The export market can be highly profitable for businesses – but there are pitfalls for first-time exporters. Here are some tips on how they can be avoided.
1. Carry out thorough research to identify prospective markets – but beware of spreading your resources too thinly. Decide on a single country that best suits your business and take one market at a time.
2. Managing cashflow is especially important for exporters. Lengthy transit times and extended credit terms can pressurise your finances. Ask your bank about letters of credit and invoice finance, which generates immediate funding through your sales ledger.
3. Failing to address legal and compliance issues can result in major costs and lost trading opportunities. Speak to a commercial law firm about how best to handle import restrictions, regulatory issues and sales contracts.