The first stage in creating an export strategy: Reviewing the current position of the domestic enterprise.

• Step one: Analysis of readiness for foreign trade.

The first step in creating an export plan involves analysing the company’s position in the internal market and its performance in the domestic market. This establishes whether it provides a stable level of income for the company and securing it in the event of failure due to exporting the company’s products or services. After clarifying the company’s situation in the domestic market, the entrepreneur should be able to answer the following questions:

1. Why do we want to export our company’s goods or services?
2. Why do we want to export our company’s goods or services in this particular market?
3. Which products and services can our company export?
4. What do we want to achieve within our company by getting involved in exporting?
5. What goals do we want to set for our export activities?
6. Do we understand the significant financial and legal consequences exporting will have on our company?

These questions are intended to help build awareness of the company in terms of its current position, the export opportunities and the purpose of exports that will allow it to successfully enter the foreign market. These will also focus the company’s attention on the added responsibility of getting involved in exporting. In addition to the benefits of exporting, the entrepreneur must also be aware of and prepared for the consequences for the company as a result of exporting.

• Step two: Financial and human resources analysis of the enterprise.

During this step, the company is required to review its budget to determine the potential for financing the company’s export activities. At the beginning of the export budget planning process, the entrepreneur should take into account the fact that the return on exports is long-term and requires continuous financing, therefore the entrepreneur must establish if he/she is willing to take the risk. It is worth setting a time frame here to achieve export profitability. In creating an export budget, the following costs need to be identified: marketing and advertising costs, costs relating to the recruitment and retention of employees involved in exporting, the costs of distribution and logistical support for exports and the costs involved in securing product rights and intellectual property.

It is important to note that the company should investigate other export financing options such as support funds available through national public institutions, regional funds as well as European and national projects aimed at increasing the level of internationalisation of enterprises or specific economic areas within the domestic market.

When undertaking an analysis of personnel within an enterprise, one should consider whether current staffing levels are sufficient to undertake export activities, or if additional specialists with exporting knowledge should be employed within the enterprise.  This point will be further developed in section 2.3 below, entitled “How to implement export activity within the company – first steps”.

• Step three: Selecting products / services for export

When identifying what products/services the company wants to export and choosing the appropriate products or services for sale on foreign markets, the entrepreneur should analyse his/her products/services in terms of their key features and benefits with respect to the foreign market and their ability to meet potential customers’ needs. The next step should be to analyse the products / services to identify if they can be adapted to meet the requirements and standards prevailing on the market of choice. The final step involves checking whether the company has sufficient production capacity to deliver these products and services to potential customers. During this analysis the possible seasonal market fluctuations which can affect the product/service and its sales also need to be taken into account.