A business idea, funding, and a backup plan to minimize losses are only some of what you need to figure out on your own. Selecting a product or service and identifying a potential customer base is the start of an extensive and laborious research process that will inevitably yield fruit.

It’s one thing for your company to go from being a micro, small, or medium enterprise to one specializing in exports. While going global with your business may seem like a considerable undertaking, careful preparation and execution can guarantee your company’s success and survival.

In this post, we’ll discuss some barriers to entry and growth in the EXIM industry that smaller companies experience.

Learn how to locate your export market 

It is a crucial moment in the development of your company. As a startup firm, you need to adopt the SIS – Screen-Identify-Select method to determine which market will provide you with the highest earnings with the lowest possible risk, regardless of whether you select a unique product or a conventional one. 

By comparing how well each market does on the corruption & democracy perception index, we may use this elimination method to find the markets with the most significant potential quickly. 

When making a well-informed choice, using these criteria, it’s essential to consider the political climate and the associated governmental risks. Corrupt practices are another warning sign that might help organizations avoid disaster.

Identifying Potential Customers and Broadening Your Customer Base 

A startup company cannot survive on the support of a select few. Having your business rely on a single customer is like all of your money on the one hand. Therefore, in an economy where the price tag of attracting new customers has risen by as much as 60%, can you hope to broaden your clientele base?

Your product and industry will define the best strategy. Finding a genuine & reputable wholesaler is the essence of long-term success in B2B, whereas holiday campaigns and loyalty discounts perform wonders in B2C. 

Use a business-to-business website to locate and network with potential purchasers. Choosing the correct gateway and conducting a comprehensive background check is vital to success.

Raise Recognition of Your Brand 

Up to 70% of marketers in today’s rapidly evolving brand marketing landscape consider elevated brand awareness far more beneficial to organizations than increased conversions & direct sales. Why would you expect business if nobody knows who you are? First impressions are crucial in this context as well. 

A prospective customer will first check out a company’s online presence. Therefore, a company’s website is essential to establishing and preserving its brand. Then social media. Whether selling snacks or bulk agriculture supplies, demonstrate your success through visuals. 

Have your present, happy customers record a testimonial video and distribute it via social media to attract new ones. You can construct a case study of a buyer’s positive industry experience with you in the form of a blog if videos are not feasible. It is a powerful method of showcasing your expertise and reliability on paper in the business world. 

Anyone serious about doing business with your company will follow these procedures before thinking about shipping or payment options. Lastly, set up a Google My Business page for your company. Everyone else is using it; therefore, you should, too.

Issues in the supply chain 

Many sectors were hit hard by the 2021 supply chain disruptions, which caused severe container scarcity and skyrocketing shipping rates. While a small business can’t make significant changes, there’s much room for improvement to prevent these foreseeable problems from spreading. 

Due to the unpredictability of labor and political upheaval, the best you can do to deal with supply chain challenges is to have a backup plan ready.

Keeping tabs on your inventory levels is a crucial first step. A supply chain management application can help you keep track of your goods from when they leave production until the customer receives them.

In addition to these precautionary measures, you should be watchful before your goods even enter the port to ensure they are secure. You can be proactive by instructing factory owners to use extra bubble wrap when shipping fragile items and checking that each shipment has the correct bar code.

Ever-Evolving Foreign Policy 

Please comply with the most recent iteration of foreign policies relating to global trade and exports to avoid seizing your shipment. When preventing this kind of problem from occurring, it is important to double-check all of the information you gathered well during the export market selection process, checking to see whether any of the relevant regulations have changed. 

Being cautious now can save you much hassle later on. The certification of products pertinent to the trade is also a part of these policies. Importers and exporters each must meet the duties related to customs clearance for a successful shipment.

Inadequate communication 

There will inevitably be linguistic and cultural barriers if you want to make your ambition a global reality. Many local businesses are hesitant to reach out to customers in other countries because they fear they won’t communicate effectively in their native language. 

Even if you overcome the language barrier, you still need to oversee your words and actions to show your company in a positive light. While globalization has undoubtedly brought the world’s population closer together, the gulf caused by cultural differences still has to be bridged. 

The way people do business in other countries is different. Buyers work on their schedules, so you can hope for a speedy answer and improved connectivity. A lack of patience on either side could derail the entire transaction, so you can bring in a mediator whenever possible.

Conclusion

By 2025, India plans to quadruple exports to $1 trillion. Exports from India hit a record high of $95.2 billion between April and June of 2021, an increase of 85.9 percent from the previous year’s corresponding period. This period was also when India fought off a devastating second wave of Covid-19, so this is no simple achievement.

Despite this positive information, it is still challenging for Indian businesses to ship their products abroad. The problems they’ve been having for years, even decades, haven’t gone away. India’s exports may only realize their full potential after resolving these issues immediately.

Expanding one’s business to other countries is ambitious, requiring a strong will and the willingness to take measured risks. However, deep analysis and preparation can help you overcome those hurdles and launch a successful export firm.

Authors Bio:

Mr. Mehul Goyal is a professional DGFT Consultant – EPCG License with experience of more than 30 years and specialized in the field and is offering DGFT Consulting Services all over India.  He is working with many importers and exporters even before DGFT was instigated in the markets.