The purposes of the export plan are: first to assemble facts, constraints, and goals. Second, to create an action statement that takes all of the above into account. The statement includes specific objectives; it sets forth time schedules for implementation; and it marks milestones so that the degree of success can be measured and help motivate personnel.

The first draft of the export plan may be quite short and simple, but it should become more detailed and complete as the planners learn more about exporting and their company's competitive position. At least the following ten questions should be addressed at the onset of your export endeavors:

1.What products are selected for export development? What modifications, if any, must be made to adapt them for overseas market?

2.What countries are targeted for sales development?

3.In each country, what is the basic customer profile? What marketing and distribution channels should be used to reach customers?

4.What special challenges pertain to each market (competition, cultural differences, import controls, etc.), and what strategy will be used to address them?

5.How will the product's export sales price be determined?

6.What specific operational steps must be taken and when?

7.What will be the time frame for implementing each element of the plan?

8.What personnel and company resources will be dedicated to exporting?

9.What will be the cost in time and money for each element?

10.How will results be evaluated and used to modify the plan?

One key to developing a successful plan is the participation of all personnel who will be involved in the exporting process. All aspects of an export plan should be agreed upon by those who will ultimately execute them.

A clearly written marketing strategy offers six immediate benefits:

1.Because written plans display their strengths and weaknesses more readily, they are of great help in formulating and polishing an export strategy.

2.Written plans are not as easily forgotten, overlooked, or ignored by those charged with executing them. If deviation from the original plan occurs, it is likely to be due to a deliberate choice to do so.

3.Written plans are easier to communicate to others and are less likely to be misunderstood.

4.Written plans allocate responsibilities and provide for an evaluation of results.

5.Written plans can be of help in seeking financing. They indicate to lenders a serious approach to the export venture.

6.Written plans give management a clear understanding of what will be required and thus help to ensure a commitment to exporting. In fact, a written plan signals that the decision to export has already been made.

This last advantage is especially noteworthy. Building an international business takes time; it is usually months, sometimes even several years, before an exporting company begins to see a return on its investment of time and money. By committing to the specifics of a written plan, top management can make sure that the firm will finish what it begins and that the hopes that prompted its export efforts will be fulfilled.

The facts:

There are many modes of entry into foreign markets -- ranging from an indirect method (requiring only modest commitments of capital and management because the export job is done by an intermediary) to full-scale manufacturing abroad, which involves substantial capital investment.

The important point is: International business is open to small and large companies alike, as long as they offer distinctive products and skills.

Two opposing misconcepts:

a.International business is totally different from domestic business.

The facts:

Certainly business environments in foreign countries differ from U.S. business environments, but the principles of good management are the same everywhere.

a.International business is the same as domestic business.

The facts:

This misconception comes from the attitude: "What works best in the United States will also work abroad!" This attitude has caused many blunders; and unfortunately has encouraged too many U.S. companies to undertake foreign ventures that were destined for failure.

Summary:

As you can infer from the above, exporting can be a risky undertaking. With meticulous strategic planning, the potential rewards to be reaped are many. The NJSBDC has International Trade consulting and welcomes the opportunity to discuss your trade specific needs. We look forward to hearing from you.