08/14/85 - Laserfiche WebLink

Home

I I I I I I I I ! I DIt~S 85 ! 14 Review J[H¥ 8 be needed to arrange proper financing, shipping, insurance, etc. of the prod- uct as well as to manage foreign currencies. You should also determine whether you have the technical ability to modify your product, if necessa'y, to conform with overseas tastes and requirements. Formulating an export strategy Having, determ, ined-that exporting prospects are favorable, your next step is. to plan and organize your export operation. There are two basic approaches: direct selling and indirect selling. In direct selling, the U.S. firm arranges its own overseas sales through a foreign distributor, overseas sales representatives, or directly to end-users. Indirect selling involves dealing through another U.S. firm that will act as a sales intermediary and norm~.~ly wilt assume responsibility for moving the products overseas. The principal advantage of indirect selling is that it gives smaller com- panies with little export expertise a way to penetrate foreign markets with- out getting directly involved in the complexities of exporting. The direct and indirect selling methods are not mut,ually exclusive, however. As part of the company's overall strategy of pursuing orderly growth, you may wish to seek out additional overseas markets once the original core area is expanded. In such a case, a combination of the two methods may be best, depending upon the customary business practices and established distribution channels of the individual countries. If you choose the direct selling method, you may need to seek the ser- vices of an international freight forwarder. In addition to arranging for the delivery of goods, the freight forwarder can provide details about shipping rates and insurance, documentation, packaging and labeling, and warehouse storage. Furthermore, the ability to offer buyers credit can often determine whether-you win a sale. To offer liberalized credit terms, many exporters seek outside financing in order to avoid restricting working-capital availability. An international banker can help you evaluate the various financing options available and recommend the most suitable method. It may also be advisable to obtain export credit insurance. Because collection risks are thus minimized, lending institutions generally offer favorable interest rates when receivables being offered as collateral are insured. Our firm has prepared a booklet, Expanding Your Bus/ness Overseas- An Entrepreneur's Guidebook, that will provide you with additional ideas. Copies of the booklet may be obtained from the nearest DH&S office or by writing to: The Editor DH+5 Review Deloitte Haskins & Sells 1114 Avenue of the Americas New York, N.Y. 10036. The Tl~ought Success is doing what you like to do and making a living at it. DH+S Review is published bi-weekly by Deloitte Haskins & Sells, 1114 Avenue of the Americas, New York, N.Y. 10036 Editor: Joseph E. Elmlinger, Phone' (212} 790-0626. Reproduction is permitted with credil given to Deloitte Haskins & Sells. Deloitte Haskins+Sells