Making an effective plan
Some of the things your exporting plan should coverContact us
It is fundamental to make an export plan when aiming to trade overseas. Here are some of the things your plan needs to cover.
Deciding your business model
- Are you going to sell direct, online? The web site www.great.gov.uk has information on a huge number of e-marketplaces worldwide and is a useful resource to get started.
- Are you looking to work with a partner or distributor who has presence in your chosen market?
- Are you thinking of using a sales agent to sell your products for you or connect you with potential customers?
- Are you looking to establish a joint venture with a local business?
- Are you considering setting up a local office?
You also need to decide on whether to invoice customers in their local currency – this removes perceived barriers to trading
Delivering your product
It is really important for you to have o have a solid arrangement, often with a specialist freight forwarder, to ensure the delivery of your goods. Ensure that you have a written contract that covers responsibility for UK customs procedures and clearance and you have all relevant insurance. An agreement must ensure the safe delivery of your product based on it’s own characteristics such as product shelf-life, weight, fragility etc.
Rules and legislation
Exporters must comply with the tax and legal systems in the markets you’re trading with. Please consult HMRC (or your accountant) who should be in a position to offer advice.
Ensure your product or service complies with the regulatory requirements of your overseas market. That might mean modifications to your product, its packaging etc. The Department for International Trade will be in a position to provide guidance on this.
Protect you Intellectual Property as rules around this issue vary by country.
Marketing strategy and budget
Exporters must factor into their costs how they will develop the awareness of their product or service in a chosen market. Without a marketing strategy, it will be a challenge to alert potential customers of your product or offer.
Finance and cash management
Exporters need to know how they will fund their activity, how they will handle cross-border currency invoicing, international receivables, how they will hedge foreign exchange rate risks and how cash management will work alongside their domestic activity.