Companies from multi-million dollar corporations to small business ventures all over the world have faced the tough question of whether or not they should spend more money on marketing or sales. The funny thing is when you think about it is that each of these departments is attempting to accomplish the same thing: the promotion of the company and incurring of sales. For this reason alone many businesses lump their marketing and sales together under one umbrella. As a small business owner, you have this luxury.

However, it is imperative that you understand that marketing and sales is not the same thing and that there are different activities involved in each. When utilized correctly, marketing and sales can go hand in hand in promoting your company and making it successful. When they are misunderstood and mismanaged, the effects can be devastating. Marketing and sales strategies are best when they are used as an integrated unit. Before you can do that, you must understand how each division works.

Marketing is the part of your company that is charged with getting your customers attention and getting them to buy your product. It is really a persuasive art form, and the successful marketing department utilizes this persuasion in every marketing campaign they launch. They want to attract as many people as possible and will do so by branding your product, advertising it, promoting it through a variety of means, and using public relations to get the product out there. When marketing is performed properly and is effective, the customers are going to buy the product.

This is where the sales department steps in. Marketing brings the people in and sales close the door behind them. The sales department is interested in making a single sale at a time. They focus on the individual customer in an effort to make the sale, get a signed contract, or get the customer to enter into an agreement with your company. To do this, they can cold call customers, use an incoming call center to engage in the customer, or directly sell the product.

You can see the cycle. Marketing gets the customer ready to buy and sales closes the purchase. Sometimes it is necessary for marketing to provide the customer with additional information so they can make a decision. Sales will step back and wait to close the deal. As you can see, when these two departments are used together, they are an effective weapon for your business.

To start using a combined marketing and sales strategy you need to take a look at your contacts and customers and sort them out. One set will be current contacts and customers who simply need to continue being persuaded to purchase your product, called the warm lead. The other set will be contacts and customers who have never heard of nor have no interest in purchasing your product, called the cold lead. You should always start with the current customers and target promotional devices towards those who need a good reason to invest in what you are selling. Sales move in when the lead goes from a cold lead to a warm lead to seal the deal.

Always try to develop an integrated marketing and sales strategy that is in balance. When you do this, the two departments will be able to work in tandem to bring your company success.

In March 2010, President Barack Obama launched a new initiative in an effort to promote small business exporting: stimulate the economy and create much needed jobs. This initiative is called The Obama National Export Initiative: Small Business Exports. If it is successful, we will be seeing many small businesses branching out into the international market, stimulating the economy and producing jobs that range from administrative to warehouse support.

According to the official bill from the White House website, the initiative was promoted by the recent economic and financial crisis. As we all know, millions of people the world over lost their jobs and the current economy worldwide is still very slow in bouncing back. It is the hopes of President Obama that the bill will help stimulate the economy enough to produce new jobs so that those citizens who are underemployed or simply unemployed can return to the work force. It is also hoped that the initiative will work towards stabilizing the American economy with the international economy following not far behind.

The National Export Initiative – shortened to NEI – is expected to help bolster the private sector and the ability for small businesses to engage in exporting activity. The President is confident that it will double the amount of material and product being exported from the United States over the next five years. This will be done by overcoming the many different trade barriers that are in place for small businesses. Some of the hurdles to be overcome: financing; entering the new export market; and getting government support for exporting to other countries that has not always been there before.

A cabinet has been elected by the President to oversee the initiative and the people that have been elected range from the Secretary of State to the Administrator of the Small Business Administration (SBA) to the President of the Export-Import Bank of the United States. They are charged with addressing issues such as: helping small and medium sized enterprises enter the exporting markets; offering federal assistance to these companies; leading trade missions in order to promote these small businesses from the United States; ensuring that commercial advocacy is promoted properly; increasing the line export credit available to these businesses; promotion of growth in the exporting markets; reducing trade barriers; and the overall promotion of services trade.

The first plan of this committee is scheduled to hit the President’s desk 180 days after the initiation of the executive order. The plan is to be a comprehensive one that will outline all of the issues to be addressed and how the NEI plans to carry out their goals. Small businesses in the United States seeking to break into the exporting market will be waiting patiently to see how the committee can help them and how fast the goals can be set in place.

