Frequently Asked Questions
(FAQs)
- What does it mean to be "Export Ready"?
- How do I know if my firm is "Export
Ready?"
- Why do I have to be "Export Ready" to
start exporting?
- Where can I get help in becoming "Export
Ready"?
- Should I consider exporting if I am just
starting out my business?
1. What does it mean to be "Export
Ready"?
"Export Ready" is a term commonly used by
export assistance organizations. It signifies that a firm has the character, capacity (and
some say "courage") to enter into this particular business. It qualifies a
company for export assistance on a somewhat more consistent, challenging and sophisticated
level than a company that is still in the process of learning how to export, and that
lacks the financial or organizational commitment required to enter into foreign markets.
Export readiness is often used to describe a company who is willing to take the
information, resources and assistance it is provided and use it in a positive and
productive manner. The ability to learn and manage the "unknowns," and complete
each task required to be successful, is a common profile of an "Export Ready"
firm.
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2. How do I know if my firm is "Export
Ready?"
Having overcome the reluctance to export would be a
good indication for starters. This means that you would have worked diligently to prepare
your company to begin actively and efficiently pursuing your top market-specific export
opportunities. In addition to the previously mentioned topics for export readiness, you
should also be well versed in the following areas (if applicable), before you can
officially consider yourself "Export Ready."
- Access to marketing information and monitoring it on
an ongoing basis
- Knowledge of the end user and end use of your
product in foreign markets
- Information on the cultural imperatives of your
target markets
- The ability to target and select the most
appropriate channel(s) of distribution
- Established relationships with appropriate export
assistance providers (i.e. local state department of agriculture or trade office, Food Export Association of the Midwest USA,
etc.)
- Established relationships with appropriate service
providers (i.e. freight forwarders, packing companies, banks, insurance companies, etc.)
- Updated calendar on events (for trade shows,
conferences, seminars etc.)
- Production capacity and appropriate staffing to meet
the increased demands on your company
- Reliable sources of supply with adequate credit if
you are not a producer
- Basic familiarity with options for financing, and
payment mechanisms for trade
- Ability to adapt to market regulations or
preferences
- Understanding of tariffs, taxes and non-tariff
barriers that may burden the buyer
- Having identified the harmonized tariff schedule
numbers for your product line
- An understanding of the various terms of sale, of
"pro forma invoices," and other quoting processes
- Knowledge of the required documentation for trade,
at least in your target market
- A grasp of the differences between domestic and
international shipping methods
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3. Why do I have to be "Export Ready" to
start exporting?
There is nothing that says you have to be, but
consider this. You have heard that old saying, "What you don’t know cannot hurt
you." Well, in exporting this is certainly not the case. What you don’t know can
hurt you, and most likely will if you are not prepared, since exporting truly is a
"business of details." You can of course learn a lot from your own experiences,
but as Mark Twain said, "We learn by mistakes, hopefully the mistakes of
others".
Exporting is an integrated process that requires a
solid understanding of its mechanics, because so many intricate details are involved in
each and every transaction (even if you are selling a product that you have previously
sold to the same buyer in the same market). That is why the word exporting stands
alone. If marketing or sales were most important, than the industry would be known as
export marketing or export selling. If it were shipping or documentation, then the
business would be known by these terms. They all have to work together in unison for the
operation to succeed. Just imagine yourself as an importer for a moment, and ask yourself
what you would want in a foreign supplier. Always keep this question in mind when working
to be an efficient and successful exporter.
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4. Where can I get help in becoming "Export
Ready"?
You certainly have many options available to you.
In addition to the programs and services offered by Food Export Association of the Midwest USA (formerly MIATCO) or your corresponding State
Regional Trade Group (SRTG), you should also contact your local state agricultural
promotion agency to advise them of your interest in exporting and to learn about the
services that they offer to companies. You will also be able to locate
dozens of different agencies from the "Other Export Assistance
Providers" page of our site and from links included in other chapters of
this "Export 101" section. Finally, take advantage of the links listed
in this "Export-Readiness" chapter for additional help getting started
and evaluating your current level of export readiness.
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5. Should I consider exporting if I am just
starting out my business?
If you are just starting out your business for both
domestic and international sales, you more than likely will have your hands full with your
stateside business. It might be prudent not to over extend your resources, especially if
they are somewhat limited, until you have established yourself. Having strong U.S. sales
for your products is always a good indicator of their potential in foreign markets as
well.
If you are starting out a business that is focusing
entirely upon export, obviously there is no need to wait. In fact, starting out as
confidently as possible becomes even more important, so these recommendations have even
greater meaning for you. The biggest concern that export assistance agencies (and your
government) have is that you never start out because of lack of information and support,
or you start exporting and give it up because the resources available to you were never
fully realized.
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