By Lance Scoular and Iggy Pintado
More people are reconsidering their commercial careers for more appealing lifestyle options and entrepreneurial pursuits. In addition, Covid has also seen a dramatic increase in online ordering and shipping globally, opening the doors to the opportunity to establish a niche virtual business with global suppliers that cater to worldwide markets.
However, importing/exporting, and global trading are not without layers of risks that may hamper success. Risks are many and varied when trading goods and services between countries, and can impact a business venture, resulting in delays, extra costs, reduced profits and in a worst case, sinking a business.
In a nutshell, while a return-on-investment approach is required to measure the ongoing sustainability of the overall business, it is just as vital to plan and manage for the risks associated with global trading which ultimately, is the return on outcome to the organisation.
Lance Scoular has been a Licensed Customs Broker for 40 years. He was engaged as an industry trainer by the Australian Federation of International Forwarders and today, he specialises in conducting courses and coaching businesses in the nuts and bolts of importing, exporting and global trading, to better navigate the minefield of international trade and transport. He is the ‘go to guy’ in this space in Australia and is widely known as ‘The Savvy Navigator’.
Lance believes that importing/exporting and global trading is complex with different rules, regulations, prohibitions, taxes, duty rates, freight rates, etc. in different countries. Lance strives to educate students to visualise what could go wrong in their business processes, procedures, and systems to propel them toward positive outcomes for their business.
During his course, he emphasises that 80% of small businesses fail in the first five years. This is compounded by the fact that many businesses are or will be transacting internationally, which raises the failure rates stakes dramatically.
From this perspective, a return on outcome approach needs to be at the forefront of business planning from the outset. Lance cites the example of a course attendee from the film industry who, after attending the first day, sent him an email saying that she realised the venture she had in mind was too risky to proceed with, but thanking him for making it abundantly clear to her that it was too risky. For this person, the return on outcome was in preventing failure after conducting due diligence on the risks associated with the venture, saving a lot of time, money, and heartache.
Lance has also dealt with entrepreneurs who seek trading process improvements to streamline and reduce costs to their supply chains. He tells of another person who discussed his original goal to cut out the middleman by importing directly from China but needed guidance on where to start. With Lance’s assistance, he located a supplier in China for imports to Australia and developed other markets in the Americas, establishing himself as a Global Trader.
The acquisition of knowledge and information resulted in improved supply sourcing and expanded market reach and opportunity, effecting a positive multiplier effect.
Finally, there’s the return on outcome based on networked contacts. It’s often said that it’s not always what you know but who you know. Lance tells of a female student who attended his course, who years later, leveraged his experience as a Tradestart Export Advisor at the Australia Trade and Investment Commission (AUSTRADE), to put her in touch with an Export Market Development Grants consultant to obtain a grant of over $20,000 to cover the costs of two years of export marketing expenses.
An outcome comes in many forms and is not always quantifiable. It can be disguised as a risk and an opportunity. With the appropriate amount of knowledge, assessment, and action, it can result in a return on outcome that could mean the continued success or ultimate failure of a business.
On March 22nd, he has partnered with the NSW Government, to provide a FREE Zoom Webinar for NSW Small Business Month 2022 entitled “Importing, Exporting and Global Trading for Small Business Made Easy”.
Lance can be contacted directly on LinkedIn.
