EXPORT IS OVERRATED!

Six things every new exporter must do.

Yes, you read right!  Export is overrated, or so they think.

This is one comment  heard from lots of new entrants into the export business, especially here in Nigeria. There are two major factors among others that often bring about this conclusion which many newbies in exportation see as stumbling block.  These are:

1. Access to markets:
   A lot of newbies who come into the industry are soon faced with the challenge of market availability. This often lingers and causes great discouragement.
2. Access to funds:
   Exportation is capital intensive. It could cost several thousand dollars to close and ship a container of any product, which is quite a lot for most new exporters. As a result of this, many new exporters tend to resort to seeking for fund for export transactions; and sometimes end up not getting or losing export contracts.

These two factors have caused a lot of people to come to the conclusion that export business is overrated and complex.

Is this the whole truth?   not exactly!

Agreed that this is a common challenge faced by both new and experienced exporters both in Nigeria, and other countries; it equally is not a reason to conclude that export is overrated and complex. Export business is very profitable and lucrative, but first you must understand some industry fundamentals, if you must succeed.

Before you begin to tackle the issues of market availability and funding, here are six (6) things you need to do that will start you help you set off on a good footing to becoming a successful and an established exporter.

Export also called international trade is primarily the exchange of goods or services between two countries in return for foreign exchange. There are lots of fundamentals to learn when it comes to international trade such as, trade terms, payment methods, international trade laws and regulations, trade statistics, etc. These fundamentals make up for bulk of the success any, new or experienced exporter will have.

As a new exporter, it is important that you take time to study the trade history between your country and the country you wish to export to before engaging in export. Verify that your product can be exported from your country or imported by the country. Often times, many exporters fall victims of this and are severely punished through loss of products, funds and time.

As a very sensitive industry, trust is one currency you want to have and hold for as long as you wish to stay in this industry. Every importer wants to be certain they are dealing with a genuine exporter. The best way to buy trust is first ensuring that you have all legal requirements to carryout export transactions. Get your company registered with the relevant authorities, and get your documents ready.

Often times I have seen people who come into the export industry, and can’t say what product or service they offer. Being specific on your product or service will help you know how to channel your market analysis so as to get the best market for the product.

Having a specific product or service will also help importers locate you faster. You can develop your product, become a distributor of an already existing product, or a merchant that helps source product for people, and of course, it is equally important to know the type of export you’re engaging in. You can read about Categories of Export Here.

Unlike any other trade, export involves exchange of currencies between two countries and as such, it is import to know the dynamics of pricing if you must succeed. Know how exchange rates affect your product/service cost, logistics and profit. Also understand that most products have their international price benchmark which affects the extent an importer (Buyer) would go in order to buy from you.

Export is not done in isolation. It is a business where information sharing is one pillar for success. This is one factor that is neglected by new exporter. If you must succeed, you must join the right community where information, support and network is available. Here you’ll easily get the needed guide for success in your business. This is why Export Tribe is here. Our vision is to build a global community of export where information, networking and support is available for export business success.

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Export business is not a get rich quick scheme. Like every other industry, growth in this industry is progressive. Export Business requires patience, so give yourself time to grow, learn, and succeed. Staying consistent makes you better each day, and would bring you the results you desire.

If you can intentionally work on these factors mentioned above, you can be guaranteed to succeed in the export industry. Then you can boldly say that EXPORT IS NOT OVERRATED!.

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