We have recently been called on to assist a medical company in preparing its finance for exporting to the middle-east. This is a major concern for Principals after they have made a strategic decision to export to new markets.
Exporting could be an expensive adventure. Principals need to be financially prepared and budget should be directed to delivering the value proposition to selected markets.
A must step beforehand is to understand and validate the markets. This will entail marketing costs, physical presence and advanced skills acquisition. If you wish to enter or expand internationally, you will inevitably need to inject money especially if you are seeking out new opportunities in targeted markets.
The risks associated to this adventure require a good cash flow management. It is important to balance payoffs as profits may take longer than expected in certain markets.
Here below few tips on how to prepare your export finance:
Pick your markets carefully. Your selection should be based on a thorough market research and not simply because you got some inquiries from your network or from local distributors/partners.
Focus on ONE market at a time. Make sure you understand the road map of your products in this market and the marketing and distribution costs.
Direct your finance to the selected market if you have a small budget. This will give you control over the cashflow.
Consider different period in which you need to invest heavily than usual.
Apply a more conservative budget once you established a strong foothold in the marketplace.
TBMedex SAS provides regional product distribution, market research and distributor search and qualification services for Medical Companies wishing to enter and/or expand in the Middle-East and GCC regions.