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Finding a way to say 'Yes'

Trading successfully in export markets without gambling with your company's profitability Simon Groves Marketing and Brand Manager Atradius UK and Ireland

Someone once said that a ship is safe when it's in port but that's not what ships are for. It's a message that applies equally to business, because reward always comes with an element of risk.

So, if you're planning to get a foothold in a new overseas market, there are a few basic rules to remember:

Do Your Homework - Every country has its own way of doing business - its own business etiquette - and it may not be the same as ours. Find out about the culture, learn what gifts are acceptable and what topics to include or avoid in conversations.

Get The Documentation Right First Time - Too often a sale goes wrong for no other reason than that of basic mistakes in billing: maybe the terms of payment aren't clear from the invoice, the shipping documents don't satisfy customs regulations.

Not All Debt Is Bad - Provided that your overheads and costs are covered, it can be worthwhile taking a risk on a new customer. So . . .weigh up the extent of the financial risk and act accordingly. Don't spend more time, effort and money on expensive forms of security than you stand to gain - or lose - from the sale.

So, for instance,stipulate terms of payment that reflect the risk of non-payment - but don't scare your potential customer away by imposing over-secure terms - they'll simply go to another supplier.

Protect Your Sales With Credit Insurance - The better credit insurers have experts who understand overseas markets - the economic, political and legal lie of the land, and can advise you accordingly. And, of course, your credit insurance really comes into play if the worst happens and your customer won't or can't pay.

Published: 17/10/2007 10:34:08