When successfully implemented, exporting can be a great way for business owners to achieve economies of scale, increase innovation, improve competitiveness, and enhance credibility. Despite this, it is important to remember that the exporting process also comes with its challenges.
Below are some of the key issues to consider:
One of the critical issues for potential first-time exporters is whether your products or services are suited to a new market. Business owners must ask themselves: can you replicate the business model you use at home in other markets? Do the factors that allow you to be successful at home exist in other countries, and if so, which ones? If you provide multiple products, are there particular ones more suited to a particular market?
Ambition and Commitment
Entering a new market requires a large commitment from everyone in your company. In many ways, first time exporting is like starting in business all over again – but with the added considerations of new business cultures, languages, and different legal and regulatory systems.
Maintaining Your Existing Business
Entering a new market should not come at the expense of your domestic market. Businesses still need to maintain and develop existing business while making the move overseas. This fact must be included in planning; distracting attention from your hard-won domestic customers could be costly and dangerous.
Building a sustainable export business is costly, requiring considerable management of time and resources because the lead time between initial contact and agreeing a sale can be a lengthy process. Businesses must understand the financial impact of the move to exporting and the implications for all other aspects of their business and staffing.
Capability and Capacity
Often the number of target customers in export markets will be significantly larger than a business’s domestic market, own organisation, or current local customers. It is important that an exporting company is sure that their business can scale up meet the demands of their new market and customers. Keep in mind, this could also include having sufficient staff to cope with the demands of serving clients in other countries where there could be different time zones and languages involved or different service levels expected.
First time exporting can be a lengthy process and there are risks involved, but the potential payoffs are strong. To find out how HMC can help your business to begin their export journey, contact us using the form below or email firstname.lastname@example.org