Export planning- sail your business smart and easy

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Writuparna Kakati | 07 Jun, 2008
The world, in these days, is a smaller place; thanks to the way in which technology, globalization and export-import trade have changed our way of life. Today, everything is available everywhere- in shops or by order over the Internet.

Parallel to these developments, new opportunities are appearing everyday. Export-import trade has become easier than ever before, and more and more businesses are looking for expanding their horizon to newer parts of the globe.

It is often seen that most SMEs enter into export business as a result of random business enquiry. And usually, most of them fail primarily because of lack of proper planning. In any business, you need a plan before you start. In export business, it is most important as it involves more challenges. You need to determine how to start your export business, where you want to trade, how you are going to trade.

For smooth handling of export business operations, it is necessary to prepare an export plan which can provide guideline for future development of your business. The purpose of an export plan is to collect useful information, identify the constraints and goals, and setting out an schedule.

How to prepare an export plan for your business?
Preparing an export plan is not complex. Keep the plan short, clear and fresh. A well written export plan will not only provide guidelines to your business but also help you to prove your company's credentials to lenders and customers. Follow the steps below while preparing the plan-

Create a plan summary. Prepare an outline of key points.
Develop a timeline for your export plan.
Divide the responsibilities and allocate them to your key staff.
Select products which are suitable for export. Also confirm if any modification is needed to meet customer expectations and legal requirements.
Prepare a list of potential markets and carefully choose the market which offers best potential.
If possible, undertake a SWOT analysis for the markets in your selection list.
Undertake market research and enlist information about market competition, distribution system, logistics and shipping requirement, after sale services, regulatory requirements, etc.
Put in details how you want to enter into the target market.
Set budget targets and commence a task list.

Some 'Do's' in export planning

Prepare an export strategy for your business and establish strong linkages between it and you export plan. Confirm that the elements of your export strategy do not mesh with the export plan.
Don't make your export plan bulky. Make it short, simple and clear
Review the plan regularly and discuss it with your staff. If necessary, ask help from professional advisers.
Divide the responsibilities and assign individual tasks to your staff. Get the plan signed by each of your employees.
Do develop realistic financial plans and timelines.
Make the plan flexible and dynamic so that your business can cope with unexpected changes.
Access your human, financial and other resources carefully.

Issues that must be addressed in export planning

What are the products you are going to export? Is any modification needed?
What are the target markets? Who are your would-be customers?
What marketing and distribution channels you are going to use?
What basic problem you are likely to face? How will you handle issues like cultural differences, import controls, etc.? Do you need professional help?
What will be the price of your products?
When and what operational steps you must take?
How much time and money will be required to implement each element of the plan?
Do you have enough human, financial and other resources to handle the export operations smoothly?
How will you evaluate the results and modify the plan?

In any form of business, adequate preparation is required. While exporting, an export plan provides guidelines for your business. It is like exploring a new land with a map in your hand. There is hardly any chance to be lost. You know where to go, what to achieve, and how to give your every next step. So, plan smart and get ready to invade new lands with a well defined strategy in your mind.