There is unlimited potential in the growing global economy and little reason to avoid the opportunities provided. While exporting may not have been a practical option in the past, it is now a widespread strategy that is increasing the cash flow, competitiveness, and stability of large and small businesses alike. Sending your products abroad is the next logical step for companies that are limited by their domestic markets.
Here are some of the main reasons why your business should start exporting:
Market diversification. If you aren’t exporting, you’re putting all of your eggs in one basket. Many companies realize how dependent they are on the health of a single market only after it’s too late. To damper the effects of a localized economic downturn, diversify your client base and find new foreign markets you can export to. Being proactive about diversification insures your company against poor economic conditions in one part of the globe. This is a great way to manage risk and become more profitable in the process.
Jumpstart growth. You already have the products that people need, so why limit sales by working exclusively within domestic markets? Exporting gives your company the chance to quickly bring in revenue that can be re-invested in the business. Instead of waiting for the local market to exhaust stock, export to expand the range of your business and generate capital faster. This proactive strategy allows your company to be more competitive in its industry as you eclipse competitors at speedier rates.
New sources of revenue. Exporting products give your company the opportunity to create new streams of revenue. There are untapped markets worldwide that are waiting for your products – it’s just a matter of locating them and then forging new business relationships. Once you’ve established reliable distributor contacts, your exports can lead to a tremendous increase in annual revenue without much additional work on your part.
Increased stability. Almost every business is affected by the seasonal swings of their industry. If your numbers are significantly impacted by the natural rhythms of the domestic market, exporting to countries with opposite trends can give you much needed stability. For example: If you sell winter apparel, don’t accept dwindling sales during the spring and summer months at home. Instead, counteract these predictable downturns by finding cold-weather markets with a high demand for your products. This strategy is an easy way to maintain consistent production and profitability, year-round.
Take advantage of full production capacity. As an industrial manufacturer looking to get the most out of existing resources, it’s important to take advantage of your full production capacity. If you are scaling back production because you are tied to the demands of a local market, exporting can solve this problem and make you more money. Find foreign markets that give you the chance to increase production while reducing fixed costs. Higher production levels also mean more influence during price negotiations for raw materials.