If you’re a business and you’re thinking of breaking the international market, or you’ve been approached by a distributor from another country, it can be extremely daunting. There are lots of things to think about, and loopholes to jump through, as well as different rules and regulations in different countries or territories.
Take a look at our tips for making sure that your venture into the international market is a successful one.
Before You Decide
If you’ve decided to go global because your product isn’t doing well in the UK, then you may struggle to do well abroad too. Ideally, make sure that your sales are increasing before you exporting anything.
Do your research. This is one of the most important things you can do as a company looking into exporting. You should investigate whether there is a demand for your product in the new market. Take a look at whether your competitors are exporting as well as who your competitors might be in the new markets you’re thinking of going into.
You should also research into how much it will actually cost to export your products and whether your company can afford it.
Know the Risks
There are several risks to exporting abroad too, ranging from financial to operational. You should insure against late and non-payment, or negotiate up-front payment.
The exchange rate will fluctuate, meaning that your profit margins will be affected. You can avoid this by making sure that you match the income you receive in a currency by your expenditure in the same currency.
There is a risk that the product that you’re exporting won’t match the regulations and standards of the country that you’re exporting to. Be sure to check the product specifications so you don’t get caught out. You may also need a licence, particularly if you’re exporting machine tools, computers or electronic equipment.
Be Efficient and Cost-Effective
To make sure that your growth internationally is lucrative, you need to make sure that your shipping and logistics is efficient and cost-effective, like the service you might find from TNT Direct.
Reassess Your Marketing
Things like your packaging, advertising and point of sale material might not be appropriate for the territory or country you’re exporting to. Reassess these things, redesigning and translating into different languages and changing the tone of voice if necessary.
The UK government supports expansion of businesses overseas and they have a variety of different programmes to help.