If you want to be among the 50% of businesses that succeed beyond five years, it’s never too early to think about the future. Plan for expansion by first taking a look at where you are now, then considering how you might grow your business in new directions. Selling your goods or services in the public sector and around the world are real possibilities you should begin contemplating now.
Plan to Expand in 5 Key Steps
1. Revisit your business plan. The flexible format recommended for your business plan makes it easy for you to re-evaluate and adjust your goals. Where might you need to revise your original plan? Are your supporting documents up to date? What new ideas/concepts/plans do you want to add?
2. Assess your operations. Is your business operating as efficiently as it could be? Do you have all the necessary tools/equipment? Do you need more space or larger facilities to meet current capacity needs? Will you need to add square footage to accommodate new directions?
3. Evaluate your team. Do you have the right people working for you? Do you have a plan for attracting new personnel? Have you defined the duties, responsibilities, skills and experience needed for each position? In what areas of your business could you use more or better help? What types of training programs are you able to provide?
4. Grow your market. Are you reaching the right markets for your product or service? What markets are you missing and what plans do you have for reaching them? Is your marketing budget adequate? What promotional strategies are you using and are they effective?
5. Rate your financial situation. Have you reached your break-even point? What’s your cash flow situation? How much capital would it take for you to expand? Can you afford to expand now and, if not, what measures do you need to take to make a future expansion financially possible?
Selling to Florida, Specifically
Working with State Agencies
Some small businesses may find it worthwhile to develop a marketing campaign specifically for state of Florida agencies.
MyFloridaMarketPlace, which is part of the Florida Department of Management Services, has nearly 15,000 registered buyers who issue, on average, 5,000 purchase orders each month. MyFlorida-MarketPlace.com streamlines interactions between vendors and state government entities and provides the tools to support procurement for the state of Florida.
Florida agencies have three levels of purchasing: (1) formal purchases (greater than $35,000; require competitive bidding); (2) informal purchases (less than $35,000; no requirement for competitive bidding); and (3) state term contracts.
After you determine which level best matches your business’s abilities, your next step is to register in the MyFloridaMarketPlace system. For details, visit www.dms.myflorida.com/myfloridamarketplace.
Don't Fall for This
Avoid websites that want to charge you to sign up as a vendor. There is never a fee to register as a government contractor on either the state or federal levels.
Government Contracting
Selling to the Public Sector
Many businesses find government contracting to be both a lucrative and long-term avenue to expansion. Every level of government buys goods and services, spending billions of dollars annually, even during times of economic uncertainty. To determine if government contracting is right for your business and to best position your firm for success on all levels, the Florida SBDC Network suggests these steps:
Evaluate Understand what agencies buy, when and how much is purchased to assess the demand for your product or service; focus on market areas that present the best probability for your firm’s success.
Plan Target government agencies and prime contractors that are buying what you provide; research government agency procurement histories and forecasts; develop a written marketing plan specifically for your government contracting activities.
Register Complete the required/mandatory government database registrations including: System for Award Management (SAM); Dynamic Small Business Search; MyFloridaMarketPlace; city and county government agencies.
Prepare Develop a government-focused capability statement for your firm, collateral materials and e-marketing resources; secure preferred small business certifications such as: 8(a), Woman-Owned Small Business, HUBZone, Veteran-Owned and applicable state and local certifications.
Pursue Regularly monitor computerized Bid Matching Services (daily searches and email alerts); identify contracting/sub-contracting opportunities through government bid boards, posting databases and networking; obtain a GSA Schedule contract, if applicable; analyze solicitations/bids and cost elements.
Achieve Support the phase-in of your government contract; develop a government-accepted accounting system; prepare in advance to handle any possible contract audits, reports and modifications.
Ask for Help Government Contracting Specialists at the Florida SBDC Network are available to help you learn the ins and outs of government contracting and best position your firm as a successful government contractor.
Exporting
Going Global
Exporting is another avenue many small businesses take as a way to increase their sales and profits. Does your firm’s product or service lend itself to export? Have you considered broadening your reach to include international markets? If you answered “yes” to either question, your geographic positioning could not be more ideal.
Florida is home to more than 61,000 exporters — the second highest number in the United States — and nearly all of them are small- and medium-sized businesses with fewer than 500 employees.
