How SMEs Can Start Exporting and Reach Overseas Buyers
Learn how SMEs start exporting: the administration, legal documents and cost planning you need, plus how to market products to international buyers.
The products made by micro, small and medium enterprises (MSMEs) in Indonesia have strong potential to reach international markets. Unfortunately, many small and medium businesses still do not know how SMEs start exporting.
In fact, getting into exports generally comes down to just two stages: understanding how the export process works, and marketing aggressively all the way to overseas markets. So what does the export process involve? Here is a rundown.
Contents
Complete the Administration
The first step is to get the administration prepared and in order. A business that operates internationally needs a permanent office with the supporting facilities that go with it.
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Secure the Legal Documents
The second step is for the prospective exporter to prepare the legal documents needed to export its products. These include a SIUP (trading business license), a TDP (company registration certificate), an NPWP (taxpayer ID), an L/C (letter of credit), a PEB (export declaration), a bill of lading, insurance and, for exporters, an export bill of exchange.
Prepare for Operations and Shipping
Once everything needed to export is in place, exporting SMEs must calculate every cost involved, from production through marketing, so they can set a selling price for the product.
Operational matters should not slip through either, such as handling the export process, the export procedures and the documents that must be provided. Also learn the policies and rules that govern exports and imports.
Market to International Buyers
Once all of these steps are finished, the next step for an SME to break into exporting is to market to international buyers. It is simple. Attend trade shows often, so you can look actively for buyers and open up a network. SME owners also need to be proficient in English, both spoken and written, because English is the main asset for marketing in international markets. Finally, SME owners should have a website of their own. Its purpose is to market the products they have made. Ideally the site has a complete catalog and contact information, and can be read in English.
Those are the steps SMEs need to take to break into exporting. We hope this helps.
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