Currently, many companies are not only focusing their sales in the domestic sector only. To reap more profit, expand market reach, and become an established domestic company, many businesses are trying their luck by turning their business strategy into an international business. In order to obtain an international label, the way taken was diverse, ranging from following the exhibition, to entrust their goods to relatives living abroad.
For those of you who want to spread their wings to international markets or export markets, there are some things to keep in mind to avoid the various risks that may be experienced. These risks can occur due to unstable government, currency fluctuations, communication costs and adaptation costs, to other risks. In order for your marketing to go through multiple barriers, here's a marketing strategy you can apply.
Building a local business into an international business becomes a challenge in itself. Before getting started, consider the following 4 rules.
Consider Product Quality Before Starting International Business
Before you start an international business, consider the quality of the product to match the quality of the international market. Many local firms use strategy through situation driven approaches or situational approaches that are culturally based, population, and market conditions. A suitable product in an area is not necessarily suitable in other countries, it could be caused by culture and lifestyle. So, the products that you will offer must be tailored to the tastes, quality, and wishes of local buyers. To check whether your product complies with international standards, you are usually required to pass some tests and pocket the industry license from the party concerned.Understanding Import Export Rules
One of the problems often encountered by international business people is the lack of understanding of some import export rules, both in origin and destination countries. It is very important for you to deepen the rules in export destination countries to find out what products are allowed and may not enter the country. So that the business will not be wrong choose the prospective buyer, so that the cooperation of import export can run smoothly.
Know the Technical Procedures
As an international business it is important to know the technical procedures that exporters need to run. Starting from the administrative procedures that must be equipped, equipment and equipment, customs procedures, until the usual payment procedures used. Prepare also documents, so that products that are ready to be sent unstoppable because the document is not complete.
Do not forget to equip your international business with insurance as one of the safeguard procedures. Zurich presents a Product Liability Insurance that may provide assurance in respect of the Insured's legal liability to a third party for bodily injury or property damage caused by the nature, condition or quality of the resulting product. Not only the benefits of protection, the Product Liability insurance provides the validity period of a flexible policy, the amount of premium that can be tailored to the needs, and other benefits that you can get here.
Avoid Risks of Adverse Exchange Rate Changes
An international business based company will base its business activities on consideration of exchange rate changes in a country. This is done to avoid the risk of loss due to weakening or the strengthening of the volatile exchange rate (volatile of exchange rate).
Exchange rate fluctuations pose a significant risk to the competitiveness of firms in overseas markets. When the currency of the destination country weakens, then the business of international business will also weaken. As a way out, adjust the request of the destination country. This needs to be done to reduce various expenses as well as maintenance costs. In addition, the other way out is that exporters or entrepreneurs must observe the current global economic situation.
Before starting an international business, understand all the rules and find the best tricks to penetrate the market. Also note the quality as well as choose the right insurance that can provide a guarantee of tranquility.