1. Exporting - Why And When Should You Start ?
Mike Stokes

2. Why Businesses Should And Do Start Exporting2

3. 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

4. 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

5. 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

6. 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

7. The Human And Financial Commitments Of Exporting7

8. 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

9. 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

10. 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

11. 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

12. 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

13. What Should Be Considered Before You Start Exporting ?13

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

15. 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

16. 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

17. 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

18. 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

19. 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

20. Action Plan : Preparing To Export20

21. 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

22. 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

23. 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 to Thank you 23

24. Exporting - Why And When Should You Start ?
Mike Stokes
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