Entrepreneurship

 

EXPORT BASIXS :

HOW
TO FIND OVERSEAS MARKETS FOR YOUR PRODUCT OR SERVICE

By
Elizabeth H. cottrell, IAHBE Staff Editor

 

The world has shrunk. In a movement unprecedented in history, Technology—primarily
through the Internet—has empowered even home-based entrepreneurs to economically expand their market globally. Opportunity does not come without responsibility, however, and your responsibility as a business person is to learn all you can about exporting from your specific location and then deciding if it makes sense for you to do it. This report will get you started. It is oriented towards the U.S. entrepreneur who wishes to export out
of the United States. Information sources for those international business people
who wish to export to the United States will be noted.

Why Export?

The main reason to consider exporting is the potential for increasing sales and profits and reducing your dependence on domestic markets. Depending on your line of work, you may find that the development of an international business can offset a lack of demand for seasonal products in the U.S. and lower your per-unit fixed costs. Sometimes, there are tax advantages as well.

International sales have contributed to nearly 30% of domestic economic growth in recent years. While the number of American businesses sending their goods and services overseas has tripled since 1990, two-thirds of that volume has come from companies with
fewer than 20 employees. You may enjoy reading some export success stories at
www.export.gov/explore_exporting/success_stories.html to see what other businesses
have done.

Why Not Export?

As you might expect, exporting has its drawbacks. It requires a significant commitment
to learning and understanding the exporting process. Sometimes, there are export
licensing requirements, demands on you or your staff for travel, translation
considerations, and often the development of new packaging for country-specific
regulations, as well as new marketing materials geared for your international
market. Exporting is not for the meek or timid.

Understanding the Process

This is the most critical step, because it will help you determine if exporting is
something you should consider or not. There are many links in our Sources and
Resources sections below to help you find information, but start with these:

A Basic Guide to Exporting

www.unzco.com/basicguide/index.html

This is an extremely comprehensive guide that begins with evaluating whether exporting
is for you and continues through the planning and execution of an export business.
It includes financing, payment options, international legal considerations,
and tips on conducting business abroad.

Free Export Basics Webcast Seminar

www.globalspeak.com/html/export-gov/ExportBasics.htm

Click "Learn More and Register Now." Gain the knowledge you need to export a product or service. Tools of the trade: export basics webcast seminar is four hours of free interactive training via a "click and easy" video interface. Learn the step-by-step process of how your company can enter rapidly growing international marketplaces. Learn everything you need to know about exporting from one convenient online interactive training seminar--at  your own pace, from the convenience of your office or home!

U.S. Government Export Portal www.export.gov/

This official export portal helps exporters for domestic and international trade.
The Explore Exporting link in the Trade Assistance box is a nuts-and-bolts coverage
for beginners. It covers questions such as: "What’s In It for Me?","Am I ready for this?", "What do I have to do?", and "Will my products sell?" Use their step-by-step, how-to guides, especially "A Basic Guide to Exporting" above.

Do I Need a License?

Happily, licenses are no longer required for all exports. Unless your product involves
high technology or weapons, you probably won’t need one. There are two
main types of exporting licenses: General and Individually Validated Licenses
(IVL). Read the information at the Global Trades Ltd. Website (www.global-trades-ltd.com/exportlicenseinfo.html)
to determine if you need a license or not.

Finding an Overseas Market

The U.S. Department of Commerce offers excellent market research resources through
its BuyUSA.com Website (www.buyusa.com/cgi-bin/db2www.exe/ trade_assistance/research_markets.d2w/input).
If you end up at a Website in a foreign language, look for the English language
link in the upper right hand corner. This Market Research link (www.buyusa.com/cgi-bin/db2www.exe/mkt_research/mkt_research.d2w/input##)
will take you to other links for Country Commercial Guides that contain detailed
information about local business customs, economic trends, and the political
climate for that country. Also available for U.S. businesses are world reports
by industry and country that can help you determine market potential and identify
key competitors.

For international entrepreneurs seeking to learn about export potential in the United
States, the U.S. Commerce Department also offers U.S. commercial information
by state at this link: www.buyusa.com/cgi-bin/db2www.exe/mkt_research/mkt_research.d2w/input##.
Once you click the state you’re interested in, you will see National Industry
Reports, U.S. State information, U.S. City and County Information, Trade Events,
and much more.

