Exporting Your Goods
Developing Your Export Plan
Your export plan captures your overall strategy for succeeding as an exporter. The following five questions and answers can help you with its development:
Why do we need an export plan?
How does an export plan relate to our business plan?
What are the components of a good export plan?
How might we state our export objectives?
Is there a tool we can use to develop our export plan?
Why do we need an export plan?
- To make sure you have considered all relevant factors.
- To coordinate your export initiative around common goals and objectives within your company and with foreign intermediaries.
- To provide information to financial institutions and other lending agencies from whom you may wish financial assistance.
How does an export plan relate to our business plan?
In essence, an export plan is an extension of your business plan. You want to make sure that any export activity complements, rather than compromises, your current business operations.
What are the components of a good export plan?
The following is a standard outline of a good export plan:
1. Introduction
- Business history, including significant milestones related to export capacity.
- Vision and mission statement.
- Export objectives, and how they fit with organizational goals and objectives.
- Experience with international business or with Canadian markets similar to the proposed export market(s).
2. Organizational resources
- Ownership and management structure
- Staffing resources being committed to exporting and their relevant experience.
- Financial resources being committed to export market development.
- Relationship between exporting and other operations.
- Strategic alliances relevant to exporting.
3. Export market(s)
- Rationale for export market selection.
- Challenges, including cultural factors, to be managed.
- Estimated market size.
- Industry trends and other market factors.
- Major competitors, domestic and foreign.
- Attitudes towards Canadians and Canadian products in the market.
- Tariff and non-tariff barriers.
- Risks to be managed.
4. Customers and products
- Profile of typical customers.
- Key product features linked to market characteristics.
- Required product or packaging modifications and the costs involved.
- Proposed advertising and promotional approach.
5. Market entry strategy
- Description of intermediaries and partners.
- Product positioning.
- Pricing strategy.
- Terms of sale.
- Distribution strategy.
- Development of sales leads.
6. Regulatory and logistical issues
- Intellectual property protection.
- Other regulatory and legal issues.
- Logistics and export documentation.
7. Financial plan
- Cash flow projections with export development costs.
- Operating budget.
- Export financing to be acquired.
8. Implementation plan
- Key activities and time line.
- Evaluation criteria and process.
- Exit strategy, if needed.
How might we state our export objectives?
- Months to breakeven
- Percent market share
- Percent contribution to sales and to net profit
- Growth of export sales
Is there a tool we can use to develop our export plan?
Yes, Writing an Export Plan will walk you through the steps.