READINESS: MANAGEMENT & LEADERSHIP

Readiness Indicator:

You have the management capacity and commitment to execute export marketing initiative

• Exporting forms part of your business’ long-term goals
• You and your management are fully committed and will to spend staff, time and resources on developing export markets
• Your management are willing to wait to achieve acceptable export results
• You are able to recruit or dedicate a very capable person with export operations as their primary responsibility
• You and/or someone at management level within the business have international business experience

READINESS: MARKET KNOWLEDGE

Readiness Indicator:

You are well informed of market opportunities and requirements in the export target market.

• Your company has up-to-date information and in-house analysis of market trends and developments
• Your company has up-to-date information about trade preferences that can be obtained as a result of trade agreements
• Your company has up-to-date information about consumer safety regulations and buyer preferred quality, social and environmental compliance requirements in potential markets
• Your company has up-to-date information and in-house analysis about competitor activity in your target markets
• You have attended a relevant international trade fair to refine your knowledge
• Have you hired a sales representative/distributor/agent in the target market

READINESS: PRODUCT & PRODUCTION MANAGEMENT

Readiness Indicator:

Your products, production process and production capacity are geared to meet the requirements of the target market.

• Your company has continuous or seasonal spare production capacity along with a reliable supply chain that can meet large orders from foreign buyers
• Your product can tolerate harsh or widely varying environmental conditions
• Your company has adequate knowledge and capability to customize your product and its packaging and labelling in order to align with foreign market demands and cultural preferences
• You know what quality management requirements the product should comply with in the export market
• You are capable of providing any special training, on-the-ground technical support, or other after-sale service or support your product or service may require in the target market
• You have a good estimate of the cost, time and human resources needed to make the required change and customisations

READINESS: VIABILITY & COMPETITIVE CAPABILITY

Readiness Indicator:

Your competitive positioning and capability is well defined and stands robust

• You can describe the uniqueness of the product targeted for export in relation to the export market in terms of price, features and benefits.
• Your company has knowledge of foreign competitors, their products, their marketing strategies and pricing practices
• Have you completed sales forecasts based on a realistic analysis of supply and demand trends and market share
• You have a well worked out pricing strategy and a detailed pricing calculation for the product in the export market
• You have completed an analysis of the variable costs and all the overhead costs of exporting the product to the export market
• You have included a projected cash flow and income statement for the export venture
• You have completed an analysis of the gross profit and net profit of the export venture
• You have conducted a detailed benchmarking exercise against competitive threats in the export market

READINESS: RESOURCES

Readiness Indicator:

Financially your house is in order and has flexibility to carry the additional costs and resources to cater an export endeavour

• You have adequate flexibility in your budget to afford initial costs connected to export including product adaptations, travel, translation, shipping costs, etc.
• Your company is financially stable with at least 3 years of profitability as well as a sustained positive cash flow
• Your company has professional budgeting and financial management processes in place
• You know how to and can secure pre- and post-shipment financing
• You are well prepared to manage currency risks between order and payment
• You have carefully looked into the added demands that international business can place on key resources (such as management, personnel, production capacity and financing)

READINESS: EXPORT PLANNING

Readiness Indicator:

Plans for your export venture are meticulously worked out

• You have completed a detailed action plan for implementing the export venture
• You have assessed the present and projected supply and demand trends for the product in the export market
• You have completed sales forecasts based on a realistic analysis of supply and demand trends and market share
• Your export plan includes details on a support system for example for after-sales-services for sustaining the level of sales in the export market
• You have finalized a pricing strategy and a detailed pricing calculation for the product in the export market
• Your company has a clear web presence that clearly positions its unique selling proposition and clear means of contacting key people in the company
• Your plan includes regular attendance of international trade fairs relevant to your targeted export markets to learn and network.