Expanding your business beyond Sweden's borders is a good way to grow as a company. 1993 saw the opening of the European single market and Sweden was also able to start using the EU's trade agreements. Today, large parts of the world are much easier to do business with than 20 years ago.
When you plan to start doing business in another country, perhaps selling a product, there are some things you should consider first.
Find out as much as possible about the country you want to sell to
All countries are different, whether they are in the EU or not. Even if laws and rules are consistent because of the Union, people's buying behavior may not be similar to ours. Learn about the culture of the country! Is the product suitable for that market, does it have competitors or does it simply not exist? If it doesn't exist, is it untapped potential we are talking about or is there simply no interest due to cultural differences? How does the buyer prefer to pay? By invoice or electronic transfer? What are the payment terms in the country - 10, 30 or 60 days and do they match the delivery terms? What is the practice regarding returns?
There are many factors that can make a big difference to your success or failure, so take the time to do your homework, it can save you time and money later. This is where the Enteprise Europe Network can be of support with its offices around the world. At Dalarna Science Park, an EEN office is happy to answer your questions. Contact details can be found at the bottom of the article.
Learn which certificates and attestations you need and which tax rules apply to your product.
Selling to another country may sound like a very simple thing to do, and it is. But the start-up phase, before you get going, needs a little extra effort. Did you know that you need to register as an economic operator in the EU register? You can find a lot of information on Verksamt.se, which collects links to a number of authorities and organizations. Swedish Customs and the Swedish Tax Agency also have good information. At the Central Swedish Chamber of Commerce you get help and support in everything from programs and networks to the visa of export documents.
How much does your export effort cost?
Once you have information about the country you are going to sell your product or service to, it is time to start calculating what it might cost and what you might earn. Is it less expensive in the long run to use a freight forwarder, or is the time spent on export documents etc. worth it? What fees will you have to pay if you export to a non-EU country and what will you have to pay in customs duties? Do you need to pay for trademark protection?
Find out as much as you can about all costs as they ultimately also determine the price of your product.
How will you deliver your product or service?
If you are selling a physical product, there are different ways to physically move the goods from one place to another. The most common is to use a freight forwarder who can also ensure that the necessary documents are included. You should also consider whether it is appropriate to send goods as orders come in or whether you collect orders and send them with some regularity. Perhaps you could rent a warehouse in a free port to which you send a stock that is then shipped according to the order?
Sustainability
Today, a sustainable export strategy is not just something to talk about, it is fundamental to the success of your business. Simply put - what is good for the environment and people, is good for your company's economy. Investigate different types of sustainable transport, for example, when choosing a delivery method, what you choose can determine whether you "make it or break it" as the expression goes. verksamt.se has good information and guides on how to proceed.
Don't be in a hurry
When you start exporting, expectations are often high and most people are in a hurry and fail to do important preparatory work. As we wrote at the beginning of this article, it is worth the time to do a proper research before you start. It can almost halve the time it takes for your product to reach the market you want to target.
If you want to know more about how to start exporting, we are happy to help you. You can find our contacts below.
