We know that many businesses have found success by tapping into the Chinese market or launching their products in the US or Europe. It isn’t an overnight success however, most of these successes have come from long-term commitments and a stellar understanding of the export market and the logistics behind it. Like any new business venture, it is vital to do your homework first and look at the mistakes made previously to avoid them.
Understand your market
Before you even set your mind to thinking about a foreign collaboration, it’s essential you do your research on every aspect. Decide which market you want to explore and why and if it’s profitable. You may think your product is suitable for export to a number of international markets but don’t run before you can walk. Explore exporting to one country only and whichever country it is, know exactly why you have chosen this one. China, Thailand, India and Brazil are often the first that people want to tap into. But you have to also make sure that you have all the necessary systems and financial information in place if you will be making transactions abroad. If you want to transfer money, you must use the right apps and programs to do so in a secure way.
This ties into knowing the regulations. Every country is different and has different rules for exports and imports. This does however, come down to research. What does your chosen country think about the product and have they used anything similar before? What are their safety standards? Are you exporting electrical devices? Do the plugs need to be amended? What about your packaging, does it align with cultures you’re tapping into? Making lists is going to help you work out what needs to be done. Look at the logistics.
Manage the risks
Whilst exporting your product can bring many large opportunities, there are also a number of risks and they are ones you need to be prepared for. Not everything is smooth sailing, in fact hardly anything is! Apart from the obvious risks which include insurance risks, you need to also look at the moralistic implications of tapping into new markets. Including any political risks, such as government instability and civil disorder. Or any type of currency issues, are you going to be getting a good return? There are plenty of corrupt business people who can suck you in and they may not look at you in a favourable way. Safety standards could also hold you back so it’s important to know what you wear exporting and if it meets standards. You do not want to risk having your goods seized or destroyed. You could lose thousands.
The other risk of course is financial instability. You will want to avoid blowing your budget with the launch of your product in an overseas market. Do the math. Don’t forget to include a travel budget in any calculations as more than likely you will have to travel there to seal the deal. Devise a marketing plan and stick to your budget always because this is going to help you in a positive way as you progress. Here are the main types of risk that you need to be aware of:
- Economic Risk.
- Compliance Risk.
- Security and Fraud Risk.
- Financial Risk.
- Reputation Risk.
- Operational Risk.
- Competition Risk.
These risks can easily be managed but must also be looked at in detail beforehand. Fraud can be a problem when you are dealing with overseas companies, as well as a risk of your reputation in that country or city if it should go wrong. So beware and keep a good positive outlook as well as curating good business relationships which will serve you well in the future.
How do you plan to connect? Are you going to be launching something on social media or on your website to introduce your collaboration? If you’re selling to another country, do they need to communicate with you in their language? Do you need any types of permit?
You will want to have a good social media presence to appeal to a world audience. Because social media makes it so much easier for people to receive many types of information, and that you are opening up yourself to a huge audience, you have to also be careful. International businesses will have to be more careful that they are taking all of these things into consideration including culture, race and religion as well as being able to make their products accessible to all or risk losing custom. Online trust will improve business trends and will improve your reputation so be sure to implement some great online techniques and tips. Look at hiring a company to take care of this for you. Media strategists can assist. Media Strategy plays a very important role in the advertising of your company and if you are going international, you want the messages to be just right. Their role is to find out the right path for you and deliver the message well and accurately.
Your team will help drive you forwards
If you’re tapping into a new market, you want the very best team around you that understand your goals and has an understanding of the market. So when building your team in preparation for new markets, you need to ensure the people you are hiring have expert industry knowledge, and that their values align squarely with yours. A strong, passionate team is absolutely vital to any company’s success. So this is worth noting if you are thinking of getting a new team together for your world launch. This takes time and effort and you will not see any results right away, but slowly exploring new markets is going to be important and will probably come sooner rather than later. Even if that is just trying to sell to other overseas companies or sending your products overseas for sale. Expansion is key if you want to earn more and be more successful.