Introduction

Determining your firm’s export readiness is your primary step in establishing an export component to your business. Many of the concepts to be considered are similar to the domestic side of the business. However, since there is an "international variable" to every aspect of exporting, these issues must be addressed from a different, informed, and very realistic perspective. Issues that must be considered in order to evaluate your export readiness include the following:

1. Your motivations. Are you interested in exporting from either a proactive or reactive basis? Some firms are more interested in short-term, rather than long-term goals, and thus don’t spend adequate time researching potential markets, preparing an export strategy, and building long-term relationships with overseas customers.
   
   
2. Your information, experience and perception of exporting. If you are under the impression that exporting is easy to learn, will be immediately profitable, and requires little experience or technical skills, then you are probably not ready.
   
   
3. Your level of managerial commitment. Like the domestic side of business, without the complete support of management, as well as staff, the real potential of international markets may never be realized. This is a very serious decision that will affect the way your company is organized and operates. Thus, everyone involved must be fully supportive of exporting for your company to succeed over the long term.
   
   
4. Your access to resources, assistance, intermediaries and service providers. There are literally hundreds of combinations of information, export assistance providers, and professional firms who are able to be of assistance. One of the most important elements in the export process is to take the time to evaluate exactly which organization can help you with your specific needs. These combinations are based on the nature of your product, its end use or end user, your physical location, the markets you may target, your financial considerations, and many other concerns and issues.
   
   
5. Your initial strategy. You must ask yourself, "What is it that I want to accomplish?" at the outset. Are you trying to expand your business, or keep it from declining? What are your sales goals in one year? How about five? Even if your first goal is to determine whether or not you are export ready is a productive first step and should help you determine whether you should continue. Learning that you are not ready, or even deciding against proceeding, is still a very valuable accomplishment. It will save you time, effort, energy and finances in the long run.
   
   
6. Your continuing strategies. After your initial export customers are located, and you are shipping into your first target markets, what then? Are you willing to continue the process and locate more markets? Are you willing to enhance your organizational flexibility to make required product adaptations? Are you now able to hire export staff from the outside, since no one in your firm has the necessary experience? Might you be willing to actually "hire" someone overseas to represent you, or open your own sales office? Again, you will need to evaluate your firm’s long-term goals in order to determine whether exporting will be an integral part of your company, or just a convenient "side job" (i.e. when you have the time or inclination, when business just "falls in your lap," etc.).
   

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.

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 USA, etc.)

• Established relationships with appropriate service providers (i.e. freight forwarders, packing companies, banks, insurance companies, etc.)

• Updated calendar of 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
  

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.

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 USA 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.

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.

Export Readiness Links

• FAS Exporter Assistance Page - links to FAS site for Buyer Alerts, Trade leads, Foreign Buyers List and U.S. Suppliers
• FAS Export Readiness Questionnaire
• FAS Recipe for Export Success
• Export Readiness Assessment Q & A
• Office of Int’l Trade/SBA
• Breaking into the Trade Game
• A Basic Guide to Exporting
• Vermont World Trade Office
• Maine International Trade Center
• Evaluate Your Export Readiness