When you’re just starting out, or even if you’ve got an established small or medium-sized enterprise (SME), the idea of “going global” with your business can seem daunting. You’re not alone. Micro firms and SMEs account for almost 95% of businesses in most countries, but they’re only exporting about half as much (proportionally speaking) as the large manufacturers. That’s mostly due to some misconceptions about global trade.
MISCONCEPTION 1: It’s expensive.
FACT: Thanks to e-commerce, importing and exporting is more affordable than ever.
With online platforms like go4WorldBusiness, you don’t have to travel around the world to find buyers or sellers. Simply create a free account, list your own products to sell or browse for products to buy, and you’re off and running.
While e-commerce hasn’t eliminated all costs involved in importing and exporting (tariffs, shipping, insurance, etc.), you can tailor a deal to meet your needs, potentially avoiding most of the extra cost. Check out the International Chamber of Commerce’s list of Incoterms, which stipulate the language to use in specifying which portions of the shipping and handling are paid by whom.
MISCONCEPTION 2: It’s logistically difficult.
FACT: There are many tools and people who are ready to do the heavy-lifting for you.
According to the World Trade Organization’s 2021 Report, governments around the globe are interested in helping small and medium-sized businesses engage in global trade. That’s because they see the tremendous potential for it to stimulate local economies.
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When you’re first beginning to import, reach out to the Commercial Counsellor at the Embassy of the country you want to import from. For exporting, an international trade consultant can help you sort out the best way to meet all legal requirements of your buyer’s country while maximizing your profits. Search online for your nearest Embassy and international trade consultant group. You may be surprised at how much information is available.
MISCONCEPTION 3: You have to buy and sell at high volume.
FACT: There are times when small volume trade makes sense.
Don’t dismiss the power of having an international business just because you’re not yet ready to trade in volume. For importers, it can save you money over the long run to purchase samples or small quantities of products in order to test their profitability in your local market. For exporters, courier companies such as DHL and FedEx can help get your small batches of goods from point A to point B relatively quickly and easily. And remember, there are many other small and medium-sized businesses – like yours – who are just as eager to dabble in importing. They are perfect partners for small batch trading deals.
In summary, there is a common perception that international trade is really only for the big corporations. But knowledge is power, and now you know: your business is just as global-capable as any corporate giant. Use this knowledge as leverage to catapult your business to higher profits and broader reach.
go4WorldBusiness is your resource for global trading with thousands of certified businesses just like yours – who are waiting to find, connect and trade with you. Sign up and take the first step toward your company’s international success.