Five Exporting Mistakes You Might Be Making
A guide to excelling in exports
One necessary step to grow a company is to expand from the home market, especially in a world where globalization has taken over to such an extent that you find Brazilian coffee in the cup of someone who is driving his German car somewhere in the United States.
These essential links of the world are supported by the phenomenon of import and export but can be put on hold due to common mistakes that exporters make. Here are five of those mistakes and suggestions on how to avoid them-
1. Overlooking a Promising Foreign Market
It seems like the most basic rule of exporting, but many exporters fail to recognize the most promising foreign market for their company where their products are demanded the most. A country not only having the highest demand for the product but also with an existing strong personal or commercial connection is an ideal market.
Many exporters are advised to focus on a few particular ideal markets instead of catering to several countries at once. Focus is the key to success in exporting. Using a “structured research” approach to identify the best market to target, doing easy and inexpensive “secondary research” to short list countries and then eliminating those which are expensive and time consuming to finalize on a fixed set of countries with the most feasible market is efficient in identifying the most promising foreign market.
2. Failing to Insure Goods
Stuff happens. Ships crash, goods get stolen and damaged. Instead of hoping that it doesn’t happen to you and wishing for the best, it is wise to invest in insuring your cargo. It is important for exporters to reduce exposure to financial loss and insuring is a way to do that.
One way to avoid this mistake is by talking to your freight forwarder and discussing insurance options with them. It is important to discuss the terms of the insurance, what it covers or does not cover and any special insurance provisions.