Want more revenue? Small businesses must think outside the state
Stephen A. Schuster
Most small- to medium-sized businesses are naturally focused on relatively local customer audiences. But over the past two decades of doing business here in Central Massachusetts, my company has shown that it's possible to create local jobs with offshore revenue. By helping international technology companies establish a beachhead here in the United States, Central Massachusetts companies can not only help those companies succeed (and sometimes get acquired), but also help the local economy.
There are myriad advantages to expanding a business' scope to target the global marketplace instead of remaining confined to a local customer audience. Among them are:
1) A broader market for more revenue;
2) Reduced sensitivity to local economic volatility; and
3) The rich experience of learning to successfully interact with other cultures.
In addition to working with numerous clients from other countries, including Sweden, Norway, The United Kingdom, France and Canada, my firm has engaged in a strategic effort to target the technology-rich state of Israel. In 2007, two years before the publication of Startup Nation, a best-selling book on the entrepreneurial fervor of the Israeli technology community, we hired a full-time business development professional in Israel, aiming for PR business from Israeli tech companies. Since then, we have helped more than 50 of them establish and grow their U.S. market presence.
In late May, I participated as a delegate on Gov. Deval Patrick's economic mission to Israel, which was anchored by a two-day event in Tel Aviv and Herzliya which brought together hundreds of American and Israeli business, academic and government leaders.
The mission and the event showcased the vast opportunity available to Massachusetts businesses of all sizes. Included were industry-specific discussions on topics such as medical devices, neuroscience, the Internet of Things, e-health, water technology and cybersecurity. More than 100 Massachusetts business leaders joined the governor in exploring new relationships between Israel and the commonwealth for the same reasons my firm started doing this more than six years ago.
Last year, an independent study prepared for the New England Israel Business Council revealed that Israeli-founded businesses contributed a staggering $6 billion in direct revenue and more than 6,600 jobs to the state's economy in 2012.
At my company alone, we have measured added revenue from Israel in millions of dollars. And as I like to mention to our congressman James McGovern at every opportunity, Israeli shekels are paying for American jobs in his district. By thinking outside the borders of our region, my business has benefitted. I encourage my fellow business leaders to consider similar possibilities for their own firms.
Stephen A. Schuster is CEO of Rainier Communications of Westborough. Contact him at steve@raineirco.com.
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