Starting a new manufacturing and export business can be a challenging task. New entrepreneurs entering the world of business will likely have many questions, ranging from the documents required, the legal guidelines they must adhere to. Also, it requires substantial financial outlay to outfit your business and specialized facilities with advanced equipment and raw materials. Here are some of the strategies you should follow to build a profitable manufacturing business.
1. Understand your market
Like all businesses looking to grow and proliferate, you need to make sure your market has potential. See if you can find an overseas governing body that provides trade figures of your niche product. A smart market expansion strategy is to begin by trialing one area at a time. So to start with, narrow down your possibilities to just one territory and move forward.
2. Export high-quality products that meet the needs
Product quality has a huge effect on the success of your business, as it matters to customers both in and outside your country and it really affects the image of your business and your country. So, make sure the products you are exporting not only meet the consumers’ needs and the relevant regulations but also are of high quality.
3. Adapt your products and services to the foreign markets
When it comes to international trade, every market is different both economically and culturally. Hence, a product design, quality or marketing strategy that works in one country may not work in another. For example, if a manufacturer want to export a type of Indian chili sauce and your target market is Brazil. The person must be aware that most Brazilians do not like the kind of chili sauce popular in India. In order to make a profit by selling this sauce to Brazil, the manufacturer have to change its ingredients to create a taste that most Brazilians like.
4. Increase manufacturing productivity with the right tools and systems
Streamlining a manufacturing production line will ensure you’re not losing valuable time or money as your business scales up. Also, it is a great way to start minimising waste, improving problem solving and standardising routine tasks. While, lean manufacturing, or lean production is the pursuit of perfection, and for many of us feels a little unattainable, the strategies and concepts can be applied in any business at any stage of their journey.
5. Get the logistics down
The most difficult aspect of manufacturing and export business may be the logistics involved in getting a product manufactured somewhere and selling it somewhere else. Getting onboard a worldwide freight forwarder can help all import/export businesses save time and worry by acting as a transport agent for transferring cargo and thus help you get your products from the manufacturer to the warehouse. Furthermore, this can greatly reduce the trouble of starting an imports/exports business in the realm of international trade.
6. Invest capital for better sales
As we know, to make money investment is a must. To see your sales and revenue growing, it is important to invest in your product betterment and its quality. You also need to invest in advertising on social media websites, as it would help to have more customers.
7. Foreign currency
Research the local currency where you are going to export your product and consult with experts on the impact of currency fluctuations on your business. You can also consult a foreign exchange advisor or an accountant on how to mitigate your foreign currency risk. Many small businesses that export agree a fixed rate at the point of sale, protecting them from currency depreciations, and this can be key to your business success.
8. Follow legal norm
Before starting a manufacturing and export business, always learn the legal norms, policies, and trade agreement-related documentation of the countries with whom you are going to deal. Try to understand the country’s export rules and regulations to avoid trouble when sending products. You can also partner with international law firms to avoid regulatory barriers. Also, check whether your product complies with overseas trading norms and guidelines. Get the intellectual property certificate and registration for the trademarks with the policies, and also protect the goods from getting copied by a local market.
9. Provide good customer services
It is very important that one maintains good relations with the customers, as good customer services not just help acquire new foreign buyers but also retain them. And by word of mouth, existing customers who are happy with your products and services can even bring you, new customers and thus help you in expansion.
Furthermore, you can also obtain valuable feedback in the process of providing customer services, which can be used to improve or better adapt your products and services.
Manufacturing and export business is a constantly evolving industry, and professionals who decide to learn this business must be ready to work in the changing environment. Understanding the concept of demand and supply will help to make better strategies to boost their operation. Also, gather essential information from the market to analyze consumption.
DISCLAIMER
Views expressed above are the author’s own.
