Business Across Borders – A Step-By-Step Guide
The simple thought of exporting as a business can be a frightening one. However, if you do it right, your success chances are relatively high. Many US-based businesses find success once they cross the border and their business journey knows an ascending trend once they carefully transition to the new business market. While keeping your business on track while starting your exports is not particularly easy, it is manageable, if you follow the pieces of advice below.
Develop Your Networks
When planning to export to foreign markets, a strong and resourceful contact network may be your best accessory. While you don’t have to be an expert to start exporting, you still need relevant help with your taxes, licensing and other similar concerns. Receiving intel about the market where you plan to start exporting is another important matter. When you plan to expand your business through exports, you have to consider attending networking events that target the market of your choice. You will start noticing that Mexico is one of those markets with an immense potential. Thus, searching for networking events and conferences for business owners who aim at that market would be a great start.
Do Your Research
Getting to know your market of choice may be one of the most important things that you should pay attention to. When planning to start your exports, make sure that you get to know all the specifics of the new market, the buyer’s preferences and behaviour. These are all important determinants of how successful your trajectory will be.
Lately, US-based businesses have picked Mexico as their export market, due to its favourable business characteristics. The e-Commerce sector is a very developed one, with a great potential for further development. The International Trade Administration website informs us that apparel and accessories markets lead the game when it comes to online purchases. The preferred payment methods of the Mexico buyer are PayPal, debit cards and personal credit cards. However, online sellers do offer other payment options, as the financial inclusion levels are not uniform yet in Mexico. Now that you know all this, you may be able to approach the market more successfully.
But knowing your market and buyer behaviour isn’t the only thing that you should rigorously research. Your trading options, customs and costs, and Exporting Guides are important pieces of information you should get a good hold of.
Develop a Strong Strategy and Direction
A strong and coherent export strategy will most definitely help you make a forceful entrance on the export market. But developing such a stagey yourself may be a tad too difficult. If this is your case, make sure to discuss with a consultancy agency that can help you in this regard. Having a clear direction and strategy will make the whole expansion process significantly easier.
Develop an Export Plan
Your Export plan may be the most important thing in the process that you should pay attention to. A well-designed and effective plan should include the following.
· A route to Market. Find out fast (without compromising the quality of the services) how will you distribute your services or products.
· Think of the business model. Establish if you are going to use agents, distributors subsidiaries or sell directly to your new market.
· Think of your marketing strategy. Of course, if you want to be successful in a new foreign market, you have to tailor a coherent and articulated marketing strategy. Think of how you will promote your business and products overseas.
· Think of the costs involved by this move but also of the income forecasts. If you’re unable to accurately predict and calculate those, collaborate with a consultancy agency that is.
Carefully Select Your Partners
When selecting your business partners, make sure that you find the most reliable ones out there. Your business relationships should be built on trust and respect. This will ensure that all agreements are fully understood and that your partners have high moral standards. If you plan to start your export to Mexico, for instance, you should pick a logistics and distribution company that fully understands all the legal matters involved in the process. The company should also have a well-developed fright network to assure fast delivery of your products. It will help you thrive in the new market, as fast delivery is one of the characteristics of a successful business.
Search for business partners with fully integrated logistics solutions. If you successfully find a collaborator with a favourable pricing system and warehouses scattered throughout the US territory, your odds to succeed in new markets increase significantly. In your case, a painless delivery process and integrated logistics solutions are two things you should always look forward to when starting your exports.
Select Your Market
You must know that neighbouring countries are the best export markets. They allow a facile business expansion and low operational costs once you start selling abroad. For instance, if you are an US-based business, exporting to the EU might come with several downsides. The legislative system is mainly so different from the one in the US, not to mention the fact that your goods will have to travel quite a distance to reach your customers. Instead, try expanding to countries in Latin America, as the distance is significantly smaller and they have a relatively similar legislative system as the US does.
When choosing your export market, think of variables such as distribution costs and the necessary network, the competition, the demographics of the chosen market, legal aspects and taxes. These all will make a huge difference when it comes to your business’ success abroad.
Once you’ve taken all these steps, you are one step closer to building a profitable and successful business abroad. Luckily, we live in an era where globalization and technology make everything easier and business opportunities, more approachable. Remember that in your case, a reliable collaborator and business partner is a valuable business asset. Finding one is never facile, but put in the efforts and develop a solid business relationship once you find your collaborator.