The first stage of the export preparation comes under a sub-category of Business Preparation. This stage is further broken down into three important steps:

1. Export Potential
2. SWOT Analysis
3. Export Plan

This stage will help determine whether your company is ready to export or not and will help your company become export-ready.

Export Potential

In order to understand the potential and readiness for your company to export, we have provided this article with a test from our source along with its interpretation to determine the readiness to export.

General

1. Is the Indonesian firm’s product or service already available? (Please select A, B or C)
   A) Currently in production
   B) At the prototype stage
   C) At the idea stage only
2. Is the Indonesian firm’s product or service currently being sold in Indonesia?
   (Please select A, B or C)
   A) Currently selling, and market share is growing
   B) Currently selling, but market share is low
   C) Currently selling, but in only one city

3. Does the Indonesian firm have surplus production capacity or available specialists to meet increased demand for its product or service?
   Yes No
4. Does the Indonesian firm have the financing required to adapt its product or service to suit the target market and to promote it? (Please select A, B, or C)
   A) Financing is in place
   B) Financing is being arranged
   C) No financing is available

About the Firm

1. Is the Indonesian firm’s management committed to sustaining its export effort?
   Yes No
2. Does the Indonesian firm have a good track record of meeting deadlines?
   Yes No
3. Does the Indonesian firm’s management have experience in export markets?
   Yes No

About the Product or Service

1. Does the Indonesian firm’s product or service have a distinct competitive advantage (quality, price, uniqueness, innovation) over its competition?
   Yes No
2. Has the Indonesian firm adapted its packaging, labelling, and/or promotional materials for the Canadian market?
   Yes No

3. Does the Indonesian firm have the capacity and resources to provide after-sales support and service in Canada?
   Yes No
4. Does the Indonesian firm have a Free on Board (FOB) or Cost, Insurance and Freight (CIF) price list for its product, or a rate list for its service?
   Yes No
5. Has the Indonesian firm undertaken any Canadian market research?
   (Please select A, B, or C)
   A) Completed primary and secondary market research, including a visit to Canada
   B) Completed some primary and secondary market research
   C) Completed no research
6. Is the Indonesian firm’s promotional material available in French and/or English? (Business cards, brochures, and web site)
   Yes No
7. Has the Indonesian firm started marketing their product or service in Canada?
   Yes No
8. Has the Indonesian firm engaged the services of a sales representative, distributor, agent, or broker?
   Yes No
9. Has the Indonesian firm hired a freight forwarder or a customs broker?
   Yes No

Interpretation

• More than 12 answers of “A” or “Yes” = Ready to Export
• 7-11 answers of “A” or “Yes” = Not ready to export. The company is on track however still have some weaknesses in its export strategy
• Less than 7 “A” or “Yes” = Not ready to export at all

SWOT Analysis

Enterprises that are considering to export to Canada must have a clear understanding of their Strengths (S) and their Weaknesses (W). The ideal way of obtaining this information is through conducting a SWOT Analysis.

Strengths are internal elements of the business that bring advantage over other businesses such as its uniqueness, experience, or workforce. Weaknesses are internal elements of the business that could bring disadvantage for the business such as inconsistency of the products quality, no Canadian market experience, or no website or marketplace shops.

Opportunities are external elements that can give the business an advantage over others. Threats are external elements that can cause disadvantage for the business against others.

What strengthens your information on your SWOT Analysis is to input these list of items to understand where your business stands.

Internal

• Management support
• Unique products
• Value-added services
• Track record
• Financial position
• Qualified staff
• Business plan
• Certifications
• Expertise
• Available time
• Market research
• Selling skills
• Domestic sales
• Quality standards
• Access to capital
• Marketing materials
• Web site
• Language skills
• Foreign contacts
• Ability to travel
• Relevant technologies
• Risk factors
• Others

External

• Global Economy
• Growing industry
• Competition
• Currency valuation
• Distance to market
• Language
• New trends
• Others

Export Plan

When a business is considering exporting to a country, in this case Canada. The business must create an Export Plan which is a Business Plan that focuses on the Canadian Market. It is important to define the target market, purpose of business activities, understanding the company’s SWOT, identifying resource and financial demands of exporting, and substantiate qualifications for obtaining credit or export financing.

Indonesian exporters must keep their business plan updated to save time and resource by strategically planning and prioritizing the pursuit of the Canadian market. A good export plan will consist of the following elements:

1. Executive summary
2. Introduction
3. Company overview
4. Products and services
5. Export objectives and goals
6. Canadian market analysis
7. Market entry strategies
8. Regulatory and logistical issues
9. Risk factors
10. Implementation plan
11. Financial plan

Source: Canada-Indonesia Trade and Private Sector Assistance Project. (2016). A Step-by-Step Guide for Indonesian SMEs to Export to Canada citation.