Which Are the Basic Information You Should Have

Q: Which companies should export?

A: Companies should only export if they are willing to invest the time and resources into researching the markets they are interested in. Your firm should evaluate the commitment of its management and staff to exporting, the funding options available, and your capabilities to increase production. Important factors in deciding if exporting will be a profitable venture include determining if there is a need for the product and determining which channel of distribution would be most successful. If your product has been successful domestically, remember that it may need to be modified to be marketable abroad. Products that do not require a great deal of training for use, versatile products, and unique products tend to have a higher export potential, but investing the time to adjust your product to a viable target market can produce good results for products that do not fit into these categories. After you have assessed these marketing challenges, you will be better able to determine if exporting is right for your company.

Q: What about size? Don't large companies dominate exporting?

A: It's true that the greatest volume of exported goods comes from a small number of very large American companies. But actually, the number of medium and small sized firms that exports is quite high. And studies have shown that all companies who export can derive benefits from the practice, regardless of the volume of goods sold. Expanding markets can help companies of any size increase profits; small companies may find exporting to be a good way to grow in size.

Successful exporting requires a large investment of time and resources. While large companies may have extra capital, small companies often have a higher potential for success with exports. Small firms have shorter communication chains and decision-making processes, making international dealings more direct and personal. As long as smaller firms take advantage of the resources...