Many SMEs see exporting as an essential step in their development. Yet access to foreign markets is not for everyone. And you cannot cross borders without meticulous preparation. Reflections.
Exporting has an undeniable aura of prestige. “When we say that we export to the United States, Europe, the Middle East and Asia, it sounds good, but it is not necessarily the key that will allow a company to develop,” explains Ali Azouz , professor of management at ESG-UQAM.
The evolution of technology and the arrival of platforms like Amazon can give the impression that the barriers to entry have disappeared. “We are able to sell to the four corners of the world from home, in the depths of a Quebec village. »
However, risks remain. “Due to a lack of real market knowledge, some SMEs realize too late that customers are not there and that their investment (money, time, energy) was not worth it,” he says. They then find themselves with significant losses which can endanger part or all of their business. »
To avoid disaster scenarios, you must have solid foundations.
If the answer is yes, it is time to make a diagnosis which is broken down into several questions. “Do I have the resources to successfully complete this step? Do we have the expertise to export and modify our product if necessary? »
Next comes the choice of market to target. “We may have to adapt what we sell according to the cultural habits of the country and particular regulations so that it is well received. »
Without forgetting the need to analyze the competition already established in the target country, customs fees, transport costs and tax complexity. “Some countries have such harsh taxation that it’s not worth targeting them. »
And beware of overconfidence that makes you want to enter more than one market at a time.
The professor suggests targeting one country at a time, consolidating its presence there and considering other territories later. A gradual evolution, as was the case locally. “One thing that entrepreneurs often forget when starting their exporting process is to put together an export plan that is a bit like a business plan. »
If necessary, they can also put aside their export ambitions and consider other ways to develop their business. “If the local market is saturated, you can target an external market or look for ways to increase your margins to increase your turnover. This requires an analysis of brand image, different costs and how to set our prices. »
You can also look for a new niche and offer a new range of products or services. “Development does not only involve exporting abroad. »