Potential challenges in exporting

There are potential challenges in exporting and it is important for prospective exporters to know what these are. They include the following:

1. Management may need to devote a considerable amount of time to the start-up procedures and decisions involved in exporting
2. Key personnel or other critical resources may have to be diverted from domestic responsibilities to help with the company’s export activities
3. Additional plant facilities may be needed to cope with increased sales through exports
4. Catalogues, brochures and other sales promotion material, as well as packaging and labelling, may need to be translated into a foreign language
5. The product may need to be modified to meet foreign market criteria
6. Credit terms may need to be extended because of competition, local custom or transit time
7. Exporting, although rewarding, may require additional financial resources