Exporting can open a much larger market, but it works best when you prepare. Before your first overseas order, work through these questions.
Is my product ready?
Check whether your product meets the standards of the target market, including labels, safety rules and language requirements. Ask a customs broker or a trade advisor which rules apply.
Which market first?
Start with a market that is close, familiar or where you already have contacts. For many Canadian firms that means the United States, but the chamber’s network also reaches Sri Lanka, India, the United Kingdom and Southeast Asia.
How will I get paid?
Decide on payment terms in advance. For a new customer, payment upfront or a letter of credit is safer than an invoice due in sixty days. Ask your bank about export services and currency exchange costs.
What will it cost?
Add freight, insurance, duties, customs fees and the cost of adapting packaging. Price your product so that these costs do not eat the margin.
- Federal and provincial programs may help with market research and trade missions.
- A customs broker can handle paperwork the first few times.
- Trade associations and chambers can introduce you to buyers and partners.
Where to get help
Government trade offices, banks and chambers of commerce all offer export advice. The chamber runs a short course called Export Readiness 101 for members, and hosts a trade outlook forum each year.