Why Is an Export Plan So Important?
When an Indonesian firm is considering exporting to Canada, it will need to make an Export Plan. An Export Plan is basically a Business Plan with a focus on selling in the Canadian market. Export Plans are developed in order to:
- Define the target market: the risks, demographics, demand, logistics, legal issues, and commercial issues such as currency;
- Define a purpose for the business activities;
- Identify the company’s strengths, weaknesses, opportunities, and threats;
- Identify the financial and other resource demands of exporting;
- Substantiate qualification for obtaining credit or export financing. For many companies, if there is no plan, it is next to impossible to get any export financing.
Before developing an Export Plan, Indonesian exporters will need to make sure their business plan is up-to-date. For firms that do not have a business plan yet, this is definitely the time to create one. This can help to save time and resources by strategically planning and prioritizing the pursuit of the Canadian export market. An Export Plan is a long-term investment of an exporter’s time, effort, and resources. It will need regular reviews and updates even after an Indonesian firm has begun exporting.
The Elements of an Export Plan
An Export Plan should contain the following sections:
- Executive summary
- Company overview
- Products and services
- Export objectives and goals
- Canadian market analysis
- Market entry strategies
- Regulatory and logistical issues
- Risk factors
- Implementation plan
- Financial plan