THE BLOG
01/12/2015 03:14 pm ET Updated Mar 14, 2015

Does My Company Have What It Needs to Be Expanded Internationally?

In the current economic crisis, small and medium enterprises (SME's) see the export market as a way to improve their business, without having first a thoughtful and meditated plan. Nevertheless, for the export to be successful we should obtain a realistic response to the questions that will help us to assess the real situation of the company and whether if the company has a real export potential and capacity. These questions are:

1. Do I really have the needed funding?

All the actions that you may have to conduct before the export have a high economic cost. In the export plan, you must establish if you really account with the necessary funding, including a financial cushion for unforeseen events.

2. Is my service or product competitive in quality and price?

You should be really sure about whether your service or product has a competitive advantage in quality and price in relation to other companies in the export market. In the event that your product or service reaches a higher level than the competition and differentiates with prices at the best possible cost to be able to compete with the international offer, if so, you can continue with the approach of the export potential of your company.

3. Are the personnel of your business qualified in foreign trade?

Do you have qualified staff or a department in foreign trade and do you have managers prepared for the internationalization of the company? If your answer is negative, it is recommended to train your staff on foreign trade, keeping in mind that it´s also important for your staff to have a clear expansion vision and good language skills.

4. Is my company prepared to meet an increase in demand?

Expanding to a new market means there is an expectation of an increase in demand that must be faced by the company. Analyze which is the best production starting point that will allow you to meet the sales in this new market, your company must be prepared to deal with an increase in demand.

Therefore, your company will have a clear export potential if you have prices at the best cost to be able to compete with the international offer, if your products or services have a superior quality, being able to meet all the demanded quantities in anticipation of stock existence, counting on with qualified staff in foreign trade with a clear expansion vision.