FLOWCHART ON HOW TO APPROACH EXPORTING THE EUROPEAN UNION

 

 

ASSESSING YOUR EXPORT CAPABILITIES

Exporting might be quite regarding in terms of market share and sales; however, it does need financial and technical resources. Before exporting, any company should review its current capabilities, specifically the following areas:

• Capacity: The first thing a company should assess is whether it has the capacity to export. Exporting means an increase in market share and accordingly an increase in production. If the company has not yet fulfilled the demand in its local market, and if it does not have the capacity for extra production, it is recommendable to postpone exporting potentials or to increase investment in order to increase capacity if the exporting opportunity is quite promising.
• Financial Capability: Exporting will require financial resources from any company. It could be through direct administrative expenses, such as registrations, studies, licensing, certifications, establishing contacts, trade fair participation , etc.; or through the indirect costs that you will need to produce your product, such as bank commission expenses, the 30 to 90 day payment financing, alterations or upgrading in the product or the production line specifications, etc.

Market Studies: Before introducing your products, a thorough market study is advised to help you identify the most attractive markets, niche markets available, how to approach the market, what requirements need to be fulfilled, etc. We recommend that you conduct the market study through a professional firm since they are more experienced; however, if financing such a study is a problem, and if you do have the capabilities and resources, then conduct the study on your own. After the potential markets have been studied, you should classify the markets and decide on which ones to tackle first.

ESTABLISHING A BUSINESS RELATIONSHIP

Preparatory Phase

Preparation for making a professional approach to potential business partners:

• Compiling sales documents for export range
• If possible, obtaining certificates of quality
• Obtaining information on potential purchasers
• Evaluation and selection of business partners
• Determining the method of approach (letter, phone, email, in person) for the business partner in question

Contact Phase

Initial approach to the potential business partner, obtaining detailed information needed for drawing up an offer

• Initial approach
• Determining customers need
• Discussion of what offer should contain and specification of samples

Offer Phase

Submission of a concrete offer of supply and professional presentation of your company:

• Swift forwarding of offer as agreed, including samples and certificates of quality
• Demonstrating firm and continued interest in establishing a business relationship
• Contacting partner again until first contract is concluded

Contract Phase

Concluding the contract on the basis of an internationally valid standard and making use of INCOTERMS:

• Possibly offering favourable terms of payment when first doing business

Performance Phase

• Supplying the goods of the contractually stipulated quality on time
• According priority within your organisation to the professional performance of the first contract
• Guaranteeing at an early point in time that the goods will be provided
• In the event of your being unable to meet the terms of the contract (deadline, quality problems), informing your business partner in good time
• If appropriate providing substitute goods
• Being seen to endeavour to find solutions to problems in a spirit of partnership

Follow-Up Phase

• Stabilising and consolidating the new business relationship
• Determining problems and their causes, and seeking your own solutions
• Discussing problems openly with agents, explaining possible solutions
• Actively seeking improvement in the manufacturing process, treatment method etc.
• Seeking the advice of agents to ensure that your products become or remain marketable
  Seeking additional distribution channels if your supply capacity can be enlarged