The checklist you need when exporting your services
Article co-written & researched by Tyler Anthony
A plan is essential to ensure a business’s successful entrance into a new market or jurisdiction. Part of determining your exportation readiness is laying out the necessary steps it takes to get you there. There are many things to consider so use this checklist to help you develop your exportation strategy:
Have you done a thorough analysis of your target market?
- Research is one of the first steps to take before you begin your exporting journey. The markets that attract you may seem like a good fit at first, but it is important to do a market analysis before committing to any of them. Consider every factor that has potential to impact your exports and business in each market and carefully analyze the results. If you require assistance there are businesses that are able to create and provide market analysis’ so you have a thorough understanding of your target markets and can identify how they will work for your business.
2. Financial capacity
Do you have the funding you require to cover the market entry costs?
- Entering a new market comes at a cost. You must understand all of the costs that will coincide with market expansion and how that affects your local and international business operations. The costs differ depending on your industry, target market and product delivery needs so you need to know your financial requirements before moving forward with international or global expansion.
3. Network and contacts
Do you have a network or contacts in that market who are interested in your product?
- Having a network and contacts in the market you are entering goes a long way. Entering a new market without any connections makes it more difficult to get started. Trade Commissioner Service Offices in the destination of the new market can help you find relevant company connections and individuals seeking your product in the given market. Creating these connections before you enter the market are incredibly valuable and can assist you with getting your product into the market.
4. Assess your market potential
What are your competitive advantages in the target market?
- Not all companies find success in every market. What thrives in one market, may not do as well in another. Because of this, it is important that you assess the likelihood for product success in every market you target. Having a competitive advantage is a must for new market expansion. If your company can be competitive in your target market, find a local partner in that jurisdiction to help you shape products to it. In doing so, you create more opportunity for success and gain insight into the market.
5. Understand local laws and standards
Does your business and product comply with the laws and standards of the target market?
- You must ensure your products are compliant with the standards and laws of every market. Almost all markets have different laws and regulations to consider. What’s allowed in your local market isn’t necessarily allowed in the market you are entering so it’s best to understand the regulations beforehand if you want to avoid complications.
While this list is not extensive, it gives a broad overview of some of the key headings to consider when looking to new market expansion. Having a solid understanding of these points will allow to you prepare yourself for the market you are looking to enter. This checklist, along with our other free resources will provide you with a solid foundation for global expansion. As always, Du Plooy Law is available if you have any questions or need help as you prepare to take the next step with your business.