Exporting can play a significant role in helping businesses diversify their revenue streams, gain economies of scale, becoming more productive and innovative. However, going global requires careful consideration and preparation as companies will face numerous challenges. These are the most common six pitfalls we have identified which can hinder your success.
1. Lack of Training and Staff Buy-in
A key mistake exporter make is neglecting to train their staff or failing to secure their buy-in for the export strategy. Exporting involves many complex processes, from handling documentation and compliance to understanding cultural nuances. Without proper training, employees could end up making costly errors or fail to meet the demands and compliance. Also, if staff members are not aligned with the company’s export goals, you may falter on taking your strategy live.
How to avoid it: Invest in training programmes that help upskill and educate your staff on export processes, regulations, and market-specific requirements. This can include compliance training, cultural sensitivity workshops, and logistical planning. Moreover, involve key team members in the development of the export strategy so they feel invested in its success. Regularly communicate the company's export goals and progress to ensure staff alignment and enthusiasm for entering new markets.
2. Neglecting Market Research
One of the biggest mistakes exporters make is jumping into foreign markets without adequate research. Every country has different cultural preferences, market demand, and competitive landscapes. Failing to understand these can lead to not just poor sales but complete market failure.
How to avoid it: Conduct thorough market research before entering a new market. Understand local regulations, consumer preferences, and the competitive landscape. Utilise available tools like government agencies and resources, as well as Chambers of Commerce, Trade Organisations and research firms.
3. Ignoring Compliance with Local Laws and Regulations
Exporters often overlook the complex web of laws, tariffs, and regulations that govern international trade. Mistakes in documentation or failure to comply with local import regulations can lead to costly delays, fines, or even product seizure.
How to avoid it: Stay informed about both domestic export/imports’ laws and the specific regulations in your target market. Hire trade compliance experts who can help navigate the legal landscape and ensure your products meet the necessary standards.
4. Inadequate Payment Protection
Dealing with international buyers introduces the risk of non-payment. Exporters often trust verbal agreements or informal contracts, which can leave them vulnerable to payment defaults.
How to avoid it: Make sure you are clear in your contractual obligations and who is responsible for what and, if exporting goods, ensure you are using the right incoterms. Use secure payment methods, such as letters of credit, escrow services, or export credit insurance. Work with banks and financial institutions familiar with international transactions to minimize payment risks.
5. Underestimating Logistics and Supply Chain Complexities
Exporting involves more than just shipping goods. It requires effective supply chain management, including understanding shipping costs, customs clearance, and potential delays at ports. Mismanaging logistics can erode profit margins or damage business relationships.
How to avoid it: Work with reliable logistics providers who specialise in international trade. Create contingency plans for delays and cost overruns. Keep track of shipping routes, port conditions, and any geopolitical events that may affect transport timelines.
6. Failing to Adapt to Cultural Differences
Cultural ignorance can severely impact how your products are received in foreign markets. From product adaption to packaging design and marketing messages, cultural missteps can damage your brand and lead to costly mistakes.
How to avoid it: Tailor your marketing strategy and product presentation to fit local customs and preferences. Employ local experts, translation/interpreting services, or consultants who can guide you in navigating language and cultural sensitivities. By addressing these common mistakes, exporters can better position themselves for success in global markets, ensuring smoother operations and stronger international growth.
Need Help Going Global?
The Chamber and network of partners here in the UK and overseas are at hand to help you prepare and grow your business. We offer advice and cost-effective services in every stage of your internationalisation journey:
- Market Entry Services: We help you identify your next export(s) markets, conduct market research and finding the right partner for you tapping into our Global Connect Network which covers 90+ markets.
- Training: Up-skilling your staff so they can help you run a successful global operation is key. The Chamber offers a wide range of off-the-shelf and bespoke export, import and customs courses.
- Market Events: Learn about the business opportunities for your business attending our wide range of webinars, conferences, forums and more. Also keep up with the latest regulations and opportunities via our newsletter
- Compliance Consultancy: Our award-winning trade and customs team is at hand to help you navigate the complexities of moving goods or selling your services overseas.
- Customs Clearance and Documentation: our customs agents and documentation advisers provide world-class services to exporters and importers moving goods across the world.
- Getting Paid: We help you with due diligence, credit checks, letters of credit, foreign exchange, cargo insurance and debt recovery services.
- Expert Services and Advice via our Members community: The Chamber connects you with members who can enable your growth including logistics and transport service providers, translation and interpreting, marketing, law/accountancy firms, and much more.