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How SMBs Can Grow Their Business and Capitalize on the Rebounding Economy

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MARCH 2010

How SMBs Can Grow Their Business and Capitalize on the Rebounding Economy

I had the honor and pleasure of serving as a global small business expert panelist at a Feb. 9 event hosted by Verio and Inc.  I was in good company at “How SMBs Can Capitalize on the Rebounding Economy.”

My focus was on how small to medium-size businesses (SMBs) can grow and capitalize on the rebounding economy by taking their businesses global.  Here are some of the questions I addressed, my responses, stories I shared and some other issues that came up as a result of our lively conversation.
 
Q: Let’s start by addressing the 800-pound gorilla in the room: Is the economy rebounding? Tell us if you’ve seen some glimmers of recovery; how are you reading the tea leaves?
 
My response: Not really, although I find it hard to imagine it getting any worse.  We are at rock bottom so the only way is up.  Nothing, other than the “tech” industry, tells me there’s a rebound.  What I mean by that is Cisco (Cisco Chairman and CEO John Chambers indicated, “This is one of the most robust positive turnarounds I’ve seen in my career”), Microsoft, IBM, Apple, NetSuite and Google all reported stunning profit results for the last quarter of 2009, which means SMB owners might be getting more tech savvy in preparation for a slow recovery.  But let’s face it, money is not just tight.  There is no money for growth unless you are running an established business with a wildly successful track record.  That’s scary for people who have insanely great ideas and can’t get them funded.  The good news for SMB owners who are tinkering with the notion of taking their business global is that our commerce secretary, Gary Locke, pledged $6 billion a year in export financing for USA small businesses through the Export-Import Bank of the United States. 
 
Aside from all this, the only real sign I am seeing with SMB owners related to recovery is in their attitude, and their new attitude is:  It’s a new year, so let’s make it our best.
 
Q: How do you identify segments of your customer base that are in the best position to take advantage of a rebound? What do you do to reach out to them?
 
Good stuff stays at the top, it finds a way to get noticed.  We don’t want to work with companies that are not accessible or are floundering, because our mission is not to “save” folks, it’s to help SMBs go global, and to do a good job with that you have to be successful in your local business and have a decent presence on the Internet.
 
When we see a company that during the toughest time of all seems to be having fun, doing lots of great things, chatting it up on social media and social networking sites, and has the potential to go global, for example, that’s who we go after.  Yet in most instances, it’s the other way around.  Clients find us because we are so prominent on the Internet.  We also rely on our network and client base for referrals and strategic use of Google Alerts.  For example, we might want to add to our client base an SMB that manufactures high-end gourmet chocolates because we feel there’s a need for that sort of item in Shanghai or Dubai.  We set the Google Alert for "small chocolate manufacturer" to track what companies are doing in this area.  We have a Google Alert set up for SMB trends, Verio SMB, Office Depot SMB, H-P SMB, global small business and global entrepreneurship, as well as for GlobeTrade, Laurel Delaney, etc.  You want to track what’s going on in the world and what people are saying about you and your work.  It gives you a chance to comment when an opportunity presents itself.
 
Q: How important is a global reach to SMB owners looking to capitalize on a rebounding economy? What are some of the most promising markets?
 
Considering 95% of the world’s population resides outside our own borders, it’s very important to have a global reach if you intend to go after that and GROW.  Further, online alone there are more than 1.7 billion consumers (according to world Internet usage statistics:  www.InternetWorldStats.com). 
 
I like to reflect on a true story about a small jewelry retailer in Deerfield, IL, population of 17,000.  One time while shopping for a ring at the local business I asked:  Do you have a website?  No.  Are you blogging?  No. Do you use Twitter?  No.  How will you grow?  And their answer was, “We are happy with the loyal local customers we have in Deerfield.”  I bit my tongue.  But if the jewelry retailer had a mindset of reaching out to the world with their business and developed a social media strategy including a website, blog, etc., they could potentially sell folks who want to buy their jewelry anywhere in the world, right?  Should they run into a leasing problem (rent skyrockets) or local customer problem (sales dry up), they would have that parcel of global business that could keep them afloat during tough local times. 
 
As it turns out, six months later, the jewelry store is out of business.  Think it was because of the lack of social media strategy or their local mindset?  We’ll never know, but what I do know is that I ended up buying the piece of jewelry I was looking for (an Irish engagement ring for my husband) at an online retailer based in Ireland!  [Note: The audience was very disturbed by this story for it seemed to have an unhappy ending — the little jewelry store is no longer in business and the customer ended up outsourcing the much-needed product globally!  A business owner’s nightmare, but they missed the point:  This is a glimpse of the future.  Better prepare yourself for what’s ahead.] 
 
To the question about the most promising markets, it depends.  It depends on what you are selling, what language(s) you speak fluently and whether the overseas market has a need for your offering.  For SMB owners who speak only English, I always suggest they enter a country where the consumer speaks the same language (for communications and the actual product labeling, for example).  Why complicate things by worrying about translation at the get-go?  After you become a little more experienced, yes, launch translation software and hire someone who speaks Spanish, for example, to enter Spain or Mexico.  But in the meantime, keep it simple and go to the U.K., Ireland, Australia and New Zealand.  That’s where I’d start, but just because consumers speak your language doesn’t mean they “need” your product or service!  That’s why market research is so important in the due diligence process of your global marketing initiative.  You can’t have one without the other.
 
We look at The World Bank’s Ease of Doing Business Rankings, BuyUsa.com, U.S. Commercial Service, U.S. Dept. of Commerce and the Internet Usage Statistics to determine ease of entry, conduct research, find out computer literacy levels and the likelihood of consumers buying a client’s product or service.
 
Getting back to the question about how important it is for an SMB to have a global reach, it’s a question that begs for another question:  How big do you want to be?  If you want to grow, global is the way to go.  If not, a local lifestyle sort of business is your baby.
 
Q: What are the important technology tools for SMBs to have in place to prepare for the recovery?
 
Presence on the Internet:  Website, blog, LinkedIn, Facebook, MySpace, Twitter, etc.  Integrate all with a coherent theme so people don’t get confused about what you are good at.  I also suggest the use of a smart phone and an understanding of cloud computing so that when you are globetrotting, you can take your work with you anywhere at anytime.
 
Q: To wrap up our discussion, what’s the single best piece of advice you have for SMBs this year?
 
Here’s what I said: Don’t forget the importance of a direct mail marketing piece or what my fellow panelist Kristin referred to as “human interaction” or “personalization.”  Meaning, everything doesn’t take place online.  Don’t forget that.
 
And what I didn’t say: Since we are in what I consider a digital revolution that is redefining how you run a business, I suggest you launch a bold initiative that demands a BIG PRESENCE on the Internet (not just bells and whistles but critically important information that deeply engages consumers to the degree that they can’t wait to get their hands on it!).  The mix of print+digital will get more interesting this year, so track it to get in front of it.  That’s where the action is and will continue to be well into the 21st century.

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