The financial benefits of exporting can be significant, but exporting can put a strain on your financial resources, particularly in the early stages. A proactive financial plan can help your export business succeed.
1. Determine your export budget
The first step is to determine your export budget. Your budget should include all of the expenses associated with your international expansion, including:
- market research
- product redevelopment
- participation in trade exhibitions
Once your budget is in place, determine how much financing you will need in order to meet it.
2. Anticipate your cash flow needs
Reliable cash flow is crucial to the success of your export business. But with a new international contract comes one of the most difficult obstacles smaller exporters face: raising working capital to fund pre-shipment costs. Even after your export business is established, cash flow remains a concern. International trade payments usually take longer to arrive than domestic ones, and challenges like exchange rate fluctuations can complicate cash flow.
3. Explore your funding options
Fortunately, Canadian exporters have access to an extensive selection of funding options that can help ensure the smooth operation of your business. Learn more about the available options and how to find the ones that best suit your needs: