The need for a robust business plan gains more importance in today’s highly competitive marketplace. In fact, export strategy is one significant component of a business plan, regardless of the industry, size and nature of the products a firm deals with. The key is to keep it simple and clear to ensure that every person directly related to the export and overseas trade should work competitively to achieve the specified objectives.
A solid export plan allows businesses to define clear cut export goals. It helps manage the markets where a firm invests its money in the expectation of getting returns. A business has to check if the export strategy is in consensus with the resources, aiming to serve the prospective consumers in the target market. An export plan can drive the business to success when it gets integrated with its general objectives. And also, it’s not just a set of policies that’s been drafted on the outset of export business but it always incorporates amendments from time to time based on the changes in the trade environment.
Before a business’ foray into export trade, it is always advised to do a SWOT (strength, weakness, opportunities and threat) analysis. The SWOT analysis helps businesses identify the areas where they have competitive advantage while finding out the weaknesses. It also focuses on identifying the constraints and possible hiccups a business has to encounter. To have a strength and weakness evaluation done beforehand eases the challenges in export business concerning a particular product. Furthermore, it allows businesses to find out all possible solutions to tackle the potential woes effortlessly. Rely on the strengths to use them for achieving export goals as cited in the export plan.
A sound export plan is a powerful indicator for a business among service providers and distributors in the foreign market. It showcases the business’ strength, goals, vision, its confidence in the potential export trade. In other words, it is a cheat sheet for developing a business through tapping the export potential of its products and services.
Here is why it is essential to have a good export plan before a business sets out for exporting.
Clarity of Objectives: An export plan offers clear and precise information concerning the target market, the export-oriented strategy for market entry and the schedule of activities required to meet the export goals of a business.
Choice of Markets: A sound export plan helps businesses to select the best marketplaces for selling their products and services. Oftentimes, in the absence of a well-executed plan, odds are that businesses may undermine the marketing prospects and overlook better growth opportunities in a particular market.
Great Tool for Efficiency and Success: An export plan is one of the most effective tools for measuring the growth and success a business makes from exporting. It focuses on activities right from the beginning, the achievements expected and provides all necessary requisites for attaining the export business objectives.
Organisational Harmony: When a good export plan is in place, there comes a consensus in the business, not just within the business but also with export agents as well. Together with the firm’s resources, the businesses’ distributors and freight forwarders work in harmony to make the export plan truly fruitful for the business.
Good Export Partners: A well-developed export plan is a surefire way to attract the interests of partners. A firm that has clear cut export objectives has the advantage of finding the best export partners, for it reveals that the business is 100% oriented towards implementing exports by successfully addressing the strengths as well as risks.
Manages Risks: Export business comes with a lot of risks. The risks form an unavoidable part of businesses engaged in export trading, no matter if they are manufacturing companies, production or services organisations. Just as any other risks in business, export risks cannot be avoided too. However, minimizing the impact of export risk is always possible. An export plan provides great opportunity for research, planning and evaluation of activities involved in the process of exporting and gives insights into the inherent risks as well as the possible remedies to reduce its impact on the business.
Top of all, a proper export plan allows businesses to control unwanted expenses and help motivate towards success. It also assists in allocating the cost on the right resources to grow the business globally.