Ninety-nine percent of American-based companies are not doing business overseas, including most Illinois businesses. Fox 32 Scott Schneider spoke with Jeff Jorge from Baker Tilly's International Services practice firm to discuss why U.S. companies are missing out on huge growth opportunities.
All right, so Jeff, I was really surprised to learn that just 1% of American companies are operating outside the US. Why are so few in the global marketplace?
That surprise us as well when we saw the statistic, and I think there are a few reasons for that in our experience, but I think it's led by the fact that U.S. economy being as good as it's been for the last 10 years, focusing at home makes sense. But as things change, having that international sales helps to diversify and strengthen a company from a domestic economy. But that's also underpinned by two other things.
One, we find that companies tend to have this mindset of well, international is great for these other businesses, but not for us. Typically because they may not know how to start, what to do, how to take away risk. And as we work with them and help them navigate, that really transforms what they do and who they become. But key is knowing what to do and how to do it.
Okay, so that said, what kind of growth opportunities are people missing out on?
While really the first one is international growth in terms of sales, right? Capturing new clients in new markets that help float your topline and increase your sales, and the other is to use perhaps a foreign market where you sell into as a hub and spoke, to sell it to other regional markets in those parts of the world.
If you are wondering whether international sales growth is a fit for you, please reach out to us — we would be happy to share our perspective.