Is your business ready for global expansion?

• There is greater demand around the world than ever before.
• The world certainly wants and needs the U.S. market, U.S. intellectual capital and business expertise.

Today, most business people recognize that they are in an international economy. We follow stories like the collapse of the Greek economy, the end of the European Union, China's faltering economy, the amazing amounts of capital held in the Middle East. We know about international supply chain management, we buy clothes made in developing nations. We get coffee grown and harvested by individual farmers in Guatemala, Ivory Coast, Ethiopia and other far-flung countries. Our banks, oil companies, education institutions, law and engineering firms, technology and healthcare groups all operate internationally.

In 2013, we exported $2.3 trillion in virtually every SIC code. There are only six countries in the world where we don't export products. Hundreds of books have been written on the topic. Two of my favorites are 'The World is Flat" and "The World is Curved."

So what about the international opportunities for small- to medium-size businesses?

"I don't have time to manage the business I have, why should I worry about going international?" is a frequent response I hear. The simple answer is that if you don't want or need to grow, there is no need to include it in your thinking.

What we know is that the world is going to expand its economy faster than the United States and there is greater demand around the world than ever before. The Internet is providing information to billions of people and they may want or need the products or services you are selling. The world certainly wants and needs the U.S. market, U.S. intellectual capital and business expertise.

Five insights on why companies go international:

1. Diversification: Of revenue sources, of expertise, of knowledge base and learning new market best practices that can support operations at home.

2. Saturated market: The United States, like every other developed market, is heading towards saturation. Companies are looking outside borders for higher and sustainable growth.

3. Increased global demand: This allows U.S. companies to command larger margins than at home.

4. Defensive expansion: In some cases, U.S. companies are expanding internationally to defend their existing market share. Their competitors are expanding internationally, and their clients are. If you don't follow your clients, your competitors will take them.

5. Availability of capital: To fund both home market and global operations. Capital could be tapped easier in some international markets.

Is your company ready for internationalization? You must set realistic internal expectations, investment levels and time horizons. Don't move forward without a multi-year view of the opportunity and the commitment to stick with it.

Five factors that we believe are critical for success:

1. Capacity to meet demand and domestic requirements of your key customers. Your management team is unlikely willing to forgo more certain sales to existing customers and existing markets.

2. A senior manager excited and vitally interested in global expansion. You need someone willing to champion international expansion, have their feet on the ground in a foreign country and learn the rules of commerce in that country.

3. Ability to identify the right business model. Do you acquire a company, set a green field operation or find a JV partner?

4. A willingness to understand and appreciate different cultures and ways of thinking. Companies that are willing to understand the culture of a country are much more likely to satisfy customers on a continuing basis.

5. The "ugly American" is a reality. Make sure you aren't one. Provide winning scenarios for your international friends and partners.

A frequent flyer points bonanza

One opportunity that has to be discussed is the willingness to take journeys that span thousands of miles. One of my colleagues who manages an international consulting company feels just as comfortable taking a two-day trip to London as I do driving to Chattanooga. For business people around the world, global travel is an expectation and necessity to succeed in today's International economy. Be ready to be a platinum flyer; you will earn it.

Prior to becoming president ofLBMC Planning Services, Allen Hovious was the driving force behind corporate strategy and marketing for Jack Daniel Distillery. LBMC is the largest regional accounting and financial services family of companies based in Tennessee, with offices in Chattanooga, Brentwood and Knoxville. Contact Allen at ahovious@lbmc.com or 615-309-2241.