Insights into International Trade
Trading internationally can be one of the best ways for you to grow your business and brand and spread risk- but you have to get it right!
This needs planning, research and the right support.
A few examples of Advantages:
- Gain Competitive advantage
- spread risk
- Grow brand & image
- Monetary benefits e.g. beneficial exchange rate; lower cost of production; better margins
- Take advantage of better and more cost effective skills abroad
- higher demand for your product/service in a market that is in the Growth cycle when in your home market it is already at the maturity stage thereby lengthening the life of your product or service
- Expand customer base
The only disadvantages would be if you did NOT research and prepare for trading internationally!
Before you plan to expand or even simply trade abroad you MUST :
- Undertake a full company capability analysis e.g. : Do you have enough working capital and assets to cover you? your Credit rating? support from a good bank or you need to find a second bank for this? what relevant internal skills and staffing is available ? is training required and at what cost? Do you need more warehousing/storage? Financial Forecasting & costing and effects on existing production, equipment, and capacity? is product/service modification required? translations of instructions/websites etc and all at what cost? can it be managed etc etc
- Undertake thorough research into the potential markets and complete an Export marketing plan with an Market entry strategy in the process to plan your steps/strategy/requirements. In which countries would you have the highest demand and the least competition OR a distinct competitive advantage? how sustainable would it be? what standards and licenses would be required? what documentations? the laws? risks to prepare against? logistics and timings? payment term expectations; best method of distribution or set up a branch overseas? and Extremely important to ensure your success is: understand the business culture and manage the language expectations and be prepared for the translation requirements- these latter points are often underestimated and can cost you thousands or millions if you get it wrong!!! even the big players get it wrong sometimes?
WE can assist you and work with you on all these points and more to ensure your success and make the process easier. Then through our “Business Exchange” we can put you in touch with the right people who can assist you in those chosen global markets.
Its not hard to achieve if you obtain the right support and do your homework!