When we decide to live our lives as entrepreneurs, many thoughts cross our heads, positive, negative, dreams and visions. Getting started with the sale or production of a good is an adventure that involves many challenges, steep hills, and perseverance.
For some, starting to export their products is a goal, something they have dreamed of since it allows you, in the first instance, to take your brand beyond national borders. On the other hand, there are those who see export as an opportunity or an alternative when locally the product is not sufficiently appreciated.
The advancement of time has allowed the development of technologies that have promoted (among other things) globalization, for which favorable conditions have been generated for those who want to use this method of sale.
There are several reasons to export, Among them, taking advantage of comparative advantages and the opportunities of expanded markets through preferential agreements, the need to get involved in the world market due to the globalization of the economy and seek greater profitability in international markets.
In this note, we tell you 4 of the most important reasons why entrepreneurs decide to export, and how we can help you in the process.
According to a document compiled by the Inter-American Investment Corporation (IIC), exporting can enable profitable growth in turnover, which in turn enables access to a wider market.
But in this article we will focus on 4 key points:
- Diversify products and markets to face international competition and the situation of the national economy. (Reduce the risk of being in a single market)
Markets, in general, are susceptible to changes and are subject to contingency and at any time the conditions in which your product is developed may change. So by targeting more markets, you are intelligently putting your options in differentiated environments, thereby minimizing business risks.
- Sell larger volumes to use the productive capacity of the company and make economies of scale.
You can use the productive capacity of your company in a better way for reasons of cost optimization. With economies of scale, there is a greater profit for each extra unit that we produce. This reduction in the unit manufacturing cost does not occur because the price of raw materials falls, but rather because of taking advantage of a material that we have already purchased and in which we invested money in the past, or because of the use of installed productive capacity that we were not able to achieve. use.
- Take advantage of comparative advantages and the opportunities of expanded markets through preferential agreements.
Comparative advantage is the ability of a person, company or country to produce a good using relatively fewer resources than another, while preferential agreements are a facilitating measure for foreign trade that, together with the advantages of each country, allow the creation of specialties ( that is, countries specializing in an economic sector, or product) that in turn open possibilities for all as a result of globalization.
- Get up-to-date on innovations in your industry globally
When competing in the international market, the company must adapt to the trends that prevail in each niche. Technological advances allow the company to grow and thus obtain more resources and the "know how" to develop its operations and management more efficiently and achieve better competitiveness indices.
Finally, the decision only happens for you, for what you want for your company and your product. If you decide to take flight, count on ISIBIS, the platform that helps Chilean SMEs to promote their projects and take your brand to conquer new markets.