Ready to start exporting your goods and services? You’ll want to read this first
Considering that nearly 70% of Canada’s GDP consists of import and export revenue it’s no surprise that more and more Canadian companies are looking to expand internationally. Entering foreign markets can create opportunities for diversification, reduced vulnerability, higher profits, more sales, access to global demand and innovation.
And while these benefits are certainly enticing, business owners must also consider the challenges that coincide with exports such as short-term cost increases, product modification requirements, higher travel costs, sourcing or shipping materials, and additional personnel costs. Fortunately, you have the ability to overcome these obstacles with careful preparation and planning.
Here are some things to consider as you prepare to take the next step towards a global expansion.
Successfully entering a new market takes a lot of work, so you’ll need to have the right team in place locally and, sometimes depending on the effect of entry, abroad, which includes everything from extra administrative staff to oversea translators. Consider if you have the following:
- Professional support and determine if you have the right resources available.
- Staff to sell or deliver the actual service and the capacity to place staff in the foreign market to act as the business’s local representative.
- Access to capital you require for the expansion.
- Resources required to serve Canadian and international markets or the ability to obtain those recourses.
- Business acumen that will allow you to compete on a global scale.
- All necessary paperwork, and knowledge of export laws and legal requirements.
- An understanding of the relevant accounting.
Research is paramount in every expansion as it provides valuable insights into everything from competition to risks, opportunities and demand so failure to conduct rigorous research could be detrimental to your success. Before you jump into an expansion consider the following:
Is there a demand for the product or service your business offers in the market you wish to enter?
If you’re exporting services, you will want to consider the following questions.
- How can your services be modified to culturally fit the new market?
- Have you discussed any cultural modifications with a local specialist to identify gaps in your service or marketing strategies?
If you’re exporting goods you will want to ask yourself the following:
- Can products be modified to fit the needs and preferences of the new market?
- Are modifications necessary to ensure compliance of shipping, regulatory or shelf life requirements?
As you can see, it takes a lot of preparation and thought goes into exporting. To discuss your business needs and prepare yourself for success in a new market contact the Du Plooy Law team today.