Looking Up: Export Opportunities for Small Businesses

Still don't think exporting is for you? Think again. The changing global landscape can boost profits and help your company grow.

By Richard Sammon, Senior Associate Editor, The Kiplinger Letter

Ted Reinert, Intern, The Kiplinger Letter

May 14, 2008

Selling overseas isn't just for the big boys. The weak dollar -- boosting exports and growing demand for an increasing variety of products -- makes this an ideal time for small businesses to join the party.

The U.S. Department of Commerce is eager to play matchmaker, helping to find and screen potential overseas partners and customers. Its Gold Key Matching Service offers custom counseling that's tailored to your company's needs for a reasonable fee. Such personalized advice can go a long way in helping you find the right niche overseas, saving time and money. Also available: hard-to-find information about trade fairs abroad that can be valuable conduits into new markets.

"One of the crucial issues for a small company is driving down some of the costs of exporting," says Jim Morrison, president of the Small Business Exporters Association. "Everyone I've talked to who's used this program is very, very high on it."

Other sound sources of advice include trade associations, state and some local governments as well as private consultants.

Commerce Department and other experts have their sights set firmly on especially hot growth areas, such as markets in Asia and South America. With incomes rising, demand is expanding for a variety of nontraditionally exported goods and services. Among them: advertising, graphic design, architectural services, computer tech support, custom-engine repair and public relations, to name a few.

Exports will make up about 12% of U.S. Gross Domestic Product this year, with large corporations dominating the action, of course, accounting for 70% of the value of exported goods and services. Fewer than 1% of small and midsize enterprises -- about 30,000 companies -- export at all. Those that do typically make only a few foreign sales a year -- mostly only in one or two countries, usually Canada and Mexico.

Uncle Sam figures that helping small businesses export more will help spark employment and the economy as well as chip away at the trade deficit. The Commerce Department experts figure that if the number of small and midsize companies that export rises from 1% to 1.5%, as much as $150 billion could be shaved from the overall U.S. trade deficit of about $800 billion.

For weekly updates on topics to improve your business decisionmaking, click here.