How to create an export plan

How to create an export plan

Whitney - August 18, 2017

The right export plan outlines your objectives, strategy and preparations for selling your product or service in a new or existing overseas market. It also helps you evaluate risks and benefits. Right from the start it is essential to make sure that you have a proper, thorough initial research on the market you are looking to expand to before proceeding with an export plan. That would be knowing the exact way you are entering the marketing – directly or through a distributor, for example. Only after acquiring that information to establish your target audience and to have a deep grasp on the way your competitors conduct their business and where they make mistakes would you be able to create an effective export plan.

The Main Concepts

As any other type of plan you might have created, the first thing that should establish is your primary goal that you are aiming at. Before the actual market penetration, a developed strategy has to be prepared to achieve the desired goals. Selling your product or services overseas to new clients comes with a variety of different risks which should be taken into consideration. Obviously, the risks are all that make the benefits far better, otherwise, it would make no sense to expand.

A more specific example would be to whether or not you would send a parcel to Italy through TNT, for example, or prefer to create transport for your department in your own company branched out of the UK.

Weighing in your Options

Both scenarios have their risks and advantages. Obviously creating a department for transport would require a hefty investment which would require quite a long amount of time to make it worth your while, meaning that you would be better off using shipping services when sending a parcel to Italy. Couriers like TNT might specialise in shipping services, but don’t always provide the best price rates, which is another thing to be taken into consideration.

Justification

What are the reasons you chose to export to that particular market? You should be fully aware of what the respective market holds for you, how you would have to change your products before sending it in a parcel to Italy. Would you be using an overseas partner to help you get in the market? Would you directly sell there, or prefer to sell to a distributor at lower prices, but risk-free? Only after that would you be able to move to the next step.

Operations Management

This is where the specific work in the plan comes. Construct an efficient, data driven plan regarding how you would be transporting and distributing your products. That comes with all of the legal liabilities in terms of regulations which you must follow, licenses and standards you have to cover as well as the paper trail that goes through customs. That will enable you to figure out the exact resource you would need to be able to export your goods or services so you could choose a method of financing it efficiently. It is where all the costs are calculated.

All of these plus the marketing plan would make the perfect export plan, which would lead you to the desired results. Make sure you don't take shortcuts, as each step is vital.

 

 

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