Estimating the costs of doing business can be hard enough here in New Zealand, and disastrous if you get it wrong. When you decide to step out into a new international market, it gets even trickier. The more accurate and prepared you are, the less financial risk for you and your business.
Before exporting, it's important to work out whether you can make enough profit to cover your costs and be rewarded for the financial risk and hard work of entering an export market. Remember you may face a lengthy wait before you see a return on your investment.
The best way to determine if entering a new market is even feasible, and if your company can sustain the investment it requires, is to be realistic in your financial planning. You may have to pay for unbudgeted items, substantially affecting your cash flow and working capital. Spend the time now, and equip yourself with better information for your planning and decision making.
Understanding exporting costs
This Export Essentials guide will help you identify all of the costs you need to factor on as you work out the feasibility of any market you are looking to export to. You’ll find information on:
- Why you need cash flow and sales forecasting
- What costs you need to think about
- The importance of knowing your break-even point and using this to determine the feasibility of entering your target market
- Useful tools and templates
Download our free guide now on this page and get some clarity on the true cost of doing business offshore and how to factor this into your planning and decision making.
Watch this four-minute video of Jai Basrur, NZTE Beachhead Advisor and James McLeod from Made4Baby talk about the many hidden costs of selling offshore, from domain name registrations to requests from distributors for giveaway items and ensure these are in your price. James also shares advice he was given that you need to ensure your business is financially robust enough, and your relationship with you bank is good so that you can withstand slow payments.
If you want to learn more about sizing the market opportunity, planning and forecasting then register now for our Export Essentials Workshop. We’ll give you practical tools and techniques to take your business global.