No business is too small to export

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Bikky Khosla | 10 Feb, 2015
Why don't you export? When I ask this question to small business owners, the typical answers I receive are, "We are too small to do it" or "It is too complicated to export". There are general perceptions that only large companies can export; and procedural requirements are a hard nut to crack. Today, a significant percentage of India's exporters are small businesses, but still there is no dearth of business owners who shy away from exporting due to these prenotions. The fact is actually contrary to this.

It is true that success in exporting doesn't happen overnight, but with preparation, planning and commitment, it is quite possible for a small business to gain ground gradually. I think the best approach is to start learning early - at least bit by bit at first. If you are planning to export in near future, you may start with general issues related to international trade - export documentation, customs procedures, payment methods, exchange rate, etc. - and gradually it may move to the more complicated subjects, such as pricing, market research, demand analysis, marketing, risk evaluation, etc.

Recently, I had a chat with an US importer registered with Tradeindia. According to him, majority of Indian small companies he deals with don't even know how to write a professional business quotation. This was not surprising to me. I know a number of exporters who themselves admit that they face difficulties in preparing invoices, satisfying packaging needs, meeting language and cultural preferences, pricing products and calculating expenses. Penalties for such mistakes can be high and I think a bit of early preparedness can go a long way in reducing them.

Market research is another area where starting early can make a big difference. A few months before you start trying to get into exports, you may start with some current affairs publications that provide economic analysis of your target markets, and gradually you may move to the requirements you must meet to export your goods to a specific target market, such as specific trade regulations, certifications, labeling requirements, tariffs & duty, etc.

It is not size of your business that matters when it comes to export, but preparedness and planning do. Having said that, I don't suggest that first-time exporters should keep export consultants at arm's length, but you can certainly start learning a lot of things of your own. Also, many a lesson you will learn only when you start doing. So, if you think your business is too small to export, think again.