The Denver SBA Administrator for Region VIII, Daniel Hannaher, recently sent out some encouraging advice to Small Business Owners in the Denver area encouraging them to start exporting. In this article, we will start delving into the 7 reasons that were mentioned to try and explain them a bit clearer. In this article, we will deal with "Faster Growth, Higher Profits."
Mr. Hannaher says the following about Faster Growth, Higher Profits:
"Faster growth, higher profits. Several years ago a comprehensive study was done that showed that exporters tend to grow 22% faster than non-exporting companies, that they have higher profits, and that they stay in business longer. Exporters are winners, by definition, because they have shown that they can "think outside the box" and successfully compete in global markets."
Two terms that strike a chord with any business owner, and especially the small business owner. Small business isn't intended to always have to be small. The purpose of a small business is for the common person to start something that they are proud of. With Faster Growth and/or Higher Profits, they can see their dream flourish before their eyes.
Faster growth is a business model for many of today's Corporations, and it is the reason you can see a product or a store front in Denver, then travel hundreds of miles and see the exact same product or storefront in New York. You started your business to get by, and to do something different. If you utilize Exporting to give your self a global market rather than one localized to the Denver area, you will see faster growth.
Higher profits is the quest of modern humanity. Why make a buck when you can make ten? This is not achieved by raising your prices to the point where only the affluent can afford them, but it goes back to the Economy of Scale. When you are making more product, and reducing your cost per unit because of that, it can only signify a higher profit at the end of the day.