The document discusses factors to consider when determining export readiness and provides a framework for evaluating potential new export markets. It outlines a four gate process for initial market assessment, feasibility analysis, detailed market evaluation, and rollout planning. Key factors for export readiness include domestic market performance, production capacity, financial strength, and international experience. The document recommends rating these factors and prioritizing the three lowest scores to focus on. It also provides examples of how to research potential new markets and build financial models to estimate export costs, margins, and minimum order volumes.
5. Export Readiness Factors
Howdo you rate on the following factors?
1. Domestic market performance – current performance needs to be good
2. International trade experience – exchange rates, tax, contracts, logistics
3. International travel experience – cultural sensitivity, technology, food, accommodation
4. Process documentation/quality accreditation – what do you need?
5. Spare management capacity – who will do this?
6. Production capacity – can we scale up?
7. Marketing and promotional materials – are you ready to go?
8. Financial strength – can you fund this? Working capital will increase
9. Level of drive/passion for export – need to be here for the long haul
10. Business Model - is there sufficient margin? Inter-country pricing? Distribution?
Rate yourself in each area using rating scale: -5 = poor 0 = average +5 = excellent
6. Export Readiness Diagnostic
Howdo you rate on the following factors?
Rating scale: -5 = poor 0 = average +5 = excellent
1. Domestic market performance
2. International trade experience
3. International travel experience
4. Level of process documentation/quality accreditation
5. Spare management capacity
6. Production capacity
7. Marketing and promotional materials
8. Financial strength
9. Level of drive/passion for export
10. Business Model
Total Score
-50 to -5 - More preparation
required
-4 to +20 – Export Ready but plan
well
+21 to +50 – Ideally placed
ACTIONS
What are the 3 lowest scores
that you need to work on?
18. Your Research
Ask your own questions, guided by
your Assessment Matrix:
1. Local pricing
2. Market Access
3. Tariffs and trade barriers
4. Stats on local trade volumes, etc.
5. Top 5 Distribution chains
6. Business tips for foreigners
19. Where do you get
information on markets?
• AusTrade – www.austrade.gov.au –
readiness, advice, information,
partners, distribution, in market
research
• CIA World Fact Book -
https://www.cia.gov/library/publicati
ons/the-world-factbook/
• USDA Exporter Guides – search on
Google
• Country websites – government, trade
associations
• Google is your friend in this space
22. Build a simple P&L model
Estimate:
1. Volume x Sale Price
2. Revenue
3. COGS – cost to make and deliver
4. Additional Export Costs – shipping, tariffs, testing,
marketing support
5. Interest on funds
6. Export Margin
Use this analysis to determine minimum order volumes, credit
policy, etc.
24. Phased Market Entry Strategy
Use your Feasibility Analysis and experience to determine your Market
Entry Strategy and Sales Approach for different order quantities
• Phase 1: X to Y units – Adhoc orders, no marketing support, no terms
• Phase 2: Y to Z units – Adhoc orders, limited marketing support,
limited terms
• Phase 3: Z to A units - Programmed orders, marketing support,
standard trade terms
25. Detailed Feasibility
What to include?
• Your Export Strategy
• Distributor/Partner Assessment and Due Diligence
• Market Assessment, Competitor Analysis, Plans and
Budget
• Detailed Business Environmental Scan
• Logistics Plan – quarantine, tariffs, shipping,
certification, in-country distribution
• Values – bribery and corruption, cultural impacts
• Risk Analysis – what are the risks? How will you
mitigate them?
• Detailed Financial Analysis – P&L, cashflow, Balance
Sheet, production impacts – evaluate different
scenarios
35. “Export or Not to
Export” Program
With enough demand, we are happy to build a
comprehensive online programthat:
1. Steps you through each phase of the Process
2. Provides you with customizable templates for
each phase
3. Links you to resources on a variety of topics and
areas
4. Supports you with coaching, as required
Indicative pricing would be between $300 and $1500
depending on the level of support you choose.
We will send you a survey asking for your input into
howwe build the program