12 STEP BY STEP PROCESS TO SUCCESSFUL EXPORTING

It is not uncommon for me to bump into a colleague and once they know I
am involved in export promotion, the next knee jack reaction question they
ask me is,
What can we export to get some money? Or what products are on demand
in the export market?, This is irrespective of whether they are currently
involved in local trade or have even exported informally. It is always difficult
for me to attempt an answer because exports just like local trade requires
prudence and its not always a get rich quick scheme as it requires work over
time and like in any market, the customer guys a products that meets his/her
needs which is commonly known as customer value proposition.
So in article, we will try to summarize key steps on how you can export
products. We will in due course digest each of the subjects in the next posts
since export is such a wide subject for us to write everything in this article.
Below are some highlighted steps to export a product.
1. What is your export potential?
The reality is entrepreneurship is not for everyone as observed by Forbs
magazine. As such, one has to determine if you have the cloth for export
trade otherwise you may be cut for something else. You need to ask if your
products/ services are exportable and if they will be consumed by the target
customers. You further need to establish if your company, the management
as well as owners of the company are committed tow exporting. We usually
refer to this as having a fire in the belly- the drive dig in should it be
needed to capture the export market which like local trade doesnt come on
a silver platter. You need to ascertain if: your products is ready; what is your
Unique Selling Proposition (USP)? What are your target customers? Who are
your competitors; how should you price your products? Etc.
2. Now that you established your potential, are you ready?
You need to review your companys current resources; do you have the
financial resources, staff dedicated to exports, suitable sales literature,
business card, price lists. Registration with local export Promotion Body like
Uganda Export Promotion Board in Uganda positions you better to obtain
information on export.
With the IT resources like the internet readily available, you can actually
take this online step by step test on international readiness. You may want to
visit
some
sites
like
http://www.enterprise-ireland.com/en/ExportAssistance/Get-Export-Ready/Are-you-ready-to-export-/ . Although the picture
isnt complete, it clarifies your thoughts going forward.
3. Now that you are ready, have you selected the product and target
market?

Its of course prudent to recall that one be unsuccessful selling alcohol in

Saudi Arabia as one who tries to sell Ice to Green land. We need to fully
understand the market rules of the game in business. You may prefer to
obtain first-hand information by visiting the market.
4. Have you researched your market?
Having identified your products-market match, one needs information to plan
for export. Market research helps an exporter identify the right target
market, competitors (their size and strength); customers as well as channels
of trade. By visiting business centres/ library at your local Export Promotion
Agency you can obtain comprehensive materials including online or off line
databases to help you in your research. For East Africa; Rwanda
Development Board (Rwanda), TanTrade (Tanzania), Uganda Export
Promotion Board (Uganda), Investment Promotion Agency (Burundi) are the
official government export promotion bodies. Once you have all the ducks in
one row, you need a plan of action or a strategy in military language.
5. What strategy/ Plan to seize the market? (Plan A, B & C)
Prior to embarking on an all-out marketing plot, it is vital for companies to
draw up a short export business plan (we recommend 2page max) outlining
what top 3 things you need to be done, by who, by what time and how much
it will cost the organisation. Without this, one will easily be taken up by daily
activities.
6. Are you ready to persuade the customers?
Sales and marketing notifies your customers about your products or services
and the entire business and what your company has to offer.
Like in all
markets, business success depends on successful marketing and an effective
marketing is bound to set your business apart from other competitors. Some
companies extend their marketing efforts simply because continued
marketing tactics trawls customers interests in season specials, promotions,
new products and/or services. However, you cant be everywhere which is
why one may consider partnering with other.
7. Have you
strategies

selected

distribution

channels

and

market

entry

This is highly critical as distribution channels are the necessary links that
ensures the manufacturers goods reach the end users be it direct
exporting or indirect exporting. Otherwise a bad one will give you headache
and possibly fail you. An export ready company needs to consider the size of
the distributor, distribution geography/ capacity, availability of resources to
distribute like cars, absence/ presence of competing/ complementary
products.

8. Export pricing
The right pricing strategy ensures that profit margin is maximised, resources
are optimised, and sales volume are amplified. Export pricing and domestic
pricing are different owing to different overseas market conditions, different
costs, different quoting formats and different currencies all affect what you
charge your customers for your products or services. It is advisable that
prices of course cover all costs involved plus a margin and in local currency
of the buyers or at last in US dollars. Companies need to factor in foreign
exchange fluctuations considering that once a price is stated, its always
difficult to take it higher. Companies also need to keep the delicate balance
not to price their products too low as it could be interpreted as chaeap.
9. You need to formalise distribution agreement
Like any business, export benefits the supplier as well as buyer whether they
are the final consumer or not and each one will only stay in the relationship
for as long as they derive a benefit out of it. The two parties thus have to
agree mutually to do business for mutual interest to make money out of the
process. However, there needs to be a formal process to stipulate the
expectations, responsibilities, targets, and expected results for all the
parties. Its advisable that short term agreements are arranged as business
begins in order to offer quicker exit should there be challenges such as
market unviable or any party back tracks on their bargain. It would be
recommended to contact a lawyer although the agreements need to be
mutually understood by both parties.
10.

Secure export orders

This is an important element for any company that wishes to retain their
customer loyalty and sustain their business presence. A typical order cycle
would normally end with securing orders and, in most cases, re-ordering.
Since the survival of a business hinges on sales, it is important to negotiate
and follow-up with your customers to get orders secured.
11.

Export transactions and documentations

Although the world is heading towards paper-less trade, papers are still
required for a number of transactions locally and internationally. As such, one
needs to know which documents are required to export your products or
services, as this may differ according to certain industries and/or
international markets. Again your Export Promotion Agency is the best
source of such information. Having proper and accurately completed export
documentation is vital as it avoids delays in processing and port clearance
yet any delays in shipment will affect customer loyalty and your business
credentials.
12.

Getting paid

Having run the race thus far, you need to ensure you are paid and having a
good understanding of the various methods of payment settlement is
essential to ensure that you select the most appropriate terms of payment
for your business transactions and that you receive payment for it. This is a
crucial element in the export business as you will need cash to purchase the
goods or services in order to manufacture and deliver to your customers. You
will also need to have a good understanding in exchange rate volatility as
fluctuations can affect profitability and pricing.
In East Africa, banks such as KCB Bank has branches right across the region
and offers a product to Dollar account holders where a customer can deposit
money into their account from anywhere in East Africa and the same would
be credited to their account with Zero transfer fees. This offers companies an
opportunity to minimise costs of getting paid.
To your success in your Export journey

Philip Muwanika, MBA. Philip Muwanika has been working with Traidlinks to a
regional program (MarketLinked) aimed at supporting intraregional exports of
products with funding from Trade Mark East Africa.