Exporting used to be seen as something that only the bigger companies really did. These days the process is more accessible than ever before, even to small businesses. It’s a global economy and the pervasiveness of the internet has opened up overseas markets to solo entrepreneurs and small businesses alike.
Here are 10 reasons why it might be a good idea to start selling overseas:
1. Find new markets
A small business may find itself starting to stagnate if it reaches its natural limit domestically. In tough economic times, it may even find itself shrinking. New markets are new opportunities, and could give your business the impetus it badly needs.
2. Overall growth
Expanding into new markets will increase your profits overall and keep your company moving onwards and upwards. As your company grows it’s important to keep a grip on your finances, particularly when operating in foreign markets. Tools like fully comprehensive online accounting software can help you do so.
3. Economy of scale
Manufacturing tends to operate on an ‘economy of scale’. Simply put, it doesn’t cost much more to make 1,100 items as opposed to 1,000. This means that any sales made overseas, that would not otherwise exist, can be even more profitable.
4. Extending a product’s life cycle
Most products have a natural life cycle. Even if it is becoming outdated or obsolete domestically, an individual product could have new life breathed into it and its useful life cycle extended by exporting abroad.
5. Seasonal issues
If your products have a seasonal aspect (think clothing lines or outdoor equipment), exporting out of the hemisphere can help extend your sales and make your cashflow fluctuations far less extreme.
6. Competition levels
Depending on the nature of your company and/or products, you may face a lot of competition at home. The competition level may, however, be considerably less in other markets that you are able to tap into.
7. Increase your reputation at home
Success overseas can also have a knock-on effect of improving your reputation domestically.
8. The power of the internet
The internet gives you the opportunity to make inroads in markets all over the world. Localised websites and a social media presence can make things a lot easier.
9. Readymade platforms
It’s also possible to export on a small scale using readymade sales platforms such as Amazon or even eBay. There may be fees to pay and it won’t suit every business but this can make the process a lot simpler.
10. Travel the World
Most small businesses are a labour of love – or at least start out that way. One of the perks of exporting is often the opportunity to travel to far-flung places.
There may be meetings, conferences or conventions, giving you and your staff the chance to travel abroad. And all for the good of the business!