Export Readiness in the New Global Realities of Trade
Back in the “good old days” being Export Ready was just having a good product, a few leads from a trade show and dispatching your sales representatives. The focus was on selling goods to the USA, and exporting services were almost unheard of.
Those days are long past, and we now live in what the EDC has termed “The New Global Realities” of trade, where over 50% of all exports are services, manufactured goods exports to USA have declined by over 30% and non-tariff barriers and good old fashioned populist protectionism have become the norm.
The result is that export success now relies more on your ability to develop effective and innovative market entry strategies, than it does on the product you are selling.
Proven Methods – Achievable Results
The exporters who adapted to the new realities by developing innovative market entry and operating methods, are now responsible for well over 50% of Canada’s value added (non energy) exports, continue to grow strongly, and many have become world leaders in their sectors.
Unfortunately, the lessons learned by these pioneers have not been transferred to most SME who continue to rely on the “old realities” of rapidly shrinking traditional markets, trade missions, and trade shows.
The SME utilizing the methods proven by literally thousands of successful exporters are often difficult to spot: they just quietly go about getting the job done, rarely attend trade missions, and almost never use government trade development services or incentives.
First Time Exporters: “Get it Done” Examples
First time SME exporters (selected examples) include:
- 12 months from the initial market analysis to successful expansion into 4 new countries, including negotiation of a multi-million dollar financing.
- 10 months from concept to obtaining exclusive LOI for a major brand in a market of over 350M people, including negotiation of up to $8M in supply chain financing.
- 180 days: new market identified, operations established, ROI and all milestones achieved.
- 8 months: established a new processing facility including all agreements, permits, design / build / staffing etc, and achieved full operations.
- Market entry launch to positive cash flow for less than the cost of attending a trade mission.
- 12 weeks: start-up to full operation of new, low cost Foreign Affiliate.
- Entrepreneurial Int’l start-up: $35k investment grew to over $2M annual sales within 18 months, and achieved over 4 inventory turns / month at very attractive margins.
Put simply: done right, exporting is strategic, fast, affordable, and effective.
Strategic Export Readiness – Our Approach
At XPM Global, we created a body of knowledge by first extracting the lessons learned from successful goods and services exporters in selected sectors and markets, and then combined these learnings with the practical experience gained on over 100 international projects.
We asses your organization in context with the body of knowledge, and prepare an easy to implement knowledge transfer package that is custom tailored to match your firm’s capacity and needs.
We then work to develop an effective and appropriate market entry and operations plan that is benchmarked against your peers in equivalent markets. This approach has proven effective for all types of SME offering services and goods, regardless of size, sector or target country.
Developing new export markets should not be complicated, expensive or particularly challenging.
If you are struggling to enter new markets and achieve international success, you are are most likely using an outdated approach to exporting.
Contact us to find out how your firm can affordably obtain facilitated entry into almost any market.