In this blog post, I am going to be showing you the advantages and disadvantages in exporting and how your business can gain growth from it.
By doing business out of your own territory, there’s a lot of benefits you can get out of it and it makes the ‘why’ in exporting very obvious. If your business begins to export you will be able to achieve a level of growth that’s not possible domestically.
Here’s a list of some of the advantages and disadvantages of exporting…
- Boost your profile and recognition internationally
- Improve productivity
- Increase sales
- Increase the resilience of revenues and profits
- Lower unit costs
- Extend products lifestyle
- Bigger market, leaving you less dependent on any single one.
- Your research and development budget could work harder as you can change existing products to suit new markets.
- Unless you are careful you could lose focus on your home markets and existing customers.
- You will be managing more remote relationships, sometimes thousands of miles away.
- administration costs may rise as you may have to deal with export regulations when trading outside of a European union.
Now you know what the advantages and disadvantages are. If you’re thinking about exporting, there are a few things to take into consideration.
- Are your exporting objectives clear and achievable?
- Are you open to new ways of doing business?
- Is your team committed to succeeding in new markets?
- Do you have people to advise you on the legal and tax implications of exporting?
- Have you the resources to do market research?
- How do you plan to enter export markets?
Once you’ve taken all the questions into consideration you can then work out what the next step is for your business. If you do decide to follow through with exporting you will be able to achieve levels of growth that are not possible domestically and get your business to where it needs to be.
Now I have told you your advantages, disadvantages and everything into account as to what it takes to export. I hope this has helped you.
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