Exporting can defined as:
- Selling goods in foreign markets as a way to earn profits
- Any transfer of products or services from one country to another.
Did you know that nearly 99 percent of consumers live outside the UK and more than two-thirds of the world’s purchasing power is in foreign countries? Go where the customers are! There is significant opportunity for small businesses to profit through exporting.
In other words, you are ignoring 99% of your potential customers by not exporting your products or services?
Today globalization has made all but impossible to ignore the impact that exporting and importing are having for companies in a worldwide basis. While twenty years ago only large companies or those willing to take the perceived risks engaged in the business of exporting, today anyone from the largest corporations such as Apple, GE, GM, and others; to the smallest individual can export their products and services all over the world.
Exporting can be one of the best ways to grow your business:
- Grow your bottom line.
- Smooth your business cycles.
- Use production capabilities fully.
- Defend your domestic market.
- Increase your competitiveness in all markets.
When considering going or expanding your business into exporting, one of the primary questions that everyone may ask themselves is:
Do I have anything that I can export?
Many people or even organizations may ask themselves if they have any products or services that can be exported, and that’s one of the major obstacles to the development of an export business strategy. Exporting cannot be limited to a specific set of products or services, but it can be developed to meet almost every potential need that a market may have. Exporting is also just a natural progression for companies that are expanding, and are looking for new markets for their products.
When we talk about exports they can be separated into two primary classifications products, and services.
Products are those articles or substances that are manufactured or refined for sale, and can encompass all of the tangible articles that we can see, touch, or feel as part of our daily life.
Services can be exported in many ways, from direct services export, to services support for existing product exports, and Some 60 per cent of UK Trade & Investment trade clients are in services sectors. Only a proportion of these are in financial services: Financial services account for 28 per cent of total UK services exports, but business services also account for 27 per cent, and transport and travel together account for 25 per cent.
However we can say that almost every individual or company may identify a product or service that could be successfully exported. From individual services such as translation, grammar checking, education, accounting, marketing, or consulting; to products such as baskets, art, and heavy industrial machinery almost everyone can benefit from participating in the export business.
So considering these factors the question may be:
Can you afford not to export?
Can you avoid exporting, that’s a tough question. If you have any skills or make any products that can be exported, then we can consider that:
- Ninety-nine percent of the world’s consumers live outside the UK. That is a lot of potential customers to just ignore.
- Foreign competition is increasing domestically. To be truly competitive, companies must consider opening markets abroad.
- Exporting is profitable. In fact, 60 percent of small companies that engage in exporting derive 20 percent of their annual earnings from exports.
- Exporting helps businesses learn how to compete more successfully.