Deciding Whether or Not to Get Certified

If you are manufacturing a product, getting certified by ISO 9000 (International
Standardization Organization--www.iso.ch/iso/en/ISOOnline.frontpage) is an important
step. This organization evaluates the production process quality control--efficiency,
inspection, testing, installation, design, and manufacturing facilities--more
than the product itself. Almost all the European countries require ISO certification
before you may export goods into their country. Notify the ISO that you’re
interested in being certified, and they will explain the process to you. It
will involve sending a team to your manufacturing site for an inspection.

The European Union (www.eurunion.org/) also offers a certification that results
in your obtaining their CE mark. This has more emphasis on the product than
the process. See their Website for details.

Overseas Packaging and Shipping

According to the SBA, the type of transportation used to get the product overseas depends
upon the product's characteristics, timeliness of delivery, and cost. Proper
packaging and the correct mode of transportation will reduce damage and will
get the product to the foreign buyer safely and on time. Considerations include:

Marking and labeling

Documentation

Transportation

Marine Insurance

You should always check with the Trade or Commerce Department of the governments
of any countries to which you wish to export; inquire about any packaging, shipping,
or inspection requirements they may impose on imports.

Copyrights and Patents

Anyone considering exporting should realize that U.S. copyright and patent laws often
do not protect you overseas. The World Intellectual Property Organization (www.wipo.org/),
or WIPO, of which the United States and many other countries are members, will
reciprocally recognize those who have a patent or trademark or copyright in
the United States, but there are guidelines that must be met, and there are
filing requirements.

If this issue concerns you, consult someone with expertise in this area. In some
parts of the world, a product could be copied in every way except some small
detail (like color) without violating invention patents.

Getting Help with Exporting

General export information and development assistance is provided by the SBA (www.sba.gov/oit/textonly/info/index.html).
Links found here include trade counseling, training, legal assistance and publications.
The SBA’s Office of International Trade has a free book available on their
Website called "Breaking Into the Trade Game: A Small Business Guide to
Exporting." You can find it here: www.sba.gov/oit/info/Guide-To-Exporting/index.html.

The U.S. Department of Commerce offers a Personal Trade Assistant (www.buyusa.com/cgi-bin/db2www.exe/trade_assistance/prep_intl_trade.d2w/input)
program. Your local Export Assistance Center trade specialist can help you determine
if you are "export ready" and assist you with the creation of an exporting
business plan. Your specialist can also introduce you to a variety of trade
tools.There
is a network of U.S. Export Assistance Centers (http://www.sba.gov/oit/export/useac.html),
found in major metropolitan areas of the U.S., that provide persoalized service
with local exporting for small-and medium-sized businesses.

Many new-to-export small firms have found the counseling services provided by the
SBA's Service Corps of Retired Executives (SCORE--www.score.org/) particularly
helpful. Through the SCORE Website or your local SBA District office, you can
gain access to more than 850 SCORE volunteers with experience in international
trade.

Through the U.S. Department of Commerce, the International Trade Administration (ITA--www.ita.doc.gov/)
has offices throughout the country where international trade specialists can
help you locate the best foreign markets for your products. On its Website,
the Trade Information Center link offers country-specific information for exporters.

Cautions for New Exporters

There are some pitfalls that new exporters experience. These are sufficiently common
that the Small Business Administration has made a list of the 12 most common
mistakes:

1. Failure to obtain qualified export counseling and to develop a master international
strategy and marketing plan before starting an export business.

2. Insufficient commitment by top management to overcome the initial difficulties
and financial requirements of exporting.

3. Insufficient care in selecting overseas sales representatives or distributors.

4. Reliance on orders from around the world, rather than concentrating on one or
two geographical areas and establishing a basis for profitable operations and
orderly growth.

5. Neglect of export business when the domestic market booms.

6. Failure to treat international distributors and customers on an equal basis
with domestic counterparts.

7. An assumption that a given market technique and product will automatically be
successful in all countries.

8. Unwillingness to modify products to meet regulations or cultural preferences
of other countries.

9. Failure to print service, sales, and warranty messages in foreign languages.

10. Failure to consider use of an export management company when the firm cannot
afford its own export department or has tried one unsuccessfully.

11. Failure to consider licensing or joint venture agreements when import restrictions,
insufficient resources, or a limited product line cause companies to dismiss
international marketing as unfeasible.

