How to Avoid Export Businesses Common Mistakes?

First and foremost is to be aware of the common mistakes:

If you are planning to enter an export business, it is adviseable to first learn for the documented common mistakes and suggested solution of those who first enter it before you: 

Lack of export counseling before developing the international marketing plan.  

Suggested Solution:

Seek Export Counseling and study further 

Insufficient commitment by top management to exporting. 

Suggested Solution:

Analyze the readiness 

Fall short in establishing agent/distributor’s commitment due to lack of solid agreement 

Suggested Solution:

Understand well your contract Agent/Distributor and build goodwill relationship with them 

Relying too much on chasing importers through the internet without solid e-commerce plan and effective approach. 

Suggested Solution:

Avoid Accidental Exporting and time wasters in the internet. 

Failure to understand the connections and to find reliable partners 

Suggested Solution:

Understand Export Financing between country risk and securing export financing.

Failure to understand the importance of Intellectual Property Rights 

Suggested Solution:

Understand Intellectual Property Rights

Insufficient attention to marketing and advertising requirements. 

Suggested Solution:

Pay Attention to Overseas Marketing and Advertising 

Lack of attention to product preparation.

Suggested Solution:

Do your assignment in the Product Preparation Requirements 

Neglect to consider legal aspects of going global. 

Suggested Solution:

No one have it all.  Understand further Licensing and the importance of joint ventures 

Failure to know the rules of trade and export. 

Suggested Solution:

Don’t rely too much on your perception.  Understand Export Regulations and better to have a consultant partners for effective procedure and effective international standards

I recommend Exporting, Importing and E-Commerce by Sharon T. Freeman, Ph.D.(A detailed guide on international trade). 

Do’s:

  • Educate yourself and take it to the college level.
  • Visit and participate trade shows and trade missions. 
  • To begin, start on a very small scale.
  • Learn from other and from your expoerience.
  • Join an international trade association and organization specializing in your business.
  • Visit your suppliers and customers.
  • Take advantage of online resources such as http://www.sba.gov/oit.
  • Inspect and approve merchandise before it is shipped.
  • Consider hiring a trade consultant.
  • Be familiarized with all monetary transactions.
  • Utilize a trade lawyer for agent and distributor agreements and licensing requirements.
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