If you are looking for new markets for your products or services, consider exporting. It is not unusual to find markets which are severely under served in your particular line of business. Entering these markets can be challenging and will require a careful attention to detail. However, the results can be extremely profitable.
The US Commercial Service is tasked with promoting exports from the United States. There are Commercial Service Officers in embassies and consulates throughout the world. They can provide insight and market analysis in their host country. They can identify potential partners on the ground and set up business meetings. This service can be invaluable to getting you started in a particular market. Finding a local partner can help to navigate many of the roadblocks to a successful export venture
Exporting is not without its risks. I had the opportunity to sit in on a webinar this week about doing business in Nigeria. One of the concerns which was brought to the table was the protection of intellectual property. Our ambassador acknowledged that the Nigerian government has been lax in protecting intellectual property (patents, trademarks and copyrights). He indicated that this was starting to change as Nigeria understands that the lack of protection is an impediment to foreign investment.
You may need to customize your product for a particular market. This can be as benign as translating your labeling and instructions to the local language to modifying your content to gain approval from the local government. Some countries require a specific amount of local content to permit a product to be sold there.
Choosing a banker with branches in your target market can increase your chances of getting paid promptly. If your bank doesn't have a branch where you are headed, they may have a correspondent bank with whom they have a relationship. Financial instruments such as a Letter of Credit can protect you by guaranteeing payment as long as the conditions of the LOC have been met (goods delivered, proper quantity and condition, etc.)
In the coming weeks I will offer more tips on getting started as an exporter.
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