Putting together an export budget can help you to understand all the costs associated with your export business.
How this budget is structured depends on the countries or markets that you are targeting, and the products or services that you are exporting.
Some of the costs that you’re likely to incur when looking to start exporting are:
- Market entry and marketing costs, which could include visits to target markets, providing samples to potential customers and distributors, and engaging market entry consultants and legal or business advisory services.
You may even need to hire a dedicated export manager if you or your other business owners don’t have the time to fulfil this role.
- Upfront productions costs, which could include buying raw materials or components, buying or leasing equipment to increase production, or hiring additional labour and delivery costs.
With most overseas buyers requiring you, as their supplier, to provide a bond (or guarantee) as part of each export contract, you will need to also include bank fees for contract bonds.
Having a robust export budget in place allows you to assess how viable your export plans are and whether you’re able to launch your export plans while maintaining your existing business.
Your export budget can also help you gain support for your expansion plans from your employees, directors, business advisers and bank, and enables you to monitor costs closely.