Transcript for Episode 17 - Route To Market

The best route into a market will depend on your product or service, and the country you’re exporting to. So let’s consider 5 primary options.

Direct sales

Firstly, direct sales to businesses or consumers. Direct sales will avoid the need for agents or distributors, giving you more control over price and customer engagement. However, this route can make it difficult to find client. And a lack of market presence, language and cultural experience can also limit growth.

So perhaps you might choose to use an agent or distributor. They will already have market experience and contacts. But it comes with extra cost and the need to negotiate things like commission and exclusivity rights.

Another option could be to use licensing or franchising models which could mean taking a product to a market without the local set-up costs. However,royalties are dependent on the rate of licensee development of the market.

Alternatively, you could explore creating a joint venture to share costs, profits and losses. You'll have less control and there could be extensive legal work involved in set up. But partners can bring in valuable local knowledge, experience and contacts.

Finally, you could set up a business abroad by opening a local office. There are both higher costs and risks involved. So well-constructed legal agreements are vital. But this will offer you total control and more potential for fast growth.