For a new entrepreneur, the world seems like a bigger place, especially in manufacturing. It’s no secret that manufacturing products overseas are a cheaper route.

Ensure there are no hiccups by avoiding common mistakes made by rookies and amateurs. Keep reading so your business can succeed and grow.

1. Negotiating by Phone or Email

Modern technology has made global communications more comfortable and more efficient. However, the personal touch of face-to-face meetings goes a long way for your business.

Take a trip to the country where your manufacturer is located. Hire a trusted translator and start negotiations. Email and telephone can confuse or mix up translations.

After you’ve made an in-person visit, you can proceed with phone and email communication to expedite the process.

2. Not Having a Strategy

The strategy you bring to the table with an overseas manufacturer will dictate the future growth of the company. Showing up without an approach embarrasses you and your business.

Spend time learning the customs, etiquette, and value system of the region you plan to visit. This will impress the client and help you form an effective strategy.

3. Failure to Be Specific

When a business officer gives designs and plans to a manufacturer, they need to be specific. The more time and direction you give, the better chance the manufacturer has of getting it right.

After you give the pertinent information, have them repeat it back to you. There are details that an American manufacturer doesn’t need to explain that a foreign one might.

4. Not Using a Sourcing Agent

How do you know you have the right foreign manufacturer? Without regional or historical knowledge, it’s difficult to know who has the best reputation or quality. They can help you find a manufacturer for product and shipments.

Sourcing agents can carry all the heavy lifting for you. Their intimate knowledge of the area, combined with their manufacturing expertise, makes them a powerful asset.

In exchange for a fee or percentage of a deal, sourcing agents will even handle all the negotiations on your behalf. Additionally, the sourcing agent can act as your local resource to inspect after the sale is complete.

5. Failing to Secure Safety Standards

It might not seem crucial that a manufacturer follows your safety standards, but it can negatively impact your business nonetheless.

If proper safety protocol isn’t followed, a workforce can be set back several months, causing delays in your shipments. Your business could also receive bad press for not putting pressure on a foreign manufacturer to have safety standards.

Get a contractual promise from your overseas manufacturer they will adhere to agreed best practice safety guidelines.

Manufacturing Products Overseas Can Be Easy

Start manufacturing products overseas and avoid these common mistakes. It’ll make the process easy and the final product perfect.

The success and growth of your business depend on how you handle the manufacturing.

Do you want to become a business guru? Keep reading more articles and improve your knowledge.

You May Also Like