Exporting to the United States – A Team Canada Inc Publication

2.5 Creating your export plan

Your research is underway and you've assessed your export readiness. Now it's time for your export plan, because a good plan will vastly improve your company's chances of success in the United States. Your plan will also be crucial if you need financing, because financial institutions won't lend to a business that hasn't developed one. Chapter 2 of the Step-by-Step Guide to Exporting has an overview of export plans and their elements that you may find useful.

Your export plan will be similar in many ways to your business plan, except that it will concentrate on the conditions of the U.S. market. Among other things, it will include:

• a description of how you'll organize your export activity;
• an analysis of your product and its suitability to the U.S. market;
• an overview of your market research;
• a description of the methods by which you'll enter the U.S., such as promotion and distribution;
• an analysis of U.S. regulatory, logistical and risk factors and how you'll deal with them; and
• an implementation plan and a financial plan.

We'll examine money matters in detail later, in Section 5.1, "The Basics of Export Financing", However, financial plans are part of your export plan, so they bear mention here.

First, it may take months or even years for your U.S. export venture to show a positive return on investment. Be sure your plans account for this and that your operations can be sustained until either they become profitable or you choose to leave the market.

Second, a solid financial plan for your export initiative is a must. In addition to including a capital budget and a cash budget, it must allow for fluctuations in the value of the Canadian dollar that may affect your profitability in the U.S. market or at home. A good financial plan is also essential if you need to approach lenders for working capital, letters of guarantee or other kinds of financial assistance.