Five Reasons for a Global Vision

Five Reasons for a Global Vision

Whitney - August 27, 2017

The world is developing at insane rates. Transport of goods and information travel has never been so fast nor was communication ever so easier. These and many other factors make foreign markets accessible. Let's just take the United States, for example, about a decade ago the enormous financial crisis struck them; however, the nation quickly got on its feet due to effective trading deals.

Adding a new market to your expansion is a challenging task, and there are quite a few factors to consider before executing your plan. These are the five tips we would like you to take into consideration:

1. Thorough Research

The first step is fundamental. You would want to gather as much information as possible. Conduct a thorough research in the market and gain the necessary insight on creating an effective plan. This will enable you to understand the different economical and cultural difference which could come as a barrier to the international expansion. You will not only understand the standard business practices but research the stability of the currency, the politics as well as all laws linked to the import of goods. Anyone could send a courier to USA through TNT – doing it effectively is quite another thing.

2. Plan a Strategy

The previous research will enable you to continue with your business plan and create a strategy with key points of things that must be accomplished. The strategy should give insight on the ways you would enter the market – through a partner, directly or through a physical store. How would the transportation of goods happen? Would you be sending a courier to USA using the services of someone like TNT or would you have your own supply department carry out the transport.

 

3. Knowledge about Custom Regulations

There are many weird laws around the world, and they do extend to all kinds of products. Japan does not allow personal items into the country but allows only gifts to enter the country, whilst, Brazil does not allow alcohol or food items to be shipped. Know all of the possible liabilities your products hold in the respective country to avoid issues in the future.

4. The Risks

The financial risk is obviously the most important one. The company should be an easy to access capital for each stage of the export. Think of ways to finance the international deals. Waiting for payment could take much longer when doing international business and the risks of not receiving it do spike up. Using a letter of credit is generally the way to go.

5. Follow the Preparation Process

When you are about to send your product, you have to pay attention to everything. Check if the packages are done in a way which meets the country’s standards, check their classification and route and any other factor that could lead to a possible delay of the goods or causing damage to it.

Taking advantage of these tips will help you manage your resources effectively when dealing with international expansion.

 

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