Getting started in export

Once you’ve decided to export your products or services, it’s time to develop your export plan. A good export plan can be critical in setting and achieving your export targets.

A crucial first step in writing your export plan is to develop a broad consensus among key management on the company's goals, objectives, capabilities and constraints in relation to exporting. Remember that the participation in this process of all personnel involved is very important.

All aspects of an export plan should be agreed upon by those who will ultimately execute them. Here are 10 key questions that you might want to discuss with your key management staff:

1. What products or services are selected for export development? What modifications, if any, must be made to adapt them for overseas markets?
2. What countries are targeted for sales development?
3. In each country, what is the basic customer profile? What marketing and distribution channels should be used to reach customers?
4. What special challenges pertain to each market (competition, cultural differences, import controls, etc) and what strategy will be used to address them?
5. How will the product's export sales price be determined?
6. What specific operational steps must be taken and when?
7. What will be the time frame for implementing each element of the plan?
8. What personnel and company resources will be dedicated to exporting?
9. What will be the cost in time and money for each element?
10. How will results be evaluated and used to modify the plan?

Some additional thoughts when writing your export plan:

Define your objectives

Define the purpose of your export plan and who will use it. Clearly define your objectives, as this will help decide which area of the plan and business to focus on.

Write your own export plan

Your export plan is your very own exporting road map. Do not borrow a sample plan and simply change the names and numbers. Write your own export plan in simple language. Make sure it reflects what is important to you and your business. It should also demonstrate why and how the business will be successful and provide your strategies for overcoming challenges.

The first draft of the export plan may be quite short and simple and it should become more detailed and complete as the planners learn more about exporting and their company's competitive position.

Prepare an outline of key points before you start writing

Before writing your export plan draft the key points and headings that you would like to cover (see Sample outline for an export plan). Preparing an outline will ensure you address all key issues and that your export plan has consistency.

Research is vital

Remember to do your research. There is information available on your industry, potential customers and competitors and potential sales and costs. Look at how exporters in your industry succeeded and learn from the mistakes they made along the way. This will save you a lot of time and money in the long run. Be sure to allocate enough time and resources to do thorough research.

Obtain feedback on your draft export plan

Like doing your research, obtaining feedback on your draft export plan is very important. Getting feedback from credible business associates, industry experts or export advisers can give you that crucial input into your export plan.

Believable financial projections

Your financial section identifies your financing needs and the profit potential of your business. It is an important part of the plan and gives readers and possible investors confidence in your business. Make sure that your financial projections are believable. Test them, as failure to accurately reflect full sales and costs of operation can harm your credibility.

The executive summary

The executive summary is likely to be the first, and often only, section people and potential investors will read. A good summary is short and highlights what is important in your plan. It should also be written last.

Based on United States Department of Commerce; Western Economic Diversification Canada; and Agri-food/Agriculture Canada.