12. Failure to provide readily available servicing for the product.

Develop a Plan!

All exporting advice resources say one thing: an exporter needs to develop an international
business plan. A worksheet for developing such a plan is available at www.bizoffice.com/library/files/trad26.txt.
Scroll down to the heading International Business Plan and answer the questions
that follow. When you finish, you will have the content for an international
business plan.

SOURCES FOR THIS REPORT

Globalspeak.Com

www.globalspeak.com/

Interactive Internet TV And Webcasts For International Trade And Business. See the future of international business with globalspeak.com, the world channel of commerce,
interactive internet television and webcasts for export, trade and business
professionals.

Longini, Peter. "Export Basics Boot Camp." Pittsburgh Technology Council Website:
www.imakenews.com/techyvent/e_article000045912.cfm

"Duquesne SBDC Offers Guide to Off-Shore Sales," by Peter Longini. Expanding U.S.
exports of goods and services, as well as attracting foreign investment to Southwestern
Pennsylvania, are major state and national priorities. As a result, there are
a number of organizations in the region offering low-cost or no-cost services
designed to help aspiring exporters prepare themselves to succeed in international
trade. There are also a growing number of Web-based resources as well as an
assortment of professional service firms designed to give prospective exporters
the information, advice, and practical help they need to tap world markets.

U.S. Department of Commerce. "Personal Trade Assistant."

www.buyusa.com/cgi-bin/db2www.exe/trade_assistance/prep_intl_trade.d2w/input

The Trade Tools and Trade Assistant menu on this site are very valuable.

U.S. Government Export Portal" www.export.gov/

This resource site helps exporters for domestic and international trade.

U.S. Small Business Administration. "Is Exporting for You?"

www.sba.gov/oit/textonly/export/IsExforYoutxt.html

More than ever before, it is clear today that world trade is essential to the health
of the American economy and to the growth of most U.S. companies. This is especially
true for small businesses with the advent of increased foreign competition at
home. Entering the overseas marketplace offers exciting opportunities to increase
company sales and profits.

U.S.Small Business Administration. "Cautions for New Exporters"

www.sba.gov/oit/textonly/export/12mistktxt.html

The 12 most common mistakes made by new exporters.

U.S. Small Business Administration. "New-to-Export Small Business"

www.sba.gov/oit/textonly/export/index.html

Finding overseas markets, dealing with the initial complexities of exporting, and financing
export sales are some of the challenges facing smaller firms seeking to participate
in international trade. To help you meet these challenges, the U.S. Small Business
Administration offers aid to current and potential small exporters through two
major programs: business development assistance and financial assistance. These
programs are provided through our network of field offices around the country.

U.S.
Small Business Administration and AT&T. "Breaking Into The Trade Game:
A Small Business Guide" www.bizoffice.com/library/files/trad26.txt

This Guide will help answer questions and take the mystery out of exporting. The
United States government has committed enormous resources to help small businesses,
like yours, reach overseas markets.

RESOURCES FOR FURTHER INFORMATION

Export.Gov
Newsletter

www.export.gov/subscribe.html

U.S. Government export portal helps exporters for domestic and international trade.

Information for exporters of U.S. goods and services

www.buyusa.gov/home/index.php?page=3

Choose an office Website from this list of countries. To find an Export Assistance
Center nearest you, see our list of U.S. Offices.

New exporter services: Australia

www.austrade.gov.au/generic_template/0,1053,ContentGroup%253Dexportready,00.html

Austrade
and Trade Start offer a package of free services designed to assist small- and
medium-sized Australian companies develop their businesses overseas and make
their first export sale.

internet International Business Exchange--Tools for the Global Entrepreneur

www.imex.com/

\International Import Export Business Exchange whose mission is to promote international trade
on the Internet by supplying trade leads, government and business opportunities,
WWW advertising, Web design, and business information.

European Buyers and Suppliers

http://www.imex.com/europages/europages.html

Search by product type or by company name.

Export-Import
Bank of the United States http://www.exim.gov/

This bank is heavily involved in the financing of many export and import businesses.
Their Website offers information about countries as well as educational seminars
and products that they offer.

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Article
written by Elizabeth H. Cottrell, staff writer and editor for the IAHBE.
Elizabeth is a home-based entrepreneur, freelance technical writer and owner
of Riverwood Technologies, a desktop publishing company in Maurertown, Virginia.