In the era of globalization, business growth is deeply influenced by international trade and investment. This is particularly important for small businesses, which are seeking to diversify their markets and reduce dependence on the local economy.
Success in international expansion and exports is not the work of chance; It is the result of a carefully planned process. Here are the 5 fundamental factors to achieve it:
1) Have exportable products
It may sound obvious, but it isn't always. Many times entrepreneurs fall in love with their products and think that it is enough for the product to have a very good flavor, but although it is essential that the quality is good, it has to be well accompanied by attractive packaging. Sometimes it is necessary to analyze and study well whether your product meets what the target market wants or what the competition offers, and after that, see if it is necessary to make changes and what this entails.
2) Select a target market with potential
Some entrepreneurs want to reach well-known markets such as the United States, China, Brazil, to name a few, but it may be that in said market there is no attractive growth or consumption potential. It may also happen that in those markets your product is not competitive due to various factors such as price, packaging, non-tariff barriers, certification requirements, etc., however, smaller markets may be the ones indicated to begin your expansion process. .
Remember, the largest market is not always the ideal one for your product, it is necessary to study its behavior, the consumer, your potential clients, the marketing channels, and, above all, the price scale to know how much the final consumer will ultimately pay. for your product.
3) Promotion and Sales Management
If you do not show your company and its products, it will be difficult for someone interested in buying from you to fall from the sky. It is essential to develop a specific strategy for each target market, since interests, tastes and preferences change according to their culture.
One of the main mistakes of SMEs is to think that, in exports, you only sell and the rest is the problem of who buys, that is why it is key to understand that promoting your products and carrying out sales management must start from the producer, because only then Whoever sells will be able to achieve their goals and buy from you again permanently. If not, it will only be a business that will help you achieve some sales goal, not grow permanently over time.
4) Be serious and consistent
There are no magic formulas and it is not an immediate process, usually opening a new market requires time, effort and preparation. Therefore, it is necessary to be transparent with your buyer and serious when negotiating, it is frowned upon that you are changing the conditions at all times. Make sure you know all the costs or variables that may affect your costs, and consider them when preparing an offer, get proper advice to prevent any phantom costs from making your business unprofitable.
Every process takes time, and if it doesn't work, you must keep insisting, be consistent over time so that all that effort gives results.
5) Logistics efficiency
The first thing is to quote and evaluate the experience and support of the provider that will provide you with each of the logistics services. If you are just starting out or have no experience, consider who has the most knowledge and don't buy everything right away. All providers will promise you the best quality of service and have the latest technology for their processes, but the real quality of this is seen when there are problems.
If you are new to the process, get good advice so that you do not pay for the novitiate.
Like everything in life, exporting is a process in which you learn and also get feedback to constantly improve not only in your products, but also as a company. Today more than ever the world is a single market and any event can affect us, the pandemic is the best example of this. If you consider these 5 factors, rest assured that you will be one step ahead and have a greater chance of achieving success.
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