Small Business

Benefits Of Exporting For A Small Business

As a small business you may be unaware of the potential of exporting your products, meaning you could be missing out on some fantastic benefits. You might feel as though international trade is too difficult and costly, but you can actually bring in some extra cash for your business if you partake in this. In this article, ManSys, who provide exporter software, are going to run through some of the benefits of exporting for a small business, to help you decide if you want to make the leap.

Demand In Different Countries

If you have never sold your products in a different country, you may be unaware of the fact that you can leverage being a British company. This is something that is known as “brand Britain”, and essentially means that you can boost your sales by adding a label that says your product was made in Britain. This is particularly beneficial in a couple of countries, namely China and India.

In China it is thought that many natives respect the education system in the UK, admiring our Universities and arts. Also, at the moment, China and the USA are not the best of friends, so it gives British products an edge, simply because they are not American. All of this comes together to make British products favourable in China, so this is a great benefit of exporting to this part of the world.

The people of India also relate British products to high quality and reliability, meaning that they too are fond of the made in Britain stamp. India is a fast progressing economy, so it is the perfect market to tap into as many people have more money than they have ever had, and they are enjoying the luxuries due to this. This combination of admiration towards British products and increasing wealth is one brilliant reason to sell your products in India.

It is also believed that trade in both of these Asian countries has been relatively unaffected by Brexit, which is another huge positive when looking at different overseas countries to trade in.

Increase Your Profits

This is of course one of the greatest benefits of exporting, making more money for your business is always what a business owner wants. This is essentially due to the fact that you are putting your product in front of more people in different countries. If you choose to only sell your products in your home country then you are limiting the potential amount of customers you can sell your product to.

There is also a chance that your product will be worth more money in other countries as it may not be as common. If you can sell your product for a premium price, higher than your price in the UK, you will of course increase your profit margins. As well as this, because the exporting process will take some time, suppliers are likely to place larger orders of your product, meaning more money for your business.

If exporting was not profitable, nobody would engage in it, so it is certainly a major benefit of international trade and exporting your products.

Top 5 Benefits of Exporting for SMEs - Kazopp

Minimise Risk

Entering into different markets across the globe may seem like risky business, however, you can actually minimise, or diversify risk by exporting your products. This is because you are becoming less reliant on 1 singular market, meaning that if something is to go wrong in one of the countries you operate in, it’s not going to destroy your business, as you will still be making sales in other countries.

This could be social or political changes that lead to a downturn in sales, or simply just that people are not as interested in your products or services any more. Whatever the reason may be, if you are less reliant on a singular market, you are minimising the overall risk of losing too many sales and money. This is a great benefit to exporting your products and certainly one worth thinking about.

Increase The Lifetime Of Your Product

Product lifetime is essentially how long your product will stay relevant and desired for. This can differ across countries as it depends on how people engage with your product, how seasonal it is etc. There are many factors that will contribute to your product lifetime on the whole. By selling your product in many different countries, if your product lifetime runs out in a particular country and sales drop, it is likely still going to be desired in a different location, meaning you don’t lose all your sales, similarly to the point above.

If your product is likely to have the same lifetime across all regions and countries, it is a possibility for you to stagger the release of your product, meaning the over time your product will continue to sell, when it wouldn’t have in a single country. This is another way to extend your product lifespan and certainly a clear benefit of exporting for your business.

Conclusion

Now that you are aware of these fantastic benefits of exporting your products, you should be in a better position to make your decision on whether you’d like to export or not – our recommendation is certainly to do it! Make some more money, diversify your business and reap the rewards by exporting and engaging with international trade.

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