Basic planning for starting export businessBefore starting a business one must evaluate the company’s “export readiness”. Only after evaluating export readiness, export planning should be done. Basic planning for starting export business helps the exporter to determine if the company’s assets are reliable and efficient enough to participate in the import-export practice. Therefore in order to achieve the prerequisite target, the domestic market evaluation of commodities are mandatory. Once the company survives in the domestic market, then the chances of succeeding in the international market will increase. Moreover, the unique features of your product will help the exporter to differentiate their product in the market with the other products having similar qualities and price range. Once the exporter makes the final decision of participating in global trading, then it is very important for the exporter to develop a proper plan for the import-export business. The definition of a perfect export plan is the plan will help the exporter to sustain their financial condition, it will also depict the better future of the company, even the market associated with it and the Perfect export plan has to be practical, simple and even flexible in nature, then only it is a perfect plan. Let’s see how to do a startup business plan. This can be classified into two stages:
- Are you export ready
- My export plan
How you can know if you are export ready or not?If your business is export ready then it will have a few qualities which will help you to determine that you can go further or not. Let’s see what these qualities are?
- Your business is ready for the production of products as per various demands and is prepared for various export related tasks and funding.
- Understand that there may exist added demands in global business as per the key resources.
- Exhibit realistic expectations from return on investments that will occur from various international activities.
- Is prepared mentally and in terms of resources to modify products and services as per changing market trends.
- Is aware of various rules and regulations, export license, exemptions etc.
- Know the basic export procedure and risks that are involved and how to sustain them.
Export PlanThe key idea for successful exporting is having a strategic export plan. This will provide you highlights about the essential elements of an effective exporting business plan. This includes identifying the product, market research to decide the target market, pricing the product and a strategy for finding genuine buyers. Finally, you will need to identify How to connect with buyers, freight forwarders and other required persons. Objectives of export business plan
- Helps to identify what actually you want to achieve from exporting.
- Enlists various activities that you need to consider to achieve the target.
- Includes various ways for measuring your progress.
- Helps you to be focused on your goals.
Developing an Export PlanThe purpose is to assemble a few facts, constraints, and goals and generate an action statement that includes all these elements into account. The export plan includes the above-mentioned objectives, what to be done when, their implementation and milestones to be achieved which will help to measure the degree of success. The export plan consists of a few questions that helps to cover each and everything that falls within the export process. So for creating a business plan or making a business plan following must be considered:
- Which products to select for export?
- What modifications, if any, must be made to adapt the product for overseas markets?
- Which will be the target countries for sales development?
- What is the basic customer profile i.e. target customer?
- Which marketing and distribution channels should be used to reach customers?
- What are the challenges (competition, cultural differences, import controls, etc.) and what strategy will be used to address them?
- How to determine the product's export sale price?
- What specific operational steps must be taken and when?
- What will be the time frame for implementing each element of the plan?
- How much personal and company’s resources that will be dedicated to exporting?
- What will be the cost in time and money for each element?
- How will the results be evaluated and used to modify the plan?
- When for the first time export business plan is developed try to keep it simple. It should be within a few pages because as you will go within the process as per various stages you will get more information regarding the market, product, marketing, sales etc you can add in it. As will learn more along with the process the plan will get completed.
- Your plan must be written and never consider it merely a paper trail. Keep implementing it throughout for successful exports. Take it as your management tool. Compare your actual results with the milestones mentioned within this. Modify it whenever needed.
- A much more detailed plan is recommended for companies which export directly. If your firm performs indirect exports or sell via a third party’s website, you can go with simpler and small business plans.
- If you are not doing this for the first time you don’t have to create a new business plan. You can make changes or can add on within the existing one.