2. Export Readiness & Planning
How do you know you are ready to export?
• One simple way is to take the assessment test
at http://export.gov/begin/assessment.asp
• Self-assess: Use SWOT and/or Porter’s 6
Forces Analysis
• Must Have Conditions & “Nice-to-Have”
Conditions
3. Export Readiness & Planning
“MUST HAVE” CONDITIONS
Upper Management Buy-In, Commitment
& Realistic Expectations
Knowledge & Experience producing &
selling product or service
Sufficient Corporate Infrastructure
Solid Cash Flow
Production Capacity & Flexibility to
produce international products or provide
the service
4. Export Readiness & Planning
“NICE-TO-HAVE” CONDITIONS
International Expertise
Foreign Language Ability
Cultural Awareness / Sensitivity
Travel to Foreign Markets
6. Export Readiness & Planning
INTERNATIONAL BUSINESS PLAN
Step 1: Who you are
Export Readiness Assessment
Selling successfully in USA?
Production Capacity?
Good Cash Flow?
Committed Management?
Customer Service Capabilities?
Cultural Knowledge?
International Logistics Knowledge?
International Finance Knowledge?
Self-Evaluation
SWOT
6-Forces Analysis
7. Export Readiness & Planning
INTERNATIONAL BUSINESS PLAN
Step 2: Where are you going?
Foreign Market Selection
Reactive – Celebrate the “occasional” fish
on the line
Low cost, Easy, Fast
Late to the party, outsider, follower
Pro-active – Go after the big fishes with
purpose and strategy
Secondary, Primary, Qualitative Data
Suitability Indicators
Risk Assessment – political, economic,
cultural, legal
Free Trade Agreements (FTA’s)
8. Export Readiness & Planning
INTERNATIONAL BUSINESS PLAN
Step 3: How are you going to get in there?
Entry Mode - It is all about feedback, control,
access & infrastructure
Indirect
Direct (with & without investment)
Joint Venture
Licensing
Partner Selection
EMC’s, Export Agents, Piggybacking
Commission & Direct Reps, Distributors &
End Users
CUSTOMER SERVICE RULES!!!
9. Export Readiness & Planning
INTERNATIONAL BUSINESS PLAN
Step 4: What are the other factors?
Production Selection
VOC
International Standards
Packaging, Labeling, Product Info
After-market sales support, returns
Sales Plan
Prospecting
Pricing
Quotes
Competitors
Shipping Terms
Post-Sales Service
10. Export Readiness & Planning
INTERNATIONAL BUSINESS PLAN
Step 4: What are the other factors?
HR Plan
Internal Resources & Capabilities
External Help
Training (here & there)
Financial Plan
Payment Terms
Insurance
Currency & FX
ROI
Capital, Costs & Expenses
11. Export Readiness & Planning
INTERNATIONAL BUSINESS PLAN
Step 4: What are the other factors?
Logistics Plan
Methods
Packaging
Documentation & Customs
Carriers
Insurance
Regulations & Compliance
Visibility in transit
12. Export Readiness & Planning
INTERNATIONAL BUSINESS PLAN
Step 5: What are your expectations?
Set reasonable goals & forecasts
Develop clear & measurable metrics
Evaluate your plan periodically
Step 6: Who is doing what and when?
Write down a plan
Do your homework
Begin small & start promptly