Your business is doing great domestically, so well in fact that you are receiving inquiries from international buyers. That’s great, your product or service is in high demand. But with your business doing so well domestically why should you start exporting?
Here are a few reasons why your business could benefit from selling internationally.1) More Customers – nearly 96% of the world’s consumers live outside the United States!
There is a big market domestically. It is estimated that the population of the United States in 2020 is 333 million but the world’s population is 7.8 billion. That means U.S. businesses not exporting are only tapping into 4.2% of the population and leaving nearly 7.5 billion to their competitors.
Diverse markets and a broader customer base help to reduce the risk to your business if an individual market begins to slow down. Think of it just like diversifying an investment portfolio. It is not wise to rely solely on domestic sales.
If your product or service has a seasonal component, exporting to markets with different seasonal trends can help smooth your production and sales cycles.
Extend your product’s lifecycle by reaching emerging markets. Some exporters find vibrant markets around the world for past product versions, last season’s colors or designs, older technology, and excess inventory.
3) Economies of Scale
Is your company working at less than 100% capacity? Are you looking to produce more to take advantage of per unit costs savings? With additional foreign demand and the benefits of diversification your company can better manage its productivity and take advantage of the cost savings associated with additional economies of scale.
4) U. S. Products are in Demand
Products and services from the United States are in high demand across the world. Goods from the U.S. have become the “brand” that foreign buyers looking for high quality innovative products often seek. Take advantage of this strong U.S. name recognition.5) Your Company Becomes Global
- New and existing customers feel additional confidence working with a global company.
- It can help your company attract new customers and recruit new talent.
- Your company can develop strongholds in foreign markets ahead of the competition.
- Your company can develop a solid understanding of how foreign markets do business.
Exporting can seem overwhelming, but luckily the U.S. government has resources offered by EXIM and the U.S. Department of Commerce designed to assist your company along its journey. If you want to learn more visit your local U.S. Export Assistance Center where you can meet with representatives ready to help.