Why plan?
It is common for people to get into exporting because a friend has an opportunity, or because of an approach from an overseas customer. You are more likely to be a successful exporter if you are proactive and do your homework first.
Developing an export plan is central to any export strategy. Careful planning will ensure that your company:
- understands market competition
- has the resources to become a viable exporter
- identifies weaknesses and strengths in your business before committing to exporting
- gathers well-researched and accurate information
- has clear export objectives, and a timeline for achieving them.
The export plan should be an extension of your company’s business plan, and concentrate on the conditions in your chosen market. If you don’t already have a business plan for your New Zealand operations, we recommend you develop one.
Your export plan should be a ‘living document’ that is updated as your business learns and grows.
Key information to include in your export plan
Include the following information in your plan:
- Executive summary – A one page overview of your plan. This is the most important page in your plan, as it could be the only page a potential investor reads. Keep this to one or two pages. This should be the first page in the document, but the last page that you write.
- Introduction – Overview and history of your business, define the purpose of the export as well as the goals and objectives.
- Your organisation – Resources your business currently has to support the exporting plans.
- Product/services – What are you selling? Does it need to be adapted to other markets?
- Market information – Your market research, country information and industry trends.
- Market entry strategy – How you plan to enter and compete in the local market.
- Regulatory and logistical issues – What local regulations you need to comply with? How you plan to get your product from New Zealand to your overseas customers?
- Risks – List of the risks you are facing and your plans to deal with each risk.
- Action plan – Outline what needs to happen, when it needs to happen and who is responsible for it happening.
- Financials – Your projected revenues, costs and budgets. Remember, cash flow will always be worse than expected.
Evaluating the plan
Once you’ve done a first draft of the plan make sure you canvas opinions. Consult with your staff, bank, accountant, business advisors and other experienced exporters. Don’t be afraid of criticism. Ask them to look for issues or constraints you haven’t predicted or opportunities you may have missed. Incorporate their feedback back into the plan.
Once export activity has started make sure you keep reviewing the plan on a regular basis. This is important for two reasons:
- To track progress against the implementation plan.
- To modify the plan when needed.
