How to Export Goods to Foreign Markets

Exporting goods to foreign markets can help your company find new sources of growth.

When your company has limited growth potential at home, or you believes it is time to enter a foreign market, you may want to try to export some of its products abroad. Exporting can be difficult due to many reasons, including trade barriers in the form of tariffs and quotas, required registration or licensing of your goods abroad, fickle foreign consumers, exchange rate risk, etc. At the same time, it can open new horizons for your company and be a source of growth that might be impossible to achieve in the domestic market.

Instructions

1. Analyze the foreign markets you think you could export your goods to. Will there be enough demand? Who will be your consumers? What competition will you face, and what competitive advantages can you develop? Also, consider whether you need to introduce changes to your products to provide more value in the eyes of your foreign customers.

2. Review the risks involved in exporting your goods. What will be the costs of setting up export operations in specific foreign markets? How can you minimize foreign exchange risk? Will the risks outweigh the benefits? In the end, come up with a list of destinations that are most promising from the point of view of costs-benefits analysis.

3. Plan your exports. Make a detailed plan of how to export your goods, with exact technical details, such as transportation, logistics, distribution channels, marketing and sales. You can also employ management consulting firms to help with establishing your export operations.

4. Carry out your exporting plan. Be flexible, and respond to the demands of your customers. While sticking to your plan is necessary for easier control over your exports operations, don't hesitate to make changes as market or regulatory conditions change.

References

• Unz.&Co.: Preparing Your Product for Export
• Export.gov: Export Basics Home