Export business - size of the company hardly matters
Usually there is a general perception that only large companies can export. Owing to this perception, small companies usually ask themselves a question: Am I too small to export? In addition, we always associate huge capital outlay when it comes to exporting or trading internationally. I have seen several small businesses shying away from exporting their products because they thought they were too small to do so.
I think the fact is actually contrary to these pre-notions. Today, in India, a significant percentage of exporters are small businesses. In actuality there are other reasons which determine whether a particular business will be successful in the export business or not and the size of the company is not always important.
The success of a small business in exports is totally dependent on the quality, competitive pricing and continuous availability of products they are manufacturing or exporting. Yes, there are certain risks involved in the export business, but risks are actually a part and parcel of any business, we know that too well.
Today small businesses need to understand that exporting brings a number of benefits. The first and foremost benefit is expansion of markets and subsequent increase in sales. It is usually seen that the overseas markets are more profitable for a given product and have a greater demand than in the domestic market. There are times when the domestic market for a given product is stagnant, profitability is low and competition is more. This is where exporting of the products can help.
Moreover, small businesses can escape excessive regulations in the domestic market specially while distributing and marketing the products and can also take advantage of the various export promotional schemes offered by the government.
Having said that, small businesses should not jump into the fray just because everybody around him or her is exporting. International trading must and has to contribute not only to the attainment of a company's survival, but also towards its profitability and growth. The decision 'whether to export or not' must be taken in the same way as it would have been in a decision involving the expansion of the company. Additionally, companies must also do a thorough study of the markets and the demand for the products they want to export before they start.
With various internet-enabled tools, small businesses today can reap the benefits of exporting like the large companies. I strongly believe that any business, be it small or big, can succeed if the entrepreneur has the will to succeed. Am I one of them? That's the question one should be asking.
I think the fact is actually contrary to these pre-notions. Today, in India, a significant percentage of exporters are small businesses. In actuality there are other reasons which determine whether a particular business will be successful in the export business or not and the size of the company is not always important.
The success of a small business in exports is totally dependent on the quality, competitive pricing and continuous availability of products they are manufacturing or exporting. Yes, there are certain risks involved in the export business, but risks are actually a part and parcel of any business, we know that too well.
Today small businesses need to understand that exporting brings a number of benefits. The first and foremost benefit is expansion of markets and subsequent increase in sales. It is usually seen that the overseas markets are more profitable for a given product and have a greater demand than in the domestic market. There are times when the domestic market for a given product is stagnant, profitability is low and competition is more. This is where exporting of the products can help.
Moreover, small businesses can escape excessive regulations in the domestic market specially while distributing and marketing the products and can also take advantage of the various export promotional schemes offered by the government.
Having said that, small businesses should not jump into the fray just because everybody around him or her is exporting. International trading must and has to contribute not only to the attainment of a company's survival, but also towards its profitability and growth. The decision 'whether to export or not' must be taken in the same way as it would have been in a decision involving the expansion of the company. Additionally, companies must also do a thorough study of the markets and the demand for the products they want to export before they start.
With various internet-enabled tools, small businesses today can reap the benefits of exporting like the large companies. I strongly believe that any business, be it small or big, can succeed if the entrepreneur has the will to succeed. Am I one of them? That's the question one should be asking.
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