Vital questions that you need to ask yourself before your Kenyan business starts importing CONTND. PART 2
Though the importing process may appear straightforward enough, there is a lot more involved in the process of importing stock for your business from overseas than finding a supplier, placing your orders and waiting for your shipment to arrive in Kenya.
So, what are some things that you need to consider before your Kenyan business starts importing goods to Kenya? Here are some vital questions that you need to ask yourself (Continued from part 1:
Do you have a supplier for your imports in mind?
Dealing with overseas suppliers is not always the easiest thing for importers. Before you can master the process fully, you should expect some challenges along the way. For instance, there are some overseas suppliers that do not speak a word of English, which will make it a lot harder for you to conduct business. The cultures and values of these suppliers will also differ greatly from what you are used to in Kenya, which will increase the potential for misunderstandings as well as miscommunication.
To make it easy on yourself and your business, you will need to find yourself a reliable supplier that will help to make sure the process runs smoothly. Not only will your supplier need to be dependable enough to ensure that you constantly have a regular supply of goods for your business, but you will also need to find one that can give you a fair price. If your imports will be critical to the success of your business, you will also need to have a backup supplier in place in the event of an emergency.
Will you be able to afford it?
Though importing can be lucrative, you must first make sure you will be able to afford to finance the cost of importing. Importing is a very cash-intensive process for a number of reasons. For example, given the high-cost shipping and the expenses that come with the transport of imports, it is often more cost-effective to place large orders instead of placing several smaller orders. As such, import orders for businesses tend to be large and expensive to finance.
Additionally, it is common practice for suppliers to ask for payments upfront or letters of credit or some other form of payment guarantee from your bank or financial institution. This means that if you do not plan your finances properly, you may not have access to sufficient cash that will allow you to run your business and pay for imports at the same time.
So before you consider importing, try running a cash flow forecast to make sure you will still be able to afford to run your business effectively. It might be a good idea to speak to your accountant, bank manager, or financial adviser to double check that you can afford to import for your local business.
Are you capable of dealing with exchange rate fluctuations?
When importing, the exchange rate fluctuations will be yet another potential risk that you will be exposed to as an importer. Your imports will probably be priced in foreign currency which means that due to exchange rate fluctuations, the final amount that you will end up paying for each shipment might vary. Because you cannot control the exchange rate, you should always be prepared for it to move in or against your favor.
Is there a reliable shipper that can provide you with freight services to Kenya?
The world of importing is complex and it often complicated and there are numerous procedures that you will need to be adhered to each time you expect a shipment. Keeping track of all these regulations while ensuring that your business is running smoothly will not only be time-consuming but it will also be downright confusing most times.
This is why it is so important for you to find a reliable shipping partner such as Air Cargo Global (ACG) that will be able to fully provide you with regular freight services to Kenya that are both cost-effective and secure.
At Air Cargo Global, we can ensure that your imports arrive safely and in time so that your business can run smoothly at all times. We have a team of professionals that are dedicated to providing you with a first-class freight service to all locations in Kenya.
Once your imports arrive in Kenya, we can go the extra mile to ensure that you receive your shipment right at your door. Interested in how we can help your business start importing? Contact us today or send us an email at email@example.com to learn how we can partner up to make your importing journey a success. Get in touch with us today!