business owners work years and years to build a company around a product or idea that is simply no longer viable.  Step back and consider if you are truly meeting a need and offering a value to your customer .  Don’t be afraid to make changes to your product line and emphasize the innovation you are sharing.  When you are bold and educate your customers about why your product is superior, you set yourself apart as a respected expert and gain lifelong customers. I think the days of finding a reliable niche are over....companies must be prepared to adapt and change more than ever before.

Failure to respond to the needs of online shoppers.

 E-Commerce is important, and it's not just for the big box stores anymore!  Goldman Sachs Group Inc. reports that E-retail will grow at five times the rate of traditional retail and will overtake offline retail in profits by 2020.  If you are not yet offering your services or products online, then you are missing a huge piece of the market.   It is imperative that you provide a professional, fast, and safe shopping experience for your customers. Invest in whatever technology it is going to take to update your website and market yourself online. Costco and Target are making lots of money online and have massive amounts of resources to throw at marketing, but even the 'big boys' have issues with website organization and keeping their online shoppers satisfied. Learn from their mistakes, optimize your sites for maximum efficiency and resist the temptation to bombard your customers with irrelevant advertising. A happy customer is a repeat customer!

Failure to think outside the box and to expand internationally.

It may be outside your comfort zone to think about it, but now is the time to consider expanding your reach across international borders.  Once your business is working for customers in the US, you owe it to yourself to see what the needs of international customers may be. There are some logistical challenges to shipping internationally and even expanding production overseas, but there is a wealth of information available to help you navigate this process.  Find similar companies you respect that have made the transition and partner with them if you can. Research the steps you can take right now to position yourself to expand when the time is right and you won't get left behind. 

REFERENCES:

Internet Retailer

Going Global

PowerHomeBiz

Global Entrepreneur Indicator