A Few Good Reasons
Here's Why You Should Go Global
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.
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
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.
Better Feedback
Businesses that cater to diverse markets find it easier to collect accurate feedback and product improvement suggestions. When working with a sole domestic market, customer response is not as well rounded. The multi-national and multi-faceted feedback you get from working with diverse global markets allows you to improve your products in a more efficient manner. This advantage makes it easier to be competitive in a domestic market.
Neutralize Competition
If your competitors are exporting and you aren’t, you are giving away a competitive advantage. There’s no way to compete with a business that works with diversified global markets if you are unwilling to look beyond your borders. By sending your products abroad, you can counteract the advantages of your competition and level the playing field in your industry. Exporting also helps to neutralize foreign competitors that are selling within your domestic market. By shipping your products overseas to their home markets, you can offset a key imbalance.
Demand
Over 95 Percent of the world’s consumers and over 70 percent of the world’s purchasing power lie outside the U.S. The Middle Classes are popping up all around the world and they are going to be demanding products and services for their new lifestyle. Dictatorships are becoming democracies and countries are becoming more educated and are demanding more products and services from its government.
Inescapable Conclusion
In order for U.S. businesses to grow, many companies are going to need to sell their products into economies that are growing faster than the economy of their home country.
