International trade is booming as there are endless opportunities to buy and sell in foreign markets. More and more entrepreneurs are keen to expand their horizons and explore global opportunities by joining the foreign trade bandwagon. Challenges abound, and competition is daunting, so you may have more reasons to give up on the dream and settle for a local venture. However, people who get over the apprehension eventually reach their goals and win the race. You may also encounter several myths that keep you from chasing the international trade dream. Believing them is the last thing you should do as they can hinder your growth. Let us debunk the myths aspiring entrepreneurs should ditch.
1. Global trade is only for large companies
Most entrepreneurs find themselves giving up on the idea of joining the global trade sector because they think it is only for large companies. Of course, big players have the benefits of brand recognition, valuable connections, abundant resources, and knowledge to give them a good start. But you can start small and still succeed, provided you are committed to learning the ropes and building up as you go. The truth is that the sector has a fair share of small and medium-sized enterprises, and they are doing well.
2. You need massive funds to get started
Expanding production for new business, marketing abroad, and hiring new employees for an international business sounds like a lot of work. It is easy to believe that you require massive funds to get started. But you must steer clear of this myth because you can rely on low-cost ways to get off the mark. For example, you can leverage the internet to research an overseas market and build connections in the country instead of traveling for these tasks. Hiring a remote team to manage your operations in another country is another way to start with a low investment.
3. Duties and taxes can burn a hole in your budget
Another myth you should ditch as a budding international entrepreneur is that duties and taxes can burn a hole in your budget. Of course, you must pay them to stay on the right side of trade regulations. But you can rely on a seasoned broker to ensure paying a legit amount in the first place. You can even claim a duty drawback to recover any extra amount you pay erroneously. Most business owners suffer because they do not know about their eligibility for a drawback. Consulting an expert can help you save up a hefty amount every year through legitimate recovery.
4. You cannot compete with large global companies
Selling your goods overseas means you will have to compete with the local brands and other international businesses. Competing with rivals sounds daunting as an aspiring entrepreneur, and you may even want to skip the idea of setting up in a crowded foreign market. But you must skip the myth and dive in if your research shows a positive outcome. You can actually beat all competition with a unique offering. Try to create a product USP and excel with service quality to build your reputation in a competitive market. The road appears long and daunting, but conviction and creativity can help you hold strong against your rivals.
5. Reporting requirements are too onerous
Countless entrepreneurs find international trade taxing because they consider the reporting requirements too onerous. Of course, you cannot go slack with it. You have to invest time and effort in paperwork to get started and throughout the journey. Every time you receive or send a consignment, expect to struggle with loads of documentation. Not handling them properly can get you in trouble with regulatory compliance issues. But you need not manage everything alone. You can collaborate with a lawyer and customs professional to handle the process and paperwork. Hiring these professionals is well worth the cost as they keep you on the right side of the law and give you peace of mind. Global trade is complicated, and newbies may have a hard time getting started. Even people with local experience may struggle to hit the start button for overseas trade. The sad part is that many of them give up on their dream only because they believe some misconceptions about going global. The best way to ditch the myths is by knowing them and staying ahead of them. Check this list and steer clear of these myths to make a smooth start in the international business domain.