An export plan is a detailed guideline prepared for the development of one’s international business. It is the key to successful exporting. An export plan in general consists of the identification of the goals, markets, activities, etc. and different ways of achieving the resources, required objectives, and profit or expected result.
Let us have a brief look at how a perfect export plan can be prepared.
1) Understand your business and export potential
Exporting is one of the best ways to grow and expand a business. But before thinking of expanding you must have a clear idea of the current position of the business. Knowing where you stand will help you to know where to and how to move next. A thorough assessment of your business potential domestically and internationally in the market must be made. All the aspects of the business must be studied to know how to move forward. A clear understanding of your business and its potential will help you to calculate the potential benefits as well as risks in moving forward with exporting.
2) Do your homework and have a plan
Proper homework and a good plan are the base of a perfect export plan. Exporting is a process in which every single step must be planned. One must be clear and focused on their objective. The plan should include a financial analysis of your business, the scope of the products in the international market, your capacity to meet the demands of the international market, your reach in the int. market and how to expand it, availability of resources, labor, etc.
The company must also analyze the risk factors thoroughly. The planning is not just an initial step, it is something that must be revised during every step and be changed to make a positive impact on the export business.
3) Understand the keys to Export Success
In the majority of the cases, only the companies that are successful domestically will think of exporting. In that case, it is very important to understand the keys to export success. You must be ready to invest the required time and money into the business and all the necessary aspects. Commitment to the resources is a must. It may take some time for your company to begin to make profits, so patience and the will to move on with the same enthusiasm as in the beginning is necessary.
4) Finding market entry opportunities
The demand for your products and the opportunity to market it must be identified. Many countries host international trade fairs and participating in them will allow you to find opportunities in the market and meet many buyers for the products.
You can also look for partnerships that will make your entry to the international market easier. Find out small business owners who have started exporting internationally and ask their advice and help. Find out if there are any trade agreements that will help you slide into the int. market easier.
5) Factors affecting the Marketing and Selling of products
The selling of the products depends on the marketing of these products. It is very important to understand how to market and sell your products in the int. market. The type of marketing you choose must grab the attention of potential customers and stand out from your competitors. A reason to choose your product over others must be put forward through marketing.
There are a variety of factors that influence the quality of marketing like the display of the uniqueness of the product, the location, the price, and the distribution channel.
6) Potential risk assessment and management
Assessment of risks and finding ways to manage them is an important part of exporting. An efficient and secure mode of processing payments is also an important factor to consider. There are different categories of risk that needs to be considered while exporting like:
- Nonpayment of funds, disputes over contracts, insolvency, overdue payment, brand, reputation IPR, etc.
- High inflation, Exchange rate
Proper cash flow depends on choosing the most suitable exchange rate and mode of payment.
- Another important factor which can be a risk if not studied carefully is the country’s export regulations.
7) Legal considerations and proper documents
Studying about the legal and regulatory domain of the countries to which you plan to export products is very important. The legal requirements, trading terms that may apply, and the early stage regulations must be well known.
Proper documents through the right government channels are also important for the wellbeing of the business in the future. Any mistakes in these might cause big consequences in the functioning of the company.
8) A distribution method
A proper and cost-efficient distribution method must be chosen for the export of your products. The implications of selling over long distances must be considered. The level of demand, the cost of transport, the mode of transport, customs, etc. all affect the distribution of the product.
The success or profit in your export business may take some time to achieve depending on a variety of factors. But your work doesn’t end when you begin to achieve success. Now you need to find more ways to expand your business to different regions of the country and then to more countries depending on the scope of demand. The chances of repeat business must be increased and efforts should be made to be recognized as a reliable international brand.
All the processes of the business must be checked regularly and customer contact must be maintained to understand the flaws and correct them.
Planning is the essence of a successful venture. A perfect export plan is necessary for a successful export business. We have given a detailed export plan above to make sure any person who plans to expand their business internationally feel the least difficulties in doing so. You can use the same export plan to expand your business to other different countries as well.