- Use the service of established organization
- Network
- Go to trade fairs and exhibitions: observe what others are doing and learn from it
- Attend market briefing and webinars
Managing seven key risks when trading overseas
- Product risks
- Cultural risks
- Legal risks
- Political risks
- Credit and settlement risks
- Market risks
- Operational risks
- Next steps
- Helpful guides
Whether you’re importing or exporting there are risks as well as advantages in doing business with suppliers or partners overseas. The key to successful international business is to understand where those risks can arise, and having a risk management plan to deal with them.
Robust due diligence helps; that means doing as much research and analysis as you can on your suppliers or partners, the products, your markets and what financial and legal liabilities you’ll be facing.
Check out this guide to help make sure you understand these risks and are well-prepared.
Here are the seven areas of risks that it pays to be aware of.
Product risks
Product risk is anything to do with the product you're importing or exporting. It covers demand for the product, your competitors, pricing sensitivity and even packaging of the product.
If you are exporting, assess what demand is there for your product in the overseas market you're targeting, and whether you need to modify your product to suit the new market's needs; you can't necessarily rely on replicating exactly what works at home.
Part of your due diligence should be to do some market research to identify what your target market wants and then compare your findings to your existing product.
If you need to change your product, determine whether that change is 'cosmetic' (which may mean changing the type of packaging you use for example) or 'profound' (which could mean changing the product itself).
You also need to be aware of any restrictions that may exist in your target market for the product you're selling.
Competitor activity
Keep an eye on what your competitors are doing in your target market. Go to trade shows and talk to customers. Visit your competitors' websites and keep up-to-date with who they're selling to, and any innovations they might be making. Be ready to alter your product or price to remain competitive.
