If you are looking to start a new business that is more profitable, you might want to consider going into the business of exportation.
In a recent survey by Regus, a workplace provider, It shows Exportation business globally have an advantage over domestic trades,
According to the survey, in Africa, more exporting businesses report growth in revenues or profits than companies focusing solely on domestic trade.
The survey found that about 40 per cent of exporting businesses reported profit and growth over the last compared to only 36 per cent of those involved in domestic trade.
The report of the survey read in part, “While reaching out to a larger pool of prospects certainly plays a part in exporter’s success, this survey also confirms that having a presence in the same country as clients or customers carries a number of benefits.
“Specifically, 85 per cent of African businesses say that physical proximity helps them deal more effectively with customer problems. Being close to clients also means businesses understand customers and markets better and improves customer retention rates.
“But foreign expansion is a big step for businesses to take and a difficult one if support is lacking. In particular, African firms report that aside from making customer introductions, their government trade delegations can most usefully help them expand abroad by providing advice on legal and regulatory matters.”
Other findings from the survey also show that African firms believe that being close to customers means businesses can improve customer satisfaction and that government’s introduction to local business organisations and associations as well as advice on taxation would also help businesses planning foreign expansion
“About 78 per cent of firms say a location close to their clients can boost sales and increase marketing effectiveness and almost a third of businesses would benefit from a directory of places to network,” it added.
Regus Vice President for Africa, Ms. Joanne Bushell, said people always talked about getting close to the customer, but in export markets, that can be literally true.
She added, “Our survey respondents told us that having a physical presence close to their customers brings about a number of benefits. In particular, businesses report that better customer retention, faster problem resolution and greater satisfaction can be achieved by setting up a location close to their customers or clients.
“On the other hand, setting up a presence abroad is a challenging task if you don’t have the right support from your home government. Businesses globally report that the best help they could expect from their government trade delegation when expanding (aside from client introductions) is getting legal and regulatory advice, taxation and local custom information and tips on where to network and meet local businesses. Where this information is not made available or is incomplete, businesses would do best to partner with firms that understand the world of business and that can provide local know-how and connections.”