Exporting.[check] This checklist outlines practical techniques for exporting products for the first time. For many businesses, exporting presents exciting challenges and opportunities, yet it can also be fraught fraught adj. 1. Filled with a specified element or elements; charged: an incident fraught with danger; an evening fraught with high drama. 2. with risks and difficulties that are different from those encountered in the domestic market. The key to successful exporting therefore lies in understanding why you wish to export--exactly what you want to achieve--as well as carefully planning how you will exploit the export opportunity. Advantages of exporting * It is an opportunity to grow the business by exploiting new markets. * It spreads the risk of operating under only one set of local market or economic conditions. Disadvantages of exporting There are a number of practical difficulties that can arise when exporting, including: customs regulations, documentation and other legal requirements language barriers currency variations possible political uncertainty difficulty in knowing the local business culture in general, and understanding market conditions for your product in particular managing costs, in particular those of transport and distribution. Action checklist 1. Review your current business position Before undertaking a potentially difficult and costly exporting exercise, it is worth reviewing the position of your business. Some of the key issues to consider include: * How secure are your core markets, and have you considered all the other possibilities for expanding your business (eg product extensions or new niches springing from the existing home market)? * Can you afford to export? How will it affect your cash flow? * Can you meet the anticipated increase in demand generated by the new market? 2. Research the market and seek advice In-depth in-depth adj. Detailed; thorough: an in-depth study. in-depth Adjective detailed or thorough: an in-depth analysis market research at the outset may well save a lot of wasted time and money later on. There are a number of organisations and sources of advice for exporters, and you should investigate these thoroughly before coming to a final decision about exporting. As well as governmental and business organisations (eg local DTI Diffusion tensor imaging (DTI) A refinement of magnetic resonance imaging that allows the doctor to measure the flow of water and track the pathways of white matter in the brain. offices, Business Links, Chambers of Commerce), it is also worth contacting businesses that are already trading in your proposed export market. You may wish to consider using an experienced consultant to carry out market research on your behalf. 3. Evaluate the options Consider both the direct and indirect exporting options. Direct methods--this is the 'hands-on' approach where either you employ someone to manage the exporting process on your behalf, or you manage the whole process yourself. Options include: * Agents--agents generate orders in a specific, agreed area, on your behalf in return for a commission on all sales (this is usually a percentage of the amount invoiced). Generally they do not take stock, accept credit risk or deal with shipping. Agents usually require exclusive rights in the country or region where they operate. * Distributors--distributors hold stocks of your goods, bought from you at a discount and sold at a price set by themselves. They oversee the export process. * Direct selling Direct selling is the marketing of products or services to consumers through sales tactics including presentations, demonstrations, and phone calls. It is sometimes also considered to be a sale that does not utilize a "middle man" such as a retail outlets, distributors or brokers. and trade fairs--if your potential customer-base is narrow and focused, and there is little need for servicing or after-sales care, then you may wish to consider selling direct to individual customers or outlets abroad. Trade fairs can provide a useful source of contacts for potential customers and help you to research the new market. * Joint venture partnerships--these may be the preferred routes for certain markets and include three types: a) working with another UK firm that wishes to target the same market b) working with a large international firm that already has a presence in your target export market c) working with a foreign company that knows the market. This may involve reciprocal Bilateral; two-sided; mutual; interchanged. Reciprocal obligations are duties owed by one individual to another and vice versa. A reciprocal contract is one in which the parties enter into mutual agreements. arrangements or simply pooling resources into a new joint business. * Licensing--under a licensing agreement you grant another company the right to use some features of your business and you receive a licence fee in return. Licences usually relate to a fixed period and territory. * Franchising--this involves selling your business as a ready-made ready-made Everyday object selected and designated as art. The name was coined by Marcel Duchamp, whose first ready-mades included a snow shovel that he picked up on a snowy day in New York, and a wheel mounted on a stool (1913). package to a local operator, in return for a fee (usually a percentage of annual profits). Indirect methods--These methods include using export merchants and buying houses, and generally do not require overseas travel or significant involvement in complex operational issues. They can provide a useful means for testing markets abroad but do distance the exporter from their overseas customers, reducing the amount of flexibility and control that can be exercised. Choosing the most appropriate method for your business is vital to ensure success. Remember that the requirements of the export market may place limitations on your direct level of involvement. 4. Be aware of potential problem areas Consider problems that may arise and pre-empt pre·empt or pre-empt v. pre·empt·ed, pre·empt·ing, pre·empts v.tr. 1. To appropriate, seize, or take for oneself before others. See Synonyms at appropriate. 