Exporting food products can be a great way to expand your business. However, it is important to take the time to research the export market and develop a solid business plan before getting started. With the right preparation, you can make your export business a success!
1. Research the export market
Before venturing into a new market, it is important to do your research. This means more than simply looking up the economic growth rate of a potential new market; you must also identify the markets with a little desk research.
Find the consumption / import figures of products similar to your own and the economic growth rate of a potential new market.
Look up the demographics, cultural and religious practices and your potential competition. All of this information will help you to better understand the market you are considering entering and whether or not it is likely to be successful. Without comprehensive research, you are essentially taking a blind leap into the unknown - and that is never a good idea when trying to establish a business.
So take the time to do your homework, and you'll be much more likely to find success in your new venture.
2. Develop a solid business plan
After you have done your market research and decided that export is the right move for your business, it's time to develop a solid business plan. This document should outline your export goals, strategies, target markets and proposed budget.
Having a clear and well-thought-out business plan will make it much easier to secure funding from investors or banks, as well as giving you a roadmap to follow as you grow your export business.
Once you have developed your export business plan, be sure to review it regularly and update it as needed to ensure that it remains relevant and accurate.
3. Choose a route to the market
There are a number of different ways that you can export your products, and the right approach for your business will depend on a number of factors.
The most common export route is to work with an export agent or distributor in your target market. This approach can be advantageous as it can give you access to an existing network of customers and partners, but it can also be risky as you will be relying on someone else to grow your export business.
Another option is to set up your own sales subsidiary in your target market. This direct exporting approach gives you more control over your export business, but it requires a greater investment of time and resources.
Before deciding on an export route, be sure to carefully consider all of the options and choose the approach that is best suited to your export business goals.
The most important thing to remember when choosing a route to market is to always consider the needs of your customers. What type of export partner are they looking for? What export route would make it easiest for them to do business with you? Answering these questions will help you to choose the export route that is most likely to be successful.
Also, keep in mind that you can always change your export route if it isn't working out as planned. The key is to be flexible and adaptable so that you can find the approach that works best for your export business.
You can do one of four options:
1. Sell directly
2. Use a distributor
3. Use a sales agent
4. Create a joint venture
Remember that no matter which option you choose, it's important to be clear about who is responsible for delivery and payment. You must also protect any intellectual property rights involved in this process!
Assuming you have chosen option two, working with a distributor
The next step is to find a reputable and reliable export distributor.
There are a few things to consider when choosing a distributor, such as:
Their market knowledge
Their export experience
Their financial stability
Whether they have the necessary export licenses and certificates
It is also important to make sure that you are on the same page in terms of your export goals and objectives. Once you have found a potential distributor that meets all of these criteria, be sure to sign a contract that outlines both your rights and responsibilities. This will help to avoid any misunderstandings or disagreements down the road.
4. Research the import regulations of potential countries
One of the most important aspects of exporting food products is understanding the import regulations of your target market. Every country has its own set of rules and regulations that must be followed in order to export food products, and it is essential that you are familiar with these requirements before you begin the export process.
The first step is to identify the specific food product(s) that you want to export. Once you have done this, you can research the import regulations for these products in your target market.
There are a number of resources that can help you with this task, such as:
The website of your target country's embassy or consulate
The website of your target country's food safety authority
The website of the Codex Alimentarius Commission
Another important aspect of exporting food products is ensuring that your products meet all of the relevant export standards.
These export standards will vary depending on the country that you are exporting to, but they typically include requirements for things like:
Food safety
Quality control
Labeling and packaging
After you have gathered all of the necessary information, be sure to create a export plan that outlines how you will comply with all of the relevant regulations. This export plan will be an essential tool in helping you to successfully export your food products.
If you are still not sure about the export regulations for your target market, you can always consult with a professional trade advisor or lawyer. They will be able to provide you with the specific information that you need in order to export your food products legally and safely.
5. Find the opportunities
There are a number of different ways to find export opportunities. The most common method is to search for potential buyers online, but you can also find export opportunities through trade magazines, trade fairs, word-of-mouth and B2B online marketplace such as Food Farm Hub.
Once you have found a potential export opportunity, the next step is to contact the buyer and express your interest in doing business with them. Be sure to include information about your product(s), as well as your company's export experience and capabilities.
If the buyer is interested in your products, they will usually request a price quotation or sample of your product. After you have submitted a price quotation or sample of your product, it is important to follow up with the buyer on a regular basis.
6.Start marketing your products
After you have found a buyer for your product, the next step is to start marketing your product to them.
There are a number of different marketing channels that you can use to reach your target market, such as:
Traditional advertising (e.g. TV, radio, print)
Online advertising (e.g. Google AdWords, banner ads)
Social media marketing (e.g. Facebook, Twitter)
Content marketing (e.g. blog posts, articles)
It is important to remember that export markets can be very different from domestic markets, so it is essential that you tailor your marketing messages and materials specifically for your export audience.
7.Understand the admin involved
There is a lot of paperwork and red tape involved in export-import transactions, so it is important that you are familiar with the administrative procedures that are required.
The most common export documents include:
Commercial invoice
Packing list
Certificate of origin
Bill of lading
Letter of credit
Make sure that you have all of the necessary export documentation in order before you begin the shipping process. Failure to do so can result in delays, penalties or even rejection of your shipment.
8. Logistics of shipping
The logistics of shipping export food products can be complex, so it is important to have a clear understanding of the process before you begin.
There are a few things that you need to keep in mind, such as:
You will need to find a reliable and reputable freight forwarder who can help you with the export process.
You will need to choose the right mode of transportation for your shipment (e.g. air, sea, land).
You will need to make sure that your goods are properly packaged and labelled.
You will need to get insurance for your shipment.
Make sure that you understand all of the steps involved in the export process before you begin, so that you can avoid any potential problems.
9. Get paid and get insured
One of the most important aspects of exporting food products is getting paid for your shipment.
There are a few different ways that you can get paid for your export shipment, such as:
Letter of credit
Documentary collections
Open account transactions
It is important to choose the right method of payment for your export shipment, so that you can minimize the risk of non-payment. You should also make sure that you have export insurance in place, in case something goes wrong with your shipment.
Export insurance will protect you against risks such as:
Physical damage to goods
Loss or damage due to delays
Non-payment by the buyer
10. Legal considerations
There are a few legal considerations that you need to be aware of when exporting food products, such as:
Intellectual property rights (e.g. trademarks, copyrights)
export licenses and permits
customs regulations
It is important to make sure that you are familiar with the legal requirements of exporting food products before you begin the export process. Failure to comply with these requirements can result in delays, fines, or even seizure of your goods.
These are just a few things that you need to keep in mind if you want to export food products successfully. Do your research, understand the export process, and be aware of the risks involved, and you will be well on your way to export success.