Copyright
(c) 2008 Melissa Mashtonio
Manta
http://www.manta.com
Have
you been feeling the itch to send your small business global? Many are in your
shoes--seeing the benefits of business expansion but also fearing the risk of
taking products abroad. Although exporting your products may expand your business
and bring higher sales, the task may seem daunting to a small business with fewer
resources than a large company. But if you take your time and research the process,
going global with your company may garner more rewards than costs.
To
begin the international business process, look at potential foreign markets for
your business. The U.S. Department of Commerce website can aid your investigation
by giving information about foreign commerce. Look over the different markets
and decide where your product would be received best. Also, think of the amount
of merchandise you plan on sending to the overseas market. This number can change
in the future, but you should start with an idea of whether or not you need to
produce extra product or can simply internationalize a fraction of what you already
are producing.
Next, test your product in the potential
markets you found. Again, the U.S. government will come to your aid with opportunities
to test-run your business with potential U.S. foreign partners. If you find your
product is received well, start looking for ways to sell that product permanently
in the overseas market.
There are generally two ways to
sell in a foreign country. The first is to find a vendor in that country who would
be interested in selling your product. You can create a partnership with this
vendor, giving them a percentage of the profits. Doing business internationally
in this manner is helpful because foreign vendors know how to market to the target
culture. However, be sure to research the company thoroughly before making any
lasting plans.
Another option for selling abroad is to
find a broker or export management company to assist you. Both of these options
would require a small commission in order to sell your product. However, such
a commission is a small price to pay for the expertise found in such avenues.
Also be sure to check out the legal requirements, cultural standards and appropriate
pricing for the country in which you wish to sell in order to avoid future problems.
The
cultural differences between your country and the foreign market you chose will
make a big difference in business. For example, China is experiencing a booming
economy and has become one of the top picks for exportation. It is important to
note when doing business with a Chinese company that the personal relationship
between yourself and the Chinese business is crucial. Showing long-term commitment
in China as well as showing personal respect to your business customers and partners
will bring you success. Take into account such cultural aspects before selling
in any country.
Finally, find a reliable shipping company
to export your products. Check the cost, time to ship and reliability of the shipper
before committing. It may be helpful to ask the advice of other small businesses
owners who decided to take their products abroad. Such companies will have experience
with reliable shippers and may be able to refer you.
Once
you’ve chosen a shipping company, make sure to take precautions when shipping
your merchandise. First, be sure all items are packed securely as they will be
changing hands multiple times in their journey to foreign lands. Second, mark
all boxes clearly in your native tongue as well as that of the country to which
the items are being shipped. This allows for less miscommunication during the
travel. Third, insure your merchandise in order to protect it from any damage
along the way.
Keep in mind when going global with your
business that you should not expect immediate cash flow. It may take a few months
or years to get the profit you desire. However, once you become accustomed to
international business, you will find it to be truly rewarding.
