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.

Read the video transcript

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.

Exporter guide

  • Download our guide to understanding your export costs
    4.82 MB

Use the online calculator to help you figure out the number of sales you need to make a profit 

  • I want to find out about tax requirements for export
    NZTE doesn’t provide tax or legal advice as we are not specialists in this area – the best option is always to get professional advice on this matter. 

    To find tax a lawyer in New Zealand, the New Zealand Law Society provide a useful tool on their website.

    Your local Chamber of Commerce may be also able to recommend tax or legal experts who have knowledge of particular export markets, and have worked with other export companies. You can find your nearest chamber online on the New Zealand Chamber Network web page.

    For some markets, NZTE holds lists of tax lawyers and accountants that our team is aware of – to check if a list of contacts is available for the market you’re looking at, contact our Advisor Team on 0800 555 888 or send us an enquiry
  • Who can I talk to in my region about business training, advice and connections?

    The Regional Business Partner (RBP) network has specialist business advisors available to provide you with advice, information and connections to support your business. They can help you:

    • identify the next steps for your business
    • connect you with the local business community, industry networks and clusters
    • match you with a mentor from Business Mentors NZ
    • provide access to Capability Development vouchers
    • provide access to research and development (R&D) funding
    • help you navigate the support you can get from Government agencies.

    The RBP network is made up of these local Economic Development Agencies and Chamber of Commerce: 

  • How do I protect my business against a buyer defaulting on a payment?
    The Export Credit Office can help you protect your business from cancelled contracts or payment defaults that are due to commercial or political events beyond your control. 
     

Export Essentials workshops

Develop your export plan in our practical two-day workshop