Export Readiness& Planning

Export Readiness & Planning

How do you know you are ready to export?

• One simple way is to take the assessment test at http://export.gov/begin/assessment.asp

• Self-assess: Use SWOT and/or Porter’s 6 Forces Analysis

• Must Have Conditions & “Nice-to-Have” Conditions

Export Readiness & Planning

“MUST HAVE” CONDITIONS Upper Management Buy-In, Commitment

& Realistic Expectations

Knowledge & Experience producing & selling product or service

Sufficient Corporate Infrastructure

Solid Cash Flow

Production Capacity & Flexibility to produce international products or provide the service

Export Readiness & Planning

“NICE-TO-HAVE” CONDITIONS

International Expertise

Foreign Language Ability

Cultural Awareness / Sensitivity

Travel to Foreign Markets

Export Readiness & Planning

Export Success

Market Selection

PartnersMarketing

Finance

Logistics

HR

Sales

Product Selection

Entry Mode

Export Plan Components

Export Readiness & PlanningINTERNATIONAL BUSINESS PLAN

Step 1: Who you are Export Readiness Assessment

Selling successfully in USA? Production Capacity? Good Cash Flow? Committed Management? Customer Service Capabilities? Cultural Knowledge? International Logistics Knowledge? International Finance Knowledge?

Self-Evaluation SWOT 6-Forces Analysis

Export Readiness & PlanningINTERNATIONAL BUSINESS PLAN

Step 2: Where are you going?

Foreign Market Selection Reactive – Celebrate the “occasional” fish

on the line Low cost, Easy, Fast Late to the party, outsider, follower

Pro-active – Go after the big fishes with purpose and strategy

Secondary, Primary, Qualitative Data Suitability Indicators Risk Assessment – political, economic,

cultural, legal Free Trade Agreements (FTA’s)

Export Readiness & PlanningINTERNATIONAL BUSINESS PLAN

Step 3: How are you going to get in there?

Entry Mode - It is all about feedback, control, access & infrastructure

Indirect Direct (with & without investment) Joint Venture Licensing

Partner Selection EMC’s, Export Agents, Piggybacking Commission & Direct Reps, Distributors & End

UsersCUSTOMER SERVICE RULES!!!

Export Readiness & PlanningINTERNATIONAL BUSINESS PLAN

Step 4: What are the other factors?

Production Selection VOC International Standards Packaging, Labeling, Product Info After-market sales support, returns

Sales Plan Prospecting Pricing Quotes Competitors Shipping Terms Post-Sales Service

Export Readiness & PlanningINTERNATIONAL BUSINESS PLAN

Step 4: What are the other factors?

HR Plan Internal Resources & Capabilities External Help Training (here & there)

Financial Plan Payment Terms Insurance Currency & FX ROI Capital, Costs & Expenses

Export Readiness & PlanningINTERNATIONAL BUSINESS PLAN

Step 4: What are the other factors?

Logistics Plan Methods Packaging Documentation & Customs Carriers Insurance Regulations & Compliance Visibility in transit

Export Readiness & PlanningINTERNATIONAL BUSINESS PLAN

Step 5: What are your expectations?

Set reasonable goals & forecasts Develop clear & measurable metrics Evaluate your plan periodically

Step 6: Who is doing what and when?

Write down a plan Do your homework Begin small & start promptly

Export Readiness & Planning

Export Success

Market Selection

PartnersMarketing

Finance

Logistics

HR

Sales

Product Selection

Entry Mode

Export Plan Components

Thanks!