Why is the dream of exports by all employers in the world
Start exporting should not be a dream for an entrepreneur. More than 4,400 small businesses have already made placements abroad and, between January and May this year, they sell for U.S. $ 533 million.
Prompter director, Juan Carlos Mathews, produced a guide of 13 recommendations for new exporters. Stresses the importance of investing in small scale in order to identify and solve ‘bottleneck’ of the business.
1. Identify a business idea
Example: export poles Pima cotton market in Ecuador. Consult information sources Prompter, Peru’s trade offices abroad, business associations, journals, export statistics (Sunhat), among others.
2. Market evaluation
For example, you need to analyze the Ecuadorian market. Review consumption in that place, how it behaves production, imports and exports and trends. Conditions of access (tariffs, quality standards, etc.)…
3. Evaluation of supply potential
Thithisquires reviewing the supply of raw materials and other inputs, equipment for operation of processing plants and compare costs versus prices to determine the estimated profitability of the business.
4. Identification of potential buyers
as in step 1, you can consult specialized offices and business associations.
5. Contact and business proposal
it makes the presentation of the company and the required supply. We must also determine the product (brand name, English name, and technical name), the packaging, technical and commercial specifications and the means and terms of payment.
6. Negotiation
you start to negotiate with the companies responding to the proposal, we discuss all the terms of the offer. It is critical to note that everything has a cost (a certificate or a specific payment period) that a party has to bear.
7. Evaluation of candidates (short list)
Assuming that it is possible to conclude a deal with one, two or three buyers, we suggest a small investment in a risk rating (equivalent to Infector) to ensure the seriousness of candidates.
8. Form of agreement
if agreement is reached with one candidate qualified for the certification of risks, it is advisable to formalize the agreement in a contract for international sales.
9. Financial advantage
Depending on the amount, the options are: equity, buyer financing (very unusual at the beginning) or pre and post-shipment lines of banking.
10. Production schedule
since funding is usually costly in Peru; you must synchronize with the capital requirements of production schedule so as not to incur periods with unused capital
11. Export procedures and shipping
it is necessary to reserve space required in the means of transport, considering the freight to the port, hire a customs broker and prepare shipping documents (commercial invoice, parking list and certificate of origin and quality).
12. Compare the actual versus budgeted
it must analyze the reasons for the differences between planned and actually achieved: higher losses and other unanticipated cost overruns. This identifies the ‘bottlenecks’ critical in the operation.
13. Business Projection
According to the results of pilot operations, the business can be projected with less chance of error. If the ‘bottleneck’ is supply of raw materials or processing, a good choice to collaborate with a producer or a processing plant, like rent or buy land and a plant.
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