What Companies Should Look for When Entitling Distributors in Foreign Countries?
Every market is different while each business field has different rules and culture. It’s a fact that companies who don’t understand the dynamics of their own market will be facing some hard times to survive in the long-term. However, nowadays many business sectors are exposed to similar problems nowadays: tight liqudity. On the other hand, there is gateway which is the desire of r almost every manufacturer: Export !
The dream of exporting can be very joyful and the companies who settle export business know that it’s more than just a dream. However, manufacturers need stable production capacity, strong quality controls and the operational staff to execute the export operations. Once they have the game-plan, they start and wait for the orders to walk themselves-in. Obviously, it is not happening and it’ll be an endless wait. If you want to export, you need local partners. The name of this partnership may differ from distributors, dealers to franchises. However, you need someone who knows the rules of the game of the targeted market. From your desk thousand miles away, you will be only making judgements from the limited information sources you have. However, those local partners know every detail to sell your product and sell it for a long and sustainable time.
Of course, finding this golden key to for every market isn’t easy but the first step is to start looking for it !
We have put 4 key features for manufacturers to look for when entitling a business partner in foreign countries:
1. Trustworthy; The references of this company is very important. What have they done in the past to which specific customers. Especially the references of last 5 years will be indicative to know if this company is still active.
2. Financially Developed; If you partner up with a company whose financial tables are not settled well, than you will be gaining new problems instead of making money. It’s important to ask for bank letters and financial tables to give it a closer look on the candidate
3. The Target-Oriented: Companies or investors usually are very open for business partnership discussions. However, it’s important to take a close look on where the candidate want to go with your brand. Do they want to use it a temporary name on their door or will it really be one of their superstars. It means that will they pay enough attention to your brand once you entitle them as your dealer.
4. Sales Power: Your distributor should have strong sales channels in the market. The candidate company with a good network to reach end consumers is good but if that candidate has also capability to reach resellers in the market your sales figures will be much satisfying.