PayPal Stories Archive

Leadership Lessons in Taking Your Small Business Global
 
In the world of small business, the value of successful peer role models and shared best practices can’t be overstated: already facing challenging odds of successOpens in a new window (about 50% of new companies fail in their first five years), the keys-to-success wisdom shared by a fellow entrepreneur can make the difference between your chances of failure or flourishing.
 
This is especially true when it comes to taking your company from local to global – an increasingly alluring business model as advances in technology have swiftly reduced the barrier to entry, revealing new market opportunities and additional revenue streams.
 
The following peer success stories shared by entrepreneurs around the world – from a craftswoman who sells handmade hair accessories; to a pair of Australian business partners that invented sustainable beverage containers, to specialty fabric purveyors in India; and more – demonstrate how adaptivity, passion, and a global focus set small business leaders apart, and turned passions into profits.
 
Local items with global appeal
In sourcing locally and selling globally, merchants have demonstrated that they can adapt traditional industries to access a worldwide audience. These leaders have looked to their cultural heritage and built a global brand by selling local items to an array of global consumers.
 
ApexOpens in a new window, one of Turkey’s leading vintage rug brands, expanded their customer base by taking a forward-thinking approach to an old business: they sold online. Thanks to more advanced logistics access, Turkey is one of the only countries capable of exporting hand-woven carpets. Founded in 1994 in Ankara by a single merchant selling mohair rugs, Apex, still a family business, took its offerings online – and now the majority of the company’s revenues come from online cross-border sales.
 
General Manager Yunus Emre Prens began his career at Apex, a family company, ten
years ago, and he’s seen how this new channel of revenue has transformed the company: with 15% of Apex’s current business already driven from international sales, they anticipate 30% of their revenue will come from global customers within the next two years, underscoring the powerful impact that comes when culture, tradition, and new technology are combined.
 
New Delhi-based SanskritiiOpens in a new window is another example of local sourcing leading to global success. Owner Jyoti Bansal, looking to supplement her family’s income after her husband left his career in banking management to launch a technology start-up, launched the company on eBay’s online marketplace because it offered no upfront costs and required payment before shipping, making her feel more secure in filling international purchases. This enabled her to start small, using a little money she and her husband had saved, and quickly build upon it.
 
With inventory that now includes fabrics from Pakistan and Bangladesh, in addition to their local Indian community, Sanskritii developed a truly global customer base, with 95% of sales from international customers. Sanskritii has become one of India's leading online vintage fabric stores with worldwide appeal, selling over 100 items per day – so successful, in fact Bansal’s husband decided to forgo his startup to join his wife’s.
 
Global is a fast path to growth
Thinking globally from the beginning can be one of the quickest ways to scale your business. Just ask Gregor Lawson, co-founder of Morph CostumesOpens in a new window, a Scotland-based purveyor of unique costumes, masks and other dress-up accessories. From day one, Morph Costumes was selling internationally, recognizing the appeal of Halloween in the US. The holiday accounts for 50% of the business, and sales show that the trick-or-treat spirit has grown beyond the States: “We’re seeing more and more customers buying for Halloween in the UK, France, and Germany,” says Lawson. “It’s becoming a global event.”
 
Morph Costumes began marketing around other costumed holidays throughout the world – including Carnival in Brazil and Germany and Mardi-Gras in the US. Today, the company sells into 20 different countries, and their 30 employees work in Scotland, Spain, London, and even both coasts of the US in order to better support the growing international business.
 
The Pro’s ClosetOpens in a new window has evolved from one of eBay’s top stores specializing in reselling new and used cycling gear to a top cycling brand. A former professional mountain biker who toured all over the world, owner Nick Martin recognized that “peak season” in cycling depended on where you are in the world – and that selling to enthusiasts internationally could bypass the “nice weather window” that most retail bike shops are forced to sell into.
 
The bet paid off: currently 40% of The Pro’s Closet’s sales are to overseas customers. Growing 20% year over year, international customers drive 95% of sales. The Pro’s Closet still sells online via eBay, and at their warehouses in Boulder and Denver, CO, in order to serve local, national, and international clients.
 
Solving problems and accessing vibrant markets
Solving a specific problem can open up enthusiastic market segments that align with company passions. Several merchants noted problems to solve and quickly grew their companies by targeting loyal customer groups.
 
Melbourne-based company KeepCupOpens in a new window began when former coffee shop owners and brother-sister duo Jamie and Abigail Forsythe wanted to cut down on disposable cup waste. Using PayPal as its primary payments method, KeepCup’s customers appreciate the option to buy in local currencies, as well as the buyer and seller protections that make both parties feel more secure in the transaction. “As the business expanded globally we were hesitant to talk about our Australian manufacturing,” says Jamie, “but it turns out this is a really positive message, and ‘made in Melbourne’ even more so, given our city’s reputation for specialty coffee.”
 
Since June 2009, the Forsythes have sold over 3 million KeepCups in 32 countries, diverting billions of disposable cups from landfill – a win-win.
 
Founded in 2011 by professional architect Kristen James, the business idea for Gilded ShadowsOpens in a new window was first sparked while she was helping a friend choose wedding day accessories. James was unimpressed by the overpriced and unoriginal selection on the market, so she offered to make some herself. Turning a hobby into a profitable business involved sourcing high-quality materials and using platforms like Etsy and PayPal to access international customers – which now account for nearly 30% of sales, with the majority coming from brides in the UK, Canada and Australia.
 
Take the advice of these merchants – these stories show how an eye towards international opportunities and problem solving can turn a hometown venture into a globally viable brand.

Melissa O’Malley, Director, Global Merchant and Cross-Border Initiatives, PayPal

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