Posts Tagged ‘international sales’

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.