Details and complete thoroughness make or break import/export ventures on a daily basis. Knowing what due diligence steps need to be taken will pay dividends shortly down the road. If you are looking for a long-term sustainable import/export (IMEX) venture that will drive revenue for your company, develop your brand recognition, and increase access to opportunities and talent then conducting due diligence prior to committing your company to a specific course of action is paramount for your desired success.
Four steps that you can put on your due diligence checklist for your planned IMEX venture are:
- Product Market Research
- Country Market Research
- Package Marking Research
- Product Representative Research
No one area of research will adequately cover due diligence requirements. Due to the highly complex nature of import/export operations, volumes of details are a natural byproduct which creates an business sector where the sum is greater than the parts.
PRODUCT MARKET RESEARCH
One of the exercises that any exporter worth their salt should engage in before making a commitment is conducting product market research. Creating a set of factors for evaluating a product's potential in a certain market will help you make a decision about whether or not pursuing the next step is worth the time.
For a Product Market Research Worksheet, click on the link at the bottom.
COUNTRY MARKET RESEARCH
Each country comes with it's own set of rules, regulations, advantages, and disadvantages... clearly knowing what each of these are should enable you to make a more balanced decision instead of being biased towards your product/service (which may be great but fail miserably in the wrong market).
For a Country Market Research Worksheet, click on the link at the bottom.
PACKAGE MARKING RESEARCH
Having clear marking on your (the exporter) packaging goes a long way in easing the identification of a shipment for your client (the importer). Customs in your destination port/airport are there to ensure that every "I" has been dotted and every "T" crossed or you can be assured that they will give you a headache.
For a Package Marking Worksheet, click on the link at the bottom.
PRODUCT REPRESENTATIVE RESEARCH
If you are deciding to go the do-it-yourself route instead of opting for the services of an export management company (EMC), then one of the things you will find yourself doing shortly is compiling a list of prospective product reps in your target market and then calling upon each of them show your company what they can provide.
For a Product Representative Questionnaire, click on the link at the bottom.
Going through the four steps of:
- Establishing the feasibility of your product/service
- Clearly understanding the complexities within your potential market
- Researching the requirements for your cargo to pass through destination port/airport customs
- and Finding the right resale partner in your target market
Will give you confidence in making a decision about committing your company or it will expose hidden issues in your initial idea and save not only capital but perhaps your entire company as well.
Andrey Polston manages Optimum Outcomes, LLC an export management company (EMC) helping small and medium sized business' find and develop global sales markets. Source :ezinearticles |
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