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25 ESSENTIALS OF EXPORTING by Murray Painter*
There is no quick fix for Exporting. Generally it is bloody hard work but here is a quick list of what we believe is 25 essentials when developing your Export Business.
Have an Export Business Plan. This can be part of the overall company business plan or a separate plan entirely
Employ an Export Mentor when you have made the decision to begin exporting but PRIOR to commencing your exporting initiative
Check with your Accountant whether it is best to have a separate entity undertaking export sales only
Ensure that you have a multicurrency accounting system and foreign currency accounts in the currencies you expect to receipt funds
Put together a robust export costing model for each export product to ex-works
Make sure that you understand INCOTERMS fully and International payment terms
Obtain full local international and offshore costs of transport, insurance and all other associated cost quotations for each market line with your INCOTERMS
Put yourself and Export staff on Export courses to quickly up-skill all to a competent level to deal internationally
Always trade under a true International Sales Contract
Complete detailed Export pricing models for each product to each market and ensure there is a process to update these
Contact NZTE to see what support/assistance they can give
Consider in your Export Plan how you will handle the multiple risks associated with Exporting
Be sure that you have met all Export Compliance requirements for you company, product and industry
Visit your customers at least once per year
Keep an up to date website showcasing your company and products and how an international buyer can order
Either employ a skilled 3PL forwarder or Customs Broker or ensure you have a staff member trained in Export Documentation and Freight
Never neglect your domestic market whilst exporting
Plan your export budget and cash flow at least a year in advance. Research and update yourself on foreign market prices and conditions
Be as flexible as possible. You can be sure that whatever you plan to happen will be changed considerably when it does
Know your limitations – do not oversell
Think carefully about export packing and packaging
Create a regular newsletter once you have multiple customers
Spread your risk by trying to not be reliant on one country or market in a country
Maintain good Governance at Board or Advisory level. Ensure that you have an advisory board or board of directors containing at least one independent non-executive member
Invest early profits in R&D and training if possible
Should you need any help on any of these points we are more than willing to assist. get in touch through our website or phone us on (06) 875 8000
(*) GoGroup companies have been operating in Havelock North for 11 years with principals Murray Painter and Mark Carrington both having been involved in International Trade all their working lives. They have experience in small to medium businesses as well as larger corporates.
Go Group Companies provide Services in International Trade covering freight and logistics, documentation, customs, supply chain, supply contracts, procurement, sales and marketing. As well they provide training in the field of export from short courses dealing with the day to day aspects of Exporting as well as a 1 & 2 year Certificate and Diploma in Export through the Export Academy.
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Think carefully about export packing and packaging
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