Like any sound business plan, the first step is doing your research and taking a breath to think clearly. Here are ten factors to consider before taking the plunge and going international:
Point 1. PLAN at least a two-year lead time for world market penetration. It takes time and patience to build a successful export business, especially in Asia where relationships take longer to develop.
Point 2. DECIDE how much you can afford to invest in your international expansion efforts. Pick a figure based on a share of domestic profits and stay with that consistently.
Point 3. CHOOSE the appropriate model for entering the market. This may be a simple export model of manufacture in NZ and ship to an importer overseas, or maybe something else. Joint venture or a licensing arrangement may be more effective. Offshore manufacture in a third country may be required. Don’t assume it is a 1-size-fits-all strategy decision.
Point 4. FOCUS on a narrow product or service offering. The same principal that is necessary to dominate a market niche in New Zealand is even more essential overseas. Don’t try to be all things to lots of people. Stick to one small segment and do it well. What is your USP?
Point 5. RESEARCH to identify your prime target markets. You want to find out where in the world your product will be in greatest demand. Try to look for an unsatisfied need or even better, a problem that needs fixing.
Point 6. ADAPT your product for export. This may be basic labeling requirements or more significant design changes. What regulatory and legislative requirements are there? Know this before you make an expensive mistake.
Point 7. FIND a good lawyer, a banker with international experience, a good accountant and wily transport specialist. Good advice is expensive, but bad advice is MORE expensive. I can help you put an export plan together that has the benefit of 25 years of export experience behind it. I don't have every answer, but if you make half the mistakes I made and learn from my experience, you can't go too far wrong!
Contact me via my website here: Mentoring and Coaching
Point 8. INSIST on clear terms, conditions and other financing options, in advance. Never sell on open account to a brand new customer, EVER.
Point 9. PROVIDE an awesome customer experience. Ensure this extends to well after the sale is made and keep the lines of communication open all the time, even if that means some very late nights on the phone.
Point 10. MAKE contact with your customer at the heart level as well as the head. Learn to embrace the culture of your customers and aim to incorporate a bit of it into your own life. Learn to enjoy these new experiences.
Icon Business Solutions website is here: Coaching in Business
Andy Burrows
Business Advisor - Email me here
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