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Exports.9.thmb.jpg Export business - size of the company hardly matters

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Bikky Khosla | 08 Dec, 2009
Usually there is a general perception that only large companies can export. Owing to this perception, small companies usually ask themselves a question: Am I too small to export? In addition, we always associate huge capital outlay when it comes to exporting or trading internationally. I have seen several small businesses shying away from exporting their products because they thought they were too small to do so.

I think the fact is actually contrary to these pre-notions. Today, in India, a significant percentage of exporters are small businesses. In actuality there are other reasons which determine whether a particular business will be successful in the export business or not and the size of the company is not always important.

The success of a small business in exports is totally dependent on the quality, competitive pricing and continuous availability of products they are manufacturing or exporting. Yes, there are certain risks involved in the export business, but risks are actually a part and parcel of any business, we know that too well.

Today small businesses need to understand that exporting brings a number of benefits. The first and foremost benefit is expansion of markets and subsequent increase in sales. It is usually seen that the overseas markets are more profitable for a given product and have a greater demand than in the domestic market. There are times when the domestic market for a given product is stagnant, profitability is low and competition is more. This is where exporting of the products can help.

Moreover, small businesses can escape excessive regulations in the domestic market specially while distributing and marketing the products and can also take advantage of the various export promotional schemes offered by the government.

Having said that, small businesses should not jump into the fray just because everybody around him or her is exporting. International trading must and has to contribute not only to the attainment of a company's survival, but also towards its profitability and growth. The decision 'whether to export or not' must be taken in the same way as it would have been in a decision involving the expansion of the company. Additionally, companies must also do a thorough study of the markets and the demand for the products they want to export before they start.

With various internet-enabled tools, small businesses today can reap the benefits of exporting like the large companies. I strongly believe that any business, be it small or big, can succeed if the entrepreneur has the will to succeed. Am I one of them? That's the question one should be asking.
 
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Exports and SMEs.
Shrinivas k Moghe | Mon Dec 21 07:09:21 2009
Dear Sir, You read my dilema perfectly. I face this problem,my all products have good export potential though. Not being under excise limit,I wonder how can I export on my own. Presently merchant exporters are taking my products. Your advice to match the quality requirement in international market and also meet its consistency,is very apt. Exports being more remunerative is also a truth. Only how a small proprietory firm (like mine) can do direct exports,is the question. Reagards, shrinivas

  Re: Exports and SMEs.
PJ Bhavnani | Mon Dec 21 20:00:28 2009
Dear Mr Shrinivas, the key to exports first of all is that you need to understand the International market. The Deman is huge and the supply is still lacking. But despite this you must have seen that Foreign buyers are not ready to trust India. In order to get regular export orders you have to reoganize yourself. You have to reply to all e-mail enquiries within 24 hours. You have to give your quotations in a professional manner. Giving the technical specifications, quantity, packing, and prices. Also give any special conditions if any. Dont leave anything vague, be exact. When you commit to a delivery schedule and price, make sure you honor your commitment. Send preshipment samples to ensure that the goods will not be rejected. This should get you going on the road of exports pretty quick. Take the business seriously. And make all efforts to build up your credibility, remember, no excuses at any cost.


Export business
M.Patel | Fri Dec 18 17:25:00 2009
Yes , we being N.R.I IN U.S.A. we do want to support Indian Trade by importing and I agree with other opinions expressed here. Some how the exporters donot understand the quality that is excepted in foreign countries.Till than China will beat us (we know Chinese Gov. give lots of subsidy-= we don't have that luxury))


Export business - size of the company hardly matters
kapil | Wed Dec 9 04:53:43 2009
The main problem with Indian exporters vis a vis Chinese/Taiwan/Korean counterparts is that,Indian manufacturers are not good in product innovation,designs and moving with the market trends.Consistent quality is obviously other main reason and last but not the least meeting committed timelines.A long term vision is required for export market because at the end of the day this market also works on refrences and word of mouth.

  Re: Export business - size of the company hardly matters
Sreejith | Wed Dec 9 05:05:06 2009
Mr.Bikky Khosla's view points are quite interesting and real.One or the other way Indian products are in direct or indirect competition with Chinese ones.World as a matter of fact clearly distinguishes between the two.If Indian exporter's can maintain that competitive edge in quality and improve their "Justin Time" approach, brand India can reach higher heights.

  Re: Re: Export business - size of the company hardly matters
Prashant | Thu Dec 10 04:19:41 2009
With real time communication made possible today, eased Government policies and trackability of the package, it certainly has become easy to export. any business which has the suitable product to export, should do so to increase revenues.

  Re: Export business - size of the company hardly matters
BANEBI | Fri Dec 11 12:27:04 2009
Dear Mr. Khosla, I have tried to advised my clients in Europe for buying from India. The Production is not only character for Export. In other process indian companies are very poor. According my experience the 98% companies ware not able to make one qualified Quotation. After that, the most companies dont understand the matter of Productliability. My opinion "the Thinking pattaerns of Companies decision maker are not suitable for Exporting". I have far better result from China. I had invest appr. 65% more time for indian company than chinies companies for same result.


 
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