Exporting
provides companies with great growth potential and even many small
firms decide to go global even
though their domestic markets are huge. Why? You
may ask. Obviously, to the less adventurous this may seem like a
daunting task, but it does hold many advantages.
Some successful exporting companies point out the
following reasons:
Extend
the Product Life Cycle - you can extend the sales
life of existing products and services by finding new markets
to sell them in.
Diversify Risk - You can reduce your dependence
on the customers you have developed in the domestic market.
Balance
Fluctuations - If your business is plagued
by destabilizing fluctuations in your market
due to seasonal changes or demand cycles,
you can even out your sales by entering into
markets with different or even countercyclical fluctuations.
Exploit Know-how - You can exploit corporate
technology and know-how in more virgin markets.
Unlimited growth – obviously, we musn’t
forget that once we have broken into the international market
the world’s the limit.
But does exporting only provide rewards? As you
can imagine you may reap great rewards from exporting,
but to do this you must avoid the many dangers
involved in turning a company into an international enterprise;
this is no easy task and by no means risk free.
Here are some pitfalls that you must watch out
for when initiating international expansion:
Failing
to plan your strategy – both small and large enterprises
fall into the trap of lack of
planning. This is vital to all business areas, but the higher
the uncertainty the greater the importance of
planning and there is nothing more uncertain than venturing
into an unknown country.
Chasing inquiries the world over –
Just because dozens of countries show interest this doesn't mean
you're ready to market your product everywhere. Patience is key.
Assuming if it works in your country, it will work anywhere
– This isn't true, you need to tailor your
sales and marketing efforts to each country. Don't ignore the
cultural differences of each marketplace.
Understand their language – Familiarise
yourself with the local language and use interpreters.
Knowing good Business English is an advantage, but don’t
underestimate the need to speak their native language. People
don’t buy what they don’t understand.
This
is just the tip of the iceberg of the exporting
topic. There is much to talk about here so we will most certainly
further indulge in exporting in following articles.
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