When looking for ways to expand your current line of business, it might be worth the time to consider doing business outside of the United States. Although we have the luxury of living in a country with one of the best markets and economies on the planet, many people don’t realize that 96% of the world’s consumers actually reside outside of the United States. This large pool of consumers can present an excellent growth opportunity for your company.
Apart from increasing your customer base, there are several other reasons why exporting represents a good next step for your business. An obvious one is to increase sales volume above and beyond just market share.
Another reason – one that brings long-term benefits – is the stabilization effect that exporting can give your bottom line over the years. If you study companies with a history of exporting, most show that their export sales usually picked up and helped overcome eras when there were losses or downturns in the domestic market. In other terms, it offers a great cushion effect.
Exporting and competing globally can also help you improve your product offering. The United States is not the only place where cutting-edge innovation and design occur. It is quite often the case that many product innovations and improvements are actually taking place in overseas markets. Having a presence in those markets can give you a leg up in keeping up with the pace of global product trends, helping you improve your position in your domestic market. On the other hand, this could disrupt the market to your advantage by allowing you to introduce product improvements or new applications for a product not seen domestically.
Finally, there is the priceless component of fun and personal growth that comes from experiencing and working in countries and cultures other than your own. Growing long-term relationships and engaging with international representatives, distributors and customers can help you develop a depth and breadth of knowledge that will make you an overall better businessperson.
When you find yourself ready to take the leap into the world of exporting, count on the Bankers Trust Global Banking team to help you navigate the waters of international trade.