Doing trade globally is challenging as well as full of opportunities. Gaining a better understanding of the export process will help you outline how your company can build sustainable exports. There are 11 fundamental steps to successful exporting.
Assessing your export readiness
Are you ready to export? Before you commit to exporting you need to honestly assess your export potential – both in terms of the readiness of your business and of your product or service.
Constructing an export plan
A comprehensive export plan will help you identify the steps to selling internationally. It should detail the decisions you’ve made based on your market research, your objectives and how you plan to achieve them. A well-structured plan will make sure you’ve thought about all the possibilities, chosen a logical way forward and set targets to keep you on track.
Researching your target market
Does your prospective foreign customer need what you are selling at the price that will yield you a profit? What is the competition and how will they react?
Finding foreign buyers
Once you’ve identified the markets that you’re going to target, you’ll need to find the buyers for your product in that market.
Methods and channels
Choosing a sales presence in an European market can be quite complex. There are a number of options:
- Agent, distributor, internet, license or franchise
- Direct sales to retail, direct business to business sales, joint venture, subsidiary or via UK contacts
However, the suitability of each will depend on your company and products.
Preparing and developing your product for export
The extent to which your company is willing to modify products sold for export markets is a key issue to be successful. Before the sale can occur, you need adapt your product to meet government regulations, country conditions, or satisfy customers in every foreign market you plan to enter.
Pricing, costs and finance
Consider the additional costs involved in selling into the overseas market. Establish a target price in the overseas market to the end-user.
Take account of:
- payment terms
- freight and carriage charges
- import duties and taxes
- commission to partners
- competition pricing
Contracts and shipping
In this step, you need to know:
- Shipping your product
- Duties, taxes and export documentation
- Negotiating contract term
- Draft your export contract
Making an export company is a complicated process, but making it be successful and long-lasting export company is even more difficult. The success of a product in the market and its further growth depends on the quality, price, and also service given after the sales happened in accordance with the convenience of buyers. Understanding and targeting the needs of final customers and fulfilling these needs in the most competitive way and by adding value to one’s services is essential.