Exporting can make a huge positive impact on your business. Unfortunately, there are negative myths and misconceptions that could prevent you from taking advantage of the opportunities and value chains within the industry.
These myths are widely held but in the real essence they are false and are not valid. Holding on to these false beliefs can deter you from venturing into the export business.
The purpose of this article is to debunk the myths and misconceptions that you have been fed with as a first time exporter and provide you with truths and facts about exporting in today’s global economy.
Myth 1: I Might Lose My Goods
Your fear is valid. However, you should know that losing goods is not only associated with international trade but also local trade.
Exporting goods to another country requires that your product complies with export regulations for leaving the country, as well as meets the destination requirements for entry into another country.
To ensure that your goods are safe and get to the right location and buyer, you must make sure that your documentation is carefully compiled and free of any error. Some documents listed below are in order.
- Bill of lading/Air waybill
- Export Contract
- Phytosanitary/fumigation/international veterinary/health certificates
- Commercial invoice
- Packing list
- Certificate of origin
- Dock/warehouse receipt
Myth 2: Exporting Is For Big Companies
This is a misconception first timers and those who ventured into export without following due procedure have.
No doubt, international trade requires more effort and can be challenging, but it’s not impossible.
Why it may seem impossible or meant only for established companies is because there are critical decisions that you have made, certain factors that have not been considered and measures put in place for successful exportation.
For your export business to be successful, you must:
- Decide what to sell and where to sell
- Have a plan
- Understand the process
- Choose a route to market
- Join the right community/platform
- Get legal counsel
- Source for suppliers
Myth 3: Export is Too Complex
As a beginner in the export business, knowing where to start, how to start and the resources needed can be a lot of burden.
The Internet is loaded with lots of information and resources that can come in handy for you as a first time exporter. Knowing and having access to these resources will help in making your export business less burdensome.
Here are a few resources that can make your export business easier. These resources will help you get started on your export journey, get answers to many of your questions and access to platforms that will help boost your export business.
- Your customers
- Your bank
- Your documents
- Articles, manuals or books on export
- The right cooperative
Myth 4: I Cannot Afford to Export
I don’t have the money for marketing abroad or expanding production for my new export business is no longer a valid excuse.
There are various low-cost ways to market and promote your business abroad, handle export orders, and finance your export transactions. You don’t need to own a vessel, hire new staff, rent a building or set up an export department.
At little or no cost, you can export goods, have access to market research, worldwide market exposure, generate trade leads, and find qualified distributors through various platforms and groups.
You don’t need to be an expert to export. You don’t need to have lots of money or a big enterprise to export. You don’t need to travel abroad to export.
There is an abundance of resources and platforms available online and offline that will help you as a beginner to learn and understand the ins and outs of the export operations.
The government, agencies, various communities and groups have been set up to provide you as a first time exporter guidelines to the export business.