Published on July 08, 2013
With the U.S. dollar trading at historically low values, and domestic economic activity stagnant, now is the time to start exporting your product to expand your reach.
This article will spark ideas on exporting, its importance in your manufacturing or distribution business’s strategy, and how to start.
Exporting is an exciting opportunity that requires a different set of business tools. Transporting the product to your new geographic market is just one part of the puzzle. Planning and hard work will overcome such challenges.
The same care and attention you give your domestic market is required in a foreign market. Regulations, tariffs, quotas and embargoes must be understood and incorporated into your planning.
Fortunately, you do not need to understand every country’s rules and regulation. With the help of your trusted advisors, you can choose to export to a country that offers the most favorable tax, financial and logistical advantages to your company.
Mexico and Canada are two of America’s top trading partners and are close to home. Or, perhaps there is another country that does not have anything like your product and you could have the entire country to yourself!
It has never been a better time to start exporting.
Surprisingly, you have cost advantages compared to your foreign competitors. Productivity continues to increase thanks to investments in automation and cost cutting. A domestically stagnate economy, along with growing foreign markets, presents an enticing opportunity to expand your market and extend your product’s life cycle.
Your manufacturing or distribution business will be less susceptible to local economic fluctuations, thereby reducing your enterprise risk. The weak U.S. dollar gives your product a built-in discount. What was unprofitable five years ago is now profitable. Once you have a foothold it will be easier to maintain and grow that market share in future expansions.
Exporting poses its own risks such as cultural and language differences, political instability and currency fluctuations. Those risks increase if you fail to plan.
To succeed, you must reach out to local partners, get good legal representation, have a local marketing plan, and rely on financial expertise and insurance to mitigate these risks.
On your own, it could be cost prohibitive to pursue exporting. There are organizations that want to help you export your product, free of charge, like the U.S. Department of Commerce and the Small Business Association. Export management companies specialize in exporting products and have already overcome many obstacles. They often grant easier access to foreign markets.
Finding an exporting partner could be the most important step for your plan. Selling directly to foreign retailers is another option. This might be practical for your organization and easier because of electronic commerce on the Internet. Regardless of the method you choose, be certain to exercise careful discretion when executing your plan.
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Published on July 08, 2013