Exporting Your Goods
Basic Questions About Exporting
Are we too small to export?
What can we gain from exporting our goods?
What are the challenges we will face?
Can we afford to export?
Isn’t exporting awfully risky for a small firm?
How can we be sure that exporting isn’t too complicated for us?
How long will it take us to establish an export presence?
Are we too small to export?
No, you ’re never too small as long as you have domestic success on which to build and are clear about what makes your company competitive.
What can we gain from exporting our goods?
- Increased revenues through an expanded customer base.
- Diversification of risk across different markets.
- Increased competitiveness due to knowledge gained in foreign markets.
- Economies of scale in production due to increased demand.
- Enhanced ability to target ethnic demographic populations in BC.
What are the challenges we will face?
- Increased costs due to the additional costs of promotion and travel abroad.
- Management of cultural differences in business etiquette and practices.
- New competitors in markets abroad.
- Demands on cash flow to finance export market development.
- Expanded demands for documentation.
- The need to be accessible in a very different location and time zone.
Can we afford to export?
Yes, provided that you choose an appropriate market entry strategy.
Isn’t export awfully risky for a small firm?
Not any more risky than doing business in Canada as long as you are careful and do your due diligence. For example, you can make sure of getting paid by using letters of credit and export credit insurance.
How can we be sure that exporting isn’t too complicated for us?
The main thing to keep in mind is that you don’t have to do it all yourself. You can hire intermediaries such as export management companies, overseas agents or representatives, foreign distributors, and freight forwarders.
How long will it take us to establish an export presence?
You should plan on three years before you have a profitable export presence.