Know what you need to take your business global
Taking ones business international opens the doors to many opportunities but also takes efforts from the business owners which cover the market research to legal registrations. Many businesses decide to first enter in global market by exports from own country. Whether to establish local business in foreign or to enter through exporting, there are ample of matters to scrutinize before selling the product or service in the global market from India. A thorough study of the foreign environment has to be done which will be the deciding factor as to how the entity will make its presence felt. The exports from India can either be made through an agent or through online market presence. In any case, the business would require following a research plan and complying all legal requirements. For exports from India, it is must requirement to apply IEC online to receive Import Export Code. Here, we are mentioning the steps that would be helpful for you to start export business and get recognised globally.
Before exporting their product or service to the foreign county from India, one needs to do exhaustive homework related to entry in the market, geographical constraints, location and its proximity to the customers, supply of resources and labourers, legal regulations of the host country and every minute detail.
One needs to do complete and in depth research of the markets where they need to establish their business and then narrow down a particular market. Exporters have to make sure whether the kind of product or service they are planning to sell is allowed in the local market. They must know who their competitors will be and what will be customer reaction once they start selling their product/service. A research has to be done regarding the business environment, transportation facility and ease of doing business. Market survey of the existing products similar to their product is essential with the customers’ approach to that product.
Understanding the culture
The culture of the country has the sentiments of the people attached to it. Before reaching any foreign country a thorough study of the culture of that country is inevitable. The study of the culture will be helpful in understanding the behaviour of the people and their approach towards the products. These are the people who will be buying the product/ service or who will be a part of the workforce or distribution channels.
Who will be the prospective customers? Since customers are the heart of the business, it becomes very essential for any business to carefully select its target audience. To build the strong customer base one may approach local trade organizations who can help them know the on-going local market trends and suggest industry specific trade shows taking place.
Develop a business plan
After thorough research and understanding the consumer behavior one needs to carefully develop a business plan to project their product or service in the targeted market. The plan needs to be curated in a manner so that does not disturb the sentiments of local customers. It should also be in sync with the vision and mission of the company. SWOT analysis needs to be performed to check the opportunities that can be grabbed with the on hand strengths and the threats one has to face because of the weaknesses. The business must have short term and long term goals well designed.
To achieve an edge over competitors in the foreign market from home country, one needs to precisely deliver their unique value proposition. Deciding upon the distribution channel, promotional campaigns, pricing all comes under this big hat. One has to create brand awareness and present the deliverables in a manner that best explains the brand and the objective of the company. Design the best marketing plan by taking into consideration the key performance indicators. A thorough pricing model has to be made keeping in mind the buying behaviour of the localities.
Local taxes and compliance issues
Before expanding business in any country, one should be completely aware of the taxation system, and any other mandatory compliance in the target country. The exporters must know under what category of taxation they fall. They must adhere to the local corporate policies and procedures. To ease the burden, one can consider establishing relationships with local banks beforehand. Also the packaging standards vary from country to country and can pose a challenge. All legal matters related to product or service must be referred at least once.
Legal Regulations in India
Legal regulations of the home country are equally important and prime before stepping into other country. The businesses must know which rules are required to be followed for exports of goods or services. In India, the exporters must obtain Import and Export Code. It is a primary requirement to commence export activities. It is mandatory to apply Import Export Code online on the common web portal of DGFT under Foreign Trade (Development & Regulation) Act, 1992. Apart from IEC registration, the export is should also register under GST and file LUT to claim benefit of exempted exports.
Export from home country is good step to enter into global market and get recognised before actual set up as local business brand. These points are not an exhaustive guide but it is a guide that can help you to expand globally. One must circumspect all the aspects carefully.
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CS Prachi Prajapati
Company Secretary with a forte in content writing! Started as a trainee, she is now leading as a Content Writer and a Product Developer on technical hand of LegalWiz.in. The author finds her prospect to carve out a valuable position in Legal and Secretarial field.
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