Use our Export Readiness Assessment to determine if International Trade is right for your company.

You can evaluate the export potential for your products and services several ways.

The most common approach is examining the success of your products domestically. If your company succeeds at selling in the U.S., there is a good chance that it also will succeed in foreign markets with similar needs and conditions.

Another method to assess your company's export potential is examining any unique or important product features. If your products are difficult to duplicate overseas, it is likely that they will succeed.  A unique product may have little competition and demand might be quite high.

Finally, your product may have export potential even if sales are declining in the United States.  Sizeable export markets may still exist, especially if the product did well in the U.S. but now is losing market share to more technically advanced products.  Other countries may not need state-of-the-art technology and/or may not be able to afford the more sophisticated and expensive products.  Some markets may show a surprisingly healthy demand for older products considered obsolete by U.S. standards.

Is your company ready to export?  Entering foreign markets requires commitment from management and a clear export strategy.

Complete the Export Readiness Assessment.  To learn more about exporting, refer to the Basic Guide to Exporting, at www.export.gov

Export Readiness Assessment

1.  Does your company have a product or service that has sold successfully in the domestic market? Yes No

2.  Does your company have or is your company preparing an international marketing plan with defined goals and strategies? Yes No

3.  Does your company have sufficient production capacity to commit to the export market? Yes No

4.  Does your company have the financial resources to actively support the marketing of your products to targeted overseas markets? Yes No

5.  Is your company’s management committed to developing export markets and willing and able to dedicate staff, time and resources to the process? Yes No

6.  Is your company committed to providing the same level of service given to your domestic customers? Yes No

7.  Does your company have adequate knowledge in modifying product packaging and ingredients to meet foreign import regulations and cultural preferences? Yes No

8.  Does your company have adequate knowledge in shipping its product overseas, such as identifying and selecting international freight forwarders and freight costing? Yes No

9.  Does your company have adequate knowledge of export payment mechanisms, such as developing and negotiating letters of credit? Yes No

After deciding to export your products, develop an export plan.

A crucial first step in planning is to reach management consensus on the company’s goals, objectives, capabilities and constraints.

To develop an export plan, first assemble the facts, constraints and goals, then use the information to create an action statement.  The action statement includes specific objectives.  It presents a time schedule for implementation.  It identifies milestones for measuring success.  And it motivates personnel.

The export plan should successfully answer the following questions:

• Which products are selected for export development?  What modifications, if any, must be made to adapt them for overseas markets?
  
• Which countries are targeted for sales development?
  
• What is the basic customer profile in each country?  What marketing and distribution channels should be used to reach customers?
  
• What special challenges pertain to each market (competition, cultural differences, import controls, etc.), and what strategies will be used to address them?
  
• How will the product’s export sale price be determined?
  
• What specific operational steps must be taken and when?
  
• What will be the time frame for implementing each element of the plan?
  
• What personnel and company resources will be dedicated to exporting?
  
• What will be the cost in time and money for each element?
  
• How will results be evaluated and used to modify the plan?

The first time an export plan is developed, it should be kept simple.  It need be only a few pages long, since important market data and planning elements may not yet be available.  The initial planning effort gradually generates more information and insight.  As planners learn more about exporting and your company’s competitive position, the export plan will become more detailed and complete.

From the start, the plan should be viewed and written as a management tool, not as a static document.  Objectives in the plan should be compared with actual results to measure the success of different strategies.  The company should not hesitate to modify the plan and make it more specific as new information and experiences are gained.  A detailed plan is recommended for companies that intent to export directly.  Companies choosing indirect export methods may require much simpler plans.

Many companies begin export activities haphazardly, without carefully screening markets or options for market entry.  While these companies may or may not have a measure of success, they may overlook better export opportunities.  If early export efforts are unsuccessful because of poor planning, your company may be misled into abandoning exporting altogether.  Formulating an export strategy based on good information and proper assessment increases the chances that the best options will be chosen, resources will be used effectively, and efforts will consequently be carried through to success.

Source:  Unz & Co. “Basic Guide to Exporting” © 1998-9

Exporting Basics Life Cycle- http://www.export.gov/exportbasics/index/html 

Complete the Export Readiness Assessment.  To learn more about exporting, refer to the Basic Guide to Exporting, at http://www.export.gov/.

Which markets hold the most promise for your products? Who are the major players and competitors in the market? Use market research reports and customized services to focus your efforts on the most promising markets.

Identify potential buyers, agents, distributors or joint-venture partners for your product or service.  Become familiar with the various partner matching and trade lead services offered by the federal government.

A variety of cost-effective services are available to help you test markets and gain exposure overseas.  Trade Specialists can guide you through the complex web of international transactions.  Learn about the intricacies of packing, labeling, documentation and shipping, or learn about Freight Forwarders that can handle it all for you.

Source: Exporting Basics Life Cycle

Ready to export?  Contact our International Trade Program Staff to assist you.