10 Reasons Why You Should be Exporting Now!


Why you should consider Exporting

Exporting is not only important for the country but it is also important for companies.  Your growth (both individually and as a corporation) is increasingly dependent on finding new opportunities.  Considering a global marketplace will allow you to focus on new markets and new opportunities.

For US, it is not the existence, but the prosperity of and progression of its financial interests. While pointing that out, let us look into top 10 reasons why you should export.

 

Top Ten Reasons why you should Export

1-    Generating New business

There is no easier way to say it, exporting generates new sales.  If your business is limiting itself to a domestic base, then you are missing out on quite-a-bit- of business. As per the Small Business Administration (SBA), 96% of the World’s customers live outside the US.

2-    Diversification

Opening up to a global mindset and considering global opportunities will also help your company survive and even thrive through difficult economic times.  Diversifying your market allows you to grow your business.  There is no better truth than “do not put all your eggs in one basket.”  I have been in the Global market for over 25 years and I have seen many companies close because of One change in their industry or in one product or in one country’s government.  Growing your business in different areas (be it, diversifying products/product line or adding global distribution to your current domestic sales), will not only grow your business and grow your profit, but it will also make your business stronger as it diversifies your customer base and revenue stream.

3-    Generating Economies of Scale

Although the great majority of exporters are not direct manufactures, the economies of scale work just the same.  The more product you are able to move/sell, will allow you to buy additional products from the same or even a different supplier (manufacturer/distributor).  The larger your purchase, the lower your cost, the larger your profit.

4 –  Selling Excess Supplies

It is important to maintain your brand’s market reputation and price point.  Your regular domestic customers will not be happy to see the same product they bought from you a few months earlier at a much higher price now available for half of what they paid.  When you export, you effectively eliminate having to “product dump” in your primary market.  The excess product can be exported.  There is a higher likelihood that the margin on your product will be higher if exported.

5 –  Taking Advantage of Free Trade Agreements

It should be noted that the US currently has 13 Free Trade Agreements (FTA) allowing US products to enter these countries duty free or at a substantially lower rate.  In effect, the landed cost for your export shipments may be considerably lower that products from other countries.

6 –  Seasonal Product

When local stores receive new merchandise, they place the “old” season’s merchandise on sale. All coat, sweaters, boots, etc. go on sale when spring fashions arrive at the store.  The discount is Very aggressive in order to make room for the new season.  When we are heading into Spring/Summer our southern hemisphere is moving into the Fall/Winter season.  They are a ripe market for US out of season products, such as clothing, hunting, fishing, automotive products, etc.  You may be able to benefit from low cost end season products here and sell them to countries just entering at a considerable profit due to seasonal needs.

7 – Enhancing Your Brand Globally

It is important to always maintain a solid brand reputation even when you are a small company.  You need to focus your growth on a parallel path with your brand.  Being able to grow your brand globally brings visibility to your company and a level of service and product expectation from your customers.  It will also allow you to grow your company at a faster pace.

8 –  Creating Domestic Jobs

Although you may not be hiring someone just yet, you are adding jobs indirectly.  Think of all the people that need to touch a product for export.  The shipment needs to be moved (courier, trucking company, airline, etc.) from the location of the original product or raw material) to you.  Your shipment needs documentation, and transportation (multiple type of transportation) for export. All these other individuals and companies have a job because of you.  If more companies export, all of the companies that support US exporters will higher more employees in order to support small companies like yours.  More exports translate to new jobs in a big way.

9 –  Personal Financial and Cultural Growth

The best way to grow is to do things that are outside your comfort zone.  Safe growth occurs when you seek a “better” way to sell/improve/grow your product.  Exporting allows you to not only improve your profits but also grow by learning more about other countries and other cultures.

10 –  Faster Growth

The faster growth is not due to simply exporting, although you will experience considerable growth due to exploring new markets, the speed in which you will see your company grow will be due to a paradigm change.  As a result of your global focus, you will not only grow your business, but you will also change the way you seek customers, the way you market your product, the way you position your company and more importantly the way you grow your company.

Exporting is a win-win-win proposition.  Your foreign buyers win by receiving products from you. Our country wins because you are exporting. YOU win because by exporting you are doing all of the above.

 

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