| THE KEYS TO SUCCESS |
The opportunity is alluring |
| Your products are successful in your home market. You already have customers in the US who order directly from you and they encourage you to develop in the US. Potential agents or distributors have approched you. The investment seems reasonable and the potential is attractive. However, one out of three export attempt fail. Why? Here are some of the reasons:
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Exporting requires a cultural adaptation |
| The different business and general culture, the physical distance, the time difference, the language barrier, the lack of knowledge of the local ways and behaviors, evaluating the startup costs; all these factors and more can become major hurdles for a small or midsize company. The non emotional attitude of US business people for whom market and profit are the only criteria for business decisions can be difficult to accept for Europeans who have a strong bond with the products they produce and the relationships they have developed over the years. |
| Your products must be well adapted |
| Business in the US is entirely dependent on the purchasing public. A good product mix is the first step to success. A fine balance must be struck between an offer that stands out and one that is too different. The design must fit local even regional tastes and your brand image. Your products must abide by government regulations as well as de facto market standards. |
| Your prices must be finely tuned |
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Establishing an acceptable price list is primordial. All the logistical and commercial costs have to be accounted for. Your margin must be sufficient but your price positionment must fit your image, your competition and respect psychological thresholds. |
| know the business environment |
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Who are the players in the field? How and when to approach them? Early decisions can be crucial to future developement. Evaluating an offer and anticipating its consequences is difficult. Learning as you go cost you time, money, lost opportunites and sometime failures of established relationships. |
| staff your project correctly |
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The person selected to head the project must have the time, skills, flexibilty and support of the management to succeed. |
| Some of the factors of success are: |
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- A prior export experience
- Realistic expectations
- A healthy financial situation with a two year investment plan
- Well adapted products and prices
- A gradual, systematic but opportunistic approach
- Competent local contacts
- A winner attitude, not affraid of difficulties, be well prepared and go for it!
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