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What you need to know about exporting

If you want to make your brand a global household name, you’ll need to export. But first you’ll need to be clear what exporting is, and be sure you’re ready for it.

Exporting means making your goods or services in one country and selling them in another. Most people would realise that making shoes in New Zealand and selling them overseas is exporting. But you can export in less obvious ways too. Maybe you’re already exporting.

What exporting is and isn’t

If you have a client overseas, you’re an exporter, even if you don’t sell physical things.

Exporting includes:

  • Teaching English on Zoom to someone in South America.
  • Designing a house for someone in the United States.
  • Translating a document and emailing your translation to someone in Asia.
  • Offering virtual tours of New Zealand’s beautiful countryside to people anywhere in the world.
  • Taking a few bottles of wine in your luggage to deliver to a client in Europe

Exporting for business involves goods or services going overseas, a client, and money changing hands. Just because something goes overseas doesn’t make it an export. If you send chocolate fish to your homesick Kiwi friend in London, that’s not exporting. If you take samples of industrial pipe to a trade show, that’s not exporting.

Advantages and challenges of exporting

Exporting can grow your business and make it more competitive. Benefits include:

  • More sales to new customers and markets overseas.
  • Lower cost per unit as you increase production (economies of scale).
  • Spreading your risks. When things aren’t going so well at home, they might be better in another country.
  • Learning about new ideas, technology and ways of working. That might make you more competitive, both at home and overseas.

But exporting brings challenges too, such as:

  • Paying new costs, eg for customs, transport and compliance.
  •  Dealing with complex regulations and compliance requirements.
  • Managing legal risks that arise when you operate in another country.
  • Managing political risk, especially if your market is politically unstable.
  • Protecting yourself if there’s a war, or restrictions on foreign exchange

Getting expert advice and planning well can help manage challenges and risks, eg having good export and risk management plans.

Check if you’re ready to export

Successful exporting takes resources and commitment. You’ll need:

  • a good business set-up, with tried and tested business practices
  •  to deliver goods or services as efficiently as possible
  •  a good grasp of your local market and knowledge of the marketing strategies that work best

Improving operational efficiency and innovation - external link

Marketing strategy overview - external link

Check if you’re ready to export by adding to your business plan. A plan will help you identify where you are, where you’re going and how you’ll get there.

How to write a business plan - external link

Create a good export plan - external link

Self-assessment: Getting ready to export

Exporting is exciting but challenging. It takes time, money, and commitment – maybe more than you’re ready for. Use this assessment to check if doing business overseas is for you. We’ll tell you whether:

  • you need more preparation, eg reading, research and advice from experts
  •  you’re ready to contact New Zealand Trade and Enterprise for your next exporting steps.


Source: www.business.govt.nz