Being ‘export ready’ makes all the difference when

going international.

’Determining whether you are ready to enter the international

business arena starts with

self-examination, being

absolutely honest about

what your company is good

at and what it does less

well. Being realistic about

the resources needed and

about your real ability to

compete.’ explains Bever-

ley MacLachlan, Interna-

tional Marketing Director at

Sannam S4.

This will highlight the strengths your company can use to deliver

a competitive advantage in the market you choose to enter and it

will also highlight the changes or improvements your business

can make to limit or eliminate your weaknesses.

It’s easy to see the opportunities of the big markets such as Chi-

na and India but you also need to be mindful of the risks in enter-

ing certain markets. Understanding the height of the entry barri-

ers in some markets is key as this can adversely affect your per-

formance. Equally, where barriers to entry seem low but where

the market has a strong culture and where nationalism runs high,

can lead to customer’s mistrusting your product or service, re-

sulting in less revenue.

INTELLECTUAL PROPERTY From the outset, companies always need to be mindful of intel-

lectual property rights. For some countries, your intellectual prop-

erty rights stop at the border. As Beverley commented ‘We’ve

seen many examples of companies throwing away the family

silver to secure a one-off sale. By taking professional advice, this

could have been avoided.’

COMMITMENT Commitment to the local market is key. ‘Many companies start

with an initial burst of enthusiasm but what’s needed is the exec-

utive leadership solidly committed to exporting and the willing-

ness to dedicate the resources to it,’ says Beverley. ‘That means

a lot of travel, attending trade shows and meetings in-country

with potential buyers, suppliers and distributors. Managing your

export activity remotely from a UK base is never easy.’

In-country, market research is also key. Knowing the market po-

tential and what is needed to adapt your product to market condi-

tions is one thing, as is fully understanding the potential competi-

tion, be it local or international. As a new entrant in an unfamiliar

market, you’ll need to go beyond simply understanding a com-

petitor’s strengths and weaknesses.

DUE DILIGENCE You’ll also need to fully understand the potential supplier, part-

ner, agent and distribution landscape. ‘Many companies enthusi-

astically enter into agreements with third parties without doing

due diligence,’ Beverley noted. ‘The result is a loss of sales as

many don’t get the returns they had hoped for. That’s good busi-

ness for us as we often get involved to turn the business around,

when things go wrong and relationships sour.’

‘By choosing the wrong distributor you could be locked out of the

market for several years with, at best, a trickle of orders,’ says

Beverley. ‘Make sure your distributor is totally committed to your

product/service and to your business and build them as an ex-

tension of your international team rather than simply a third party.

Double check that they don’t hold the rights to distribute a com-

petitor product too, otherwise your route to market could be se-

verely compromised.’

EXPORT MECHANICS Equally, laws and regulations in foreign markets frequently change. ‘This is particularly the case in markets such as India and Brazil.’ says Beverley ‘In the excitement of getting the first order, we’ve seen companies forget the basics of export me-chanics such as understanding the local border and customs control, understanding the financial and legal regulatory implica-tions, the tax regimes in the host country and the financial and payment options, notwithstanding how to repatriate any profits they’ve made.’

‘In the end it’s about developing a solid international business

plan,’ says Beverley ‘It’s about defining the goal, developing the

strategies and getting the right tactics in place - that’s hard to do

from an office 4,000 miles away.’

ABOUT US Sannam S4 helps international businesses enter, establish & prosper in India, Brazil and China. Whether a company is seeking to generate new revenue, source products, or establish a manufacturing unit, Sannam S4 provides end to end business support in-house. We also support busi-nesses who are already established in the market with ongoing business development, compliance and ongoing business sup-port services. Our teams comprise of dedicated local and international special-ists delivering market research, company structuring, compli-ance, finance, tax, accounting, inward investment, sourcing, business development, HR recruitment and HR services. Contact us now to find out more consult@sannams4.com

Organization

Recent research from Sannam S4, the international market entry and business support service experts, has

shown that the most successful international companies are those which have fully planned their market entry,

sometimes years in advance, rather than being led into a new market on the basis of a ‘one-off’ opportunity.

www.sannams4.com INDIA I CHINA I BRAZIL consult@sannams4.com