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If you are a first time or an experienced exporter the fact remains the same. Your export strategy should be an integral part of your overall business strategy. Copernicus can guide you to the right markets where your product uniqueness is best appreciated and you can get the highest return on your investment in the shortest time. Supported wherever possible by either UK export funding or overseas government inward investment grants.
To discover how Copernicus can guide you to export success read or contact us now at info@copernicus-consulting.com
The wide field of international commercial agreements is a complex one, where experienced help and advice can not only save an exporting company time but also enable it to avoid expensive pitfalls.
Self-employed agents in EU countries have, through Council Directive No 86/653, acquired rights that they did not have before. Some of these rights are far-reaching and can have potentially expensive consequences for principals when agencies terminate.
Copernicus can:
# Review existing agency agreements and advise on a position where no written agreements exist
# Advise on and draft new agreements for use in EU and other countries
# Advise on the planning and implementation of agency networks
# Assist in checking and negotiating claims made by agents
These agreements, in the EU, are affected by the competition laws. There are still financial penalties imposed if the laws are breached.
Copernicus can:
# Review existing distribution agreements and advise if changes should be made to comply with national or supra-national competition laws
# Advise on the selection and appointment of distributors and the planning, implementation and integration of distribution networks
# Advise on and draft new agreements for use in EU and other countries
# Advise on how EU regulations affect importers of goods from outside the EU and how the Product Liability and Product Safety Directives affect distributors in the EU
EU Licensing and Technology Transfer Agreements must be drafted to comply with so-called ‘block exemptions’ in order to comply with competition laws.
# Draft agreements of these kinds for use in the EU and specific countries outside
# Draft Joint Venture agreements
# Prepare ‘Assessments for CE-marking’ for specified goods
# Prepare ‘Assessments for the Intellectual Property evaluation of patents, registered designs, design rights, trade names, trade marks and copyright’
WHY? Because you’ll be opening your doors to a vast number of potential customers. In the newly enlarged European Union alone you have 450 million people to sell to. If you widen your view to include the rest of the world the potential for growth is almost unlimited.
If you can access this huge global market by developing the skills needed to win business overseas, you’ll be giving your company every chance of continued growth and success.
Of course, just like any business decision there are risks to be considered when exporting – it is rarely simply and the unwary can easily come unstuck. However, with the right commitment from you, and with the help and support that we will outline here, there is a very good chance that you’ll be well-rewarded for your exporting efforts.
Already dreaming of international success? Then read on.
BEFORE YOU jump on the plane for far-off lands, you’ll need to do a bit of serious thinking about whether your business is ready to export and whether your product of service is suitable for overseas markets.
The best way to kick off this process is to go through the ‘Are you ready to export?’ questionnaire which you can find on our website – www.copernicus-consulting.com/exportready. The web-based guide will take you through a series of questions designed to assess your readiness to begin exporting.
IF YOU’VE completed the ‘Are you ready to export?’ questionnaire you will have submitted your details to Copernicus at the end of the process.
The guide will automatically find out who your nearest international consultant is and pass on your details to them. They’ll be in touch to arrange a meeting to talk about your plans for exporting and to conduct a more detailed review of what you might need to do to prepare for the international business arena.
You can contact your local consultant directly through the Copernicus website or simply mail export@copernicus-consulting.com
START WITH a conversation with your international consultant. They should have a pretty good idea of your strengths and weaknesses so they can offer advice on which markets to try first.
Once you’ve identified a potential market you’ll need to focus on gathering information about it. Copernicus can help you there too.
YOUR EXPORT PLAN
Copernicus can help you to put together your first ‘Export plan’, which will set out how you approach your target market.
You can get help with your market research and the planning process (and a good deal more besides) through the Copernicus 1st time exporter programme.
Because it is specifically designed to help new and inexperienced exporters, the programme is ideal for helping you carry out your market research and creating your export plan.
It’s also very flexible so, with the help of your consultant, you get out of the programme exactly what you need.
HELP. I’M AN ACCIDENTAL EXPORTER!
