Importance of Exports Business, More Profit in Export Business, Exports Must For Business Growth, Go Global Export and Rake in More Moolah, Importance of Exports For SMEs

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Bikky Khosla | 04 May, 2010
In today's context, it's very important for every company to cover risks as one profits from export business. While exporting is crucial for a businessâ growth and competitiveness, and can be financially rewarding, most Small and medium sized businesses (SMEs) fail to address the key issues that must be addressed if they want to be successful exporters.

I have seen many Indian SMEs who failed in the export business due to lack of proper strategy and preparation. Sadly, they failed to understand that the business of export requires long-term growth strategies instead of considering exports as merely as a means to dispose of surplus production or to provide quick cash flow when the domestic market is not working for them.

Moreover, SMEs are victims of a general perception that only large companies can export. I strongly believe that first and foremost, SMEs need to cast aside this damaging perception. It is actually other reasons which determine whether a particular SME will be successful in the export business or not and the size of the company is not always important.

Secondly, SMEs should not ignore the fact that quality of their products or services should be the main focus. With all-round competition, quality determines whether a company will be successful or not. In simple words, ignoring quality will invariably lead to poor sales and loss of customers. A myopic approach towards earning a quick buck in the business of exports should be shed, because it is quality alone as a top priority that will not only win business, but also prove beneficial in the long run.

Thirdly, it's of utmost importance to first analyse one's export capability before jumping into the fray. Questions like: 'why is my business successful at the domestic level, what are my competitive advantages, and how are these competitive advantages going to help me in grabbing success in the international market as well? need to be answered first.

Fourthly, SMEs should understand that spending money always does not guarantee that the business will be a success. When there are cost-effective means to attract the global buyer and market your products, go for them. Participate in a trade fair, go online, join a B2B portal â these will save a lot of resources and also help you in getting faster results.

Fifth, make a list of risks that might be involved in a particular country before you export â political risk, legal risk, credit related risk, etc. Try to minimise these risks when you are looking for a new global market to export your products or services.

SMEs need to understand that the business of export is not as complex as we think it is. Exporting to global markets can bring a number of benefits, the first and foremost being expansion of markets and subsequent increase in sales. Moreover by exporting, SMEs can also avoid excessive regulations while distributing and marketing their products or services in the domestic market. They can avail the various export promotional schemes offered by the government too. Having said that this should not be the only reason to join the export bandwagon! Analyse your business goals and go for it...if you haven't tried, you haven't gained either!