Introduction to Exporting - Part 3
Chapter 3 Developing
Your Export Plan
Why We Need Export Plan?
If you plan your export project thoroughly, you’ll have a better chance of doing well in your target market. Bad planning (or no planning) will undermine your prospects of success, and keep in mind that a major failure abroad could severely damage your domestic operations as well.
Financial institutions and other lending agencies will not normally provide funds to a business that lacks a well-developed export plan. At other stages of the export process, potential partners and investors may commit themselves only if your plan clearly sets out your objectives along with the processes and resources you’ll use to achieve them.
It can seem that exporting is too complicated, but remember that you don’t have to do everything yourself. You can use outside experts such as export management companies, overseas agents, foreign distributors or freight forwarders. While you’re getting established as an exporter, they can represent you, find overseas customers, manage sales orders, handle paperwork and deliver the goods.
Your Business Plan
A good export plan begins at home, and is built on a comprehensive business plan that accurately reflects your current domestic operations. If your business plan is out of date, now is the time to review and renew it. If you don’t have one, this is definitely the time to create one.
You can contact your industry association to find names of successful exporting companies in your sector and target market. You can then set up a network of business contacts who can provide you with practical advice.
Your Export Plan
Once you’ve polished up your business plan, you can start creating your export plan. It isn’t something you’ll finish in a week, though, and even after you’ve begun exporting, you’ll need to update it regularly.
The Elements of Your Export Plan
An export plan is really just a business plan that focuses on international markets. It identifies your target markets, export goals, necessary resources and anticipated results.
Why We Need Export Plan?
If you plan your export project thoroughly, you’ll have a better chance of doing well in your target market. Bad planning (or no planning) will undermine your prospects of success, and keep in mind that a major failure abroad could severely damage your domestic operations as well.
Financial institutions and other lending agencies will not normally provide funds to a business that lacks a well-developed export plan. At other stages of the export process, potential partners and investors may commit themselves only if your plan clearly sets out your objectives along with the processes and resources you’ll use to achieve them.
It can seem that exporting is too complicated, but remember that you don’t have to do everything yourself. You can use outside experts such as export management companies, overseas agents, foreign distributors or freight forwarders. While you’re getting established as an exporter, they can represent you, find overseas customers, manage sales orders, handle paperwork and deliver the goods.
Your Business Plan
A good export plan begins at home, and is built on a comprehensive business plan that accurately reflects your current domestic operations. If your business plan is out of date, now is the time to review and renew it. If you don’t have one, this is definitely the time to create one.
You can contact your industry association to find names of successful exporting companies in your sector and target market. You can then set up a network of business contacts who can provide you with practical advice.
Your Export Plan
Once you’ve polished up your business plan, you can start creating your export plan. It isn’t something you’ll finish in a week, though, and even after you’ve begun exporting, you’ll need to update it regularly.
The Elements of Your Export Plan
An export plan is really just a business plan that focuses on international markets. It identifies your target markets, export goals, necessary resources and anticipated results.
- Introduction
- Business history
- Vision and mission statement
- Purpose of the export plan
- Organizational goals and objectives
- International market goals
- Short and medium-term objectives for exporting
- Location and facilities
- Organizational Issues
- Ownership
- Management
- Staffing
- Level of commitment by senior management
- Relationship between exporting and other operations
- Corporate experience and expertise in exporting
- Strategic alliances
- Labor market issues
- Products and Services
- Description of products and services
- Key features
- Adaptation and re-design required for exporting
- Production of products and services
- Future products and services
- Comparative advantage in production
- Market Overview
- Market research
- Political environment
- Economic environment
- Size of market
- Key market segments
- Purchase process and buying criteria
- Description of industry participants
- Market share held by imports
- Tariff and non-tariff barriers
- Industry trends and other market factors
- Market outlook
- Market Entry Strategy
- Target markets
- Description of key competitors
- Analysis of competitive position
- Product positioning
- Pricing strategy
- Terms of sale
- Distribution strategy
- Promotion strategy/development of sales leads
- Description of intermediaries and partners
- Regulatory and Logistical Issues
- Intellectual property protection
- Other regulatory issues
- Modes of transportation and cargo insurance
- Trade documentation
- Use of trade service providers
- Risk Factors
- Market risks
- Credit and currency risks
- Political and other risks
- Implementation Plan
- Key activities
- Evaluation criteria and process
- Financial Plan
- Revenues or sources of funding
- Cost of sales
- Marketing and promotion costs
- Other expenses or expenditures
- Operating budget
Comments
Post a Comment