The export process is an essential step for companies intending to expand their sales abroad, improve their finances and grow. However, mistakes can happen due to a lack of experience and knowledge – issues which can be rectified by those willing to put in the work and plan ahead. By taking these necessary steps, you’ll be able to achieve a successful export process.

1. Know your potential

One of the most important aspects in the export process is analyzing your internal capacity to export to foreign markets. Like any other business, to export, you need extensive preparation and effort ahead of time, and dedication and perseverance to see each step of the process through.

That’s why self-assessment of your production capacity, finances and commercial strategy, among other considerations, will be strictly necessary to make a leap towards an exterior market. This gives you the opportunity to improve problem areas, or supplement your team’s knowledge with further learning so you have all the skills you need in-house.

2. Analyze the market

To understand how to enter into a new market, it is necessary for companies to consider opportunities and threats in that market. Market research is a vital tool for companies to make better decisions, considering economic, political and cultural factors.

Additionally, a thorough investigation can provide information about time and growth of sales at the international level, so you can forecast trends, project targets and build a more detailed plan.

3. Plan your moves

Because you are looking to develop your business, it is important to focus on how exports allow for diversification of risks in the face of unstable home markets and protect you against the effects of macroeconomic problems. However, you must have a clear strategy through prior planning to enter new markets, considering all aspects of selling and the best positioning of the product.

What are your timelines, goals, acceptable risk levels, and potential threats? Does your company need to tailor its products? What work needs to be done to establish a supply chain or a marketing plan for that market? These questions should all be answered well ahead of time.

4. Be ready for market demand

Furthermore, another aspect to consider is whether your business has the capacity to handle the volume of products ordered, and expected to be delivered, according to international market requirements. This may necessitate improving your capacity through more employees, greater production, etc., or scaling back your market entry plan accordingly, among other options.

5. Learn your entry barriers

It is essential that the exporter is informed about the customs regulations in the final market. This could help avoid last minute surprises at the time of importing the merchandise. Usually, the entry barriers of a product are usually of two types: technical or tariff. You must know the regulations, the details of the tariffs, as well as the import procedures of the new market before a single item is exported.

6. Open your mind to negotiate contracts and payment

Before carrying out an operation, the exporter must negotiate the conditions and forms of payment. It could be trough international contracts, which include clear clauses specifying the responsibilities of the parties involved.

Usually, the use of the INCOTERMS are considered at this point, which are standardized terms that are used in the international purchase-sale contracts serving to determine responsibilities. In addition, there are other important documents such as a firm order, an invoice, a bill of lading, letters of credit and other traditional papers.

7. Don’t forget legal practices

The legislation of a foreign country is important to consider in the market entry process because the exporter could encounter several unfamiliar laws and regulations. Companies need to find sufficient information such as international conventions, treaties and international rules. This may help your ability to operate successfully in foreign markets.

On the other hand, exporters may also encounter disputes with client agents or distributors and creditors. It is important to understand your legal rights as an exporter, as well as to have enough information to resolve disputes while you are trying to sell products or services in a foreign market.

8. Immerse yourself in your target market

Finally, cultural and language barriers should not be underestimated. The customs and expectations in international trade can vary greatly from one country to another. For this reason, exporters must have professionals who know the local language, culture and way of doing business.

You must also understand the various elements will influence the negotiation process – for example, the nature of the contract, the economic interests of the parties, including currency exchange rates, the experience of each party, and the persuasive capacity of all parties involved.

Trade offers the greatest opportunities to grow your business

In the current world in which we live, the greatest possibilities for growth are linked to globalization and to the scenarios that help more companies sell more products in more countries around the world.

If you are looking forward to learning more about business growth and sustainability through international trade, you will find more information throughout the Forum for International Trade Training (FITT) website, where you have the opportunity to obtain the skills needed to cross borders with your products and services and have a global reach.

The post Are you looking to export? 8 golden rules for success in a new market appeared first on Trade Ready.

Carolina Vasquez, CITP|FIBP, is an Export Coordinator with Teknion Limited, a leading international designer, manufacturer and marketer of mid- to high-end office systems and related furniture products, in Toronto, ON.

She has worked relentlessly over the course of her career to expand her skills, bridge cultural barriers in global trade and excel in every area she works in, and is pleased to have her designation as proof of her expertise.

A global mindset early on

Growing up in Spanish-speaking Chile, Carolina remembers a desire to learn more about the world.

“I believe it started when I was a child, I have always been an eager learner with a great interest and facility to learn other languages and cultures. My after-school program was to learn English in a prestigious academy in Chile, an activity that was not very common at my age.”

Her bilingualism has become one of her greatest assets, and her desire to connect with people from around the world is as strong now, in her current career, as it was in her childhood.

“I really enjoy the contact with people from far away on a daily basis, creating a feeling of confidence in the business relationship.”

I love that my other tongue, Spanish, is a bridge to facilitate communication, especially with customers, to simplify the daily actions and coordination of shipments.

Once her language skills were established, her efforts shifted to her education and future career. Never one to avoid a challenge, Carolina devoted many years of hard work towards developing both practical skills in her workplaces and targeted knowledge in the classroom.

“After graduation from high school, I entered the labour world and started to study every day at night, after work.”

“In a period of 8 years, I worked as an Executive Secretary, where the knowledge and skills to organize, multitask and prioritize tasks were fundamental; completed my International Trade Technical level and, finally, got my Bachelor’s degree in International Trade in Santiago, Chile.”

Zeroing in on areas of interest

By the time Carolina finished her degree, she had already worked for several different companies and had a strong sense of which aspects of international trade were her areas of strength and interest.

Her first job after graduating was as an Export and Import Coordinator for one of the most important fresh fruit export companies in Chile, which allowed her to focus in on those areas of interest and continue to work on them.

