According to the world bank, COVID-19 affected companies around the world, its data indicates that in a quarter of companies sales fell by 50% and on average, sales fell by 27%, a situation that motivates companies to explore new markets being the most striking export, so the next question is what should I do to export?
Here we will explain the basic and practical steps that you must take into account to start exporting, the first stage to be able to export a product, we call it exporter self-diagnosis:
1. Identify the product you are going to export
The first thing you should do is select the product that you are going to launch internationally, you must choose a product of which you have production capacity, because remember that international sales are on a larger scale than national ones, reaching other markets represents investments and costs logistics that tend to reduce as the volume of cargo increases, if possible have two or more products as a second option because you may find yourself with very large investments or, with some impediment to export. You must know your product very well, from the tariff subheading (code with which products are identified internationally) to those who would be interested in consuming it, through the composition, presentation and uses.
2. Define a market
Do a market study to identify the country in which you want to enter with your product, identify at least 3 countries organizing them from highest to lowest interest, analyze the most interesting in depth, know the market niche you can reach, its location, legislation, mode of operation, interests, everything you can contribute to establish the introduction costs and your marketing plan. Within these markets, prioritize those that are closest to you, either because you know them, you have people who can give you information or connect you with someone who can contribute to you in the process.
Probably, if the country has a language other than yours, you must translate all your content including the label, likewise according to the laws of the destination country you must invest in laboratory analysis or changes in the design of your product and more particular situations that will allow you to establish the cost of exporting.
3. Review the legal and access requirements
You must stop in the analysis of the legal requirements to enter your product to the chosen country, this is achieved from the tariff classification of your product, with this code you can access public and private databases that list the documentary requirements and taxes For access to the countries, you must also investigate in the control entities that have competition over your product because they may demand extra requirements or documents that merit additional procedures, do not stop reviewing the certifications that customers request.
4. Check how others do it
Always keep in mind that if there is another person who has already done it, you can, there is nothing impossible, so analyze how do others do it? read, observe, study, learn and apply what suits you for your export project. It is not copying, it is learning from the other, remember that you have unique things to offer and this will make a difference.
Look for an advisor who can guide you to define the best option in terms of the market, access channels, sales and logistics strategy, it is always a good option, having an experienced person will allow you not to make mistakes that represent loss of time and money.
5. Analyze the costs in the export
Build a matrix for your export plan that involves all the tasks mentioned above with an analysis of costs, time and resources, not only to determine what your initial investment will be for the export project but, to build the price of your product, remember to include insurance where necessary, coverage and other instruments that will minimize problems later on.
Additionally, make a matrix to define the sale price of your product, previously you must analyze all the logistics variables and choose the one that is most convenient for you, then, establish the costs for each incoterm term.
6. Analyze your capabilities
Once the matrix for your export plan has been established, you will be able to identify the requirements and the budget that you must have to enter a new market, you will be able to analyze if your product has conditions to be exportable, but not only those of your product but In addition to those of your international supply chain, remember that you must have allies that allow you to deliver your product abroad in a timely manner and comply with what has been agreed with your client.
You may find that you must strengthen certain knowledge, which you can acquire with self-training, with specialized courses in the field or with the support of experts that will speed up your foray into new markets.
7. Define marketing strategies
With the comprehensive analysis of the information that you have obtained so far, you will be able to make important decisions regarding the market, product, logistics and resources that you will have for this project and set clear objectives to undertake the second stage.
Part of your marketing strategy should include if you are going to introduce the product with direct sale to end customers, you are going to sell to distributors, marketers, if you are going to do it through a broker or in association with a local company in the destination country.
8. Prepare to undertake the second stage
Now that you have the exporter self-diagnosis, and an estimated budget, you can make objective decisions regarding the export of your product, when you are going to do it, how the tasks are going to be carried out, where you are going to focus your resources and with how much money. Good planning will make your business consolidate, do not lose motivation and minimize risks.
So make the decision and get ready to undertake the second stage that we call “implementation of the export plan”