There comes a really important point to small and medium sized companies which they need to take a good look at their current business and answer the following question:
“Should we expand our business to different countries!?”
Now, this is certainly not an easy question to answer due to many problems that might arise with that. One such example was met by a small Australian company which was hoping to export its products – juicers – to the US since they believed they have conquered the Australian market and now it was time to conquer the US market.
The first surprise came when they started to export one of the best selling juicers – one which was meant to compete with some of the best juicers to buy in America. The problem was that there was a issue with the cargo ship and they lost all their good which they were shipping with it.
Now, you might think that it was ok, since insurance would cover it. But the thing is that they didn’t have insurance!
“What a foolish mistake!” you might say.
But the thing is that it is not hard for a small, medium-sized company to export; usually the first 90 days are the harder: the cash flow is the real bastard! So they took a risk and decided to go without an insurance. Bad luck.
Now this company is trying to sue the company to get her money back, but it will be a long fight and their exporting plans will certainly have to wait.