Our business revolves around helping introduce new products to the US market. Our clients are governments, NGOs, trade associations, chambers of commerce and individual companies. Regardless the organization, the same questions need to be addressed--candidly and honestly--before embarking on an export program.
To start the conversation going in your organization, here are 5 questions to get you started.
1. What are the risks involved in selling products and services in the US?
The US market is enormous. It is a mature market with many entrenched market leaders. To secure a niche for your products with US buyers requires a unique marketing strategy and a considerable investment of time, resources, and money. Before you begin the challenging and tedious entry process, you must calculate its impact on your current domestic business.
2. What are the financial considerations?
The costs of physically moving your product to the US are considerable. The investment includes the commitment of additional personnel and capacity as well as the enormous brokerage, insurance, warehousing, reshipping, and sales & marketing costs involved. Without sufficient financial resources, even the best products are at a disadvantage.
3. What are the management considerations?
Does your company have solid reasons for pursuing the US market? Is management committed to allocating the necessary resources for a successful entry? Management’s desire to travel at company expense is not motivation enough to risk the company’s future—nor is finding a quick fix for cash flow difficulties by dumping excess inventory, or hoping for a quick jump in sales. Understand that successfully competing in the US market requires taking a long view that can tax your dedication and resources. It can be a fabulous opportunity, but make sure that your management’s motivation and commitment are sincerely in the company’s best interest.
4. What human resource investment is required?
The export business is a highly specialized field that requires a dedicated person within your company who can manage it on a day-to-day basis. Is there someone with the proper skill set already within your organization, or will you need an experienced consultant? Your human resources are just as important as your financial investment to assure the greatest opportunity for success.
5. What are the operational considerations?
A successful US market entry can strain your existing production capacity. Are you equipped to handle an influx of US orders without disrupting your domestic business? Will there be additional production costs? Are there product or package design modifications required? How will those modifications impact your current production process and capabilities?
These offer a starting point for internal discussions. We'll provide additional considerations soon. If you have questions in the meantime, please visit www.Help2Market.us.
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