Positioned at the nexus of transportation links in the Americas, Florida boasts a multimodal system that ensures the seamless movement of people and products between any two points on the planet. Moreover, Florida businesses enjoy access to the nation’s second largest Foreign Trade Zone (FTZ) network, where value can be added to foreign goods tariff free before shipping them on to another country.
If you find the idea of expanding into international markets an appealing growth strategy for your business but aren’t certain how to make it happen, we have good news. No matter where you are in your global planning, you’ll find programs, resources and one-on-one counseling available from:
Enterprise Florida
Enterprise Florida Inc. (EFI) , the state’s public-private economic development partnership, provides programs and services to help Florida businesses enter or expand into the international marketplace. These include:
Export Counseling Professional trade counselors provide free evaluation of a company’s market readiness, selection of target markets for its products or services, market research, information on channels of distribution in target markets and introductions to EFI’s international offices.
Overseas Missions and Trade Shows Opportunities for Florida companies to showcase their products and services and meet one-on-one with potential customers worldwide.
International Trade leads Trade leads generated by EFI’s international offices may be made available each month to Florida companies that have registered through their local trade office.
Gold Key/Matchmaker Grant Available to eligible small- and medium-sized companies for the purpose of generating or increasing export sales overseas. These grants serve as market development vehicles for companies that are new or infrequent exporters by providing them with an opportunity to meet with pre-screened and pre-qualified buyers, agents, importers and representatives with an interest in their products or services.
Educational Events Ready access to roundtables, seminars and conferences on export fundamentals is available in various locales throughout the state on topics such as researching markets, developing an export strategy, logistics, promotional opportunities and more.
See the list of EFI local trade offices and the regions they serve.
Florida SBDC Network
For new and infrequent exporters, the Florida SBDC offers International Trade Services and Trade Specialists to help business owners navigate the complexities of international trade. One-on-one consulting is available at the local level to help with learning foreign trade basics, obtaining required licenses, understanding country requirements for products and, in partnership with Enterprise Florida, preparing an “Export Marketing Plan” designed to pinpoint the best countries for a particular product or service, develop the right entry strategies and promote a company’s products/services abroad.
U.S. Commercial Service
The lead trade promotion agency of the U.S. government, the U.S. Commercial Service has trade professionals in more than 75 countries and 100 U.S. cities, including six in Florida. They are poised to help companies get started in exporting or increase sales to new global markets by identifying and evaluating international partners, creating market entry strategies and navigating documentation challenges.For information on export basics, regulations and licensing, free trade agreements and other topics related to exporting in general, visit export.gov. See the list of U.S. Commercial Service Export Assistance Centers in Florida.
Stay In The Know
Sign up for Enterprise Florida’s biweekly “International Trade Events” newsletter to stay informed about international trade events that are happening around the state and overseas. Go to enterpriseflorida.com/trade-events-newsletter-sign-up/.
To Export or Not - 6 Questions to Ask and Answer
1. Is my business ready to export? Create an account at export.gov and complete the free “Export Readiness Self-Assessment” to determine if your small business is truly in a position to expand into global markets at this time.
2. Do I know what I’m doing? Start learning the ins and outs of exporting before you take the plunge. An excellent customizable tool to help you work your way through the export planning process step-by-step is the U.S. Small Business Association’s “Export Business Planner.” It’s available for download free at sba.gov/exportbusinessplanner.
3. Do I have a plan? A written export business plan will help you define your company’s current status and commitment to global marketing by forcing you to assemble facts, identify constraints and set specific goals and objectives for exporting success.
4. Have I done my homework? You wouldn’t take a vacation overseas without doing some research in advance, and the same can be said for your products or services. Know what you’re getting into by researching potential markets, trade barriers, regulations and other exporting details that are specific to the country you have in mind.
5. Have I found any buyers? Federal, state and local governments continually organize export events, such as foreign trade missions and targeted trade shows that put U.S. sellers and foreign buyers into direct contact with one another. Enterprise Florida is a good source of these opportunities.
6. Can I afford this? Numerous export loan programs, grants and other financing opportunities are available at the state and federal levels to help your company finance its global marketing activities, ensure foreign payment and manage risk. The SBA’s “Export Business Planner” has a complete chapter devoted to this topic.