Will The Obama National Export Initiative: Small Business Exports be successful? Even if the tiniest trade barrier is taken down through the work of the NEI it can be considered successful. And if the capital financing assistance comes through, small businesses will see themselves grow.

Small businesses that are looking for an exporting opportunity should consider the many emerging markets that are appearing all over the world. One of the biggest opportunities out there is the technology marketing. Considered one of the most popular emerging markets, technology marketing is helping bring the world a little closer together in places that one would not originally have considered.

Exporting can be difficult in the first place due to the many cultural differences and dynamics that must be taken into consideration and explored. Being ignorant of the culture you are exporting to is not a good idea. One small mistake can cost your company billions. When dealing with exporting to emerging markets, this ignorance can cause businesses to look away from the viable and profitable markets, making this miss out on sustainable business opportunities that could’ve launched them internationally.

While exporting to developing nations has, in the past, been filled with prohibitive and dubious ventures, there are many emerging markets there that offer the small business a wealth of opportunity to enjoy. These are the areas where innovative ideas, methods and technology are the most welcome. The reason for this is the lack of an established technological infrastructure. Small businesses that enter these developing economies with technology marketing fare well. They do not have to upgrade an archaic, existing infrastructure in order to do business. They are able to go in and establish the standard that is used from the present on.

Africa and South America are two areas in the world where technology marketing has provided small businesses with a wealth of opportunities. In Africa, cellular phones are the preferred mode of communication in addition to the method in which citizens of the many African nations transfer money and pay their bills. South America has welcomed and embraced Internet cafes, something that is still not accepted as the norm in the United States. These are the types of emerging markets that are starting to appear in other areas of the world and offer the expanding small business numerous opportunities for success.

Keep in mind that the lack of infrastructure can also cause issues that make it important for a small business to plan carefully. If the company is launching a service or product where some exiting technology needs to occur, the company must ensure it exists and they have access to it. Researching the technology already in place and building from it needs to be done or else the company will not be able to participate.

Additionally, careful planning must be made when it comes to social aspects, such as the cost of the service in the first place. Citizens of developing countries have little to no disposable income. What the small business provides them must be practical and affordable. If there is no need for what the small business is offering then there is no way the company will be able to convince the citizen to invest in the technology that is being put into place. Ensuring there is a need and an ability to pay for it should be one of the first research goals for any exporting business.

Many small businesses have discovered that exporting to countries overseas is a lucrative business opportunity. However, when they sit down and develop their operating plan they are faced with the dilemma of what type of exporting to engage in. Franchising is a very popular business venture both on the domestic front and internationally. However, it is more difficult to franchise a business internationally than it is domestically. There are some key differences between the two that every business owner needs to be aware of, especially if they are trying to get their small business exporting division off the ground.

Franchising has long been a business that has proven to be effective and profitable on both sides of the fence. Domestic franchising is considerably easier, however, because all of the resources needed for it are within a reasonable distance of one another. International franchising, on the other hand, requires a great more patience, expertise, and resources, especially when dealing with a foreign culture that may or may not have the additional problem of a language barrier.

Does this mean small businesses should skip franchising as a way to break into the exporting market? No. It does mean that small business owners will need to be more on the ball when it comes to making sound financial business decisions.

There are three main issues each international franchiser needs to be aware of. Let’s take a look at them:

Issue #1: The risk involved

• There is risk involved in any business venture, but when it comes to international franchising they tend to be greater. Most small business owners suddenly find themselves working outside their comfort zone in dealing with product issues as well as staff. They are required to deal with markets that are unfamiliar to them both culturally and professionally and they must be prepared to deal with the unknowns of the business. Franchisers are required on the international level to deal with partners that are from the country they are setting up in which requires a great deal of research in order to find ones that are reliable. While using a partner with international experience is a plus, international franchising is still filled with risks.

Issue #2: The culture

• Research is imperative in any exporting operation, especially when you are not familiar with the culture you want to set your franchise in. Exporters need to educate themselves on the culture their franchise will be in, and it is a good idea to seek out indigenous partners and advisors who can aid them in understanding the myriad issues they will face during the first few years of business overseas.

Issue #3: Adapting to the international environ

• Not every franchise will work in the original format. For example, if the franchise is a fast food chain in India, there will need to be adaptations made to the menu. This is where many international franchisers run into problems. The franchise has to be adaptable otherwise it is not going to succeed in the international environ. International franchise owners must be prepared to adapt.

