But it would be naive to ignore the risks that go hand in hand with these opportunities. Even when clients have identified a suitable market and a customer base, pitfalls remain.
Our clients face the same key risk and reward questions time and time again, and the answers will go a long way towards shaping their financial future.
Do your credit and payment arrangements protect your interests adequately? What are the chances of non-payment and where would that leave you?
Are your products satisfactory for this new market? Are there additional quality stipulations that you haven’t taken into account?
Are there exchange controls or trade controls between your country and the destination country that might cause you a problem? Might there be in the future?
In the most fundamental terms, can you get the goods from A to B safely intact? It’s sometimes easier said than done.
Again, in the most fundamental terms, do you have sufficient funding to cover your trading cycle? If you have a potential credit risk, how will that affect this funding?
Exchange rates can fluctuate considerably. How might these fluctuations affect your business model?
If you’re partnering with an overseas financial institution, how secure are their guarantees? Do you have a confirmed letter of credit?
Developing economies can be vibrant and exciting but how stable is your target market? Could your plans be derailed by political or economic instability?
And how stable are your own your documentary procedures? Can you present compliant documents that will be acceptable in this new trading arena?
Perhaps most fundamentally of all, can you deliver? Have you in any way overestimated your capacity to give your new customers what they need in terms of quantity or quality?
Once you’ve asked and answered all of these questions, the final hurdle is the one that Wolfestone can give you the most help with. It’s the risk that many people underestimate, even when the other elements of their business plan are in place.
Is your website localised? Are your marketing material and your technical specifications targeted to this new audience? Having invested time and money perfecting your product and identifying a suitable new market, have you taken that crucial final step to make sure your message is conveyed as effectively as possible?
As with all business development activity, exporting is a balance of risk and reward. But it doesn’t have to be a lottery. There are sensible steps you can follow to protect your long term financial future and when it comes to cultural credibility there are reliable partners who can make sure you’re always speaking to your target audience in a language they’ll understand.
That’s why clients come to Wolfestone.
For more information about Wolfestone services:
Document translation services, Localisation services, Transcreation services, Multilingual SEO services, Proofreading, Voiceover services, Interpreting services, Multimedia services, Legal translation services, Other types of translation
The professional translation services you can trust!