Exporting - Why And When Should You Start ? Mike Stokes

Why Businesses Should And Do Start Exporting 2

Why Businesses Should And Do Start Exporting Proactive and Relatively Obvious Reasons capacity for growth unsatisfied domestically vulnerability – need to spread risks desire to be able to ride out economic downturns need to smooth out seasonal fluctuations changes in fashion cause domestic obsolescence 3

Why Businesses Should And Do Start Exporting Proactive but Less Obvious Reasons economies of scale (greater buying volumes) greater volumes = lower unit costs = profits exposure to new competitors & new ideas increased publicity increased morale 4

Why Businesses Should And Do Start Exporting Reactive Reasons internet enquiries received from other markets interest from visitors to domestic shows interest from contacts of foreign suppliers associate business of domestic customer subject of a merger or acquisition 5

Why Businesses Should And Do Start Exporting Never forget WHY you are exporting Ensure all your team understand WHY The reasons WHY will significantly affect :- the importance & positioning of your brand product modifications & margin expectations your route to market the human & financial investment you make 6

The Human And Financial Commitments Of Exporting 7

The Human And Financial Commitments Of Exporting Exporting Takes Time researching markets, competitors, opportunities travelling to, and within, foreign countries learning languages, culture & etiquette coping with different rules & regulations building personal relationships & earning trust 8

The Human And Financial Commitments Of Exporting Who Exactly Is Going To Do It ? which team members have the necessary skills ? who is going to cover for them ? what new members of staff will be needed ? domestic market distractions must be considered factors affecting prioritisation must be clear 9

The Human And Financial Commitments Of Exporting Obvious Costs Of Exporting product modifications additional packaging & labelling costs translation costs freight & insurance costs travelling expenses possible capital expenditure to increase capacity 10

The Human And Financial Commitments Of Exporting Less Obvious Costs Of Exporting website enhancement testing & approvals trademark registration patents, registered designs insurance (especially USA) legal costs (agreements etc) costs of getting paid 11

The Human And Financial Commitments Of Exporting There are increased human costs There are increased financial costs Understand these and build them into your plans The benefits can far outweigh these costs Ensure you walk into exporting with both eyes open 12

What Should Be Considered Before You Start Exporting ? 13

What Should Be Considered Before You Start Exporting ? Human and Financial Costs What Other Factors ? 14

What Should Be Considered Before You Start Exporting ? The USPs Of Your Product Or Service The unique features and benefits The real differentiators The “me too” syndrome Transferability Uniformity of the competition 15

What Should Be Considered Before You Start Exporting ? Capacity Constraints (Absolute and Seasonal) Spare capacity of factory / plant / workshop Spare capacity of tools / machines / computers Spare capacity of designers / programmers Investment required to address shortfalls Sub-contracting possibilities Critical suppliers 16

What Should Be Considered Before You Start Exporting ? Items Which Make Your Product Exportable Intellectual Property issues Standards, Compliance and Approvals Packaging Labelling, Instructions Legal Details – documents, Ts & Cs, agreements 17

What Should Be Considered Before You Start Exporting ? Support Organisations Department for International Trade Chambers Of Commerce Sector-Specific Trade Organisations HMRC Banks Language & Culture Service Providers 18

What Should Be Considered Before You Start Exporting ? Human Costs Financial Costs Product USPs Capacity Constraints Items Which Make Your Product Exportable Support Organisations 19

Action Plan : Preparing To Export 20

Action Plan : Preparing To Export Establish WHY you are going to export Identify WHO is going to do what Recognise any additional people costs Understand the obvious and hidden financial costs Realistically analyse your USPs Consider what capacity issues need addressing Check the items which make your product exportable Find out what help is available 21

Action Plan : Preparing To Export Research, research and research Address all items on your check list Quantify the effects of these items on costs & margins Re-visit WHY you want to export Then proceed in a proactive, structured way 22

Feedback Hopefully you found this course useful, easy to understand and enjoyable. But your feedback is very important. Please download the feedback form, print it off, add your comments – and then send a scanned copy by e-mail to info@exportential.co.uk Thank you 23

Exporting - Why And When Should You Start ? Mike Stokes Tel 01733 211873, E-Mail info@exportential.co.uk