Business is doing well and things are looking up but are you ready to go international? Really?
We’ve put together a handful of tips for you to muse over before you go racing off and start exporting! We’d like you to have an idea of the kind of questions you should be asking and the areas in your business that will likely be impacted.
Management! Management! Management!
Probably one of the main reasons why companys fail with their export endeavors is because management only pay lip service to the businesses’ export efforts. This is simply not enough! You should get management to commit on paper to the export efforts made and have them approve the budget you submitted for your export research.
That research will involve some pretty extensive ground work on your part and there are many areas to cover. For example, you will need to find out how long management is willing to wait to achieve acceptable export results. You will also need to establish if they will be able to dedicate staff, time and resources to the process. There will also be many risks to consider and your research will have to identify and quantify these up front!
‘SWOT’ your Company
It is important to understand the company’s export capabilities. This knowledge is used as input in the export marketing research process. Early on, it is necessary to undertake an export SWOT analysis. But as you do not yet have the foreign market information at your disposal, this SWOT analysis will need to be reviewed again later in the export process as an introduction to the export plan.
Your initial SWOT analysis should consider the strengths and weaknesses of such factors as products, pricing, costs, profitability, performance, quality, people, skills, adaptability, brands, services, reputation, processes, infrastructure, etc. Typically these tend to unveil the situation inside the company – the internal environment. Next you should examine the opportunities and threats associated with such areas as markets, sectors, audience, fashion, seasonality, trends, competition, economics, politics, society, culture, technology, environmental, media, law, etc. Conversely, these usually give an indication of the situation outside your company – the external environment.
Finance & Resources
You will almost certainly need to finance your export efforts in some way and you will have to give thought to how much you need and where you will find the money. You may also need to find the staff and facilities necessary to support your export activities.
Additionally, you will need to look ahead and consider if your business can finance your export endeavors for a period of 12 to 24 months without necessarily generating any immediate income from International business. Still looking ahead, if your exports increase, will you be financially equipped to increase production significantly to cope with demand? And then there’s getting the word out… will your business have the financial resources to actively support the marketing in the targeted overseas markets?
These are just some of the financial considerations you will face at an early stage but there will be many factors to consider and investigate as part of your export plan.
What else you should be looking at? Download: ‘Is Your Company Ready to Export?’
Who’s doing it right, right now?
Here are some companies that have recently started exporting. In March this year they each won a ThinkGlobal Inc. Exporter of the Year award.
“These businesses are indicative of how proactive American companies are growing by exporting,” said Gregory Sandler, president of ThinkGlobal. “This year’s winners reflect the diversity of American exporters, 97 percent of whom are small-medium sized enterprises. Exporting is a critical part of the U.S. economy, accounting for 12.5 percent of the nation’s GDP. In fact, 70 percent of the world’s purchasing power is located outside of the United States.”
COZY COCOON®
New York Company Named ‘Exporter of the Year’ in the Consumer Goods Category by U.S. Export Promotion Magazine (Export USA)
“We create beautiful, yet practical, products for parents to enhance the joys and challenges of welcoming their newborn. We are especially honored to be acknowledged by Export USA because we design, source and manufacture all our products here in the US which we find is a distinct advantage when selling our products locally or around the world,” says Patricia DeLisa, Cozy Cocoon CEO and chief designer. “Our ongoing success is due to our talented and creative staff supported by many invaluable local and national programs that have helped us develop the skills needed to grow our company well beyond our borders.” http://www.cozycocoon.com/
GRAMINEX®
Ohio Company Named ‘Exporter of the Year’ in the Health & Beauty/Fashion Category by U.S. Export Promotion Magazine
Graminex® offers a complete range of Rye Grass Flower Pollen ExtractsTM in many forms across a range of applications including pharmaceutical, nutraceutical, cosmeceutical, functional food/beverage and pet products. “We are very happy to receive the 2014 ThinkGlobal Exporter of the Year Award for our exporting efforts,” says Colleen May, entomologist and public relations manager. “Graminex remains an export driven company with distribution into global markets the focus of our primary sales. We look forward to continued Flower Pollen Extract sales growth to new export markets in the future. “ http://www.graminex.com/index.php
HORTON®
Minnesota Company Named ‘Exporter of the Year’ in the Automotive/Aviation/Marine Category by U.S. Export Promotion Magazine
Horton is a premium provider of engine cooling solutions worldwide. The company manufactures and markets fan drives, fans and related components in OEM applications and aftermarket segments globally to the following industries: Heavy-, medium- and light-duty truck, Bus, Motor coach/RV, Off-highway, Industrial (compressors, gen. sets, refrigeration units, etc.) “The 2014 Exporter of the year award to our company symbolizes recognition of our accomplishments in developing the international markets with sustained growth,” say Michel Locquegnies, director of sales & business development. “Our business model is based on an extensive knowledge of the global markets and their needs for technical knowledge supported by language skills. Exporting globally is an integral part of our business. We have a dedicated, multilingual international department. We also have product literature in multiple languages.” http://www.hortonww.com/en-us/home.aspx
Criteria on which these winners were selected include the total number of documented export transactions, the total percentage increase in sales, exports as a percentage of total sales, the company’s commitment to exporting, the company’s commitment to customer service, and the company’s innovation and originality in marketing products or services. To be eligible for the award, a company must currently be exporting from the United States.
Data sources include: http://www.thinkglobal.us/