Why you need an exportation plan and how to build one.
Article co-written by Claudius du Plooy
An export plan is essential for any business that is planning to enter international markets. It’s a business plan tailored specifically for international markets that will help you identify your target market, understand what resources you require, outline your next steps and define your export goals. In addition to being the roadmap that will help your business succeed, export plans are often a requirement to obtain institutional financing. To help get you started, here are some guidelines on what you’ll need to include.
Your export plan should be a curated document, separate from your basic business plan. Your export plan should include:
- An overview of:
- your business and its high-level, long-term goals in terms of business and growth;
- the corporate structure of your business, partner buyers and sellers, and any other business that contributes to the business’ end user products; and
- the goods or services your business sells along with the goods or services your business is considering for the future
- Comprehensive market research that highlights:
- your target market’s stage of development;
- a detailed description of your target market;
- the political and economic climate; and
- legal, regulatory or cultural barriers to entry that could potentially impact the successful export of and demand for your product
- A list of the key players in the jurisdiction and the step-by-step process your business will use starting with the consideration phase all the way to implementation. This should include clear, tangible goals and anticipated timelines.
- A financial overview including current and projected financials, anticipated costs of exportation and funding sources
As you can see, it is crucial that you understand every element of your business in order to create an effective market entry strategy. Your export plan lays the foundation for foreign market expansion and is a considerable asset to the business owners, financial institutions and potential investors.
Let us know if you have any questions about how to develop your own export plan and how we can provide you with legal and regulatory market research to boost your chances of exportation success.