Without commercial finance, there would be no Indian spices, clothing or jewelry in the United States. Or Apple’s iphones in China, less any other international product at any respectable distance from its origin.
In fact, according to the investment, the World Trade Organization (WTO) believes that international global trade has expanded 80% to 90% through the financing of trade.
For this to continue, companies must include trade funding in their business development strategies.
How do you do this? Find out how you can integrate commercial financing into your business development strategy.
Incorporate internal trade funds into market penetration and market development
Market penetration and market development are essential parts of a business development strategy. Market development involves selling more of your service or product to repeat customers.
Although market penetration is to expand your product or service in other cities and provinces, this may involve internal business finance. As you may need to renegotiate local and provincial commercial transactions.
For example, let’s say you sell jewelry. A business of a neighboring city can buy your jewelry and sell it to its customers.
You have a long history with this customer. And know that your product is selling quickly in the shop of your customers. In this case, you could move the customer more jewelry for a loose price.
After negotiating, the customer accepts. However, despite the long positive story you have had with the customer, the customer may not feel comfortable to pay you before exporting jewelry.
This is where a commercial financing or a banking institution is concretized, offering a promising letter of credit that you will export jewelry when payment.
Consider the Internet and brick and mortar shops
If you are already selling more of your product or customer service, it may be time to discuss another chain such as the Internet?
If you run a successful e-commerce store, it may be time to create a brick and mortar store?
In this way, your customers have more options where to buy your products.
Especially with regard to brick and mortar stores, trade funding can help you get new commercial import and export offers, especially when there are several currencies involved.
Creating a new product or service for repeated and new customers
With repeated customers, you double the number of products that the repeat client imports.
And, with new customers, your new product or service will expand your clientele. It is important that you first create new products for your repeated customers before moving on to new customers because it involves more risk.
Once again, trade funding can help grow greater confidence during this growth period. Given that commercial financiers or banking institutions can create letters of credit, define the terms of the importer and exporters must follow.
Final Thoughts on Your Business Development Strategy
Know that growth does not arrive in a day; It is more difficult for businesses to enter market penetration to provide new products to new customers.
That’s why we recommend that you approach growth slowly. However, be aware that trade funding can help increase the number of customers you are negotiating, no matter where they are.
What is your business management? How did he help your business? Share your thoughts, comments and answers with us.
Adam Smith Associates PVT Ltd is one of the leading business finance companies in India, the organization of finance and the provision of consulting, consulting, structuring and management of financial transactions. One of its main expertise is funding basic products.
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