Financial management issues (3 of 10)
How much funding will be allocated in each of the first three years for market research, market analysis, and competitive analysis?
Less than R5 000 per annum
R5 000 to 25 000 per annum
R25 000 to 50 000 per annum
R50 000 to 100 000 per annum
More than R 100 000 per annum
How long are management willing to wait for achieving break even point on their foreign market investment?
Immediately (pay-as-you-go)
Less than six months
Less than one year
Less than two years
Two years or more
Do you have sufficient funds (or access to sufficient) to ensure that you can successfully penetrate foreign markets without compromising your current operations?
No
Yes
Foreign markets, although profitable, require resources that could put pressure on your entire business.
Have you calculated your breakeven point?
No
Yes
Break-even analysis is a tool to calculate at which sales volume the variable and fixed costs of producing your product will be recovered.
Have you calculated the impact for your international operations on your cash flow?
No
Yes
Have you negotiated for additional funding?
No
Yes
Have you identified or appointed someone for maintaining an adequate level of working capital and manage foreign exchange risk?
No
Yes
Export success is highly dependent on the people who do it; they need to be able, willing and determined for its success. Underestimation of this factor of exporting is regarded as one of the most common export mistakes.