Are you thinking of expanding your business abroad? Or maybe you have some products that you want to trade in markets overseas? Whatever the plan is, starting an export business is a great way of breaking ground and venturing into an extensive market that can be financially rewarding. However, there are a few considerations you might want to keep in mind before you embark on this venture.
1. Where you should export to
Knowing where to export to might not be as straightforward as it may seem. While the world has countless destinations, not all of them might have a ready market for what you want to export. Doing thorough research will help you identify suitable destinations. You could start with a single county to test the market.
Always keep in mind that the country you have selected might have different local laws, standardization measures, duties and taxes. Therefore, thorough research should be able to help you analyse this.
2. Be aware of international standards and regulations
Understanding the terms that apply to export business will help you operate within the law. For instance, if the distribution of your goods will involve pallet delivery, you might want to get familiar with regulations under the ISPM15 that stipulate a raft of measures that ensure safe wood shipping between countries. Also, work only with service providers that are licensed in their respective countries to avoid trouble with the law.
3. How will you get paid
Getting paid is the point of doing a delivery. It involves settling on acceptable payment plans, assessing the risks and getting insurance so that, just in case things go wrong, you are cushioned against loss. The payment plan should also be timely. Also, cleverly assess your customer's creditworthiness or insist on part or whole payment before delivery.
4. Labeling, packaging and classification
The goal is to ensure that the goods reach the customers in perfect conditions. Therefore labeling and packaging should be a consideration that cannot be overlooked. How goods are classified also largely determines the controls and duties imposed on them. Therefore, doing a thorough check on the best labeling, classification and packaging methods will come in handy.
In conclusion, do not just settle at prospecting for customers abroad. Be open-minded and flexible and learn what will impact your business most and generate better revenues. In export business, research could be the determinant of success or failure.