Research indicating that companies that trade internationally generally produce better financial results than those focused on domestic markets. Undoubtedly this a stimulus to those governments, economists and other commentators who have consistently argued that exports are immensely important to countries around the world, especially in the current difficult economic environment. But it should also be a wake-up call to those businesses not yet exporting.
Maybe these stay-at-home companies feel it is just too difficult selling their wares overseas. But, with domestic growth hard to come by in so many markets, they should be at least considering the opportunities. After all, on the basis of what is commonplace at home can be exotic abroad, most products and services can be sold overseas.
True, there are risks to be handled and practical problems to be overcome. But business is largely about risk and many of the problems turn out to be more perceived than actual. For example, 34% of businesses questioned by the latest Regus survey stated that “the biggest obstacle to overseas expansion is setting up an office presence in a foreign country”, with 63% saying that property commitments associated with overseas operations need to be “very short-term” because they do not know how quickly such ventures will develop. But – thanks to flexible workspaces becoming available all over the world – there is no reason why companies should be saddled with property costs if the business does not expand as hoped or prevented from meeting demand because they are locked into premises that are too small.
Another frequently-voiced concern is about the need to hire local managers for new markets and the difficulty of finding them. But, again, taking a flexible approach is the key. Businesses that deal directly with customers may need to grapple with such issues. On the other hand, many companies expand overseas through intermediaries, distribution deals and the like and so may not need to worry about them.
The important thing is to make the most of the opportunities that are apparently so obvious to companies already exporting that they are nearly twice as likely as those sticking to domestic markets to plan on expanding still further. Those responding to the call will not just improve their own prospects, they will help to boost their national economies and also stabilise the world economy.
You can find the full report The Export Imperative below
