How to Create a Business Plan for Exporting Goods?
16 May 2023
Regardless of whether companies have previous experience in exporting goods to other countries or are entering markets for the first time, there are risks involved in exporting goods from one international border to another. Good research, real buyer search, the best product selection, and the right country choice are major factors contributing to exporting goods globally. Let’s find out how these factors are important in achieving business goals.
· Commodity Analysis
Firstly, you should select a product that you want to export to the world. How to make the right search? Get trade data with full specifications of commodities and other details that will help you understand which products are more in demand around the world. You also have to study the competition level of your selected commodity.
· Country Analysis
Secondly, you have to decide in which countries you want to supply your commodity. For this, you have to get data and analyze bilateral trade relations between the countries. For example, if you are an exporter in Indonesia and want to supply your commodity to the international market, so you have to analyze which countries are buying your commodity from your country. And find out which countries are having great demand for your product. Finally, decide accordingly to which country you want to export your commodity.
· Identify and Connect with Buyers
You have selected your commodity and country, now you have to find potential and trusted buyers in that country. There are many sources from where you can get information on importers. These include – embassies, trade promotion associations, government agencies, trade events, and so on. Get the list of importers and start contacting them to get the answers of your trade-related questions. Always consider authentic buyers and get connected with them for making the best deal.
At the same time, it is crucial for companies to do market research, set clear goals, and create an export plan. Developing an export plan is a critical step in any business market expansion efforts. An export plan will allow businesses to investigate their target market and determine how their products can successfully fit into it. Take a look at the steps of how to build an effective export plan.
1. Start an Export Market Expansion Program
Build designated program leaders and export teams and summarize the baseline of the company and export history. Conduct an export benchmark assessment in order to summarize and implement significant findings. Define your business and financial objectives to expand your reach. Periodically assess progress toward accomplishing results and identify needed adjustments.
2. Target High-Potential Export Markets
The next step is to make product assessments on key components like export, import, sales, and so on. Identify export promotion organizations that will help you in finding the best prospects. Collect relevant data or directly purchase data from a reliable market research company to analyze and select the highest potential markets for your product.
3. Build Export Market Plans
Review, and assess market entry method options and select the most appropriate one. Analyze and determine suitable channels of distribution. Study target markets to identify competitors. Get essential data and investigate competitors’ products, market segments, and channels of distribution, price, and promotional strategies. With in-depth insights into competitors’ business, you can develop competitive positioning.
4. Build an Effective Export Organization
Develop conclusive plans, policies, and processes to accommodate the accelerated export activity. Designate a company-wide export team to initiate tasks. Obtain required approvals. Identify target market, attend global trade shows & other promotional events, and get connected with potential buyers.
5. Build a Successful Export Distribution Network
Assess and evaluate promotional activities and events and select preferred distribution partners. Visit the preferred distribution partner and negotiate & finalize agreements. Evaluate the degree to which the export distribution network modules were achieved.
6. Build Profitable Global Export Sales
Implement sales promotional activities, respond to export sales inquiries for potential sales opportunities, and negotiate final sales terms and prices. Book shipment of orders, obtain required documents, prepare commercial and other documents and fillings, and collect cash-in-advance sales. Finally, deliver the order to the carrier. Collect letters of credit, documentary collection, and open account methods, and evaluate export sales results.
Major Points to Keep in Mind for a Smooth Export Marketing Plan
· Analyze trade scenarios of countries.
· Top economies may have great demand but can see competition.
· Select the best product.
· Be ready to make modifications to your product.
· Do a thorough study and analyze the long-term plans of your company.
In order to start an export sales plan, it is important for an exporter to have clear goals. An efficient export sale or marketing plan enables businesses to create a blueprint to sell their products across international borders without much trouble. Success in exporting goods to the world is difficult but possible when you have a clear path on how to navigate international markets. Follow these above-mentioned steps and export your product to the international market.