If you are still a brick and mortar SME that has a domestic customer base, maybe this year is the time to start exporting.
With so many online and offline resources and help from governmental bodies there is no excuse of not having enough knowledge and guidance.
These challenging times also led to a rapid change of doing business especially in terms of digitalization and online cross-border shopping. Besides having to adjust to the change, I have a few more opinions as to why SMEs should start exporting now:
1- Increased Sales
Your domestic market could be saturated or highly competitive which affects your sales negatively. Exporting will help you increase your market size along with the revenue growth.
2- Increased Profits
Unlike domestic customers, foreign buyers will order in large quantities and by using full production capacity your costs will go down. Secondly purchasing raw materials, spare parts etc. Will also affect the costs directly. As such, your procurement costs will decrease while the profits will increase.
3- Global Competitiveness
As you grow in overseas markets, you’ll gain experience and insights about your industry which will make you think and act more strategically. The more you increase your market size, the more competitive you’ll be.
4- Domestic Competitiveness
As an exporter that sells its goods all around the world, you’ll be less affected by possible risks of sticking to just one market and certainly be ahead of your inland rivals.
5- Manage Seasonal slowdowns
Depending on what sector dealing in there may be seasonal factors affecting the business. By expanding to other markets from different parts of the world, you can retain your business the whole year.
6- Don’t wait. Get Paid
As the orders are in large quantities so are the payments. In an international transaction, payments are mostly made in advance or L/C, so you don’t have to wait for the due date. You can also consider other payment methods by buying export credit insurance not to miss the lead because of the payment term disagreement.
7- Reputation and Credibility
Selling overseas doesn’t only make you increase sales, but it also makes you a trusted and sought after company worldwide. This will for sure give you credibility in the eyes of the banks.
Competition is wild Buyers are selective and impatient Marketplace is the whole world Cultures are closer than ever.
What are you going to do about it?