Your’re busy working away on the domestic market when a big order arrives from overseas and, not wanting to let a great opportunity slip by, you fulfill the order. You’ve become an accidental exporter. But if you are going to make the most of the opportunity, you should still start at the beginning by assessing your export capabilities
Which has a mountain of good market information gathered from the global network. You can take a look at general information about both market and sectors. Don’t have the time? Copernicus can do it for you
Target market research
Really effective market research has to be tailored to your needs so, once you’ve had a good browse around the wonderful world of the web, the next step should be to commission an Overseas Market report through your international consultant.
Copernicus offers you levels of service that vary in cost and depth, so you should be able to find one that suits your pocket.
Travelling to your chosen overseas market for the crucial face-to-face contacts that are needed to win business is a big step, but you can get plenty of help to make your first overseas visit a success.
Copernicus can carry out those initial fact finding meetings for you and narrow down a meaningful shortlist of contacts that match the profile you have agreed with us. We can then hand these over to you or accompany you to the next level meetings, whichever you prefer.
HOW YOU sell your goods in your chosen market is one of the most important decisions you’ll have to make. The right choice depends both on the product or service that you are selling and the local market conditions
Perhaps the simplest way of selling is direct sales, where you deal with customers directly and take and fulfill orders yourself. However, for many products – for example, those that require ongoing customer support – you’ll need to have a presence in the market acting on your behalf. You have several options:
# Appoint an agent to sell products for you
# Sell your products to a distributor who then sells them on to the local market
# Set up a joint venture with a local partner. This will be more complicated and expensive than the agent/distributor route.
# Set up your own local office. Gives you complete control of sales but can be very expensive.
All of these options need to be treated with care. You need to make sure that any agreements you enter into with partners are crystal clear about who is responsible for what and that there are no hidden costs for you to fall foul of later. Copernicus can be with you every step of the way to make sure your decision is the right decision
Don’t underestimate the differences between overseas markets. You’ll need to tailor your marketing and promotion efforts to each market if you’re going to be successful.
Obviously you’ll need to take into account language issues, but also be aware of the cultural and socio-economic differences. For example, consumer goods like TV’s might be considered as standard household items in one market and luxury items in less developed ones. Clearly a different strategy is needed for each.
A good agent can make export sales much easier and more cost effective for you than selling directly. They tend to be more effective in less-developed markets or ones that are culturally very different.
Choose your agent carefully. You’ll need to consider their experience with your type of product, whether they have the right contacts in the market and the right skills. Copernicus can undertake the necessary research on your behalf to get an idea of the agent’s reputation and financial standing.
Distributors
Distributors buy your goods and sell them locally. They are usually more effective than a sales agent in more sophisticated, developed markets,, and can often provide after-sales service. However, you will have less control over how your goods are sold and the distributor may well want to have major discounts and extended credit.
English may be the business language in many markets but there are plenty more where you will need help. In addition to language barriers you should also be aware that cultural differences, which are often less obvious, can be just as big an obstacle to doing business.
CULTURAL DIFFERENCES
Overlook these at your peril as they can lead to embarrassing – and costly – misunderstandings. Even when your customers speak English, difficulties can arise. The US have a very different business culture to most UK firms. Copernicus has the necessary experience and a Washington based associate to make sure that the two cultures divided by a common language have a common understanding.
TRANSLATION AND INTERPRETING
Using the right translator or interpreter can often mean the difference between success and failure. Translating all your product literature into the appropriate languages is a must for any visit to the market, particularly trade shows where visitors often pick up material to read through later. A good interpreter should be able to give you advice on that market’s preferred style of business meetings and help you to avoid any cultural gaffes. They can also be ‘on your side’ in meetings, passing on nuances or asides that you may not pick up on
MARKETING MATERIAL REVIEW
You can get a very good idea of your strengths and weaknesses in this area with the support of a Copernicus communications consultant.
The consultant will give you a thorough check-up on language and communication issues, tailored specifically to your business, and a list of measures you can take to improve communications with your current and prospective clients.
YOU DON’T NEED TO BE FLUENT IN THE LANGUAGE OF THE COUNTRY IN WHICH YOU ARE TRYING TO DO BUSINESS IN TO BE SUCCESSFUL
YOU HAVE TO ADAPT YOUR TERMS TO TOSE THAT ARE ACCEPTABLE TO YOUR CUSTOMERS TO REMAIN COMPETITIVE.
