Exporting tips for Asia's SMB

By Roger Trapp | Feb 21, 2012

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Companies that trade outside their domestic markets perform better financially than those that stick to their own countries, according to research from the flexible workspace provider Regus. In these uncertain economic times, such a prize seems well worth the effort of finding new customers. So why do more companies not seek to become exporters?

The research suggests that many are put off by concerns about both the risks associated with establishing a presence overseas and how to go about hiring staff for such an operation.

How to overcome these obstacles:

1. Realise that many of the problems are more perceived than real. A report by accounting firm BDO International suggests that once businesses decide to open an office abroad they tend to act quickly. More than three-quarters of those questioned were active within two years of making the decision. So the lesson is to seize the day.

2. Reduce the risks of opening an overseas office by taking the flexible approach. Nearly two-thirds of the 12,000 companies around the world surveyed by Regus said their property commitments in export markets had to be very short-term because they did not know how quickly they would grow. Because flexible workspace options are now available around the world, companies should not be caught out – either by incurring costs they cannot afford because growth is weaker than anticipated of by being held back through not be able to scale up to meet demand.

3. Flexibility is also key to staffing. The question is more complex – as demonstrated by the finding that opinion is almost evenly split between those who believe senior management should come from the home country and those who think they should be from the local market.  There is a similar split over whether companies operating overseas need to employ people who speak the local language.

The Regus report suggests that much will depend upon the type of relationship the company is likely to have with customers in the new markets. Many businesses expand overseas through intermediaries, distributors, resellers and an extended supply chain. They will probably need teams to negotiate deals and to manage and support distribution channels. But they may find that being fluent in local languages, having senior managers from the countries in question and understanding cultural issues will be less important for them than for companies dealing directly with customers.

4. Be bold. Thanks to modern technology, the world really is a lot smaller than it used to be. Many retailers, for example, use the internet to test out overseas markets. But most products and services can be translated to other countries.

5. Remember, there is safety in numbers. Not only are companies from all over the world trading beyond their own borders, they are finding it so worthwhile that they are keen to do more of it. Regus research suggests that companies already active in overseas markets are nearly twice as likely as those not exporting to plan to expand abroad in the coming years.

Those businesses that do decide to trade overseas have the added inducement that, not only are they improving their own prospects, they are doing something for the general good. Across the world, governments, economists and other commentators appear to be agreed that exports are essential for individual countries'GDP growth and also for global economic stability. With many companies finding domestic growth hard to come by, exporting looks like too attractive an opportunity to be missed.

Roger Trapp is a freelance writer and journalist. He co-authored a book titled "What You Need to Know About Business". He writes for the Independent, a London-based national newspaper in the UK.