Top 5 Benefits of Exporting for SMEs
Export is a key factor in the success of the UK economy. The UK government is always keen to encourage companies to either grow their business overseas or expand their export operations. The Government has set an export target of £1 trillion by 2020 and in order to achieve this level of export activity, persuading the UK’s SMEs (small and medium sized enterprises) to branch out to foreign markets will be vital. Businesses of all sizes trade internationally every day, but small businesses often shy away from export on the mistaken assumption that export markets remain the preserve of much larger businesses.
According to UK Trade & Investment, “Exporting needn’t be difficult. Nor does it matter which country you’re looking at, what industry sector you’re in or what level your business is at.”
But what are the advantages of export, particularly for SMEs?
Here’s our Top 5 Benefits of Exporting for small business
1. Increased sales and profit – depends on the quality and success of the product/technology/service offered, but an expanded market usually results in a rise in sales. UKTI state that, on average, companies earn £100k in additional sales within 18 months. The advantage of economies of scale can mean lower production costs for some businesses, a further boost to profits.
2. An opportunity to gain market share globally – an expanded customer base means better potential for long term growth.
3. Spreading the risk – companies which export to other markets are less susceptible to negative conditions within the domestic market place, such as economic downturns or market changes
4. Acquisition of useful knowledge and information – trade in the international market place provides a wealth of experiences which can be useful in terms of improving both domestic and foreign business arms, e.g. product/technology development, innovation and ideas.
5. Extended product life cycle – exports extend the typical product cycle of launch, growth, maturity, decline and can be useful in terms of further product development.
In summary, the size of a business fades into insignificance if its owner has the will to succeed in an export market. So if you have high quality products, technologies or services to offer, there is everything to gain from taking that next step into international markets.
If you’re thinking of exporting as part of your business/growth plan, think Kazakhstan, not an obvious choice, but the potential rewards are huge. Here’s why. Get in touch and tap into our expertise in terms of getting started.