General image marketing is…

• a General Motors’ TV “corporate” commercial showing several of their cars in a beautiful field of flowers… With a happy looking family having a barbecue in the middle of the field. It doesn’t really cause anyone to take direct action and buy a car now, it is just supposed to give you a good feeling about general motors in general.

Direct response marketing is…

• a TV commercial from the local General Motors dealer telling you all about the July 4th super sale… special prices, super low payments, additional options added at no charge during the sale period only. This type of advertising causes people to actually flood into the dealership and actually want to buy the dam car right now. This commercial is not overly pretty, no fields of flowers, just straight talk about what you can get, and why it is to your advantage to buy it now.

The direct response ad is what actually brings in floods of money into the dealership.

The general image ad doesn’t make any real money for anyone except the ad agency that produces it.

The advertising world has many annual awards that they give out to ad agencies. When an ad agency wins an award for an image ad or campaign that they created… the people in the winning agency all go around “high fiving” each other in the office and at industry trade events for months… The award sits in a showcase in their lobby… it is their badge of achievement… however, research shows that most image ads that win creative awards FOR THE AGENCY… turn out to be a total non productive bomb for the poor client that actually paid for it all.

Each side of the coin seems to have a different set of values that they call winning. The purpose of today’s post is to help business owners differentiate between dollars that can be quantified and not when planning advertising or public relations budgets.

The biggest obstacle any company faces on a day to day basis is financing. This is especially true for small businesses. Small businesses are constantly fighting to make their way in the world and get a foothold in the domestic market. Those small businesses that have been successful fight to get a foothold in the international market as exporters. It is even more important for these businesses to be able to secure the necessary financing needed to expand overseas.

While there are many obstacles to overcome in exporting the acquiring capital to start the expansion process is the largest one. Small businesses will not find very many investors who will put up capital to finance an overseas venture. The recent credit crisis has made investors leery of shaky ventures such as exporting, and in some cases the funds are simply not available. A successful exporting business can cost a few million dollars to create and keep running, with the initial investment being the largest and most important part. It sets out the financial foundation of the company, allows the company to get established in the country it is servicing and helps build customer relations.

However, finding an investor is not always easy because of the amount of money that has to be put into place during the initial investment phase. Most small businesses are lacking in assets that can be used as collateral for a loan. This makes it hard for most small businesses to get the funds they need to open an exporting branch. There are, however, options available to the small business owner to help them get their exporting business rolling.

One option is assistance from the Small Business Administration (SBA) that can help a small business borrow the capital they need to get their exporting business started. The SBA acts as a go between for the small business and a third party lender, allowing the business to finance up to $750,000 to be used for business purposes such as expansion. This program has been popular with entrepreneurs and is one of the many options available to businesses just starting out.

OPIC (the Overseas Private Investment Corporation) is another option for small businesses looking to expand overseas. The company acts as a facilitator for small businesses that are looking to market their products internationally and have revenue of less than $250 million. OPIC will determine if these companies are eligible for a loan and they could receive anywhere from $100,000 to $250 million to start an export business. Businesses with revenue up to $35 million can receive a loan from $100,000 to $10 million to help start their exporting division.

Both of these programs are backed by the government and recognized as reliable sources of capital for expansion. However, not every company may qualify for a loan and the repayment terms may vary. If the small business is a good fit for the program, then they may be able to realize their exporting dreams quicker than they expected. Contact us today to see how we can help facilitate your capital requirement needs in a timely and cost-effective manner.

If you’re a small business owner you may have considered looking into exporting your goods and services overseas. Exporting is a billion dollar business – when it is done properly. As a small business you will have to rely on the help of a professional exporter to help you get your business up and running. Setting this up is a daunting prospect to say the least, but it can be done and you can turn a nice profit from an exporting business.

The biggest problem with turning your company into an exporter is understanding where to start. It is a very detailed business that requires patience and a lot of hard work to get off the ground. When you have a successful exporting business in place, you could earn a profit of 10% for every transaction that you make. While the process is considerably more complicated and detailed than what we present here, this quick guide will give you an idea of what you need to do to get started.

