A business that thrives today is a business that is more likely to go outside its national borders. The need for internalization is felt more and more as a company grows in size. However, you have to ensure your back before going swimming in troubled waters.
Exporting: strategies for doing it safely In order to secure your import project , there are various ways of selling the products concerned. And it is precisely according to what the exporters are going to do that the protection strategies must be applied. Firstly, it is possible to make B2C sales through online or mail order commerce. On the other hand, there is the solution of resale by local businesses or distributors already established on site. Otherwise, we can also opt for the solution of direct implantation. This can take the form of setting up a branch or a franchise. Apart from that, many companies choose the joint venture with carefully chosen partners. Compared to these different export strategies, the best hedging solutions vary. If the company does not want a direct establishment, it is the Civil Liability that will have to be insured, in the event that complaints are made following product failures. In the other case where the brand really sets up in another country, has a premises there and hires employees, the coverage must be stronger. Insurance exists specifically to be able to cover risks on assets outside the national territory. You have to trust an international insurer so that it can offer a tailor-made intervention. The international risk is not to be taken lightly. And since laws vary from country to country, you have to be very careful. The importance of insuring against international risk To realize how essential it is to protect yourself, it is necessary to be aware of the risks. First, there are factors internal to the destination country. This often materializes in the risk created by its national policy on foreign companies and imports. There is also the very sensitive issue of the risk associated with the development of the host country's economy, something over which exporting companies have no control. Apart from this, we must also consider important points such as the quality of the local workforce, the quality of potentially necessary third-party providers, but also the potential technological delays that the location would suffer from. On the other hand, there are also some somewhat more unusual risk factors. It is a question here of unforeseeable accidents and catastrophes, but also of the defects in the various operations carried out during export. To give concrete examples, there are in particular the possibilities of non-compliance with contracts, execution deadlines or payment defaults. The factors of war or acts of vandalism and theft by man are also difficult to manage without a reliable insurer. The latter is able to handle all the complexity of international risk. Posted by: Abdul Rimaaz Tip # 1: List with different people or companies.
As in any service that you are about to quote that involves high involvement on your part (a lot of dedication time and a high sum of money that you must pay), the number one rule is to quote with different providers that can execute your construction project. Although the fundamental factor here is the price of their services, this is not the only aspect that you should evaluate. It is important that you also consider what is the training and experience that each of them has and what guarantees they can offer you, among other aspects that we will see in the following points. Tip # 2: Check the work history and references. When you're choosing who to hire to carry out a construction or remodel, ask prospects about previous projects they've worked on. Also ask if they can contact you for someone to ask for references. Having the opinion of previous clients can be your guide when deciding who to hire. By the way, this same practice is followed by many private companies before hiring an employee. Be demanding with the evaluation of the references you receive. It is not enough just that they have completed the job. It is also important to evaluate whether previous clients were satisfied with the result of the works, as well as with the way of working they had. Tip # 3: Pay attention to experience Perhaps what you need is to carry out a simple construction such as building a warehouse with electrical installations and pipes. In such a case, any teacher with some experience can be a good candidate. But if what you need is to do a more specialized job or that includes a larger-scale intervention (for example, building a house with an innovative and complex architecture of several square meters in a rough terrain), make sure that the people or company you hire have some experience in jobs of a similar scale. An improvisation due to lack of experience can turn into negligence that ends up costing a lot. Tip # 4: Ensure availability of time or term of the work. If your construction jobs will be done by a set of masters led by a foreman, chances are they are fully dedicated to the construction you hired them for . But if you are working with a construction company MT65 SOLUTIONS LTD, it is likely that it is serving other clients and that may affect the attention of your work. You can attend to this by agreeing on the hours in which they will work on your construction. Another way to solve this problem is by setting a deadline for the execution of the work. If you are building minor works with a few masters it is not worth setting a deadline. But if you are working with a company, it is good that they agree on a deadline to finish the construction. In this way, if the objective of your construction project is to subsequently exploit the property commercially, this will allow you to plan the commercial operation and its economic evaluation; for example, through the net present value method. Tip # 5: Evaluate the budget If you hire a company to build your future property, it is normal for the company itself to give you a budget. In this case, you should require that the budget be detailed, specifying the cost of materials and labor separately, in addition to the percentage of profit of the company. If the company you are listing refuses to provide a detailed estimate, discard it. Either they are incompetent to come up with a budget, or they intend to mislead or be non-transparent about their costs and how they operate. Either situation is not desirable. Upon receiving the budget, it is advisable that you have a simplified calculation of the materials that are required in the construction so that you can get an idea if the required amount is justified or not. For example, in the painting of the walls of the future property, you can have an estimate of how much the surface that you are going to paint measures in total. Thus, knowing how many square meters a gallon of paint yields, you can have an approximate calculation of how many gallons are needed to paint the walls of the building under construction and contrast it with the amount of paint detailed in the budget. Tip # 6: Pay a work in progress visit. If you are going to hire a company for the work, visiting other works they are currently working on is a good way to get an idea of how they work and if it is a good idea to contact. When you visit jobs, see if the workplace is kept neat and clean. Also check if they take measures and have the necessary equipment to prevent risks, among other aspects. A dirty, untidy work environment, full of risks around it, can be a sign that the construction itself is carried out in a sloppy way as well. Tip # 7: Pay attention to communication. When you are in the stage of quotation and evaluations prior to deciding your supplier to carry out the construction work, pay attention to the way in which your prospects communicate with you since they will most likely maintain that form of communication with you later. If the way to communicate with a potential supplier does not seem appropriate, either because they are not attentive, respectful, fast or clear enough to respond and attend to your concerns and requests, it is best not to decide to hire them. Tip # 8: Ditch a supplier with a very low quote Although this may sound counter-intuitive in the logic of optimizing resources to maximize the profitability of a real estate investment, you also have to know that many times "cheap is expensive". If you are deciding between different companies and one of them offers a very low price, it may be a sign of a desperation on their part to attract clients, perhaps because they did things wrong with other previous clients. A very low quote leaves the supplier a low profit margin, which naturally encourages him to save on materials and procedures. This long-term savings can pay off. For example, if low-quality materials were used, you will have to replace it shortly. Or, the company can save by employing too few people to carry out the works. This will mean a longer duration of construction works compared to having done it with another supplier. Tip # 9: Set the payment schedule. This point is important when establishing a contract with a construction company Abdul Rimaaz MT65 SOLUTIONS LTD. You must clearly agree on when and how construction payments will be made. As a client, you will try to avoid paying most of the budget before starting the work. For its part, the supplier will not want to see the entire payment at the end of the work. Naturally, they will have to reach an agreement where as a client you will pay in advance a certain percentage of the budget when starting the work. The remaining payments must be made against progress of the work. Tip # 10: Leave everything established by contract. Even if you go to work with a trusted supplier that you have worked with before, you should not leave anything to the goodwill of the people or the faith in humanity. The clear rules established in writing in a contract will save you from headaches and misunderstandings. In addition, they will allow you to defend yourself legally in case you are harmed by breaches by the provider. Make sure that any agreement is written into the contract: regarding budgets, deadlines, payment method, proceeding in case of conflicts, etc. |
AuthorAbdul Rimaaz is a specialized construction and business consultant is trained to advise your marketing plan. Categories |