Exporting for the first time can be spooky. You never know what challenge might be lurking on the other side of that border, just waiting to jump out at you. So as a Halloween treat, ExportWise has compiled a list of exporter’s biggest fears, and offered some sweet solutions to avoid them. So get your pillowcase ready, this Halloween you’ll be trick-or-treating for export tips rather than candy.
1. Not getting paid
Non-payment is probably one of the scariest things about exporting to a new country. You put in hours of your time and money to land a deal and successfully get the goods to the other side of the world…but you are never paid. Now that’s just evil.
It happened to SailRail, and the experience still haunts them today. To avoid a chilling sequel to non-payment, they opted for Accounts Receivable Insurance (ARI) from EDC.
Looking for a speedier solution to this frightful reality? Try TradeProtect, an online tool made for small business owners that can be access from anywhere. Find out how Librestream Technologies insured its products against non-payment in as little as 10 minutes.
2. Not finding a local partner
For a company looking to export to a foreign market, not finding a local partner they can trust is as terrifying a prospect as marrying the Grim Reaper. Without that trusted partner to buy or distribute your products, you can say R.I.P, export opportunity.
There is a way to avoid this ghastly situation. Enterprise Canada Network can help you find that full chocolate bar of a partner, in among the undesirable bags of granola and apple chips. Follow these tips and join the ECN matching platform to help you in your search for a compatible business partner.
3. No financing from banks
If you think not finding a local partner is scary, imagine a bank refusing to finance your exports because the level of risk is too high! That’s petrifying for an enterprise that needs that support to launch their product into a new market.
There is a way to avoid such horror, thanks to EDC’s Export Guarantee Program (EGP). With EDC guaranteeing up to 100% of your loans, banks will be more comfortable providing you with the working capital you need to grow. CanAgro, a small agricultural equipment supplier, is one example of a Canadian company that used EGP to ensure payments on their shipments and financing for expansion of their business. Learn more about their success here.
4. Entering an Emerging Market
Expanding your business to emerging markets can feel like stepping into an alternate universe. Everything is the opposite of what you might expect, and challenges may pop up expectantly like a mischievous neighbour disguised as a scarecrow, jumping out at unsuspecting trick-or-treaters.
Luckily, there are some tips you can follow to make sure you are better prepared for the possible risks when entering an emerging market. If you are looking to export to Mongolia or Namibia, don’t be frightened – these tips apply to all emerging markets, not just Mexico.
The first thing companies want to be certain about is profit. But unfortunately, currency can sometimes spell uncertainty as fluctuating exchange rates lead to unpredictable profit margins…that’s just creepy.
But currency risk doesn’t have to be scary. Take the Renminbi (RMB) for example. It has been one of the most stable currencies since the global financial crisis, and Canada has taken advantage of that by opening the first RMB hub in the Americas opened in Canada. Check out what implications the RMB may have on your company. Go ahead, do business in China. Don’t be scared.
As long as you follow these tips, exporting will not be such a haunting experience. Happy Halloween!
What are some of your most bone chilling export experiences? Let us know in the comments below!