Expert practitioner №1 in international business Anna Fomicheva: “Foreign economic activity is a trend for the next decade”

Despite the harsh conditions of isolation, Russia continues to build economic relations with other countries. China is the main trading partner, but a trend towards increasing trade turnover and expanding trade is also observed with many other countries, among which India, Turkey, Vietnam, and Iran stand out. The geography for expanding trade is not limited only to the listed countries, this is only a small part of them.

Expert practitioner Anna Fomicheva is convinced that foreign economic activity is a trend of the next decade. Since 2008, she has been conducting entrepreneurial and social activities in the field of international business. She is an ambassador and co-founder of the Academy of International Business and the digital platform DIGITAL Foreign Economic Activity, which enables every entrepreneur to independently and openly conduct foreign economic activity with any country in the world.

The launch of the DIGITAL FEA platform is due to the need to simplify all processes for conducting foreign trade business and eliminate intermediaries on the one hand, and on the other, through the transparency of all processes, to show that Russian business can be “white” and bring profit to every entrepreneur. Whitewashing Russian business and popularizing entrepreneurship, positioning the entrepreneur as a role model for society is the mission that for Anna is the basis of her entrepreneurial activity.

Not long ago, entrepreneurs were faced with the need to rebuild financial logistics and build new transport and logistics chains; there was a reorientation to new international markets. Is this difficult for an entrepreneur? — Difficult! Is this necessary? — Undoubtedly! Each of us, whether it is a business in the field of trade or production, is faced with the need to change the approach to doing business.

What is important to consider when working in the international market?

The Anna Fomicheva’s Academy of International Business calls on everyone who plans to purchase abroad to obtain at least a minimum amount of knowledge. If an entrepreneur plans to conduct foreign trade activities himself, he will have the necessary knowledge and understanding of all the processes taking place during customs and logistics operations. If part of the work is outsourced, the company will have the opportunity to exercise control.

Financial model of the transaction. A tool for understanding actual costs and forming the cost of goods, it takes into account all obvious and hidden payments.

Financial logistics. Under conditions of sanctions pressure, unfortunately, not every bank can process the payment you need. To minimize risks and make all necessary payments, you can use the services of foreign trading houses.

Verification of counterparties and inspection. Before concluding a contract, be sure to check the counterparty and inspect the production — inspection services are available on the Internet, inspection is carried out at different stages — from production assessment to inspection of the finished batch of goods.

If your turnover increases -create and register your trademark. There are often cases when “reliable” suppliers or intermediaries register your trademark in their name, then you can lose not only the supplier, but also your brand.

Establish personal contacts with manufacturers. Keep in touch with foreign partners. Visit a counterparty country as part of a business mission or meet at an exhibition or similar event.

These simple tips will help you create a name for your company, earn a reputation with banks, get the “best prices”, etc. As part of the educational programs at the Academy of International Business, entrepreneurs are provided with assistance in obtaining the necessary amount of knowledge and competently organizing work with foreign countries.

How to expand your business?

In Anna Fomicheva’s understanding, this is scaling a business by entering international markets. Foreign economic activity has enormous potential for expanding any business, and taking into account all the trends in working with new countries, it is now possible to occupy interesting niches.

Let’s look at Anna’s recent case. The company worked with a European country to supply coat fabrics; fabric dye was purchased in the USA. After the introduction of sanctions, the company faced the choice of either curtailing production of coats or entering new markets. After analyzing suppliers, Anna suggested considering 3 manufacturing countries (Vietnam, India, Uzbekistan). The most suitable production was in Vietnam; a bonus for our company was that the manufacturer produced the dyes themselves. Later, the head of the company admitted that he had never considered Vietnam as a supplier.

Another option is to work on foreign marketplaces, when goods produced in another country under your registered trademark are sold on foreign marketplaces.

Or here’s another example. As part of the audit, it turned out that the company was overpaying 22% to the purchasing agent; it was decided to go on a business mission to China and enter into direct contact with the supplier. The contracts were concluded, the company saved, and therefore earned, 22% of the purchase cost.

There are a lot of options for scaling a business using elements of foreign economic activity. All the examples given above are real cases, the result of Anna’s work with the thinking of entrepreneurs as part of personal mentoring.

As the expert notes, the mentoring program was initiated by the company’s clients, when entrepreneurs understand that the transfer of experience within the framework of individual work provides an opportunity not only for multiple growth, but also for the application of knowledge in any business.

Future plans

Despite the increased interest of entrepreneurs in training, Anna continues to conduct business in the field of customs and logistics operations and conveys “white” approaches to its management. Companies that have at least once worked with Anna understand all the advantages of “white” deliveries — from reducing supply costs (Anna’s axiom “cargo = smuggling”) to the use of foreign financial instruments (letters of credit, bank guarantees, insurance, etc.) and opportunities to receive government support.

In 2024, Anna Fomicheva plans to hold an international trade forum, which will be attended by about 5 thousand representatives of business, organizations and authorities, including suppliers and manufacturers from different countries. The forum will become a kind of unique platform for the exchange of business contacts between suppliers and buyers, a business negotiation platform and an exhibition center.

The expert’s long-term plans include continuing to popularize the platform solution DIGITAL FEA with expanding its functionality for both users and partners, developing the Anna Fomicheva’s Academy of International Business, including at the international level, providing an understanding of how to scale a business by entering international markets and helping not less than 500 business participants to arrange “white” supplies from abroad. There are also plans to continue organizing trips with targeted business missions to China, India and Vietnam.

“Everyone who has ever thought about conducting foreign trade or scaling an existing business should understand from the first deliveries how to work in a “white” manner, realize that people come into this business with big plans for the year. The future lies in the development of foreign trade,” emphasizes international business expert Anna Fomicheva.