2. a. them. These may include: * Operational issues--maintaining efficient stock control and production processes can be complicated when entering new markets. Order administration, documentation and delivery times can also pose hidden problems. * Financial issues--cash flow remains a priority when exporting. Costs can be higher whilst payment takes longer. In addition, there are a number of costs involved when exporting for the first time, such as travel, research and developing contacts. Look into exchange rate issues, credit and payment terms. * Personnel--consider undertaking a skills audit to see what skills are needed and what are available. Recruit additional staff if necessary. You may wish to use external advisers to help you establish the export business. * Marketing--understand how best to reach your customers. There may be significant differences between markets so do not assume that the techniques that work well in your existing markets will be as effective elsewhere. * Pricing--many factors need to be taken into account, including the economic conditions in your intended market, the degree of competition you will face, the expectations of your new customers, and the total costs of exporting. * Transport and distribution issues--these may include: --packaging and ensuring that the goods are not damaged in transit --providing accurate customs documentation --terms of delivery --insurance arrangements. You may wish to consider using a freight forwarder An individual who, as a regular business, assembles and combines small shipments into one lot and takes the responsibility for the transportation of such property from the place of receipt to the place of destination. . 5. Decide on your approach and plan your export operations Evaluate all aspects of your exporting strategy before deciding on the best method of entering the new market. Key issues include: * the nature of the market and customers--make sure you understand how the market operates and what the key sales channels are. * use of the Internet--the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the may well generate interest from other parts of the world as well as from the countries that you are specifically targeting. * legislative issues--are there restrictions on your sales activities in the export market? * playing to your strengths--use your knowledge of the product and why it has sold before in order to break into the new market. * preparation of your staff--ensure your sales staff are briefed to meet the needs of overseas customers. 6. Manage the risks Be aware of the political, financial and commercial risks involved and monitor them closely. 7. Provide a high level of after-sales care and support This is essential if you are to retain your customers. Consider the need for: * spare parts Spare parts, also referred to as Service Parts is a term used to indicate extra parts available and in proximity to the mechanical item, such as a automobile, boat, engine, for which they might be used. Spare parts are also called “spares. (if appropriate)--will these be available locally and can they be fitted quickly or will they have to be shipped over with all the inherent delays? Who will provide routine and emergency maintenance? What is the expected life of the equipment and will spare parts always be available during that time? * help and advice--what customer help and advice will be available? Will there be a local help-desk or will there be information on your Web site? * training--ensure that all those responsible for providing support locally are fully trained and operate to a high standard. Dos and don'ts of exporting Do Consider all the options. Is exporting finished goods better than using a local firm, investing in a production operation in the new market, or finding a commercial partner? Research all aspects of the new market. Take advantage of free help and information. Plan thoroughly. Be aware of where the difficulties may lie. Don't don't 1. Contraction of do not. 2. Nonstandard Contraction of does not. n. A statement of what should not be done: a list of the dos and don'ts. Underestimate the resources required--in particular time, personnel and money. Be half-hearted--exporting requires commitment and support from the top. Be impatient im·pa·tient adj. 1. Unable to wait patiently or tolerate delay; restless. 2. Unable to endure irritation or opposition; intolerant: impatient of criticism. 3. it can take time for your product to gain acceptance or find its niche niche: see ecology. niche Smallest unit of a habitat that is occupied by an organism. A habitat niche is the physical space occupied by the organism; an ecological niche is the role the organism plays in the community of organisms found in the . Be inflexible--as with any new product launch or market entry you will need to monitor developments and make adjustments in response to customer needs. Useful reading Export practice and management, 4th ed, Alan Branch Alan Keith Branch (born December 29, 1984) is an American football defensive tackle for the Arizona Cardinals. He attended the University of Michigan. High school career Branch attended Cibola High School in Albuquerque, New Mexico. London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. : Thomson Learning, 2000 Exporting: a manager's guide to the world market, Carl A Nelson London: International Thomson Business Press, 1999 Building an import export business, 2nd ed, Kenneth D Weiss New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY: John Wiley John Wiley may refer to:
Useful addresses UK Trade and Investment, 66-74 Victoria Street, London, SW1E 6SW Tel: 020 7215 8000 www.uktradeinvest.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. .uk UK Trade & Investment is the Government organisation that supports companies in the UK doing business internationally Institute of Export, Export House, Minerva Minerva (mĭnûr`və), in Roman religion, goddess of handicrafts and the arts. Probably of Etruscan origin, she was worshiped in various parts of ancient Rome, most notably with Jupiter and Juno in the great Capitoline temple. Business Park, Lynch Lynch may be:
Peterborough, city (1991 pop. 68,371), SE Ont., Canada, NE of Toronto. It is at the falls of the Otonabee River, which connects, through the Trent Canal, with lakes Ontario and Huron. Settled early in the 19th cent. , PE2 6FE Tel: 01733 404400 www.export.org See .org. (networking) org - The top-level domain for organisations or individuals that don't fit any other top-level domain (national, com, edu, or gov). Though many have .org domains, it was never intended to be limited to non-profit organisations. RFC 1591. .uk British Exporters Associaton, Broadway Broadway, famous thoroughfare in New York City. It extends from Bowling Green near the foot of Manhattan island N to 262d St. in the Bronx. Throughout its length Broadway is chiefly a commercial street. House, Tothill Street, London, SW1H 9NQ Tel: 020 7222 5419 www.bexa.co.uk Further advice and assistance is available from local DTI offices, banks, Chambers of Commerce and Business Links. Tel: 0845 600 9006 to find the number of your local Business Link Thought starters * Have you chosen the best export market? * Have you selected the best commercial option for market entry? * Who are your competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. ? * Are there any commercial or political constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. affecting your exports? |
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