In today’s global marketplace, many successful firms have expanded and increased their sales revenue by exporting to other countries. Canada’s largest trading partner, the U.S., is usually a first choice and offers enormous potential to increase sales and profitability. However, many exporters are now turning their attention to overseas markets that represent even greater opportunities – and challenges.
Expanding your business internationally can bring significant benefits but carries additional risk that requires research, an understanding of political and economic climate and due diligence.
Consider these factors:
- Identify the target country or region that you want to export into
- Research, select and choose the right distribution channel
- Define the terms of the reseller contract and agree upon mutual expectations
- How currency fluctuations may impact trading risks
- Establish a credit management policy; Export Development Canada is a viable option here
- Litigation and liability risk – it may be a benefit to establish a different operating company for your export business
- Shipping and transportation costs
- Duties, tariffs and import taxes
- Language – where possible, conduct business in English or another language you are familiar with as another layer of complication is introduced when using an interpreter
- Update your website to clearly articulate your “value proposition” for international inquiries and to support your reseller network
To read the full Business in Vancouver article, click here.
Source: Business in Vancouver (www.biv.com)
Greg Spafford Firstbase Business ServicesFREE Consultation