Product
Does your product need to be adapted for overseas markets?
You should be certain that your product really is suitable. It may need to be redesigned in fundamental ways to meet market requirements, for instance, different taste preferences in foods, different electrical standards, different packaging requirement or  other special factors. It is obviously essential to meet the demands  of each individual market if you are to succeed, and this can involve  considerable additional expense 
Naturally your product will also have to be competitive in all aspects, notably price, quality, design, etc. You will need to find out whether there are any impediments making it difficult to succeed in a particular market, such as licensing controls or prohibitive tariffs. 

Marketing
Does your company already have solid marketing experience?
The strength of your existing market is important, because you will need an ample and reliable cash flow to sustain your initial push into export. If your product has only limited distribution in your country, it might be more cost-effective to expand at home before taking the major step of developing new markets overseas. Management
Does your company have the available management capacity to develop export markets?
Successful exporting requires a heavy commitment of time from senior executives. This can be a major, and potentially fatal, distraction from the domestic side of the business - normally the base which supports expansion overseas. What training is proposed for
export executives? Also, will you need more full-time staff to service exports properly?

Capacity/Production
Does your company have the existing production capacity to fill export orders promptly?
Can your existing capacity be expanded quickly when required?
If not, your buyer may quickly lose confidence in you. What additional support would you need to process and store extra stocks?
You might consider whether your product or technology is more suited to a licensing arrangement.
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Finance
Does your company have the financial strength to commit, say, $40,000 or more for the year or two it may take to develop a new overseas market?
For complex markets such as the USA, China or Japan, the amount will be much higher. What budget provision is there for travel, promotion, translation, participation in trade displays, appointing agents, preparing promotional literature, insuring against buyer default?
If you do not have the financial resources to start direct exporting, you might consider using an export merchant or agent. This alternative could provide valuable lessons for direct exporting in the future. Austrade has listings of export agents who may be able to help you.

Where to go for advice
In the course of establishing whether or not you are prepared for exporting, you should consult your accountant, your bank.

Detailed market research is imperative.Your research should endeavour to cover a very wide field: potential markets; the suitability of your product (and how it might need to be modified); geographical, climatic, cultural, political, economic conditions; foreign exchange requirements; financial projections. You will find this site a prime source of information and advice on most of these areas.

It is a particularly valuable exercise to identify one or two likely markets and conduct your own test study, using Austrade's research and information facilities. Find out whether the country already imports the product; import statistics may tell you how much and
from where.

• What is the size of the market?
• What is per capita income?
• Is the population mainly urban or rural?
• Is it a diverse economy?
• What import duties would the product attract?
• What other barriers are there to imports (eg, import licensing)?
• Are there local taxes, sales tax, value added tax or a general sales tax?
• What are the costs and frequency of shipping and airfreight from your contry?

What regulations does the product have to satisfy, such as quarantine and labelling standards, consumer protection rules, product standards?

Successful exporting is rarely accomplished from afar, therefore visiting your market is crucial. However it is also expensive.

Visiting the Market
Your main goals on this visit are:

• to study the market's special characteristics,
• evaluate the opportunities and competition,
• enquire about suitable agents or distributors, and with them jointly draw up an appropriate marketing plan to introduce your product and maximise its sales.

Lines of supply
How you will reach, supply and reliably service your customers is of utmost importance. Consider whether your local packaging will stand up to overseas requirements and any possible rough handling during an extended chain of distribution. You should sort out
whether you want to deal with your customers directly, or whether to find an agent to act on your behalf (this is a critical appointment: your success will depend substantially on your choice of agent), or a distributor who may hold and distribute stock on his own account.
Austrade helps exporters to team up with the right agent or distributor. As an alternative you may wish to consider using the services of an export merchant.

Promoting your product
At this stage you will also be deciding how to promote your product, and whether the sales literature and packaging need either translating and/or a better design. You will also be considering the best way of launching the product on the market. If it is a consumer product, you will be discussing this with the agent, distributor and
retail outlets. You should be prepared to meet the costs of a product launch, although the agent may agree to share these. Advertising, packaging, point-of-sale material, in-store promotions, media reception and press kits, etc, are all likely to be part of your export budget.

Check before you go
In many markets it is advisable to send your samples to arrive well ahead of your visit. Samples of no commercial value will normally be duty free, but they should be accompanied by an invoice. Samples of
commercial value are subject to the normal fees and charges levied on commercial shipments. Samples may also be admitted through use of an ATA Carnet, obtained from the Chamber of Commerce. This is a
guarantee issued by 44 member countries of the International Chamber of Commerce to pay the importing country's duties and taxes on goods imported temporarily if they are not subsequently re-exported. Generally you will not need a licence to export, except for certain products which are subject to restrictions, such as meat, fish, and wine.
The Harmonised Commodity Description and Coding System, or Harmonised System, is the current international product classification system used by most countries, including. Harmonised tariff numbers up to the first six digits are common throughout, and they are frequently required on export and import documentation.
You will have to supply price lists, or at least indicative prices.
Overseas buyers usually prefer a c.i.f. (cost, insurance, freight) price. In some instances f.i.s.(free into store) prices may be wanted. In most cases a quotation will be required in a foreign currency, which
exposes you to foreign exchange risks. Cover against foreign exchange movements is available through your trading bank.
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Get the advice you need
Discuss your plans with the international department of your bank to ensure that all financial aspects are viable. Discuss costing-for- export with your accountant; transport/packaging requirements with a customs agent or forwarding agent; and export credit insurance.
You have the right product. You have done the necessary preliminary research, and you have also visited the target market and established the vital contacts there for distribution and marketing. Now comes the task of putting your export plan into action.
An export plan is that part of a company's business plan specifically focused on its international activities. The export plan clearly reflects the company's export objectives - usually defined as quantitative goals such as sales of $350,000 by the end of the first year, and/or to have 25% of production exported within three years, and to gain a specific market share in the target market. These objectives need very realistic foundations in market research.

