In a recent panel discussion at WEDC’s Marketplace Wisconsin, industry experts provided insights into the fundamentals that companies should prioritize when venturing into international markets. The panel focused on building the fundamentals, overcoming hurdles and approaching international sales.
Building the Fundamentals:
- Distributors Founding: Prepare for changes in the distribution landscape and adapt strategies accordingly.
- Networking: Networking is crucial for learning from others’ experiences, understanding market nuances and building valuable connections.
- Domestic Business: Know the domestic business thoroughly, including capacity and the ability to serve export clients.
- Research Techniques: Employ effective research techniques to identify target markets and potential partners.
- Limited Funds: Strategically allocate limited funds for marketing exports based on product benefits in different regions.
- Cash Flow and Risk Mitigation: Prioritize understanding cash flow, mitigating risks and being proactive rather than reactive.
- Payment Terms: Establish mutually beneficial payment terms, whether dealing domestically or internationally.
- Resources: Understand resources, capacity and expansion capabilities and take advantage of government resources.
- Freight Forwarders: Collaborate with freight forwarders for comprehensive understanding and resource utilization.
Overcoming Hurdles:
- International Risk: Navigate the mystery of international trade by understanding payment processes, regulations and harmonized codes.
- Access to Resources: Overcome the challenge of gaining access to resources by being relentless in your approach and leveraging government support.
- Foreign Market Identification: Emphasize hands-on applications, understand import regulations and identify local partners for success in foreign markets.
- Protectionist Governments: Combat protectionist government policies by increasing trade volume and establishing partnerships between overseas and domestic operations.
Approaching International Sales:
- Receipt of Payment: Ensure receivables; companies should be persistent and relentless in reaching out.
- Networking and Outreach: Build relationships through networking, connect with commercial directors at the US embassy and make your company known.
- Resources: Leverage resources like EXIM and SBDC for guidance and support.
- Proactive Planning: Be proactive, have a plan in place and utilize available tools for successful international expansion.
By addressing these fundamentals, companies can navigate the challenges of the global business landscape and build a robust international presence. If you want to get started exporting and/or have any questions about the strategies outlined, reach out to the SBDC’s Go Global initiative!
Note: Special thanks to Isabella Wong, an SBDC at UW-La Crosse Intern majoring in Finance and Accounting, who provided the comprehensive notes and image for this blog.