Before now, many businesses only focused on the customers that they could reach within their immediate environment. When they made plans for customer acquisition, they didn’t think about prospects abroad, they were only concerned about those they could reach in their native country.
Today, as the doors of many nations open to international trade, more businesses (both large and small) are delving into international markets and servicing greater audiences.
According to the U.S. Commercial Service, companies that export are over 17% more profitable than those that don’t. The reason is simple; your local market only accounts for a very small percentage of global consumers, and other foreign companies who are exporting their products to your country also have a share in your local market.
With barriers to trade falling and competition intensifying, exporting is worth considering for your business. It could benefit your company significantly.
At this point, you may be wondering whether or not exporting would be worth the effort. Here are our top ten reasons why your business should consider selling to international markets.
- There are more customers to be reached.
The most recent United Nations estimate of the world’s population is 7.98 billion. With over 97% of this population outside Nigeria, It means that there are greater markets across borders for your goods. Exporting gets your products to these markets and affords you the opportunity to expand your customer base and reach.
- More profits for your business.
Selling products abroad means more sales for your business. The resulting effect of greater sales is an increase in your profit margin.
- Improved cash flow for your business.
By servicing international markets you are taking advantage of external revenue sources which means increased cash flow for your business and for your personal finance.
- Reduced risk.
By exporting your products you are developing external markets and reducing your company’s reliance on a single market. Therefore, in the case of a disruption in your local market, the chances of your business going under are greatly reduced; thus, reducing your business risk.
- It builds a competitive advantage.
By exporting products to other markets, you gain insights into how to compete more successfully. Also, because you have a larger customer base, increased revenue, more productive workers, and higher levels of innovation you are at advantage over other local-only competitors.
It helps to lengthen your products’ life cycle.
If your product is losing market share due to certain factors like technology or fierce competition, you might want to consider exporting because it will lengthen the product’s lifecycle through the emergence of foreign markets and new customers.
It increases your productivity.
Extending your product life cycle, growing your customer base, and avoiding seasonal downturns through exporting mean greater demand for increased productivity. As revenue increases from international sales, your company can expand operations domestically and abroad. This would require that you increase production to send overseas and hire staff directly related to international sales.
It does not only benefit you and your firm.
When it comes to exporting, the benefits don’t just stop with you and your company, it also affects the local market, region and nation in which you operate.
Exports are well-known as drivers of many positive economic indicators because they consistently lead to increased revenue and, most importantly, create job opportunities. Many methods that are learned and improved internationally can further serve your clients locally.
Experience new cultures
Exporting provides opportunities to travel, learn about new cultures, grow professional international networks, and gain new perspectives for your business. Exporting opens your horizon to what is going on in the global economy. This exposure to diverse ideas often leads to innovation, and exposure to new international networks inevitably leads to more opportunities to learn how to become competitive in new markets and reach customers.
Free trade agreement.
Most countries have signed free trade agreements with a couple of other countries, which offer better access and lower tariffs to exporters from countries under these agreements. This makes it easier and faster to penetrate such markets.
At kadan kadan, we’d love to help you with your export needs and guide you through the process of penetrating new markets profitably. Give us a call at +234(0)9023138228, or send us a chat via WhatsApp at +234(0)9198050059
You can also visit www.kadankadan.com for more details.