todd s. thompson director trade competitiveness project southern africa global competitiveness hub...
TRANSCRIPT
TODD S. THOMPSONDIRECTOR
TRADE COMPETITIVENESS PROJECTSOUTHERN AFRICA GLOBAL COMPETITIVENESS
WWW.SATRADEHUB.ORG +267 74784003
Thinking of Exporting?
A WarningAmerican English Will Be Spoken
What Is The Trade Hub?
AGOA
Africa Growth Opportunity ActGives African producers duty free tariffs on a
wide-range of products.www.agoa.gov
Some Things to Consider Before You Export
Three Parts to Any Business
Product or ServiceFinancial Management/Accounting
Marketing
No Individual is Equally Good or Enjoys Doing All Three of Them
What Is Your Product or Service?
What Are You Providing to the Market?
Who is Your Competition? How Big Are They?
Where Does Your Product Fit on the Product Life Cycle?
If Looking at Exporting – What Makes Your Product Unique?????????
Product Life Cycle
0
1
2
3
4
5
6
7
8
9
10
Time
Sales
Determining Feasibility
Is there a major barrier blocking your path?
Feasibility Decision
To Proceed
or
Not To Proceed
Financial Management and Accounting
Start-up Financial Forecasting
Day-to-Day Financial Management
Do Not Kid Yourself When It Comes To Financial Forecasting
If you do not have adequate start-up capital you will fail.
Lack of Cash Flow can kill a business.Most start-ups take twice as much money and
twice as much time as anticipated.
Marketing
Why Has Someone Lived Their Life Without Your Product, But Now Life is Incomplete Without It?
Who is Your Target Market?What Percentage of the Market Do you Need
to Get in Order to Succeed?Product, Place, Price, Promotion
Some Other Things to Think About
Strategic Planning
Simple Definition:
Figuring out how to get from where you are to where you want to be.
Strategic Planning Steps
1. Vision – reason and purpose for existing 2. Mission – major goals and performance
objectives3. Strategic Goals/Objectives – measureable and
verifiable outcomes you intend to achieve4. Action Plans - steps required to reach strategic
goals/objectives – including who will do what, when and how.
5. Tactics - specific actions used to achieve the strategic goals and implement the strategic plan
6. Performance Measurement – how well did you do and how do you improve – Plan/Do/Check/Act
Business Planning
Why Do You Want A Business Plan?
• Forces you to objectively develop and evaluate your business idea.
• Helps you identify the opportunities and risks.
• Helps you understand the environment in which you operate, the strengths and weaknesses of your business, the competition, and the validity of your assumptions.
• You will understand who your customers are and how you can meet or exceed their needs and expectations.
Your Business Plan Should Be The Roadmap For Your Business
Not a Collector of Dust
Exporting
Tariffs Maybe Eliminated, But What About -
Transport CostsProductivity IssuesInfrastructure Costs – electricity,
Internet, etc.Government Red-TapeLabor LawsGeneral Cost of Doing Business in Your
Country Compared to Other CountriesCurrency Fluctuation
You Need the Following to Export To the US
Statistics - http://dataweb.usitc.gov/Harmonized Tariff Schedule -
http://hts.usitc.gov/USDA Regulations – www.usda.govFDA Regulations – www.fda.gov
http://www.fda.gov/Food/LabelingNutrition/FoodAllergensLabeling/GuidanceComplianceRegulatoryInformation/ucm106187.htm
Crawl, Walk, Run Theory
Some Other Items
You Will Probably Only Get One Chance To Get It Right the First Time – Cannot Blow It
Can You Scale Up?Almost as bad as no orders is an
order that you cannot realistically handle
A Few Things to Remember
No Matter What the Conditions Are, Opportunities are Present
Do Not Forget the Basics of Business Product/Financial Management/Marketing
Know What You Know and Know What You Do Not Know
Be Realistic
Thank You