• In order to be successful in exporting you need to make contacts with manufacturers and distributors overseas that want to trade with you. The best way to do this is to make a list of everyone you know outside of your home country and asking them to aid you in finding partner companies. If you do not know anyone overseas, contact the foreign embassy of the country you want to export to and ask to speak with whoever is in charge of their global trade initiative.

• Once you have made your initial contact start researching the country you want to export to. You need to identify the market niche you are interested in exporting to and research the popular trends that are sweeping the country. This will give you a good look at the viability of the market you are interested in. Make sure you also research aspects of exporting that include any restrictions that are in place, tariffs that may need to be paid and any trade barriers you will have to overcome.

• After you have prepared all of your research and targeted the market you want to import to you can start contacting the list of people you made who could be interested in working with you to build your exporting business. Take your time talking to these people and get to know them well so that you are confident they are the right fit for your business and will make a viable selling partner. At this point you can put into place deals that are agreeable to both of you that include prices charged, the amount of goods to be delivered, distribution to the customers, letters of credits and shipping agreements.

• With an agreement in hand you will need to find a competent exporter to partner with in order to get your goods delivered to your overseas partner overseeing the selling and distribution of your exporting division. Research is key here and most exporters will be able to explain the intricacies of the business to you in order to develop a good working relationship that ensures your products are delivered on time.

Becoming a successful exporter requires more than just having a product or service you want to share with the world. It requires a lot of hard work and discipline to make the venture work. Many small businesses discover the hard way that exporting is more than just a matter of shipping things overseas. Exporting is, in a way, having a small business within a small business. In order to be successful, you need to run both businesses in tandem while still meeting the needs of your customers both at home and abroad.

New exporters make mistakes, that is true, but some mistakes are more costly than others and could seriously break the business. If you want to be successful in exporting then you need to know ahead of time what some of the most common exporting mistakes are so that you do not fall into the trap right as you get started. Here are the five most common mistakes many businesses make when they first start exporting their products and services. Pay close attention to them so that you do not fall into the same trap.

• Mistake #1: Your small business does not have an international marketing plan in place.
  If you have a marketing plan for your sales base at home, then it is important to have a marketing plan in place to sell abroad. There really is no difference in the actual selling part between the two except for the actual items or service. You need to develop a marketing plan that appeals to the customer abroad and you need to offer them the products they want, which could differ greatly from the products you are selling at home. Take the time to research what your customers overseas are looking for and develop your exporting marketing plan accordingly.

• Mistake #2: The overseas partners you are working with are inadequate.
  Once again it is important to stress that research is key to making your exporting business a success, especially when you are dealing with overseas partners. You need to make sure the companies you plan to partner with are reliable and are able to deliver your goods the way they say they will when you partner with them. If they cannot or do not deliver, you could be left with a mess on your hands.

• Mistake #3: You are not committed to the exporting cause.
  Exporting is not a way to make a quick profit. It is something that takes time. Just like building a reputation with your home clients, you need to do the same with your overseas clients. The same is true for the partnerships you develop with companies that are acting as your overseas representatives. Plan on taking your time and committing yourself and your business to exporting your goods and services. If you do, you will be successful in this aspect of your business.

• Mistake #4: You are catering to your home customers and ignoring your overseas market.
  This is the reason why you should have a good, comprehensive international marketing plan in place before you start exporting. You have to be set up to give both domestic and international customers the same attention and support. Yes, your home market is your profit base if exporting does not work out for your small business. But if you ignore your overseas market, you are going to short change yourself and people who are relying on your product.

• Mistake #5: You didn’t accommodate your oversea customers’ preferences.
  While this is less of an issue if you are exporting to a country that speaks the same language as your home market – for example, from the United States to Great Britain – you need to make sure that you cater to the preferences of your international customers. This includes modifying your product packaging to be appealing overseas, how you do business face to face to meet cultural acceptability and making sure you are selling your goods and services legally in the overseas market based on their rules. You may find it easier to change your domestic preferences as well to be successful in both markets.

Even though the world economy has been shaken up over the last few years it is still growing and offering small businesses an opportunity to make a profit. In order to cash in on that profit, these companies have to be willing to take on the intricate process of shipping their products overseas. You need to put into place an export strategy that will work for your business. We recognize that every business is different and our Small Business Exporting Basics DVD can help you understand what you need to do in order to be successful.

