Exporting is Good for Your Bottom Line

Why Consider Exporting?

Access. Today, improvements in trade finance, the Internet, and trade agreements have dramatically increased access to markets worldwide.

Demand. More than 70 percent of the world’s purchasing power is located outside of the United States. Your competitors are increasing their global market share, and you can too.

Profitability. Exporting can be profitable for businesses of all sizes. On average, sales grow faster, more jobs are created, and employees earn more than in non-exporting firms.

Competitive Advantage. The United States is known throughout the world for high quality, innovative goods and services, customer service, and sound business practices.

Risk Mitigation. Most companies that export have an easier time riding out fluctuations in the U.S. economy and are more likely to stay in business.

Small Businesses Have Vast Untapped Export Potential

According to the Small Business Administration, small businesses have generated the majority of net new jobs over the past decade. Helping these firms grow by selling internationally is important to our economy.

Less than one percent of America’s 30 million companies export – a percentage that is significantly lower than all other developed countries. And of U.S. companies that do export, 58 percent export to only one country. Many businesses could benefit from learning more about these international opportunities and resources available to help.

Orange County Business Community’s Export Potential is Significant

Orange County product exports have exceeded $23 billion over the last four years and are vital to the economic growth of the county and its business community. Orange County is ranked 15th in the nation among metro areas based on its economic output, and 45th largest in the world, coming ahead of Singapore which is ranked 46th.

Over the next three years, product exports are projected to increase by 3.1% to 5.8% and reach a record high of $26.6 billion by the end of 2017. Orange County’s five largest trading partners in 2014 were: Mexico ($5.3 billion), Canada ($2.6 billion), China ($2.3 billion), Japan ($1.8 billion) and South Korea ($0.9 billion). Merchandise exports to these five largest trading partners sagged dramatically, by -15.1% in 2014, to $12.9 billion. These top five destination countries accounted for roughly 56% of merchandise exports in 2014.

As a small business new to exporting, you have a variety of questions ranging from basic terminology to complex export license requirements. Getting answers to your questions is the first step in the export process. To get answers to your questions, explore exporting your products (or services) and to learn more about how you can tap into international markets to grow your business at a healthy pace, don’t miss the upcoming TradeX seminar on Tuesday, August 9.

Article content contributed by:
US Commercial Service
US Small Business Administration
CSUF International Trade Forecast

Looking to start or grow your business?

We at the Orange County Inland Empire SBDC, are here to help you with every aspect of your business to help it grow and become successful.
Give us a call at 1-800-616-7232 or schedule a quick, 15-minute intake appointment at ociesbdc.org/consultation to see how we can help you start, grow, and succeed.

Exporting is Good for Your Bottom Line

Mike Daniel is the network director of the Orange County Inland Empire SBDC Network, which assists aspiring entrepreneurs and current business owners throughout Orange, San Bernardino and Riverside counties. Mike was formerly the director of the SBDC office at Long Beach City College. As business owner and entrepreneur himself, he started his career as the owner of a Rocky Mountain Chocolate Factory location in Manhattan Beach and went on to open a second location in Long Beach in 2001. In 2007, Mike sold the Manhattan Beach store for an above-market offer then invested in several additional locations as a minority shareholder. Mike further expanded his candy empire with venture located in Shoreline Village in Long Beach called Sugar Daddies Sweet Shoppe, based on fill-it yourself candy options.

Mike has a bachelor’s degree in Business Administration from California State University, Fullerton.