Why Look for New Markets?
When growing a business, you can only count on your local market to take you so far. Without diversifying, you’re risking your business by relying on an insecure customer base. What if new competition disrupts your sales or a major purchaser decides to leave the region? Exporting will help your business become more sustainable in the long run.
Expanding sales outside of your local market will help you diversify and make your business more sustainable in the long-term. Here are some of the main benefits:
New opportunities: Look beyond your existing markets and find ways to broaden your product offering, access new customer-bases and discover further business prospects.
Discover grants and funding: By growing your business you may become eligible for new financial opportunities, available only to companies exporting outside of B.C.
Increase profitability & enhance competitiveness: Your business will benefit by expanding your markets, decreasing your production costs and fostering innovation.
What Should I Expect from Exporting?
You can’t expect success without investing time, effort and resources into your business. Exporting is no different. Exporting will open you up to new experiences, challenges and successes. Here’s what to expect:
Investing Time & Resources
While there are many rewards that come with exporting, they may not come quickly. It can take months, or even years, before you find the right opportunity or see a significant return on your investment.
Exporting comes with new rules and regulations that may require you to modify your packaging, purchase new machinery or adapt your business to compete in new markets. In addition, costs may go up for travel, marketing material and sales. You may need additional financing and investments to grow your business through export.
The rules and regulations for sending your goods outside of Canada can mean a lot of paperwork; governments can require detailed documentation before allowing your product into foreign markets.
Different Languages and Cultures
Growing your business internationally requires building business relationships in foreign countries. Every country has different values and traditions when it comes to business, so research and preparation are essential to your success. Language barriers may also be a challenge, especially when it comes to contracts and negotiations.
Entering new markets also means facing new competition. Unless you’re first in with a groundbreaking product, you will face established competitors, no matter where you go. Familiarize yourself with the competition and build on your competitive advantages to give you an edge.