Doing Business Abroad
The decision to do business beyond your own backyard should be based on your success as a local, domestic business first. Here are a few starter points toward international sales:
Instill Confidence.
Regardless of the product or service you sell, you’ll find yourself providing international customers a higher level of service than what you provide your domestic customers. You’ll offer, for example, around the clock telephone support, extended warranties, and other services that help those abroad trust you.
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A Good Read: International Journal of Globalisation and Small Business |
This is one reason why many international businesses outsource abroad. Larger companies, who need to provide customers with 24 hour support, can extend limited support across the entire time zone map via offshoring.
Know The Rules
You’ll also need to understand all the rules and regulations that govern international business in this country, as well as those in your customers’ country.
Understand International Shipping
To ship goods internationally, you’ll need to additionally know various shipping regulations. Shipping difficulties are always perceived as the seller’s responsibility, right or wrong. So understanding the entire shipping process, and having the right policies in place will help avoid problems with things like insurance, freight forwarders, etc.
Include A Packing List
Always use a packing list, and remember to number the packages. If you’re sending 5 packages, label them 1/5, 2/5, etc. This way, if anything is lost, you’ll know which package is missing, and you’ll have a list detailing what was in every package, making it easy for your customer(s), your shipper, and your insurance company to solve the problem.
Protect Goods With A Damage Policy
Your damage policy should require all damages or losses to be reported within 24 hours. Damage reports should be sent to the customer’s local delivery company as well as to the shipping company on your end.
Require Signatures
Provide required paperwork so that when deliveries are made, customers can sign them off in agreement with what was delivered.
Require Payment In Advance
Require payment in advance — either in U.S. currency, or through a letter of credit to be paid out in U.S. currency. You might also require that the letter of credit be irrevocable and transferable, and that it allow for payments of partial shipments, etc. The more flexible the letter of credit, the better.
There are many other considerations you should investigate before starting an international business, but this list should set you on your way to researching the details.
External Resources:
1. Twelve People Skills for Doing Business Across Borders
2. Doing Business Abroad: A Handbook For Expatriates
3. The World’s Business Cultures: And How to Unlock Them
