The UK economy has been fraught with uncertainty following the Prime Minister’s speech back in January. In her address, Ms. Theresa May announced that the parliament will trigger Article 50 in April. As a result, various sectors of the economy have taken a conservative approach to operations.
Although the property market seems to have slowed down in number of investments, the price of housing remains robust. Experts say investors have paused to study the direction of events pre-and post-Brexit. In other developments, people who get their energy from Scottish power will observe a token increase in their utility bills in the coming months.
As an entrepreneur, such market changes are bound to affect business growth. In order to mitigate the losses your business may incur; strategic measures have to be applied. While some businesses look towards schemes such as government bailouts and loans, only few consider exporting as a survival mechanism.
Exporting is a lucrative way for businesses to remain buoyant in an uncertain market economy, yet it is often overlooked. Economic expert, Tom Marsden explains 4 reasons why.
You can maximize business profits by exporting to foreign markets, especially those yet unaffected by a recession. As domestic markets bear the brunt, people will be less willing to spend as much as they used to. New markets present a fresh means of injecting capital into your business.
By identifying “blue oceans”, you create unfettered grounds for operations and an opportunity to enhance financial growth. Foreign markets are also less likely to present competitors if your services are niche in nature. Another advantage of exporting is the ability to extend your product’s life cycle.
Diversify your market risks
Exporting helps spread your risks evenly. If your business manufactures goods locally, you could pass the increased overhead and production costs into the price when you sell abroad. Customers in healthy economies are less likely to be as price sensitive as local ones.
Leverage the opportunity to sell to foreign markets and your business can enjoy marginal growth. Foreign risk diversification also places you in a better position to compete against domestic rivals.
Get access to government grants
One of the major concerns of an uncertain economy is capital flight. This is the continued flow of money or assets out of a country. Capital flight can dent a nation’s economy if left unchecked. Economists advise against this by advocating income flow into the country; exportation.
To encourage exportation, government agencies offer incentives and similar grants. Your business can also benefit from the tax rebates available to exporters.
Opportunity for new ideas
Forging partnerships with foreign businesses can broaden your view, creating innovation and new market opportunities. It’s no news that countries with a robust economy are an ideal target for collaboration- where ideas could be leveraged back home by local firms. By increasing your global networks, you can tap into these idea-wells and take your company to the next level.
What kind of business are you into? Perhaps now is the time to expand your markets globally.