IT’S NO use getting orders in from all over the world if you don’t end up with the money in your bank account at the end of it all.
You should find out what payment terms are in general use in your target market – 30 or 90 days are both common – during your pre-entry market research. In some markets you may find that you have to adapt your terms to those that are acceptable to your customers to remain competitive.
Methods of making sure that you get paid in full and on time include:
# Documentary credit (Letter of credit)
# Factoring
# Export Credit Insurance
Copernicus can guide you to the right solution for you and your business
Imagine the situation. You agree a good price with your overseas customer in his local currency, but, between the signing of the deal and actually getting paid for it, the value of his currency drops sharply. By the time you convert the order back to sterling you find you’ve actually lost on the deal.
Dealing with movements in the relative value of currencies is all part of trading in the global market. Fortunately, there are several ways of managing the risk:
# Forward foreign exchange contracts
# Opening a foreign currency account in the UK
# Opening an account overseas
# Buying currency options
# Tender exchange rate indemnity
Everything is the simple answer. A good deal turns sour if you haven’t got clear documentation setting out who bears what costs, and what responsibilities.
When doing business with overseas firms you need to be absolutely clear about your responsibilities as a seller and your customer’s responsibilities as a buyer. As a minimum you’ll need to agree:
# Where the goods will be delivered
# Who arranges the transport/shipping
# Who looks after the customs procedures
# Who pays the duties and taxes
Fortunately, there is a simple solution to these problems known as Incoterms (short for International Commercial Terms). Simply put, these are a number of universal terms used in international trade contracts that will make sure that both you and your customer are clear about who is responsible for what.
Which Incoterms you end up using will have to be negotiated between you and your customers. If you want to limit your costs and risks you could go for Ex-Works (you simply make the goods available for collection from you site). However, to be competitive you may have to live up to the expectations of your customer, which may include taking more responsibility for risks and costs. Just make sure you factor that into your agreed price and that your written contract specifies which Incoterms you are using.
Your export plan with Copernicus has brought in the results ! You’ve won a big order for your products from overseas. How do you now make sure you get the goods to the customer intact and in good time?
Your responsibility, if any, for shipping the goods should be set out in your contract with the buyer. The chances are that buyers will expect you to take on a share of the transportation burden.
You’ll need to think about:
# What you’re shipping – how big and heavy is it? Is it fragile or perishable?
# How quickly does it need to travel?
# Where is it going?
# How valuable are the goods and do you need to pay for the insurance?
CUSTOMER REQUIREMENTS
You’ll need to make sure that your shipment meets all the customs requirements for each country through which your goods will pass. This sounds a bit intimidating at first but HM Customs & Excise have produced a very good ‘Starter Pack for Importers and Exporters’ that you can download from its website – www.hmce.gov.uk
FREIGHT FORWARDERS
Logistics, the shipping of goods all around the world, is a highly specialized line of business in its own right. Most new or inexperienced exporters would be well advised to outsource this role to a specialist company, known as a freight forwarder. Forwarders will take on much of the burden of transporting your goods to their destination.
You can find a list of reputable freight forwarders on the website of the British International Freight Association – www.bifa.org.
MOST NEW OR INEXPERIENCED EXPORTERS WOULD BE WELL ADVISED TO OUTSOURCE THIS ROLE TO A SPECIALIST COMPANY. Copernicus can assist you in the selection process to find the right long term partner for you.
FOR THE great majority of exporters no license is necessary to export goods from the UK, but – as it is a criminal offence to export the kind of goods that do need a license without getting one first – it is definitely worth checking.
Another note of caution: goods that don’t normally need a license may require one in certain circumstances – i.e., civil engineering products that might have a military use. If in doubt, check it out with the relevant authorities first.
Copernicus – guiding your business to export success
Seeing an identical copy of your product six months after receiving your first overseas order can be a very real worry . Make sure that others don’t benefit from all your hard work by taking action to protect your intellectual property.
Intellectual property is a very complicated legal area so you should always seek professional advice. Patent agents and trade mark attorneys can be found through websites of the Chartered Institute of Patent Agents (www.cipa.org.uk) and the Institute of Trade Mark Attorneys (www.itma.org.uk). Copernicus can assist you with this as just one factor of your export strategy implementation plan.