Anyone with a product or service can export, or at least attempt to export. But success is far from guaranteed. At the best of times exporting can be a complex and challenging process. Yet, when it is approached with careful deliberation, exporting can be a rewarding growth strategy for any business.
1. Research new markets.
Thorough market research helps you makesound export marketing decisions by giving you a clear picture of the economic, political and cultural factors that affect your ability to sell your product or service. Ultimately, market research saves you time, money and effort by reducing your exposure to unknowns.
But, before starting the market research you should decide which market you would like to enter, and some of the considerationsyou should take into account are the following:
- Trade agreements.
- Geographic proximity.
- Cultural ties.
- Type of competition.
- Price ranges.
- Marketing channels.
- Existence of similar products.
- Imported products.
There are two main types of market research:
Secondary market research consists of information collection from published sources (books,newspapers, market reports, studies, and periodicals) and the Internet. Researchers will find trade statistics, market and industry information, even potential partners and trade leads. Secondary research helps you fine-tune your information needs.
Primary market research helps you fill in the critical gaps through direct contact with key experts, customers or other sources of information.Primary research frequently involves personal contact techniques such as interviews and consultations and is best attempted after you have familiarized yourself with the potential market through your secondary research efforts.
Anyway, before paying attention to the international fact, we should make the SWOT analysis of our comany and product (Strengths, Weaknesses, Opportunities and Threats), as wealways do when we try to enter a new market, doesn’t matter if is in ternational of not.
2. Find and develop trade contacts.
Create strategic alliances to strengthen your market presence.
Establish contact with potential customers, by:
- International trade shows.
- Trade missions.
- Yellow pages.
- Word of mouth.
- Web pages.
3. Finance and insurance.In respect to finance, we will maybe need some financial support to start our business overseas.
While there are overnight export success stories, most companies must be prepared to invest both time and financial resources to see the return on their investment and the subsequent success. Consequently, financial stability and a secure cash flow are important during this period. In some cases,businesses can rely on their domestic sales to sustain their early export efforts. If this is not possible, it is a good idea to know what financing options are available. Exporters must develop a financial plan to understand and address the diverse costs associated with exporting, complete with a two- to three-year cash budget to cover expenses and a capital budget. A capital budget is acost-benefit assessment of your export objectives and serves as your operating plan for measuring expenditures and revenues.
We will also have to adress factors like the payment methods (international transactions and currency exchanges), insurance (protection against the potential risks of non-payment).
4. Prepare to export.
Every market has its own set of rules and regulations covering safety, health,security, packaging and labeling, customs and duties among other things. Additionally, these rules and regulations may vary depending on the product or service you are exporting. It is critical that you understand the rules and regulations that apply to you before you ship your goods or open your foreign business location.
Develop the exporting plan. You must be aware that your international...