Business strategy must for first-time exporters

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Bikky Khosla | 26 Apr, 2011
There is no doubt that in today's increasingly globalised world, exporting is crucial for the growth of a business and its competitiveness. We are all aware that global trade barriers are coming down these days, and, as a result, opportunities to succeed in the export business are increasing by each passing day. Having said that, while export business can be financially rewarding, it is is full of challenges and risks. I have seen several businesses which have entered the export business, but have failed to make any impact, in terms of monetary gains.

These companies failed to succeed owing to the fact that they lacked proper strategy and preparation needed for exporting their products to global markets. They also failed because they were unable to address the key issues that must be addressed if they want to be successful exporters. Without doubt, to successfully develop a export market, companies must first understand what is needed to succeed in global markets. Here, I would totally agree with marketing gurus who have just one simple mantra for first-time exporters - that, they must be 'export ready' rather than just 'export willing'. They would also say that, 'Export development is a process and not an event.'

It is sad that most first-time exporters try their hand in exporting because they want to merely dispose off surplus production and thus to keep their cash flow intact during weak domestic market situations. I strongly believe that companies should shun such myopic approach and should plan long-term export strategies if they want to be successful and make a mark in the global arena.

Moreover, any first-time exporter should understand that they need proper skills, resources, commitment and information to support sustained exports. They should also understand that exporting involves more time, money and resources to establish one's business in an overseas market. Once the target export market has been identified, it is imperative that a thorough research on the market dynamics vis-a-vis the demand for your products is done.

One should also analyze the products' competitiveness and the advantages of these products over other products already available in the target market in terms of quality, price and uniqueness. And most importantly, know the risks involved in exporting to the target markets of your choice. It is always wise to hope for the best, but prepare for the worst.

I would highly recommend first-time exporters to ask themselves two questions: 'Am I ready to export?' and 'Are my products ready for export?' If you are able to get positive answers to these questions, then go ahead. All I would say is that, plan carefully before keeping your first step in the world of exports if you really want to succeed.