Post by Trade Coach on Apr 7, 2013 22:58:04 GMT 1
Doing business outside of Ireland has many advantages and can open up new markets, particularly for SMEs, but it can seem overwhelming for those unfamiliar with the process. Here are some tips from Caroline Cannon of DHL Express
1. DO YOUR RESEARCH
It may seem obvious, but understanding the countries where you plan to do business is critical. You should familiarise yourself with how trade is conducted – from different business practices, cultures, customs and currencies to assessing the competition and local tastes. Consider the potential for sales of your products or service and whether it can be sold with a reasonable profit margin.
2. DEVELOP YOUR LOGISTICS STRATEGY
The practicality of moving shipments across oceans and continents is inherently more complex than moving shipments domestically. Taking the time to establish a clear and effective export or import strategy is the key to trading successfully.
3. KNOW YOUR COSTS AND FINANCIAL RISKS
Ensure you have working capital available at every stage of trading as extra costs such as transport, duties and insurance need to be considered. Waiting for commissions, orders and payments may also take longer internationally than in Ireland and you need to be aware of fluctuations in exchange rates. Consider local financial factors that could affect your trade – from foreign exchange controls that prevent the release and transfer of funds to the local banking system.
4. NAVIGATE CUSTOMS
Customs regulations vary from country to country and unfortunately one size doesn’t fit all. If you make and sell merchandise, did you know for example that the importation of umbrellas to Sudan is prohibited? Similarly, if you are in the footwear industry, did you know that only odd pairs of shoes can be imported to Gambia? Customs regulations can be a challenge to understand but it’s your duty to know them. The Irish Exporters Association and Enterprise Ireland have a large amount of invaluable information while the European Commission website provides guidance and support, in particular through its online customer tariff database, also called TARIC.
5. PAY ATTENTION TO PACKAGING
Whatever your delivery needs, your packages need to be correctly packaged to reach their destination safely. It is important to consider how packaging can affect your shipping costs and the weight of the package. Always ensure the right sized box is used to protect your products without wasted dimensional weight. Finally, it is critical to pay special attention to clearly labelling and valuing your merchandise. An error in classification or value can lead to goods sitting in customs, a late delivery or excessive taxes
Source: businessandleadership.com/exporting/item/40374-top-tips-for-expanding-your/
1. DO YOUR RESEARCH
It may seem obvious, but understanding the countries where you plan to do business is critical. You should familiarise yourself with how trade is conducted – from different business practices, cultures, customs and currencies to assessing the competition and local tastes. Consider the potential for sales of your products or service and whether it can be sold with a reasonable profit margin.
2. DEVELOP YOUR LOGISTICS STRATEGY
The practicality of moving shipments across oceans and continents is inherently more complex than moving shipments domestically. Taking the time to establish a clear and effective export or import strategy is the key to trading successfully.
3. KNOW YOUR COSTS AND FINANCIAL RISKS
Ensure you have working capital available at every stage of trading as extra costs such as transport, duties and insurance need to be considered. Waiting for commissions, orders and payments may also take longer internationally than in Ireland and you need to be aware of fluctuations in exchange rates. Consider local financial factors that could affect your trade – from foreign exchange controls that prevent the release and transfer of funds to the local banking system.
4. NAVIGATE CUSTOMS
Customs regulations vary from country to country and unfortunately one size doesn’t fit all. If you make and sell merchandise, did you know for example that the importation of umbrellas to Sudan is prohibited? Similarly, if you are in the footwear industry, did you know that only odd pairs of shoes can be imported to Gambia? Customs regulations can be a challenge to understand but it’s your duty to know them. The Irish Exporters Association and Enterprise Ireland have a large amount of invaluable information while the European Commission website provides guidance and support, in particular through its online customer tariff database, also called TARIC.
5. PAY ATTENTION TO PACKAGING
Whatever your delivery needs, your packages need to be correctly packaged to reach their destination safely. It is important to consider how packaging can affect your shipping costs and the weight of the package. Always ensure the right sized box is used to protect your products without wasted dimensional weight. Finally, it is critical to pay special attention to clearly labelling and valuing your merchandise. An error in classification or value can lead to goods sitting in customs, a late delivery or excessive taxes
Source: businessandleadership.com/exporting/item/40374-top-tips-for-expanding-your/