It is not impossible to establish a successful international trade business if you are hardworking and consistent. Surviving in international trade business isn’t easy because of factors such as logistical challenges, communication barriers, fraud, currency fluctuations, etc. It is possible to overcome these challenges if you are equipped with the right information. Below are important tips that should help you survive in international trade business.
4 Important Tips for Surviving International Trade Business
1. Deal with high quality products only: This is by far one of the most important tips to consider if you want to survive in international trade. This tip is more applicable to individuals who choose to do export business. It is important to note that you can’t survive in the export business selling substandard goods. This is because the export market is very competitive. Also, many countries have regulations in place preventing the entry of substandard goods. You must therefore ensure that you deal with high quality goods only for you to survive in international trade business in the long-term.
2. Do thorough research: This is also an important tip to consider if you want to survive in international trade. You have to do market research to be able to identify adequate demand for your goods. Many international trade businesses fail because of failure to do thorough research. It is important to note that doing international business is not the same as doing business locally. You have to prepare very well and ensure that you know everything there is to know about imports and exports business i.e. excise, tax, and duty payments, custom and border operations, international trade laws, etc., otherwise you will risk facing very harsh challenges. Doing thorough research helps you prepare for any kinds of challenges that may arise.
3. Develop a global strategy: You must also consider developing a global strategy if you want to survive in international trade. Local strategies can’t work for your import and export business. International trade requires global strategies. You should not approach international trade as an opportunist only. Such strategies don’t stand the test of time when doing business globally. You need to think about how you will offer unique solutions globally when doing business otherwise you won’t survive in international trade.
4. Mitigate risks where possible: This is also an important tip to consider. You can’t survive in international trade business if you don’t mitigate risks. International trade businesses face a lot of risks i.e. currency fluctuations, excise/tax penalties, fraud, etc. You must therefore do everything possible to mitigate all possible risks. For instance, to avoid or minimize fraud incidences, it is always advisable to ask for advanced payment in the case of export business. In the case of both export and import business, you can protect yourself against currency fluctuations by maintaining adequate currency reserves. You can also protect yourself against risks such as theft of goods in transit, fire, etc., by taking international insurance cover/s. It is impossible to survive in international trade without taking the above measures to mitigate risks.
John Sterling writes about international business, trade and global sourcing. If you need more information about international trade and sourcing, visit Global Sourcing.