Innovation

• Does your product bring something new to its category? If not, it’s high time to re-evaluate what you’re offering the public. No one wants just another “me too” product, so you better be offering something fresh, new, and exciting. However, your innovation can’t be too beyond the pale. Work with tangible consumer needs and trends to ensure that your product is offering something the public hasn’t seen before.

Taste and Functionality

• In order to sell successfully, your product must taste good – it’s as simple as that. Does it taste better than other similar products in the category? If you’re not selling a food, does your product make the grade in solving a particular household product? Be sure to conduct independent trials to see what the consumer actually prefers.

Packaging

• Believe it or not, packaging is important. It not only has to look appealing to the consumer but it also has to be functional. Does your packaging stand out and is it aesthetically pleasing? Does the packaging keep your product protected and fresh? It is often advisable to include as few marketing messages as possible on the packaging.

Sensory

• What does the consumer experience with your product? Does your product look good? How does it smell? If it is a food, how does it feel in the mouth? Do your consumers have a pleasant experience when eating this item? If it isn’t a food, how does it feel in context? Remember, consuming a product, whether it is a food item or not, is a full sensory experience. If there is anything that turns consumers off, you are probably going to see a drop in sales.

Value

• Everyone is concerned about money these days, so what is the value of your product? When it comes to value, it isn’t just the lowest price. People like to get the most for their money which means value goes beyond just the financial aspect. It also represents the satisfaction level a customer gets in relation to the amount they’ve paid. Often, you’ll see increased sales and a stronger bottom line when you offer a product that has that extra kick than the competition for the same price.

Health and Nutritional Value

• In addition to financial value, is there a health or nutritional value to your product? Today, the public places even more importance than ever before on the healthiness and sustainability of products available on the market. Is your company transparent when it comes to the ingredients and materials used in your product? Do you openly discuss the impact it has on the environment? Two of the leading priorities of your exporting business should be food safety and sustainability.

Though it may look like things are slowing down, there is still a variety of countries that are excellent market choices for exporting US products. We’ve examined these markets by looking at the population and economic statistics while considering the dynamics of the global food and consumer industries. These dynamics include things like eating and drinking habits, modern retail trade and development, and cost of entry. Here are our top ten, not in any order:

1 – Vietnam

2 – Egypt

3 – Israel

4 – Peru

5 – Malaysia

6 – Saudi Arabia

7 – Colombia

8 – India

9 – China

10 - Brazil

Vietnam
Over the past couple of years, Vietnam has experienced consistent growth rates (of about 5-7%) and it helps that the country receives significant investment from multinationals. The unemployment rate is low; however, the income of the population shows us that it is still an emerging market. However, brands from the United States are quite well received. With a low cost of entry and a growing market, Vietnam has quite a bit of potential.

Egypt
With more than 80 million people living in Egypt, it is an obvious choice for US exports. In fact, it is the largest country in the Arab world. Although it is a historically poor country, it has been growing stably for the last few years and the population’s hunger for international brands has come with that growth.

Israel
Though the smallest country in this list, it has the highest income per capita. Most of the population is familiar with many US brands and has the money to buy them. There are many distribution options here.

Peru
Peru has a young population and is blessed with abundant natural resources making it a logical location for US exported products. Because of the country’s growth, higher demand for more products has quickly ensued and Peru has recently signed new trade deals with both Canada and the US.

Malaysia
Malaysia has experienced low inflation and unemployment levels over the last decades and is one of the highest per capita incomes in all of South Asia. Growth is stimulated by its diversified population and economy which means it is a great candidate for US exported products.

Saudi Arabia
As you probably already know, Saudi Arabia has more than 20% of the world’s oil reserves, but that doesn’t mean it isn’t a good country for exporting from the US. It is in fact one of the top markets for US products, especially consumer and food goods.

Colombia
Though much stigma is attached to Colombia, it is a promising market. Increased stability and a major port on the Caribbean Sea make this country a contender for US exporting.

India
One of the largest populations in the world, India is an emerging market for US exports. The cost of entry is relatively low and the market is growing. Now is the time to get into India.

China
China’s economy has a growth rate of just over 8% and though we import plenty of products from the nation, it is still a contender for US exported products. Though the food industry has experienced some setbacks in exporting to China, other sectors like personal care and household products have flourished.

Brazil
Right now, Brazil’s economy is booming and so is its population. They claim to have found massive oil reserves and it looks like Brazil may be a contender for greatness pretty soon. Exporting to Brazil will mean taking a look at its fragmented market and being able to cover its needs.

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.

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.

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.

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.

• 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.

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.

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.

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.