HIMPower Magazine May 2015 | Page 23

erate 100 percent of their revenues from exporting than non-minority firms. Essentially, many minorities have family and cultural ties in foreign countries which provide them with a unique advantage for exporting. For example, many African Americans have racial and ethnic ties to other black populations overseas, such as in Brazil, Colombia, the Caribbean, and sometimes Africa, that may be useful in forming trade relationships. The data is in your favor, but why should you consider exporting for your business? Here are five reasons, just to name a few: EXPORTING PROVIDES YOU WITH ACCESS TO MORE CUSTOMERS Any business that is selling a product or service to customers in the United States should look at exporting for the simple proposition of access to more customers. If you can sell more, that’s how you grow your business; that’s how you hire more employees and create jobs; that’s how you create wealth for you and for your workers. EXPORTING CAN BE PROFITABLE Sixty percent (60%) of small companies that engage in exporting derive 20% of their annual earnings from exports. Also, according to the most recent U.S. Census, 28,531 exporting minority businesses have generated exports valued at over $30 billion, representing 17.5 % of all classifiable exporting businesses in the United States. EXPORTING ENHANCES YOUR COMPETITIVENESS A company with international sales or service diversifies its customer base so that if there are changing conditions in the domestic marketplace (i.e., decreased demand, poor economic conditions, etc.), the product or service may still be competitive in the international marketplace. For example, a company may access foreign markets to take advantage of seasonal differences between their domestic market and foreign markets. By doing this, a manufacturer of summer-related products that sell well in the U.S. between May and August can turn to customers in the southern hemisphere that would purchase these products during the months of September through April, thus using international sales to offset domestic purchasing cycles and the change of seasons. In addition, exporting can prolong the life cycle of a product. When a product is at the end of its life cycle domestically, there may still be opportunities in foreign markets. These strategies allow for a company’s continuing competitiveness, which could also lead to global brand awareness. www.pneupathforliving.com  23