Small Business in the Biggest Sandbox

The term “international” has become somewhat synonymous with the mega corporations that include the term in their name or mission.  But the latest CompTIA research suggests you don’t have to be one of the biggest kids on the playground to claim a spot in the global sandbox.

On average, 13% of annual revenue at small and medium-size information technology firms is generated from international markets, according to the latest CompTIA research.  Among the small firms doing business overseas, 43% indicate international sales are growing significantly faster than domestic sales.

“Clearly, small tech companies see access to foreign markets as a viable way to develop their business,” said CompTIA’s Vice President of Research Tim Herbert, during a packed USTR event in Washington yesterday (click here to see pictures from the event). “The survey indicates that an export-based business model holds immense promise for a growing number of SMBs.”

Further illustrating this point, CompTIA members Lester Keizer and Charlie Anderson gave panel presentations on the success they have found overseas.  Lester Keizer is partner and Executive Vice President of Marketing for XiloCore, in Las Vegas, NV.  His business sells a “cloud-based” disaster recovery solution to several foreign entities.  Charlie Anderson, too, exports overseas, working through his Distributed Data Services, Inc. of Winter Park, FL., to provide credit card-related services for banks in the Caribbean and Central America.  Both small IT businesses derive significant, and growing, portions of their revenue from exports.

As with any popular playground attraction, the global IT sandbox isn’t entirely without conflict.  Channel/partner issues, business and legal costs, IP protections, financing/cash flow issues and foreign governments regulating exporting companies differently than local ones are among challenges IT executives can expect to encounter on their way to international success.

For small IT firms, offshore markets can be an attractive but daunting opportunity.  Companies have to be innovative and business savvy to reap the benefits of playing in the global sandbox.  They do not however have to go it alone.  They can better their odds by sharing their issues and concerns, triumphs and mistakes on forums like this.

What keeps you from entering the global sandbox?  Who kicked sand in your face or helped you defeat the playground bully?  Which sandboxes feature buried treasures and which ones frequented by neighborhood cats?  Ask your questions and share your stories by leaving a comment!