True, the world of export-import offers an abundance of opportunities. It enables you to scale up your business and grow it in leaps and bounds. The exim world is indeed very thrilling and its revenue-generating strategies can multiply your fortunes overnight.
However, while it is great to foray into this export import zone, have you considered the following to make your move fool-proof?
Here are some essential elements you need to undertake before you can set sail on a successful export import expedition:
1> Export-Import Market Research
Based on your product, research the most prospective target countries, their economies, and the corresponding markets. The approach is aimed to find you the number of potential clients in those countries. This is a precursor to establishing financial targets and understanding the ROI in international growth. In addition, it is also important to be in the know-how of the demography, political environment, industry legislation, the culture, the local and global competitors in the region, the customers’ behavior, the networking among the suppliers, distributers and the infrastructure in general. The above research is much needed to ascertain how best your product or services can cater to the needs of the clients in the respective markets and give you the competitive edge.
2> Realistic Target Setting
Once done with the research, you know exactly how many clients you have abroad. Now, you will need to set a price for your products so that you can make a realistic estimation of the market share that you will subsequently rake in. So how do you calculate the price? One of the main strategies for calculating the export price is as follows:
Given all components in place, Price * the number of products * the share of clients that you target = Your target, which you will compare with projected costs of international expansion needed to calculate ROI.
3> The 4-Step Game Plan
(a) SALES PLAN: There are standard ratios of sales planning that are applicable to both domestic and international sales, regardless of B2B or B2C sales. Calls (via ads, emails, visitors) that lead to appointments and appointments, which convert to sales, account for the growing domestic sales statistics. Additionally, as selling of your product overseas involves knowledge of foreign languor, culture and behavior, the sales plan must necessarily reflect a learning curve.
(b) PRODUCTION PLAN: Based on how many products you intend to sell, you will know how many you have to produce. This includes the inventory as well. Having sorted this, you now need to figure how much manpower and what kind of equipment you will need to manufacture the products. For the services industry, a similar approach based on the number of hours need to be worked out.
(c) MARKETING PLAN: With all the learning garnered from the export-import market research – now formulate the marketing strategy. There are often state specific requirements for the product. These include labelling, packaging and different compliance requirements. Besides, you will need to identify the best marketing and sales channels for each of the markets.
(d) ACTION PLAN: Once the meticulous research and market scrutiny is done, the work has been well planned. Thus, at first, we plan the work and now it is time to work on the plan. Start planning activities that involve finding partners, buyers etc. Attend different trade shows to gain exposure. Develop goals to attain your long-term export goal. To achieve this, your performance indicators become your targets that keep you on track and ensure that you are correctly toeing the blueprint of success that you have strategized.
So, do you think your business is export-ready?