Expanding your business abroad enables you to access potentially profitable new markets and identify more favourable business opportunities with various suppliers and buyers.
Before you decide to do business abroad, we suggest that you take the following steps, which can help you operate more securely, more successfully and help you protect yourself from potential import and export risks:
- Research the market in which you want to do business, as well as the possibilities and restrictions for doing business in that particular market. For more information about a prospective market and any questions on business restrictions and possible sanctions, contact the Republic of Croatia institutions competent for international affairs (MVEP, HGK).
- Define your target clients and get to know your potential partner. Also, take into consideration the possible sanctions regarding specific legal entities or natural persons, goods or services. With respect to those issues you can contact the Republic of Croatia institutions competent for international affairs (MVEP, HGK).
- Decide whether you want to do business directly or through a representative.
- Research the competition in the new market.
- Prepare a strategic plan for your import or export business. Elaborate the costs, define the mode of financing and carry out revenue planning with regard to your business expansion.
- If you are an exporter, elaborate the marketing strategy for the placement of your products/services in the new market.
- Take into consideration possible risks related to international business, from which you need to protect yourself when entering a new market:
-country risk
-contractual party risk (collection risk, fraud risk, default risk)
-market risk
-currency risk.
You have additional questions on risks in international business? Send us an email to tradefinance@unicreditgroup.zaba.hr
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