A number of small business owners fail to plan their export activities in advance. They often tend to enter or invest in a foreign market without screening its potentials or risk factors.

You need to develop an export strategy so as to identify those markets that provide good opportunities. The strategy needs to based on proper assessment and in depth information. Whether you are exporting heat exchange products or handicrafts, this article will help you to frame a sound export strategy.

How to determine the potential of your products in the foreign market?
Before exporting your products you must determine its potentials in those overseas markets. Though there are various ways to calculate it, you need to first consider its success in domestic market. Those products that have failed to do good in your local market, will hardly be successful in overseas market. However, this is only applicable in those markets where the needs and other conditions are similar. For example, if you are a Arizona, Phoenix based cosmetic and personal care products manufacturing company and your sunscreen lotions are a big hit in the local market, you can conveniently export them to the middle east and Asian markets where the climate too is bright and sunny.

You must also consider the features of the products before exporting them. Products with unique features are hard to duplicate and can be more successful overseas markets, in comparison to those which can be duplicated easily. Moreover, such products will have lesser competition and the demand of them is likely to be high.

It has been observed a number of times that products that becomes outdated or are losing market due to the launch of more technically advanced products in the developed and sophisticated markets, can even be successful in lesser sophisticated markets. For example, those electronic gazettes that has been replaced by more sophisticated products can still be exported to third world countries where such technically advanced products are not required or people do not have the ability to afford such expensive products. However, that products must bear a good market name and reputation as well as must have been a good hit at least once in its local market.

How to determine whether or not your company is ready to venture in foreign markets?
For evaluating your company's readiness to export products you need to understand certain basic facts. First and foremost, you need consider the long as well as the short term goals of your company. Point out the how exporting your products will help you to achieve those goals. Also consider whether or not such ventures create any demand on your company in terms of management, additional resources and production capacity. Also determine how you will be meeting those demands both in terms of finance and human resource. Now calculate the cost involved in the process. This new venture must ensure a higher return than the cost involved. In case you are not sure whether not not it is worth the costs, it is better to hold the venture for some time or to use the resources in developing new domestic markets.

(Source: Articlesbase)

* Emily Ralph is an independent small business consultant
* The views expressed by the author in this feature are entirely his/her own and do not necessarily reflect the views of SME Times.