Action planning MES costs , sales forecast & profit calculations

1. Action planning MES costs, sales forecast & profitcalculations Expro 100 Engineering The Hague November 2013 Martin Bitter Exportant Consultants Ltd.

2. Agenda The workplace and the fate of plans Action Plans Are we making money??

4. Your challenges back in the office?? 1........... 2....... 3..

5. Implementing challenges As 9 out of 10 strategies fail to get implemented successfully: 6 mind shifts need to occur to make implementation successful. (“old mind set ” between brackets) Mind Shift #1 - 'When crafting strategy is complete, the hardest part is over.' No, implementation is twice as difficult as creating strategy. Mind Shift #2 - 'Most people resist change.' No, most people are open to change when it is communicated in the right ways. Robin Speculand, CEO of Bridges Business Consultancy Int. Article Source: http://EzineArticles.com/?expert=Robin_Speculand

6. Implementing challenges -2 As 9 out of 10 strategies fail to get implemented successfully: 6 mind shifts need to occur to make implementation successful. (“old mind set ” between brackets) • 'It's all about taking actions.‘ • 'Communication is all about making sure people understand the strategy.‘ • 'What worked yesterday will work tomorrow.‘ • 'Strategy must be reviewed twice a year.'

7. The Salami tactic The frenchloaf as politically correct versionforvegetarianCEO’s

12. Action planning

13. The Action Planning after your PMC and MES Recap: 1. You decided on what to sell to whom and where (PMC) 2. You decided how to get to your client (remember, the one that pays the bill), Your Market Entry Strategy!

14. The 4 step EMP

15. Management responsibilities Who will be responsible and how will the workload be divided? Who will control the export activities? Do you need to hire qualified export staff?

16. Action plan Develop an action plan for your start-up or expansion activities. Show time schedules, deadlines, responsibilities and when applicable extra costs incurred by an action (visits, web presence, product improvement).

17. Budgets and forecasts Include a section on financials; demonstrating the effect your export activities will have on revenues and profits. Prepare a sales forecast (volume and turnover) for 1-3 years and costs. What do you need to invest?

18. The MES Strategy • Management Summary of detailed info below, sense of directionfor company. Key issues, howto meet objectives • Target markets • Positioning , what do yousellwhere, price, how, comparetocompetitor, high, medium low end market • Product, howcanyou meet customer and market need, product adaptation • Pricing, cost plus, competitive, penetration, perceivedvalue • Distribution, direct / indirect cost of in-market activities • Promotion: create awareness, mix of techniques

20. The costing of your MES actions Your MES actions, eg visiting a trade fair or appointing an agent, developing new promotion material are all elements that need money. Are you making money? To find out if you are going to make money from your export activities you need to compare the export cost with the budgeted export turnover and gross margin.

22. 15:00 exercise You are a startingexporterand have doneyour research. You have come up with the following MES costs. (see next slide) Yourtask is touse the blank xcelsheet. In your mail youreceived a link tothis file. 1. Complete the sheet for the action planning (costs at the timeline) 2. Determinewhetheryouwill make money in the first year, givenyourestimated turnover andmargincomparedto the export cost, using the second tab in the file (budget & forecast)

23. Export details Yourplannedcosts Trade Fair 1 in April 2014, cost €7.000 . Trade Fair 2 in Sep 2014, cost € 3.000 Direct Marketing andVisits, Travel cost, 2.500 in Feb and 2.500 in Sep. Web development € 2.000, Feb 2014 Google adwords € 2.000 campaign, periodMarchand April Promotionalreorganisation € 1.000 in Feb. Yourestimated turnover In 2014: € 200.000 Yourcost of sales 80% Contributiontogeneraloverheads….12%