Regardless of whether your company is a startup or well-established you should start thinking export immediately.
Limiting your business activities to domestic market expansion contributes to decreasing the chances of your company to experience exponential growth. Increasing market shares domestically is crucial in building brand awareness and also directly affects your profit margins. However, there is only a certain limited market size which in combination with other external factors will not allow your company to experience real growth.
United Nations Conference on Trade and Development (UNCTAD) report on Key Statistics and Trends in International Trade (2018) suggests that the world trade in goods and services account for approximately $17 trillion and $5 trillion, respectively.
Small to medium enterprises (SMEs) alongside large companies are obtaining significant shares of exports. They are discovering that they can be competitive abroad. Furthermore, free-market policies on a global scale are allowing them to utilize the export opportunities. Significantly, their companies are expanding globally. Thus, their profit margins increasing rapidly.
Well. You might be still questioning why should start thinking export now.
The benefits that accrue from exporting and developing new markets abroad are numerous, but in essence, they include:
- New opportunities to experience business growth by entering foreign markets and less dependency on a single market.
- A means to offset cyclical and seasonal variations in domestic sales.
- An alternative to bypassing intense competition domestically.
- A means of extending the lifecycle of products (an older generation technology in your domestic market can be an emerging technology in a foreign market).
- International success will have a crucial positive impact on your company’s domestic image.
- Exporting and the international experience will sharpen the management’s decision-making ability to compete in the domestic market by responding to diverse types of buyers and users.
- Greater production can lead to larger economies of scale and increase the resilience of revenues and profits.
“If you become an exporter, the evidence shows that you are likely to improve your productivity by a third in your first year alone”Mark Prisk, UK Government Minister
Exporting does not coincide with rocket science. Therefore, most uncertainty and reluctance are due to a lack of knowing how to go about it. In this respect, knowledge on the required export documents, detailed market research, and a comprehensive export plan are essential to a successful export strategy.
Finally, let’s talk about your business!