The statistics are crystal clear. 97% of the world’s
consumers live outside of the United States.
Yet, only about 11% of US companies export their products. Is it possible that we all have plenty of
customers and don’t want any more?
Getting started is not especially hard. Perhaps the easiest place to export to is
Canada. It is close, the language is
familiar, and the culture is the same.
Sure, even in Canada, there are some special requirements, primarily the
need to include both French and English on product labels. However, that is a very small price to pay
for access to an additional 35 million potential customers.
The first step to get started is to look inside your company
and make sure that you are organized to export.
Is your management team committed to the process? Is the export adventure adequately funded and
staffed?
You also need to do your homework. Just as you would do if you were entering a
new market domestically, market research is the only way to understand the
opportunity and risks. You need to
discover who your potential competitors are and what substitute products are
already available. By far, the easiest
way to do this is to find a partner who is already intimately familiar with the
marketplace. Someone who speaks the
language and knows how to get things done is an invaluable resource.
Fortunately, promoting US exports is a high priority for the
US Government. The Department of
Commerce has Commercial Service Officers in every embassy and most consulates
around the world. Their mission is to
help smooth the way for US companies to do business. They can help with everything from assessing
the business climate to helping to identify potential partners, vetting them,
and setting up meetings.
Of course, there are many details that need to be sorted out
before you can start exporting. It’s
best to hire an expert who can guide you through the complexities. Here is a partial list of things you must
consider…
·
Currency – will you be doing business in US
Dollars or will you need to be taking currency risk by working in the host
country’s money?
·
Logistics – how will you get the product to its
destination? How will longer lead times
effect your ability to market your products?
·
Product support – will you be able to support
your consumers in their native language?
Will your customer service department be working during the appropriate
hours for your foreign customers?
·
Intellectual property – what steps do you need
to take to protect your rights?
In spite of the challenges, the opportunities are boundless
and you should take a close look at why you should be taking advantage of them
