There are many ways to decrease export risks. All that has been said so far can all help you as an exporter to bring your business in global markets closer to better opportunities for greater prosperity and profit by reducing risk. As you know, exporting goods and supplying them to world markets can be very profitable. Of course, every business has its own profits and losses, but the export of goods also brings irreparable losses if you act carelessly and unprofessionally. But in global markets, it will be even more so that it can push your business to the brink of bankruptcy. So, what can be done to decrease export risks in a situation where a wrong decision and poor management can inflict irreparable damage on a business?
Constantly appraisal your performance to make progress in everything. Just as you calculate the number of calories you consume with the number of calories you lose to lose weight, and you are constantly careful about how many calories you consume, so does the business of performance appraisal. Based on these evaluation results, you can identify sections that are cost-savings opportunities and those where costs need to be increased to improve performance. By examining your performance in the short and long term, you will realize, for example, how carefully the company with which you cooperate in the field of transportation has acted in the transportation of goods! Do this in all sections and use the results of future decisions to improve your performance to make more profit in your business. It does not matter if you are an exporter or an importer, in any case, you need this performance appraisal to decrease export risks.
A check of compliance with local rules and regulations, customs clearance, unforeseen tariffs - these are just some of the problems that may emerge before the goods even enter the market.
Consult trade compliance and customs law consultants to facilitate the movement of goods across the border quickly and safely. A good judgment can help you avoid the nightmare of having your exports held up at customs.
When selecting in-country partners, choose wisely. Bribery and other forms of corruption are tolerated in many emerging markets. It's part of doing business there, but in most countries, it's a criminal offense. Ensure that your partners understand and follow the laws of your home country.
Disagreement regarding currency exchange
Prices of manufactured products can be more predictable, but exchange rate fluctuations can lead to loss of profits or earnings. While exporting from a country that has more stable businesses is likely to have more stable or predictable financial systems, there is still a high level of risk involved. The evolution of currency exchange rates can be unpredictable due to economic and political changes, so manufacturers should keep this in mind.
Now that the shipment has arrived with a customer waiting to pick it up, you've already crafted a meticulous payment plan. What happens in a foreign country when there is disagreement about exchange rates and interest rates? If a customer refuses to pay, what do you do?
A legal team that is familiar with local protocol is not just a recommendation but a necessity.
What goods do you export?
It is important to understand the risks associated with the goods you export so that you can take steps to reduce the risks. What risks can hurt your business in the global market is also related to the type of product. If we want to examine the types of risks of exporting goods, we come to a group of general risks that include the export of all goods! Dangers such as shipwrecks, fires, and any of these natural disasters that cause destruction and damage to goods that these risks exist for any goods and it is almost impossible to prevent these accidents, but the possibility of their occurrence and damage can be decreased. To reduce the natural risks of exports, it is enough to insure your goods to prevent the losses that can result from these accidents. But there are other categories of risks that arise depending on the type of product. For example, in the export of food, agricultural products, including fruits, the risk of spoilage during the transportation is very high. There are companies that use state-of-the-art equipment to check the health of food and agricultural products during transportation.
The role of companies in decrease export risks
Identify companies in the export sector that are renowned and experienced and work with them. Because they have more experience over time in various cases, this decreases export risks. Due to their experience, professional companies reduce risks which leads to less loss and more profit. In the field of exporting fresh fruits, there are professional companies that have a large volume of exports to different countries every year. Companies that ensure the health of goods until delivery to the customer and use the latest equipment to control the health of fruits. If you are a fruit importer, it is better to trust experienced and professional companies. As a fruit export company, Vira Fruits is one of these companies, which, along with companies such as Zespri and Salix Fruits, is known for exporting fresh and quality fruit among Middle Eastern countries.
Storing and delivery of goods
If you are in the field of importing agricultural goods, you should keep in mind that storing and sending your own goods is one of the important risks in this field. For example, if Vira Fruits company, an exporter of fresh fruits and vegetables that exports both quality kiwis and onions, wants to export both to the same destination, it must consider different conditions. This is because Iranian onion have different storage conditions compared to fresh kiwi. The temperature of the container and the packaging of both of these are completely different and these issues should be given special importance for the health of the product. Because Vira Fruits is well aware of the kiwi supplier, the storage conditions of kiwis during storage, packaging and delivery are very different from onions. If you want to get both of these fresh and quality, you have to work with a professional company like Vira Fruits again to significantly decrease export risks.