Exporting To Multiply Your Markets – Why and Why Not?

Rose MarshallBest Practice & Articles0 Comments

exporting

Are you avoiding export markets? What is holding you back from expanding? Let’s

examine the fears of going into an export market, real and perceived risks:

This post will start to examine the fears I hear most often from those who haven’t

exported at all. These are those fears that might be unconscious or unspoken but they

are holding you back.

Let’s examine each and see If you are avoiding a huge opportunity for a risk that isn’t

real. In the next post, we will examine these fears, see if they are real or perceived and

discuss how to manage or control risks.

We often hear people who avoid exporting say:

a) I won’t get paid

b) I don’t know a foreign language

c) the regulations in the importing country are hard to comply with

d) And, those darn logistics – I don’t know how to get the product physically

shipped

Do any of these seem like you? The next posts will begin a conversation to help break

these into what is real versus perceived, and help break it down.

#1 Multiply Your Markets – Are the fears real or perceived?

I will take each of the fears and risks that often keep people stuck and avoiding the

discovery of the opportunities.

a) I won’t get paid

b) I don’t know a foreign language

c) the regulations in the importing country are hard to comply with

d) And, those darn logistics – I don’t know how to get the product physically

shipped

a ) Getting paid is crucially important! You can not afford to spend the money to create

the product and wait for a few months hoping and waiting for the cash to arrive. Cash

flow is important!

But wait! Many B2B many companies require 100% cash in advance of the

shipment. And, guess what! They get it. Or they might require 50% cash at the

acceptance of a PO from the buyer and 50% at shipment date. This is very normal and

highly recommended if you have no history with the buying entity in the foreign country.

If your buyer is astute, they will be financially able and willing to pay up front. As the

relationship matures, you can change to more open terms, which eventually will also be

expected to accommodate the buyer’s need to grow their business.

If you are shipping B2C, or getting orders online for eCommerce, getting paid is a

normal part of the process for initiating the order.

b) You do not need to know a foreign language. Around the world, English is the

language of international business. Any well-established buyer will have good English

skills. This is very helpful for all your communication methods, whether face-to- face at a

trade show, or in email, or SKYPE, face time etc. Remember that the nuances of culture

will still exist, so the use of terms might still require additional consideration and

patience.

In the next article, we will look at regulations and logistics. There is good news on those

two fears as well.

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