An export business plan is essential for the success of a company entering international markets. A comprehensive business plan for export ensures companies can handle the complexities of cross-border trade while maximizing their chances of success. This blog explores what an export business plan is, the steps involved in creating one, and how an export roadmap is key to navigating global markets. Additionally, we will discuss how TradeAtlas can support this process. If you are wondering export business how to start, the first step is understanding your target market and competitors.
What is export business plan?
A business plan for export is a strategic outline that guides
companies through the process of entering foreign markets. It includes a
detailed roadmap, goals, and strategies to ensure the company is well-prepared
for international business operations. The plan is essential for companies
seeking to compete in global markets.
What are Steps of the Export Business Plan?
When developing a business plan for export business, several steps must be followed to ensure the
plan’s effectiveness. These steps are vital for a company to expand
successfully into foreign markets:
-Approval of Top Management Must Be Obtained
Before the research is done and
the plan is written, the person or department responsible for the target market
entry strategy should inform the senior management about this and get approval.
By doing this, it can be understood whether the key people in the company are
willing to meet the challenges and meet the financial requirements for export.
All departments, including the head of the company, must know and adopt the
firm's export plan example.
-Market Research Should Be Analyzed
Market research is the process of
collecting information about the sales conditions, price range and potential
customers of a product in the market. Features such as the design, size and
color of the product should be determined by studying the target consumer in
the selected region to determine consumer preferences. In addition, the
expectations and purchasing behaviors of potential customers can be learned by
sending product samples to sales channels in the relevant market. Companies
should use the research to shape the export
business plan example to
suit the needs of their target market.
-Export Flow Should Be Determined
For an exporter to be successful,
it is very important to determine whether the product can compete in this
market. Such data can be obtained from the Statistical Institute of the
relevant country, the Undersecretariat of Foreign Trade.
-The Most Appropriate Export Price Should Be Determined
How much does it cost to start an
export business? Pricing is one of
the most significant factors affecting the financial projections within an export
business plan sample. Therefore, cost-increasing factors should be
considered while exporting. These factors are sales commissions, fees paid for
shipping companies, costs for necessary documents, financing costs, letters of
credit, packaging, labeling, marking, transportation within the country,
insurance and storage costs, translation costs of product documents, and loan
terms. It should be ensured that each of these factors is clearly expressed in
the financial projections and the price of the product should be determined
accordingly.
-The capacity of the firm should be clearly revealed
Pricing is not the only factor
that influences a buyer's decision to purchase a product or service. The
company's management capability, production capacity, quality control system,
technical cooperation with foreign companies, order fulfillment system, references
of the company and credibility related to financial stability are also
important factors that can affect the purchase decision of the buyer.
- Matters that will affect the buyer's decision should be addressed
Understanding what factors are
most important to potential buyers is crucial for a successful export
business plan template. It should be researched which issues the buyer
attaches importance to in the purchasing process and methods and procedures
should be developed accordingly. Thus, those who read the business plan come to
the conclusion that the company knows the issues that are important to foreign
buyers. The factors that affect the purchase are as follows, from the most
important to the least important; Quality, deadline, price, warranty,
commitment to compensate for complaints or damage, protection of patents and
prevention of infringement, technical support, confidentiality, packaging,
payment methods, mode of transportation and correct follow-up of customer
demands.
-Marketing
Some of the methods such as doing
research on the internet for marketing, participating in international fairs,
promoting products and services on websites that are used effectively in a
particular country, getting support from effective consultancy companies for
international marketing should be investigated. Then, marketing activities
should be started with methods suitable for the firm's budget, the structure of
the product and the determined market.
-Checking a Buyer's Creditworthiness
Before the exporter enters into a
business deal, the potential buyer must check the credibility of the
distributor or external partner. The best sources for this are the foreign
credit services in the relevant country and the Chambers of Commerce and Industry
in the buyer's country.
-Selection of Distribution Type
Companies should choose one of
the distribution methods suitable for them. This can be direct or indirect
export by finding a sales agent or sales representative.
Exporter’s Roadmap
An exporter without a roadmap may
encounter some unexpected problems in business life. These problems can cause
additional business loss, loss of time and some cost issues. It is necessary to
be sensitive about a subject such as export, which has many variables and
risks. For this, exporters should plan what they will do step by step and draw
up a road map.
First of all, the company that
wants to start exporting should revise its official web page, product and
promotional catalogues, brochures, corporate social media accounts for export
in order to create a sense of trust and reputation. For this, if the company
does not have a public relations and promotion department, it should apply to
export consultancy companies that offer these services.
In the next step, the company
that wants to export should optimize the work of its export department and, if
necessary, encourage its employees to train in order to make up for their
deficiencies. Considering that this is a long process, the company can benefit
from the services of the external export department. Foreign trade consultancy
institutions that provide external export department services will gain new
customers to the company by carrying out transactions such as market research
and potential market analyzes in a shorter period of time.
In the next step, in order to
start export activities, a deep market analysis for the target product should
be made. This analysis should be carried out by an experienced foreign trade
expert or by the institution providing the relevant service. Thanks to market
analysis, target markets are determined and detailed research on these markets
are carried out. Thus, the current market value in the market, price policies
for the target product, potential competitors, market density, supply-demand
ratios and potential risks are determined.
After the potential market
analysis is prepared and evaluated, the sectoral markets to be entered are
determined. Additional information may be needed after this stage. For this,
the trade attachés, foreign trade institutions and B2B trade platforms operating
in the relevant region should be consulted.
To make this process easier,
companies can review a global business plan example to gain insights
into strategies that work in different markets.
If these preparations and
preliminary studies for export are carried out meticulously, the probability of
the company's failure in export will be reduced to a minimum.
Strengthen Your Export Plan with TradeAtlas
TradeAtlas offers the most
comprehensive data on import and export shipments, giving exporters an edge in
understanding global markets. By using TradeAtlas, companies can make informed
decisions, streamline their export plans, and minimize risks in their business plan for export business. You can explore TradeAtlas by clicking here.
For detailed information on the subject of “Cross Trade”, you can review
the content “What is Cross Trade?”
