6 Mistakes from companies that export and fail
Some companies that export have not yet been able to see the actual benefits of doing so. That is because the processes are not conducted correctly neither the export is planned strategically. It is known that small and medium enterprises have more difficulties in planning and setting goals however with some effort it is possible to perform and account for exports correctly. Learn the main errors companies that export commit and avoid them:
- Additional focus on domestic market
Exports shall not be seen as a secondary activity within a company but as an activity equivalent to domestic sales. As example, many companies think of exporting only when domestic sales and markets are down. The point is not that exports are not a way out on those moments but the necessity to plan the process so that exporting does not become an escape valve to the entrepreneur.
- Lack of planning
As mentioned above, lack of planning will be present in all errors committed by companies that export and are not rewarded for their efforts. Without knowing who your international competitors are, what the economy (politics and overall scenario) of the export destination country is, how your product is perceived there, what the actual product cost of selling is, among other rather basic characteristics, the export sales cannot move forward.
- Bad vendors
Deliver your products and export process in the hands of bad vendors could make the entire planning go down the drain… It is necessary to know each and every party with whom you intend to work with and more importantly, companies that represent yours in the foreign market. After all, those will be your own business card abroad.
- Poor communication
Your company needs to communicate with its target export market. Produce well done catalogs in the destination country’s language, translate your website in that language as well, and use an e-mail signature understandable to the foreign market. All form of communication used shall be friendly for the target market. Just so the audience will get to know you. The presentation of your company and products cannot be amateur.
- Inadequate logistics
Badly chosen or executed logistics could ruin the exporting business. It is necessary to very well know your product characteristics and its logistics requirements before choosing the transport mode. The product stowage, its packaging and distribution among other logistics requirements are all very important. Ideally the exporter shall select a good logistics provider capable to handle all those details.
- Not suitable in the destination market
It is necessary to know if there are restrictions to your export product at the destination country. Packaging, transportation, quality and many items taken for granted in the producing country could have different rules and regulations in foreign markets. If your product is seized for noncompliance at the destination country you lose money and opportunities.