You could significantly expand your markets, leaving you less dependent on any single one. Greater production can lead to larger economies of scale and better margins. Your research and development budget could work harder as you can change existing products to suit new markets.
Exporting is the process in which a business produces goods and services in one country to then sell them to buyers in another country. With new businesses going global every day, and many advantages of exporting, now is a great time to join the more than……
Businesses that focus on exporting expand their vision and markets regionally, internationally or even globally.
Six Benefits of Exporting for Small Businesses
Every business, however small, can grow successfully through exports
- Higher Demand: Global demand for any product is much higher than the demand within any one country.
- Increased Profits: On average, exporters grow more quickly, make more sales and employ more people. See the opportunity in that?
- Diversify Risks: A wider geographical spread lessens the impact from local downturns or disasters. This is a big advantage and makes your company recession proof to a large extent.
- Lower production costs: Increased sales should translate to higher production volumes and lower manufacturing costs as you can order in higher quantities and your overheads are spread over a much larger volume.
- Education & Innovation: You will be exposed to new and different ways of doing things, new technology etc. This will lead to better products and services.
- Increased Lifetime of Product: You can circumvent the standard lifecycle of a product (launch – growth – maturity – decline) by staggering the launch in different locations. So, as the product reaches maturity at home you can launch elsewhere.
The advantages of direct exporting for your company include more control over the export process, potentially higher profits, and a closer relationship to the overseas buyer and marketplace, as well as the opportunity to learn what you can do to boost overall competitiveness.
Tax Benefits: Usually the government gives tax and customs duty benefits to firms engaged in exports. Your raw materials for export processing can be imported duty free while your company’s income would qualify for a lower tax rate as compared to income earned inside your country.
About Author: Imtiaz Rastgar graduated from the University of the Punjab and turned his passion for science, engineering and metallurgy into his export business.
The company, Rastgar Engineering, which he founded in 1967 was exporting heavy axle parts to more than 70 countries by the time he retired from it. As a serial entrepreneur, he founded several other companies which are also running successfully within the engineering, manufacturing sphere.
He served as CEO and VP of the Engineering Development Board of Pakistan 2004-2007. His services were acquired by the Ministry of Foreign Affairs, CBI, The Netherlands as an Engineering Sector Expert 2007-2017.In his capacity as CEO and VC EDB and as Engineering Sector Consultant for CBI, he has promoted export of engineering sector goods from Pakistan. There are many case studies of these efforts.
Now his consultancy and export marketing company PMX www.pmx.com.pk is available to all companies desiring to grow by going global.
Imtiaz Rastgar serves on the Board of Directors of Pakistan Aeronautical Complex, National Centre for Physics, Pak-Austria FachochschuleUniversity, and several other seats of learning.
This article has been published in Automark Magazine’s October-2022 printed edition.