Export growth strategies for beginners

Phase 1: Preparation & Foundation (The ‘Get Ready’ Stage)

Before you ship your first order, you need a solid domestic foundation and clear readiness.

1. Master Your Product and Pricing (The 4 Ps of Export)

Your product must be ready for international scrutiny.

• Product Adaptation: Does your product meet the quality, labeling, and packaging standards (e.g., metric systems, language) of the target country?

• Competitive Pricing: Export pricing is complex. You must account for FOB (Free On Board) and CIF (Cost, Insurance, and Freight) costs.

2. Secure Mandatory Registrations

No export journey begins without the legal essentials:

• IEC Code: Obtain your Importer-Exporter Code (IEC) from the DGFT. This is non-negotiable.

• RCMC: Register with the appropriate Export Promotion Council (EPC) or Commodity Board (e.g., APEDA, TEXPROCIL) to access scheme benefits.

• Foreign Currency Account: Open a current account authorized for foreign exchange transactions.

3. Build a Global Digital Presence

Your website is your global storefront.

• Ensure your website is professional, mobile-friendly, and clearly showcases your production capacity, quality certifications, and contact information. Consider offering multiple languages if targeting a specific region.

Phase 2: Market Entry (The ‘Where to Go’ Stage)

You can’t sell everywhere at once. Focus is key.

4. Choose Your First Market Wisely (Low-Hanging Fruit)

Beginners should look for markets that pose fewer risks and offer greater ease of entry.

• High Demand, Low Competition: Target countries where demand for your specific product is strong but where local or established international competition is manageable.

• Favorable Trade Agreements: Prioritize countries with which your home country has existing Free Trade Agreements (FTAs). This often means lower or zero import duties, giving you a competitive edge.

• Cultural & Language Closeness: Starting with markets that have familiar business cultures can minimize misunderstandings and complexity.

5. Start with Indirect Exporting (Lower Risk)

To test the waters, consider low-risk models:

• Export Trading Companies (ETCs) / Merchant Exporters: Sell your goods to a domestic company that handles all the logistics and risk of exporting under their own name.

• Consortiums: Partner with a small group of non-competitive businesses to share market research, shipping costs, and exhibiting space at international trade shows.

Phase 3: Securing and Fulfilling Orders (The ‘How to Close’ Stage)

This is where planning meets execution, and risk mitigation is paramount.

6. Focus on Secure Payment Terms

Risk of non-payment is the biggest fear for a beginner. Always prioritize security.

• Letter of Credit (LC): For large or first-time orders, insist on an Irrevocable Letter of Credit. This guarantees payment from the buyer’s bank, provided you meet all documentary conditions.

• Export Credit Insurance: Insure your shipments through organizations like the Export Credit Guarantee Corporation (ECGC). This is a vital safety net against non-payment risks (commercial and political).

7. Become an Incoterms Expert

Every international quote must use an Incoterm (e.g., FOB, CIF, DDP).

• Understand the Responsibility: Incoterms clearly define who pays for the shipping, insurance, duties, and when the risk of loss transfers from the seller to the buyer.

• Start Simple: As a beginner, FOB (Free On Board) is often preferred, as it limits your responsibility to getting the goods safely onto the ship at your port.

8. Document Flawlessly (Compliance is Key)

A single documentation error can halt a shipment and incur massive demurrage costs.

• Accuracy: Ensure the Commercial Invoice, Packing List, and Bill of Lading exactly match the details in the Letter of Credit and the customs filing.

• Certifications: Obtain the mandatory Certificate of Origin (COO) and any product-specific certifications (e.g., health, safety).