Strategy for Growth: Small Business Exporting

Man asking for direction from women in warehouse regarding exporting international products

Exporting is the process by which businesses from one country sell their goods and services to consumers or other businesses in a different country. For small businesses, exporting can elevate sales as well as provide many other benefits. With 95% of consumers living outside of the United States, global sales make up most of the consumer base.

According to the Congressional Research Service, 166,384 small businesses in the U.S. export, which is 26% of all U.S. exports in 2022.

Benefits of exporting your products include:

Becoming more profitable
Stabilizing season differences
Defending your domestic market
Increasing your competitiveness
Growing the value of intellectual property in the case of licensing
Widening your overall skillset

Create a plan for exporting your product

The process can be intimidating, so the first step you should take is to create a plan that outlines the process and schedule your milestones:

List the products or services that will be exported
Look into the export potential of the product
Research potential countries of interest
Come up with a pricing strategy
Develop a strategy to find customers

A more in-depth outline for developing an export plan can be found on the International Trade Administration’s (ITA) website. The ITA also has A Basic Guide to Exporting, which provides the ins and outs of connecting your business to the global markets.

Assess your export readiness

Next step: assess your export readiness. Take the International Trade Administration’s full export readiness assessment and answer the following questions when determining your readiness:

Do you have a product or service that has been successfully sold in the domestic market?
Does your company management have the time and resources for the export process?
Do you have a business plan that outlines your goals and strategies for exporting?
Is there sufficient production capacity for an export market? Do you need to finance an expansion?
Do you have the financial resources to manage an increase in sales in the overseas markets?
Do you have U.S. and foreign Intellectual Property Protection?
Are you capable of changing ingredients and packaging to meet foreign import regulations, cultural preferences and endure competition?
Do you have a strong knowledge of shipping overseas? Can you identify and select international freight forwarders and recognize freight costs to ensure customs clearance?
Do you have a strong knowledge of export payment methods, like letters of credit?
Do you know and understand U.S. export controls and compliance?