International Trade Resources Podcast Creating a Budget to Expand Exports
Today on the "International Trade Resource Podcast," host Kim Kirkendall sits down with Kathryn Read to explore the critical topic of creating a budget for export expansion. Often overlooked or underestimated by companies, poor budgeting for new market entry can quickly become a costly mistake.
In this episode they dive into the challenges businesses face when estimating potential sales in unfamiliar markets and share practical advice on how to gather meaningful data. Read offers valuable tips on leveraging free resources and cost effective strategies such as consulting distributors or reviewing data from adjacent industries to make the best possible estimates when hard data is scarce.
Kim and Kathryn go further by breaking down the costs associated with three different market entry strategies: working with distributors, using a hybrid model, or establishing an in-house sales team. Read emphasizes the need for companies to budget not only for direct expenses like marketing and logistics but also for indirect costs such as customer service, regulatory compliance, and intercultural training. She stresses the importance of managing cash flow carefully and staying closely connected with distributors or sales teams to ensure product availability and to gather timely market intelligence.
If you're planning to expand your business into new international markets, this episode offers essential guidance on avoiding common budgeting pitfalls and building a strong foundation for long-term success. Don't miss this insightful conversation that equips you with the tools to better navigate the complexities of global trade.
KEY TAKEAWAYS:
- Companies should expect higher costs and longer timelines when expanding into new international markets.
- Use proxy markets, competitor data, and social media to estimate potential sales in unfamiliar markets.
- Different entry strategies—distributors, hybrid models, or in-house teams—carry unique direct and indirect costs.
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