Export Planning

Are you ready to Export?

What are the Challenges of Exporting?

• Education in exporting
  The process of exporting is complex and it may take some time to learn and become familiar with it. You can avoid pitfalls by planning and researching as much as you can, and by using the services of export advisors and professionals.
• Time and financial expense
  It takes persistence to break into a new and unfamiliar market and you may need some patience before you realize financial gain. With sound planning, the payoff will be worth the wait.
• Product modification
  Some products or product packaging may require modifications to meet the specific country's language, customs and standard requirements.
• Longer collection periods
  Payments may be delayed due to the length of time it takes goods to reach their final destination, the time taken to process the documents, currency and credit regulations.
  

What Does It Take to Be a Successful Exporter?
Successful exporters are often those with a firm base in Canada. They benefit from reliable production, good reputations for quality and products or services which are likely to be in demand in international markets.

There are exceptions — with proper planning and research, some companies that do no business at all in Canada may find a niche in a foreign market.

Some of the keys to success in exporting are:

• long term commitment to exporting by management
• sufficient capacity available to allocate necessary company resources and personnel
• sufficient financial resources to actively support marketing in your target market
• internally efficient systems to respond to customers quickly
• quality product or service which fulfils a demand in the target market
• product that meets the often diverse requirements of foreign customers
• product that sells at a competitive price and is delivered on time
• product that can be supported with after sales service (if applicable)
• strong domestic business base (usually)
• sound export plan with a realistic time frame for export market development.

What Are the Benefits of Exporting?

Increase sales and profits
Export sales are incremental profit because your domestic sales often already offset your fixed expenses.

Diminish dependence on the local market
Diversification of your markets can hedge against a stagnant domestic economy.

Extend life of a product
A product that is technologically out of date in Canada may be preferred in many developing countries because of its relatively low price and low level of technology.

Use of full plant capacity
Export demand will increase your production supply, and thereby reduce your average unit cost. This in turn increases your sales and profits in both international and domestic markets.

Experience and knowledge
Meeting new people, experiencing different cultures, customs and challenges will give you another perspective on international business. Exporting may also lead to new product development based on demands in new markets, as well as potential for joint ventures, licensing, etc.