EXPORT CHALLENGES AND KEYS TO SUCCEED IN EXPORT BUSINESS

There is no business without challenge, however, there is always a way to reduce or avoid these challenges. The exporting business is one that needs investment of both time and capital. Anyone can venture can be an exporter but such individual or firm needs to understand that there are ups and downs, dos and don’t and also have the government regulation will always come in place.

In this article, we will discuss some export challenges and keys to succeed in the export business.

CHALLENGES

TIME AND FINANCIAL EXPENSE

As said earlier the export business is one that needs the investment of time and money. With consistency, an exporter can break into a new and unfamiliar market. It takes a whole lot of patience before you can realize financial gain. However, with a proper and strategic plan, the payroll will be worth the wait.

KNOWLEDGE AND EXPERIENCE

Exporting process are very complex and so there is a need for exporters or aspiring exporters to acquire all the necessary knowledge and experience through research, experienced professional and export consultants. With all rightly gathered information, you can avoid unnecessary pitfalls.

PRODUCT MODIFICATION

Not all product packaging are accepted in all countries. So there is need to modify product packaging so that it meets a country’s specification and  standard requirement.

MANAGING BUSINESS VARIABLES

There are certain business variables that move in favour or against an exporter; they include local price, international price, exchange rate and interest rate.  These are usually not in the control of exporters. Effective management of variables comes with sound knowledge, skill and experience in the business.

SOURCING EXPORTABLE PRODUCT

For an exporter to be successful in the export business, he/she must set out time for some serious sourcing of exportable products in commercial quantities. Export is a business of volume. Profit can only be achieved if fairly large export orders are executed on a regular basis.

KEYS TO SUCCEED IN THE EXPORT BUSINESS

Important Tips to succeed as an exporter

• Favorable government policies and incentives.
• Sound knowledge of both local and international market.
• Good relationship with foreign buyers, local supplier and financing bank.
• Good reputation and standing, in both domestic and international market.
• Persistence and resilience in line of trade.
• Quality of products or services which fulfills a demand in the target market.
• Product that can be supported with after-sales service (if applicable) in case of manufactured exports.
• Sufficient financial resources to actively support marketing in your target market.
• Sufficient capacity available to allocate necessary company resource.
• Sound export plan with a realistic time frame for export market development.
• Good reputation and standing, in both domestic and international market.

There are so many export challenges, the above is just a few.  We would like to know your own current or past export challenges. Also, for more details on export challenges on how to solve it, follow our website www.multimix.com.ng and get a FULL package (textbook) of our Frequently Asked Questions on exporting and join thousands of people in running a successful export business.