Who doesn’t want to expand their business abroad. Yes, conducting product sales activities abroad or what is commonly referred to as exporting is one of the effective ways to expand market reach. But before that, KH Pals must choose the right export destination country so that it can help increase product sales, increase income, and of course introduce products to foreign markets. However, choosing an export destination country is not an easy thing to do because each country has different conditions. So, in order not to take the wrong step, here we have summarized some tips for choosing export destination countries for business expansion. Check out the article until the end!
How to Choose Export Destination Countries?
In export activities, parties who want to sell their products abroad or referred to as exporters need to determine to which countries the export will be carried out, how the marketing process is, and what the sales price is. Here are some tips that KH pals can do when choosing an export destination country:
Conduct Market Research and Studies
Conducting market research aims to find out which countries are suitable for business export commodities. For example, KH pals can analyze using SWOT (Strength, Weakness, Opportunity, Threat) between one country to another to compare the advantages, disadvantages, opportunities, and obstacles that arise between the products exported to the destination country. In addition, you can also analyze foreign import statistics by country to understand which countries are importing these types of products to find out what competition is not.
Conducting Trade Balance Research
The next tip is to conduct trade balance research. This research compares the balance of trade regarding exports and imports from the selected country. If exports are higher than imports, the country’s economy is strong. Conversely, if the value of exports is lower than imports, the country’s economy is weak and uncompetitive. Meanwhile, if the export value and import value are directly proportional, then the country’s trade balance is balanced. From the results of this research, KH Buddy can choose which export destination countries have an uncompetitive economy, so that your products are competitive. So, you can potentially get maximum profit in that country.
Calculating the Unit Value of a Country
Because you cannot choose the export destination country by origin, you must calculate the value of the product to enter a country. Before exporting, you must determine the selling price of the product including shipping costs, tax costs, import duties, and the value of an item in the destination country. The higher the value of the goods, the higher the potential profit obtained.
Tips for Export Success
Currently, export business opportunities are still wide open, given that there are several businesses whose markets are not only developing on a local scale. Many local products are actually in great demand on a global scale, such as furniture or textile businesses from Indonesia that have target markets abroad. Well, after choosing the destination country, there are several other tips that KH pals can do so that your business export process can run smoothly, including:
Utilize Government Facilities
In order to support local businesses to go international, the Indonesian government and the private sector itself have provided various business facilities, especially for beginner exporters. For example , through www.djpen.kemendag.go.id, KH pals can see trade representatives from the Directorate of National Export Development in five continents. Don’t forget to take advantage of international exhibitions facilitated by the government.
Utilize Social Media as Continuous Online Marketing
When expanding your business overseas, you can monitor your customer relationships through social media. Yes, with unlimited internet access, your business can be more widely recognized by consumers in other parts of the world. Make consumers trust your business more by communicating and marketing through business social media, such as Instagram, Linkedin, Facebook, and several other social media that are suitable for your type of business.
Register Business Website to International Portals
To make it easier for buyers to access your products, you should create a business website and online catalog. You can include all product information from description, price, to contact person. There are also several business platforms that you can visit to promote your business. This is also considering that KH pals are required to be dexterous in finding online forums where exporters and importers meet.
Complete business legality
In export activities, it is very important to have business legality. According to the Ministry of Trade website, business legality includes:
- Legal entity (PT, CV, etc),
- Taxpayer Identification Number (NPWP),
- Have one of the licenses issued by the government such as Trading Business License (SIUP)/Industrial License/Business License for Domestic Investment (PMDN)/Foreign Investment (PMA),
- Business Identification Number (NIB)
This document is very important because it concerns the business administration process between countries. No matter how good your product is, it will not be officially accepted in a country if you do not have business legality.
Complete Export Documents
When the business legality is complete, the next step is to prepare various export documents. The goal is to facilitate the administrative process when your product will enter the destination country. Export documents that KH pals must prepare include:
- Invoice,
- Packing List,
- Bill of Loading (B/L),
- Insurance Policy,
- Notice of Export of Goods (PEB),
- Shipping Instruction,
- Certificate of Origin (SKA)
These documents are very important in order to smooth export-import transactions. Therefore, businessmen should study and understand enough about these documents seriously, so as to be able to prepare them appropriately.
KH Contact
To help smooth the process of expanding your business abroad, KH pals can consult with Kontrak Hukum. As a digital legal platform, we can help you to find out what steps and processes business people must do when they want to export. Not only that, KH pals can also take care of the most complete and affordable business legality documents and export documents at Kontrak Hukum, starting from the establishment of business entities, processing business licenses, and other legality documents.
READ ALSO: Income Tax 22 on Import Export: Provisions, Rates, and How to Calculate
What are you waiting for? Let’s make your business expansion easier by visiting https://kontrakhukum.com/memulai-usaha/. If you have any questions, don’t hesitate to consult with us at Tanya KH or via Direct Message (DM) to Instagram @kontrakhukum.
