Going The Distance
Mapping out plans for international expansion? Let us show you the way.
Ten years ago, Clayton Gush came to a serious realization.
Cetacea Corp., his newly formed scuba diving accessories company in
Foster City, California, lacked the necessary market share in the
United States to keep the business afloat. Determined to persevere,
the then-22-year-old entrepreneur resolved to dive into foreign
waters with the help of partner Jim Youngblood. After revamping the
preliminary business plan Gush had drafted in college, the partners
turned the company into an export business. A smart move: Today,
Cetacea brings in just under $2 million selling to diving
enthusiasts worldwide.
Cetacea's tale of survival parallels that of many of
today's small businesses. More than ever, entrepreneurs
nationwide are witnessing the globalization of the business
landscape--and are taking part in the revolution. "As we move
into the 21st century, business will become more
internationalized," says Michael Zey, professor of management
at Montclair State University in Upper Montclair, New Jersey.
"Your source of labor will be international; your source of
financial support will be international; your market will be
international. Most companies now realize they cannot live by the
domestic market alone."
According to the International Trade Administration, each year
international trade accounts for more than $800 billion in economic
activity. And by 2000, experts predict that amount will exceed a
staggering $1 trillion. "For better or worse, there's a
tremendous interdependence of the world's economies," Zey
says. "You really can't ignore that internationalism; it
plays a positive role in development. Yours will be a bigger and
better company if you go international."
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Experts agree that shifting the focus from domestic markets to
foreign ones is a complex process for businesses, one that takes
serious time and effort. But the changing marketplace demands that
business owners at least consider the possibility--if they
don't want to be left behind. As the saying goes, it's not
in the still calm of life that great challenges are formed.
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