How to Boost Your Export Import Business?

 

        

Why does Exporting have to be so Hard?

Whether you agree it or not, exporting is actually HARD… but if done with adequate import export training , skills, pre- cautions it can become easy.

Below are some of the reasons because of which exporting is considered as hard –

1.Cultural as well as Language issues 

Unless you are exporting to a country, which speaks a common language, it would be difficult to communicate.  There is a possibility that you might face some sought of cultural issues as each country has different cultural aspects. Each country has different time and thus the working hours differ. Lack of communication might result into delay in production or shipment, which would affect timely delivery and payment. Cross- cultural communication becomes difficult due to different para- languages and body language.

2.Customs and Country Regulations 

Each country requires its own set of rules and regulations for importing of goods. You need to understand different custom authorities, myriad legal needs and its regulations. Some countries are liberal and does not have numerous regulations while some have numerous and strict regulations so you need to refer them time and again. Rules and regulations of the destination country matters the most.

 3.Unclear Logistical Business Planning 

While exporting in any country, you have to make sure that there is timely departure from your side and timely arrival of goods to the buyer. Also, plan necessary steps for any kind of loss, theft or damage of goods. Strategic logistic planning of goods is thus imperative. You can hire a logistics agency to help you in understanding the local rules and regulations and thus reduce the exporting risks. 

If your goods have to travel several other countries in order to reach the desired destination, you need to check the logistics norms of that country along with the destination country norms. Proper insurance could be of great help.

4.Trade/ Legal terms 

Legal system is crucial. Some countries have complex bureaucratic system and thus needs variety of certification and documentation. Permissions and licenses should be intact. In international trade, Incoterms is very common but for a new exporter it can be complicated. Good amount of understanding and knowledge about legal and trade terms can be of great help. 

5. Distance 

Finding the right market, person is important. Distance can be just a matter of concern if proper pre- cautions are taken.  

 6.Getting paid 

The last but the most important reason for exporting being a hard one is being paid on time for your goods/ shipment. Exporting involves dealing with different banks, wide range of documents, different currencies, different payment methods and financial structure resulting into difficulty in navigation.  Credit- worthiness check is very much necessary otherwise you might face loss.

Apart from the non- payment risk, there is a risk of late processing payment. A company with limited liquidity or cash- flow might have difficulty. You also need to keep in mind that the exchange rate changes every day and so it should be taken care off while making a deal.