4 Critical Due Diligence Steps Overlooked by Novice Traders
The details and thoroughness of the process can determine the success of an import or export venture every day. Understanding the due diligence actions that should be undertaken will yield dividends later. If you’re looking for long-term sustainability in your export and import (IMEX) project that can generate revenue for your company and increase the image, and expand your chances of gaining access to talent and opportunities Conducting due diligence prior to committing your business to a particular method of operation is crucial for your ultimate success.
Four steps to add to the due diligence list for any planned IMEX venture include:
Product Market Research – Product Market Research
— Country Market Research
Package Marking Research
Product Representative Research
The research field is not a single one that can be sufficient to cover the requirements of due diligence. Because of the complicated nature of export and import operations, the volume of information is an inevitable byproduct that creates an industry where the total is more than the individual parts.
PRODUCT MARKET RESEARCH
One of the activities that every exporter worth to be considering prior to committing to a project is conducting market research on the product. The creation of a checklist of elements to assess the potential of a product in a particular market will aid in making a decision on whether or not the next step is worth your time.
To download a Product Market Research Worksheet, follow the link at the lower right.
COUNTRY MARKET RESEARCH
Every country has its unique set of regulations, rules along with advantages and drawbacks… being aware of what they are will allow you to make a more informed choice rather than being influenced by your product or service (which could be fantastic but may fail in the wrong marketplace).
For a country-specific Market Research worksheet, just click the link located at the bottom.
PACKAGE MARKING REsearch
The presence of a clear mark on your (the exporters) packaging can go an enormous way to ease the identification of a package to your client (the importer). Customs officials at your airport/port of destination will make sure that each “I” has been crossed with all “T” crossed, or you can be sure that they’ll give you headaches.
To download a Worksheet for Package Marking, Click on the link to the right of the page.
PRODUCT REPRESENTATIVE Research
If you’ve decided to do it yourself instead of utilizing assistance from an export management firm (EMC), One of the tasks you’ll be doing is creating a list of potential reps for your product in the market you are targeting and then contacting each one to show your business what they can offer.
For a Product, Representative Survey Click on the link to the right of the page.
The four steps:
Assessing the viability of your product or service
– Fully understanding the complexities of your prospective market
Do your research on the necessary requirements for your cargo’s passage through customs at the port of destination or airport
Finding the best reseller in your targeted market
It will give you confidence when making the decision to commit to your company or uncover hidden flaws in your initial plan and help you save not only capital but maybe your entire business.
Andrey Polston manages Optimum Outcomes, LLC, an Export management company (EMC), aiding small and medium-sized businesses to discover and create international sales markets.
