12 step by step process to successful exporting

7/25/2019 12 Step by Step Process to Successful Exporting

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12 STEP BY STEP PROCESS TO SUCCESSFUL EXPORTING

It is not uncommon for me to bump into a colleague and once they know Iam involved in export promotion, the next knee jack reaction question theyask me is,

What can we export to get some money !r what products are on demandin the export market, "his is irrespective of whether they are currentlyinvolved in local trade or have even exported informally# It is always di$cultfor me to attempt an answer because exports just like local trade requiresprudence and it%s not always a get rich quick scheme as it requires work overtime and like in any market, the customer guys a products that meets his&herneeds which is commonly known as customer value proposition#

'o in article, we will try to summari(e key steps on how you can exportproducts# We will in due course digest each of the subjects in the next postssince export is such a wide subject for us to write everything in this article#

Below are some highlighte ste!s to e"!ort a !ro#$t%

1% &hat is 'o#r e"!ort !ote(tial)"he reality is entrepreneurship is not for everyone as observed by )orbsmaga(ine# *s such, one has to determine if you have the cloth for exporttrade otherwise you may be cut for something else# +ou need to ask if yourproducts& services are exportable and if they will be consumed by the targetcustomers# +ou further need to establish if your company, the managementas well as owners of the company are committed tow exporting# We usuallyrefer to this as having a re in the belly- the drive dig in should it be

needed to capture the export market which like local trade doesn%t come ona silver platter# +ou need to ascertain if. your products is ready/ what is your0nique 'elling 1roposition 20'13 What are your target customers Who areyour competitors/ how should you price your products 4tc#

2% Now that 'o# esta*lishe 'o#r !ote(tial+ are 'o# rea')+ou need to review your company%s current resources/ do you have thenancial resources, sta5 dedicated to exports, suitable sales literature,business card, price lists# 6egistration with local export 1romotion 7ody like0ganda 4xport 1romotion 7oard in 0ganda positions you better to obtaininformation on export#

With the IT resources like the internet readily available, you can actuallytake this online step by step test on international readiness. You may want tovisit some sites like http.&&www#enterprise-ireland#com&en&4xport-*ssistance&8et-4xport-6eady&*re-you-ready-to-export- *lthough the pictureisn%t complete, it claries your thoughts going forward#

,% Now that 'o# are rea'+ ha-e 'o# sele$te the !ro#$t a( targetmar.et)
http://www.enterprise-ireland.com/en/Export-Assistance/Get-Export-Ready/Are-you-ready-to-export-/http://www.enterprise-ireland.com/en/Export-Assistance/Get-Export-Ready/Are-you-ready-to-export-/http://www.enterprise-ireland.com/en/Export-Assistance/Get-Export-Ready/Are-you-ready-to-export-/http://www.enterprise-ireland.com/en/Export-Assistance/Get-Export-Ready/Are-you-ready-to-export-/


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It%s of course prudent to recall that one be unsuccessful selling alcohol in'audi *rabia as one who tries to sell Ice to 8reen land# We need to fullyunderstand the market rules of the game in business# +ou may prefer toobtain rst-hand information by visiting the market#

/% 0a-e 'o# resear$he 'o#r mar.et)

9aving identied your products-market match, one needs information to planfor export# :arket research helps an exporter identify the right targetmarket, competitors 2their si(e and strength3/ customers as well as channelsof trade# 7y visiting business centres& library at your local 4xport 1romotion*gency you can obtain comprehensive materials including online or o5 linedatabases to help you in your research# )or 4ast *frica/ 6wanda;evelopment 7oard 26wanda3, "an"rade 2"an(ania3, 0ganda 4xport1romotion 7oard 20ganda3, Investment 1romotion *gency 27urundi3 are theo$cial government export promotion bodies# !nce you have all the ducks in

one row, you need a plan of action or a strategy in military language#% &hat strateg' Pla( to sei3e the mar.et) 4Pla( 5+ B 6 C7

1rior to embarking on an all-out marketing plot, it is vital for companies todraw up a short export business plan 2we recommend


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:% E"!ort !ri$i(g

"he right pricing strategy ensures that prot margin is maximised, resourcesare optimised, and sales volume are amplied# 4xport pricing and domesticpricing are di5erent owing to di5erent overseas market conditions, di5erent

costs, di5erent quoting formats and di5erent currencies all a5ect what youcharge your customers for your products or services# It is advisable thatprices of course cover all costs involved plus a margin and in local currencyof the buyers or at last in 0' dollars# Aompanies need to factor in foreignexchange Buctuations considering that once a price is stated, it%s alwaysdi$cult to take it higher# Aompanies also need to keep the delicate balancenot to price their products too low as it could be interpreted as chaeap#

C# Yo# (ee to ;ormalise istri*#tio( agreeme(t

>ike any business, export benets the supplier as well as buyer whether theyare the nal consumer or not and each one will only stay in the relationshipfor as long as they derive a benet out of it# "he two parties thus have toagree mutually to do business for mutual interest to make money out of theprocess# 9owever, there needs to be a formal process to stipulate theexpectations, responsibilities, targets, and expected results for all theparties# It%s advisable that short term agreements are arranged as businessbegins in order to o5er quicker exit should there be challenges such asmarket unviable or any party back tracks on their bargain# It would berecommended to contact a lawyer although the agreements need to bemutually understood by both parties#

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9aving run the race thus far, you need to ensure you are paid and having agood understanding of the various methods of payment settlement isessential to ensure that you select the most appropriate terms of paymentfor your business transactions and that you receive payment for it# "his is acrucial element in the export business as you will need cash to purchase the

goods or services in order to manufacture and deliver to your customers# +ouwill also need to have a good understanding in exchange rate volatility asBuctuations can a5ect protability and pricing#

In 4ast *frica, banks such as DA7 7ank has branches right across the regionand o5ers a product to ;ollar account holders where a customer can depositmoney into their account from anywhere in 4ast *frica and the same wouldbe credited to their account with Eero transfer fees# "his o5ers companies anopportunity to minimise costs of getting paid#

To 'o#r s#$$ess i( 'o#r E"!ort =o#r(e'

1hilip :uwanika, :7*# 1hilip :uwanika has been working with "raidlinks to aregional program 2:arket>inked3 aimed at supporting intraregional exports ofproducts with funding from "rade :ark 4ast *frica#

12 step by step process to successful exporting

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