Entrepreneurs face a global marketplace that includes many options for outsourcing manufacturing of products. But, there are significant risks when entering the world market including protecting intellectual property, finding reliable suppliers, and understanding currency fluctuations.
Entrepreneur.com offers suggestions on navigating the complexities and risks of a global strategy:
- "Hire a source that's not a competitor." This is your best chance of protecting your intellectual property. However, there are no guarantees in the international arena so be prepared for knock-offs even if you have a US patent.
- "Determine a source's turnaround time." Talk to other US companies that have used the source. And understand the time and cost of your various shipping options, as both can vary widely.
- "Give your source an exact model of what you want produced." This will cost some money, but prototypes are your best chance of communicating exactly what you want them to do.
- Keep in close communication with source. This may help minimize surprises. They will probably not initiate communication if there are any problems.
The article also offers several places to go for assistance.
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