6 ways to facilitate export
Believe it or not, but just a few tips will save even a small organization from headaches due to paperwork and complicated tax laws.
1. Behind each project – its manager
Export is not a one-two-three business, which means you need to fully control everything. Be sure to consider the appointment of a senior manager who will help shape the export strategy for your company. You should also spend some time analyzing the possible competitive advantages of your company abroad and the availability of financial resources to support exports. After all, it should be remembered that for the successful export of goods you may need to attract new employees and new capital to increase production.
2. Explore market opportunities
You will have much more influence if you focus on exporting to two or three potential markets or regions where your business is really needed. It makes no sense to immediately “spray” over vast territories. Sometimes, broad export horizons cannot work right away. It would be much more reasonable to start small, for example, with a neighboring country. After all, a large turnover is achievable with bilateral relations of neighboring states, especially with cultural and legal similarities.
3. Think about the product
Carefully consider the possibility of adapting your products and services in a foreign market. Note that it’s not always what sells well in your home country will be in demand in other countries. Consider the economic situation of the country where you are going to export, as well as the solvency and interest of its citizens in the product of your export.
4. Select the correct distribution form.
At the international level, enterprises can ship through freight forwarders and through various logistics companies. You will also need to keep track of tariff rates and currency regulation. For more control over shipping, a company can establish a joint venture with a foreign firm. Or have your people to track customs declarations and facilitate transactions in the local currency of the country you are exporting to.
5. Remember about taxes.
You should always keep in mind the so-called “tax consequences”. As a rule, if any goods are not taxed in your country, the foreign tax and collection ministry can only be happy about your activity, in the bad sense of the word. Pay attention to the possibility of indirect taxes on your goods and services in the country where you export.
6. Secure financing
As a rule, commercial banks shy away from lending in relation to receivables in foreign currency. This can be a problem for small firms that need cash to execute orders. However, you can insure receivables against non-payment by the buyer. In any case, it will not be superfluous to consult with several banks for the provision of loans on special conditions for start-up entrepreneurs.