The decision to export has major implications for the future of any business. It is a decision which you should make with care, as not all companies have the resources, capabilities or commitment required at the time for export success.
Basic Requirements
Unless you can meet some basic requirements, the success of your export project is unlikely. These requirements are :
- An exportable product
- A competitive advantage
- The finance to take it to the chosen marketplace
- A deep commitment to making an export project work
As well as the very personal decision you must make about your commitment to exporting, these are some other considerations you should reflect on.
Exporting will cost you additional investment in:
- Overseas marketing overheads and expenses
- Product design and adaptation
- Manufacturing
- Work in progress, stocks, credit and customer servicing
The challenge in going international is to adapt what you have learned in the domestic market to the circumstances of a new market and new customers. If you are only starting out in business then you are generally better advised to start with the easier task of domestic marketing and to postpone exporting until you have learned to handle the home challenge successfully.
A good solid domestic home market teaches you the basics of marketing your product. It also provides a cash flow and financial credibility on which to enter an overseas market.
One further question you should ask at this stage is "have I fully exploited my opportunities in the home market?"
Many problems of exporting are obvious: conventional trade barriers, transport, currency and credit rating success. In some new markets technical standards, competence and expectation may be different from those encountered in your existing markets, with the consequent need to rethink servicing requirements. Cultural conventions may also present their own challenges (e.g. whether first names are used in business).
A businessperson usually cannot or will not turn into a successful exporter within weeks or even months. It often requires three years or more, and some veteran export managers believe that it takes five years to become solidly entrenched in a market. The time and care taken to select the right product and the right place or places for an initial export venture can minimise the risks and make ultimate success quicker and more certain.
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