What are the factors to be put into consideration for a firm trying to enter a new global market
As with any new business plan, the first step you should take before crossing borders is to do your homework. Take these 20 critical factors into account before you begin:
Factor 1: Get company-wide commitment. Every employee should be a vital member of your international team, from the executive suite to customer service through engineering, purchasing, production and shipping. You're all in it for the long haul.
Factor 2: Define your business plan for accessing global markets. An international business plan is important in order to define your company's present status and internal goals ...view middle of the document...
Market research is a powerful tool for exploring and identifying the fastest-growing, most penetrable market for your product.
Factor 8: Search out the data you need to predict how your product will sell in a specific geographic location. Doing your homework will enable you to find out how much you'll be able to sell over a specific period of time.
Factor 9: Prepare your product for export. You should expect to adapt your product to some degree for sale outside your domestic markets before you make your first sale. Packaging plays a vital role in enabling international connections. Make yours the best in its class, and you'll be able to sell it anywhere in the world.
Factor 10: Find cross-border customers. There is no business overseas for you unless you can locate customers first.
Factor 11: Establish a direct or indirect method of export. It all boils down to export strategy and how much control you wish to exercise over your ventures. On the other hand, readiness to seize an opportunity is more important than having your whole strategy nailed down beforehand.
Factor 12: Hire a good lawyer, a savvy banker, a knowledgeable accountant and a seasoned transport specialist, each of whom specializes in international transactions. You may feel you can't afford these professional services, but you really can't afford to do without them.
Factor 13: Prepare pricing and determine you’re landed costs. Be ready to test out your price on your customer. See what reaction you get and then negotiate from there.
Factor 14: Set up terms, conditions and other financing options. Agree on terms of payment in advance, and never, ever sell on open account to a brand new customer. No ifs, ands or buts. Just don't.
Factor 15: Brush up on your documentation and export licensing procedures. If you find it too time consuming, hire a freight forwarder...