“Dealing with a high volume of exports, especially during the ‘fruit season,’ I handled all the exports of the company to many countries around the world.  It allowed me to discover my abilities and strengths to perfectly work under pressure, with proficiency and in a timely manner.”

Working there from 2000-2009, she helped the company prepare, submit and manage its documentation for all methods of transport.

Among her other tasks were keeping track and following up on arrivals at destination ports, working closely with the company’s International Sales Division, Finance Department, and Quality Control at origin and at destination, and, in case of Insurance Claims, providing all the requested documentation to submit a formal claim to the insurance company.

A bold move to a new country and more growth

In 2009, Carolina, as part of a family decision, made the choice to move from Chile to Canada to continue her education. She decided to take FITTskills courses as part of a post-graduate program in International Business Management at Mohawk College.

The courses were of great help in her career, as she was able to improve her international trade skills and continue to develop her understanding of other cultures.

The program is so comprehensive, and courses like International Trade Research, International Trade Management and Global Supply Chain Management have been key tools in my career.

“What I have learned has also been a decisive factor for effectively managing cultural differences and language barriers among different countries.”

“Despite my previous education and experience, it has been a complimentary tool to continue my professional development.”

A few months after finishing her program, Carolina applied to become a CITP®|FIBP®, which she feels has given her a big confidence boost and was indispensable in her earning her current position.

“If we consider that I was a recent graduate (December 2010) coming from overseas without Canadian experience, and that I got a job as Export Coordinator on a full time and permanent position three months later (March 2011) in a prestigious and most important company in the office furniture manufacturing industry in Canada, I would say it positively impacted my career.”

Moving goods all around the world

Carolina has now served as the Export Coordinator at Teknion for over four years, and is adept at balancing a myriad of different responsibilities.

She regularly works with freight forwarders, banks, carriers, couriers and trucking companies, as well as Teknion clients and all Teknion departments involved in export operations to ensure goods arrive on time and according to regulation in any country, whether they arrive by air, sea or land.

For someone like Carolina, however, who is always looking to adapt to new challenges and take on new opportunities, it’s the ideal position.

With over a decade of experience in the industry, she hopes to continue to add to her long list of experience, and excel in every aspect of her career.

The post Carolina Vasquez, CITP|FIBP – Export Coordinator appeared first on Trade Ready.

A Canadian consultant with only domestic clients adventurously decided to answer a multinational RFQ. Without any experience outside of Canada, he nevertheless thought that telling clients that he was bidding internationally would enhance his reputation.

As he waited outside the hotel suite where the Japanese principal was holding the meetings, he secretly marveled at having made the short list.

The second-last consultant’s name was called and the sleek Brazilian businessman smiled confidently as he walked by to meet the principal.

Waiting alone and wondering at his chances of winning the contract, the Canadian reminded himself optimistically, that going through an international RFQ was still a valuable learning experience.

While he waited, his mind wandered, remembering the disappointing loss at his first poker game the previous week – his gut told him that the deck had been stacked against him from the start, and that today would probably be no different.

Adjust your international expectations

After a surprisingly short time the Brazilian walked out and the Canadian’s name was called. As he walked into the suite, the Japanese executive bowed slightly and offered his business card with both hands.

Having done his cultural research, the Canadian did the same and the man asked him to sit. Suddenly, breaking into a huge smile, the Japanese executive said:

“Aaaah…..I FINALLY meet the Canadian!”

He continued:

“I have long waited to meet a Canadian businessman. I In Japan we have great admiration for Canada. Your values and reputation are well-known in my country. In addition, you must be aware that our two Governments are currently discussing ways to establish a Free Trade Agreement, so …”

He opened the folder containing the contract and added:

“I am looking forward to talking business with a Canadian. Your proposal is very fair – but I expected nothing less … so let us do business together!”

As he listened to his future client explain the details of the contract, the Canadian realised that unlike his disastrous poker game, Canada’s global reputation had stacked the deck in his favour, providing an amazing advantage from the very start of this exciting negotiation.

May the odds be ever in your favour

The expression “stacking the deck” usually refers to dishonest card players who pre-arrange the sequence in a deck of cards in order to win a game. Therefore when a situation is said to be “stacked against you”, the belief is that there is usually little chance of winning.

Similarly, Canadians seeking to compete in foreign markets often feel the deck is stacked against them if they lack international experience or have to compete against local products.

They feel they must outperform other countries’ exporters, face cultural barriers that could block their entry, or are unable to communicate because of linguistic handicaps.

Take advantage of having one of the world’s best reputations

The Reputation Institute, a global private consulting firm based in New York and Copenhagen, publishes an annual report aimed at helping countries bolster their reputations around the globe.  Entitled “The World’s Most Reputable Countries”, Canada was chosen as number one among 50 countries for the last 3 years, only to be edged out by Switzerland in 2015 by only .01 points (75.63 vs 75.62).

As a result, when Canadian business executives take their first steps to penetrate a new foreign market, they begin negotiations with the undeniable benefit of enjoying a global reputation as one of the best countries in the world.  

This includes a perception for fairness and a global popularity which, in any international negotiation, creates a positive atmosphere and provide untold opportunities, even before serious discussions ensue.

Don’t forget about this essential asset

Naturally, this first advantage must be followed up by entrepreneurial business savvy, awareness of what international trade represents, the ability to recognize and seize trade opportunities as they appear, and maintain high ethical business standards.

These attributes can all be acquired through training (e.g.: www.FITT.ca), as well as the support and assistance of knowledgeable intermediaries, and practical, gutsy hands-on trial-and-error experience.

The post Are Canadian exporters playing with a stacked deck? appeared first on Trade Ready.