Delivering the goods
Reliable delivery is one of the most important factors in making export pay. You can miss out on orders and run up unexpected storage charges by not properly attending to shipping procedures. Customs agents and freight forwarders are sources of much valuable advice and assistance.
Many exports go by ship, although you should be aware that waterfront delays at either end can upset the best organised delivery schedules. Airfreight is an attractive proposition when exporting goods with a high value-to-weight ratio such as electronic spare parts, or perishables like meat, fish, vegetables, fruit, flowers, Experienced exporters say that loss through damage or pilfering is less with air cargo than sea transport. Airfreight also reduces the cost of post-shipment finance, as the product reaches the buyer more quickly.
It is advisable to insure shipments against normal commercial risk (fire or other damage, loss by pilferage). 'Marine insurance' can cover transport of goods abroad by any means (sea, air or overland) and can include temporary storage of the goods on wharves or in warehouses before shipment or delivery. Export credit insurance products are tailored to suit different types of export transactions, protecting your financial exposure.

Getting paid
Making an export sale is worthwhile only if you get paid. If you are to be paid in cash against shipping documents, you must focus on what shipping documents are necessary in order to get paid (usually a bill of lading or airway bill). If you are being paid via a letter of credit, you should focus on the requirements for the letter of credit.
Often you must extend open credit to your buyer to close the sale.
This could be risky, so it should be confined to buyers who are actually known to you. Your customer could become insolvent or might simply delay paying you. Overseas governments may change, or political events interfere with payment to you. Managing your credit risk is a critical part of preparing to export. 
There is some insurance companies can offers insurance cover for these and other risks.

Export finance
Your bank can provide investment or capital funds you will need to meet the additional costs of producing for export, you might have to approach your bank for finance before the goods are shipped. Pre-shipment finance is available through overdraft facilities, commercial bills, short-term currency advances, or a mix of these. It is essential that you seek your bank's advice in making arrangements for payment. Banks have international business advisers and issue leaflets on financing international trade.
Most export deals involve short-term credit (up to 180 days). Exporters generally look to their banks for post-shipment finance (from the time of shipment to receipt of the export proceeds).
The bank will want to consider several factors: the exporter's experience both in producing the goods and in exporting, the period of finance, method of payment by the overseas buyer, and whether an insurance cover has been obtained. Interest charges must be paid on post-shipment finance.
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Getting the paperwork right
Documentation will depend on the nature and destination of the product exported,  the method of shipment, and payment terms. The main commercial documents required are a commercial invoice, essentially a description of the transaction between buyer and seller; and a Certificate of Origin, which is often required with an invoice.
Necessary transportation documents include a bill of lading, the key document in export shipments: it is the evidence of a contract of carriage, a receipt for the goods, and a document of title. An air waybill, like a bill of lading, acknowledges receipt of the goods; however it does not convey title to the goods. Exporters are required to lodge their export entries (for goods that require an entry) and obtain an Export Clearance Number (ECN) from the Customs Service before the goods are loaded for exportation. Freights forwarders and customs agents can arrange this for you.
Export entries may be made in person or by mail or by fax, by lodging an application for export.
Necessary insurance documents: marine insurance declaration and policy and insurance declaration and policy.
A Restricted Goods Permit is required for goods, which cannot be exported without permission.
As a new exporter, you might consider initially engaging the services of a freight forwarder, specialist export consultant, or bank to assist in the preparation of all necessary documents.

Successful exporters ensure reliable product quality and delivery, and maintain a high level of service to their agents and customers. Your agent is crucial to your success. Ideally there will be good personal rapport with the agent, who will feel committed to your company's executives and product. 
The market is fickle, product life cycles are short, and your product's leading edge can be lost as competitors copy it or consumer tastes change. A good agent will read these trends and communicate effectively so that you can adapt your marketing strategy or change the product. Remember that international communications - principally by telephone and facsimile - are now relatively inexpensive to maintain on a regular basis.

Keep up the momentum
Regular visits to the market by top management are essential to maintain good relations with agents and customers and to keep abreast of market needs. Also, you might consider the benefits of bringing agents and major buyers to your country at your expense. It's a chance to offer hospitality, to promote the idea of your country as a source of supply, and to confirm the sense of commitment to your company and its product. 

New horizons
Your exporting success will inevitably lead to exploring other markets, also expanding production and possibly developing new products.
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