Export Business: Never Get Failed in any Scenario

Export Business: Never Get Failed in any Scenario
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The characteristic feature of the Indian economy as a developing market leaves a sizeable scope for growth and development. Factors like its advancing rank in the ease of doing business and expanding global acceptance places it in an advantageous situation.

  • As per the ease of doing business ranking provided by the World Bank, India jumped 14 places to rank 63rd.

In a scenario where India’s business efforts are being recognised globally, starting and managing an export business can be substantially rewarding.

  • As of February 2020, the total export value from India stood at USD324.78 billion, with the USA being the primary export partner.

From improving distribution to acquiring clients and procuring export finance, the scope for business growth remains immense.

To keep your export business up and running, and sail through existing risks, here are a few essential tips to follow.

Tips to keep your export business up and running successfully

1. Assort select product types for international promotion

While the choice of product types to export can be based on individual discretion, it is ideal to choose products that have a high appeal in the international market.

Moreover, focusing on a handful of product types can bring efficiency in research and management than exporting scattered item types.

Alongside, you must also research in-depth and identify facets like safety requirements of the local government at your export destination, availability of datasheet in the target market’s language, etc.

Also, when launching into a new market, assess the associated risk of failure and keep the costs at a minimum. Nevertheless, exporting demands sizeable investment, which you can meet with export finance options like a letter of credit.

Such financing can be conveniently secured by approaching lenders providing business loans for SMEs and MSMEs.

2. Define the right criteria to target markets of export destinations

While the market selection is crucial, it is also essential to define the right criteria to select a market for export. It directs you towards identifying a potential market based on opportunities instead of preferences. It also dramatically shoots up the possibilities for export success.

Select markets based on prosperity and size, their preferable purchase routes, profiles of clients, running prices, government regulations and competition, exchange rates, ease of travel and the likes.

Selecting the right market also minimises the risk of a potential economic downturn, both individually and pan-nation. Like –

  • Exports of goods and services from India stand at close to 20% of the nation’s GDP.

Market choice can also accompany the need for additional funds, involving storage and warehousing of goods. With options like shop loans available, you can alleviate any financing worries and focus on other aspects of concern for successful export business. These debt-funding options are among the easy ways to finance your growing business.

3. Tap the potential of nearby countries

You can also leverage the potential of nearby countries alongside reaping the benefits of factors like reduced shipment/cargo delivery timing, similar time zones and the likes.

For instance, reduced travel time can help get your products across to the targeted customers as and when needed. Similar time zone also allows for easy availability of the exporter during the customer’s working hours. Additionally, with a nearby reach, logistics also remains sorted.

4. Develop your market via partnerships with local distributors

Along with market identification and product determination, a reliable distribution system also plays a key role in making an export business successful. 

Promoting products in a new overseas market can be typically challenging. More so, when customers have an option to purchase from local vendors, they may not instantly prefer a seller based in another country.

Plus, the expense of opening an office and employing staff can be unjustifiable when you have an option to partner with local distributors.

You can thus choose from a supply chain partner, a sales agent or a distribution partner for selling your products in high volume overseas. You can also go for a joint venture with a local company there to export your products.

Nevertheless, if there is a need to establish a local shop in your overseas market, you can secure financing via options like a shop loan.

Lenders also provide dedicated funding options at flexible credit terms, with easy conversion of pre-shipment costs to post-shipment liability. Export finance options like packing credit come off as suitable funding resorts.

Apart from this, penetrating the online marketplace is another smart step an exporter can undertake to gauge demand and gain customers initially with minimum investment.

Avoiding saturation export to the existing market and exploring new ones can further reduce the risk of failure during untoward market turbulence.

5. Arrange finances and gauge associated risks

Running an export business involves huge financial risks, among other funding involvements. It is thus prudent to make necessary export finance arrangements like setting up a letter of credit to defer the risks of non-payment for exported goods.

Financial institutions like Bajaj Finserv bring funding options such as export packing credit and business loans as easy financing options against minimum eligibility. Proper utilisation of a business loan can benefit in several ways.

They also make the process of availing finance hassle-free and help save time via their pre-approved offers.

As for successful export business, along with deciding products, diversifying markets and securing export finance, employing individuals with export expertise is also important. A well-rounded approach with proper planning and research makes for successful export business.