Developing an export plan is a crucial step for exporters, both small and large enterprises, to maintain a high growth rate. Going by the significant presence of SMEs in the Indian export sector, it has become imperative for small units to chalk out a well-devised export plan before they commence trading. Preparing a detailed export strategy on the basis of good market research helps small businesses to overcome challenges and mitigate risks involved in entering new markets. Why is it necessary? Although a large number of small enterprises in India today have the required resources to expand their export activities, many of them lack a concrete export plan that can help them to reach out to newer markets. â€Owing to lack of proper knowledge about foreign markets and absence of an export strategy, exporters in the SME sector are seen to suffer greatly. Therefore, there is a need for small businesses to draft an export plan, which will serve as a guideline to spur their growth,†said Subodh Kumar Jain, vice president (international marketing) of Manas Global Exports, a small-sized handicraft export house in New Delhi. The main objective of drafting an export plan is to gather useful market information, identify the key areas of problems, set major goals and plan an agenda. Chalking out an export plan entails preparing a list of all potential markets, undertaking market research and collecting information about the global trading conditions and consumer buying behavior in key export markets. â€While formulating an export plan, small firms need to set their budget targets, assess their financial power, skill sets, risk-taking ability and evaluate their product popularity and human resources and then commence operations,†said Manish Bang, director of Expanza Access Ltd, a Mumbai-based company offering holistic solutions to SMEs. With a wellâ€outlined export plan in place, SME exporters can become more clear and specific about their goals and get prepared to meet the challenges that come in their way to achieve global success.
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