7 mistakes companies make when they export

Exporting is potentially both rewarding and risky. In that sense, it’s no different to walking a tightrope or indeed running a business in just your home country. But, and it’s a big but, the very fact that there are differences between countries and markets mean it’s important for companies to avoid the crosswinds that could blow you off your slackline. ?

Embarking on an export journey can be a lucrative decision for small companies looking to expand their market reach. I’ve already touched on the attractions of going global in my previous article. But many small businesses stumble into common pitfalls that can hamper their success abroad. Recognising these errors can help companies suffer serious problems.

1. Unclear logistical plans: Efficiently planning the logistics is crucial for product manufacturers. Poor organisation can lead to delayed shipments, financial losses, and a tainted brand image. Always have a clear-cut logistical plan in place before diving into exports.

2. Inexperience with border control and distribution laws: Every country has its own import regulations and distribution laws. Being unfamiliar with these can lead to legal repercussions or confiscation of goods. It's vital to research and understand the regulatory landscape of your target market.

3. Poor understanding of the market: Before making a move into a foreign market, thorough research is critical. You have to understand consumer preferences, local competition, pricing strategies, and cultural nuances. Don’t cut corners and assume it’s just as the same as your home market. Do the work.

4. Weak internal structure: Exporting demands a different set of skills and an adaptive internal structure. If your team isn't adequately prepared or lacks commitment, it can lead to poor decisions and missed opportunities. There are companies and consultants out there that can help you make good decisions and have the right people and processes in place.

5. Overstretching your finances: It can often take more time and cost more money than you think it’ll take to get each country’s business up and running. So don’t try and bite off more than you can chew. Set targets and goals, and ensure you’re looking after the cashflow as you invest in each new market.

6. Overlooking cultural differences: Cultural misunderstandings can have detrimental effects on branding and customer relationships. Even big companies have fallen prey to translation errors and misinterpreted marketing messages. Most business owners have heard about the need to figure out cultural nuances in places like Japan and China. But every country has its own norms and expectations, even the USA and Germany. Don’t make assumptions.

7. Not having a backup plan: As with any business venture, always have a Plan B. External factors, including political instability, economic downturns, or unforeseen global events, can influence the export landscape. A good small business has the ability to adapt quickly and pivot your business to meet each market’s demands.

Personally, trading with Copylab in around 10 different countries has been challenging but immense fun. I’ve met some amazing people, solved a lot of problems and enjoyed the journey immensely. Both successes and failures have given me and the Copylab team incredible lessons that have made us better leaders and a more rounded business.

Exporting offers immense potential for growth and diversification, but it's not devoid of challenges. By recognising these common mistakes and proactively addressing them, founders can pave the way for global success – and an amazing view from the other side of the tightrope! ?