Is the next step exporting for your small business? If you think this could be an option read on….

According to the survey, 64 percent of small businesses doing business overseas experienced a positive return within two years. Additionally, 34 percent did not have to wait that long, as they reported a positive return within six months of initiating business overseas. Despite the current world economic climate, almost half of small businesses, 49 percent, want to double their exports in the next three years.

“With 95 percent of the world’s consumers located beyond U.S. borders, it’s clear that the path to economic growth is through opening new markets for United States businesses,” said Dan Brutto, president of UPS International. “This survey tells me that all of us in a leadership position need to step up our efforts to support and educate small-business owners, in particular, on the potential of markets outside the United States.”

Figuring largely behind the success for small businesses going global is that, in accordance with the United States National Export Initiative, exports are projected to go from $1.57 trillion in 2009 to $3.14 trillion in 2015. This projected increase reflects the elimination of trade barriers and increased access to export financing.

Not all countries, however, are welcoming to small businesses. Over the past 10 years, businesses have been most successful exporting to Canada, Mexico, the United Kingdom and Australia, all of whom have trade agreements with the United States. However, in countries where there are no trade agreements in place, such as Brazil, Russia, India and China, businesses have not had as much success. In fact, 62 percent of small business exporters said they had little success in these countries.

According to the survey, the main reasons companies avoid going overseas for business are the current economic climate and an unfamiliarity with how to go global. For those businesses in the dark about how to go global, the solution is simple, according to Laurel Delany, owner of small-business-consulting firm Global Tradesouce Ltd.

“While it might seem counterintuitive for small businesses to expand internationally, with the economic challenges in the United States, now is the time for calculated risk. By connecting with companies that have already been successful exporting, companies new to the process can realize the benefits of engaging in global trade a lot faster,” said Delaney. “The simplest way for small businesses to find a successful exporting lead is good old-fashioned word-of-mouth, coupled with a great company website.”

The information in this survey was taken from over-1,000 small-business owners

Our next post will deal with some simple advice to take into consideration.

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If you have a bricks and mortar store you will be very aware of the need to stay one step ahead on shop lifters. Well there is another threat to your small business. Also you need to have systems in place to counteract Cyber Criminals as reporterd here:

Cyber crooks will target small businesses, social media attacks will be more common, and mobile security threats will reach an all-time high in 2012.

So says The Cyber Security and Information Assurance Division of Kroll Inc., which released its annual security forecast, highlighting key areas of risk and trends that will impact how organizations and governments combat and respond to cyber threats.

“The events of 2011 suggest that the cyber security

Guard against cyber criminals

landscape will find public and private organizations are still on unsteady footing,” said Karen Schuler, practice leader of the Cyber Security and Information Assurance Division. “Traditional pain points for organizations including mobile technologies, incident response and regulatory requirements will intensify as new and developing challenges surface in 2012.”

“We frequently see organizations with protective measures based on the assumption that they are not a target,” said Alan Brill, senior managing director of the Cyber Security and Information Assurance Division. “Yet 2011 taught us that no one is exempt from attack. Companies need to take a strategic and aggressive approach to cyber security. Ignoring a problem is no guarantee that the problem will ignore you.”

Please seek professional advice to guard against any security lapses you might have.

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There are so many opportunties today for small businesses to embrace the internet and what it provides. However there is a bad side to this technology. Smartphone apps are freely available to compare prices on Amzon to those in your bricks and mortar store. The customer can then order, at home or on their mobile the same item at a cheaper price.

When small business is already struggling how is this going to further effect the viability of the stores. It’s not only the fact that they can find it cheaper. What if you are in a retail business who provides full service. After spending 20 mins to a hour selling, instructing ( e.g. whiteware) and sometimes fitting a product (e.g. clothes, shoes) the customer can say thanks I’ll be back tomorrow. This is often code for…..I’ll look up online now that I know what I want down to the smallest spec and search online.

It’s true that competition is good, often we are competing with other retailers on price & service. Mostly, this is when there is a level playing field. This is not the case with Amazons new app that rewards customers with disocunts. Here is an extract from an aritice found on ecreditdaily.com.

Customers who download Amazon’s app and enable the location feature will see the 5 percent discount, or as much as $5 off, on as many as three qualifying products, including electronics, toys, music, sporting goods and DVDs, the company said in a statement this week.

The discount app has added fuel to the Seattle-based online giant’s already mounting opposition from business groups targeting Amazon’s de facto exemption from paying state taxes.

Current proposed legislation, the Marketplace Fairness Act, would overhaul the current system in which taxes only need to be collected from consumers if a retailer has a physical location within the state. It would give states the authority to collect sales taxes on online retailers.

“Amazon’s aggressive promotion of its Price Check App shows the lengths they are willing to go to exploit this tax loophole, and is a stark reminder of why Congress needs to act to protect retailers on Main Street,” said Katherine Lugar, executive vice president of public affairs for the Retail Industry Leaders Association. “A failure to act is an implicit endorsement of a subsidy of Amazon, a subsidy that distorts the free market and puts jobs on Main Street at risk.”

The proposed legislation is not exactly friendly to small businesses with an online presence.

Small business advocates argue that the proposed e-commerce law’s $500,000-revenue exemption is simply too low. And they say the law would amount to an accounting nightmare, requiring entrepreneurs and small business owners to collect and remit sales tax to every state where a customer resides.

The above is based on a US example, however retailers and others around the world are having the same issues. Exchange rates go up and down. Sometimes this means that consumers look to the internet with a better price, even taking into account delivery and other costs. These overseas providers do not to account for local sales taxes such as VAT, GST or Income Taxes. The playing field is not level and will continue to be this way. Small businesses will have to adapt to survive….. How is your business coping?

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