Before we can help you export your products and services overseas you need to consider the following when it comes to overseas sales.

• How are your domestic sales doing?

You need to take a look at what is going on at home before you try to sell products overseas. If your sales are lagging at home, there is something wrong. Are you offering your customers the wrong product? Do you have too many competitors? Is your marketing plan lacking? Your customers are your best source of information. If what you are offering is not selling at home, it is not going to do well overseas.

• Is your product or service exportable?

In today’s internet driven society you can export a service just as easy as you can export a product. However, your product has to fill a niche that is not found overseas. You have to offer something that is exportable and can be packaged in a way that is appealing to the audience overseas. You also need to make sure that your produce does not violate any type of international or cultural prohibition and taboo.

• Do you have any foreign partnership leads willing to distribute your product?

Most small businesses are not in a position to set up an international office in the country you want to export to. Instead you need to find an export marketing and sales companies that are interested in partnering with you to either purchase your product outright and resell it or establish distribution on your behalf for an agreed upon cut of the profits plus a nominal upfront retainer. Most small businesses partner up with export marketing and sales company which also helps them gain valuable insight on how the market works and any regulations they need to be aware of.

• Are you conversant in the legal issues that surround exporting your product or service?

Many small businesses forget to research this part and it causes them problems in the long run. You need to understand all of the legal aspects of exporting your product or service on both sides of the coin. You need to know the laws governing exporting from your home country and the laws governing importing into the target country. It is a good idea to employ an export lawyer who can help you ensure that you are in compliance with the law.

Exporting is a very lucrative business and it is easier to get started than you think. Take a look at our Small Business Export Basics DVD which is designed to help the beginner and experienced exporter alike. We think you’ll find the information on it valuable to the success of your small business.

A cash flow projection is a forecast of the difference, over periods of time, between cash coming in the business and cash going out of the business. The estimation or projection of cash flow is a powerful management tool. If you were to choose one financial management tool to use on a routine basis, cash flow projection and analysis would be the one. By knowing your cash position now and in the future, you can:

• Make sure you have enough cash to purchase sufficient inventory for seasonal cycles;

• Take advantage of discounts and special purchases;

• Properly plan equipment purchases for replacement or expansion;

• Prepare for adequate future financing needs.

Cash is the lifeblood of your business. Only cash pays the bills – profit does not. Know where your cash is going, from where it is coming, and what the future holds. Cash flow projection is the tool. The ability to predict and plan cash outlays means that you won’t be forced to resort to unexpected and costly borrowing (such as credit cards) to meet your cash needs.

How to Prepare A Cash Flow Projection

Preparing a cash flow projection is something like preparing your budget and balancing your checkbook at the same time. Unlike the income statement, a cash flow statement deals only with actual cash transactions. Depreciation, a non-cash transaction, does not appear on a cash flow statement. Loan principal and interest payments will both appear on your cash flow statement, as they both require the outlay of cash.

Cash is generated primarily by sales. But in most businesses, not all sales are cash sales. Even if you have a retail business and a large percentage of your sales are cash, it is likely that you offer credit (charge accounts, term payments, lay-a-way, trade credit) to your customers. Thus, you need to have a means of estimating when those credit sales will turn into cold hard cash.

Cash flow projections should be prepared for short-term (weekly, monthly) and longer-term planning purposes.

Purpose of Short-Term Cash Flow Projection (Weekly and Monthly)

• To determine short term cash position.

• To plan the amount of cash not needed in the short-term and, therefore, can be put in short-term investments or used to take early-pay discounts from vendors.

• To estimate cash needed for due obligations and working capital requirements.

Purpose of Intermediate Term Cash Flow Projections (12 months)

• To show how much cash will be needed to run the business in the coming year.

• To determine where the cash will come from.

• To determine seasonal variations in cash flow.

• To estimate annual borrowing requirements and ability to make repayments.

• Supporting information for loan application.

Purpose of Long-Term Cash Flow Projections (3 to 7 years)

• To support strategic planning

• To determine equity needs

• Substantiation and support of long term debt or equity raising efforts

The level of detail needed in your cash flow projection will vary depending on the complexity of your business.