Exporting can come with a variety of challenges – whether that’s a language barrier or cultural obstacles to navigate. We take a quick look at the risks of working in a foreign currency – and how you can manage them.
4 exporting challenges to overcome
Exporting can be a tricky process that comes with many challenges. From logistics and financing to regulations, there are various things you’ll need to think about before exporting. If you’re thinking about trading on an international scale, make sure you take the following into consideration.
Making the initial financial investment
Selling to overseas markets requires an initial financial investment, which can derail businesses’ plans if they aren’t expecting it. Visits to your new target markets, hiring new staff and manufacturing products to sell will make costs add up quickly. Discuss your financial situation with your accountant before making any decisions, and remember to take a long-term view. It’s unlikely you’ll see any real returns in the first year.
The domestic arm of your business probably relies heavily on the contacts you’ve built over the years – both customers and suppliers. Now, you need to start building these relationships in another country, where there may be a language barrier. Face-to-face meetings can go a long way to forging better business relationships.
Understanding what new markets want
You may have to make some adaptations to your product range to make it suitable for an international audience or comply with local regulations, so do your market research – just as you would when launching a new product in the UK. You also need to think about how your new audience makes purchases and what after-sales care they will require.
Every country does business in a slightly different way, so it’s important to be aware of and respect any cultural differences. Learning some of the local customs that surround business transactions could open doors that would otherwise remain firmly shut to overseas traders.