Sales and Exports
The strategic advantages of domestic sales and export growth, if it is controlled and achieved through planning, brings other advantages beyond cost and pricing.
Structure and efficiency
As enterprises grow, business processes are separated, professionalized and rationalized. As they develop independent goals, management and skills, they gain in performance and efficiency.
Recruiting
Growing businesses can attract energetic employees who want to be at the centre of the action, perhaps to share the rewards. Job opportunities may be more varied and attractive for reasons of budget, scope or prospects of promotion to the top. They are stimulating environments where the potential for morale-boosting creativity is high.
Obtaining financing
Lenders and financiers take growing businesses seriously, although they may temporarily see them as riskier. Larger size enhances marketplace credibility and presents an image of strength.
Brand recognition
Bigger businesses have more customers, giving them an advantage in marketplace recognition. Many customers find security in established brand names associated with known qualities.
Dominating a niche
Many small enterprises begin with a niche strategy in a local market. Growth may allow you to move into other markets in that niche, forestalling competitors. Some companies that dominate market share in a worldwide niche reach the position where they can set prices and "make the market".
Landing major contracts
Many major customers require suppliers to be capable of high volumes and worldwide reach in order to ensure consistent supply. Once those blue-chip customers come on board, others begin to see you as a seaworthy vessel - and follow.
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Let RBC Royal Bank help you compete internationally. Check out our Export & Import, Financing and Foreign Exchange services, or talk to a Business Service representative at the RBC Royal Bank branch nearest you. |
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