EXPORT PLANNING
FUNDAMENTALS OF PLANNİNG
Developing an export plan takes meticulous planning and time. Like any new venture, the decision to export should be considered as a long-term business investment, not just a short-term profit motive. Before committing to international business agreements, preparing a detailed business plan is a key step in determining whether the product is ready for export. A well-prepared plan will help determine the potential of the product in international markets, facilitate obtaining financing, investigate whether there is a market for the product, and determine the cost of exporting.
The main parts of an export plan are:
- List the factors affecting the company's success and the advantages it has compared to its domestic and foreign competitors.
- Determining the products that the company has export potential
- Evaluating potential incentives by identifying organizations that provide mutual or non-reciprocal financial support for exports
- Determining the company's long-term goals and how exports can help these goals
- To analyze the company and ensure that the export decision is supported at the management level
- Explain why the product is unique in the international market
- Identifying opportunities available in the market
- Revealing the demographic and socio-economic profile of target customers
- Conducting sector analysis to determine the company's competitiveness within the sector
- Conducting research on a small sample of potential customers
- Making predictions about the future performance of the industry and the company
- Determining how to attract and maintain customers' attention
- Determining international pricing strategy
- Developing product marketing tactics
- Determining which distribution channels to choose
- Examining target markets' requirements and marketing strategies
- Developing a communication strategy for the organization
- Creating an international business relations plan
- Determining the amount of production and requirements for expansion
- Making a five-year profit and loss forecast
- Making a cost estimate for the first year of export
- Calculating cash inflows and outflows
- Determining liquidity and cash position
- Calculate the amount of sales that need to be met
- Determining the necessary financing
- Determining how earnings will be used
It is necessary to specify details regarding export targets, total capital requirement, expected profit and timeline for implementation of the plan. Additionally, important documents such as resumes of key people, leads, market research information, drawings, agreements, and financial forecasts should also be included at the end of the plan.
