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International SME Export Toolkit Checklist One
[ The International SME
Export Toolkit - Checklist 1
CHECKLIST 1
Internal issues for international expansion
Successful exporting companies have been found to have leaders with a strong vision and commitment and to pay great attention to planning. An internal audit of management commitment, resources, product potential, capability and finance should be carried out to ascertain to what extent your company is ‘ready, willing and able’ before moving on to detailed planning and the external audit.
Management commitment and motivation
Has your business taken a strategic decision at the highest level to secure further growth through expansion in foreign markets?
Why? For example, was the decision marketing or sales led? Are you being pressured to go overseas in order to better service existing customers, or to keep up with the competition?
What changes have there been in the leadership/management of your company that may have affected your decisions?
Has the search for additional finance been a determining factor in your decision to move into (a) new market(s)?
How does the company culture respect & support this decision?
Management resources
What will be the impact of your decision on the company?
What management structure is in place to manage growth through export?
In particular, which member of your current management would act as champion (or key promoter), driving the export venture forward?
What resources (e.g.sales and marketing, administrative support) could you allocate to the development of foreign business?
What experience & skills (e.g.management skills and languages) do your personnel have to cope with the new venture?
How can any missing skills be acquired?
Product potential
What existing infomation leads you to believe that your product has export potential?
What information leads you to believe that your product has (or has not) export potential in a specific foreign market (e.g. competitor information)?
Capability and capacity
What spare capacity do you have?
What additional production & storage requirement might there be and with what implications?
How will export selling impact on your present sales & marketing operation?
What changes may be needed to your administrative systems?
How will your suppliers & subcontractors cope with an increase in demand?
Is your quality control system adequate for an increase in production?
To what extent do you view exporting as a learning process encouraging continuous improvement, with respect to:
– quality (more demanding)
– production (flexibility)
– product development (new ideas)
– improved cost management
– enhanced feedback?
Finance -risk and reward
What financial reserves do you have for sustaining the development of a foreign market or adapting the product (if applicable)?
What options are open to you in securing additional finance for your venture?
How might you bridge the gap between your existing financial reserves & the demands upon your organisation, in the event of a prolonged period developing an export market?
How long would you be prepared to wait for an export market to become profitable, in terms of months or years?
What margin will be acceptable to you & what levels of sales you would need to achieve?
Are you willing to accept lower margins or to cross- subsidise products in order to penetrate new markets?
What costs could be incurred in opening up a new market?
Action planning and reviewing
WHAT key actions have you planned? The Action Plan should be as concrete as possible
WHEN should each action take place? Timescale should be specified
WHO is responsible for each action? A name should be against each action
HOW will the Action Plan be reviewed? The process should be specified by monthly meeting
WHEN are the key dates for the review process? The milestones should be drawn up in advance
WHO is responsible for carrying out reviews? One person should take overall responsibility for ensuring that the Action Plan is completed.