Do You Have An Interest In Exporting?

p class=BodySmall businesses looking to increase sales and profit, reduce dependence on the domestic market and stabilize seasonal fluctuations should consider exporting. Consider a href=http://www.sba.gov/business-guide/grow/export-import-products-trade-inte... facts/a: /pulliNearly 96 percent of consumers live outside the U.S./liliTwo-thirds of the world’s purchasing power is in foreign countries./li/ulp class=BodyToday, as noted by a href=https://www.export.gov/article?id=Why-Companies-should-exportExport.gov/a, it’s easier than ever for a company like yours, regardless of size, to sell goods and services across the globe. Small and medium-sized companies in the United States are exporting more than ever before./pp class=BodyIn 2013, for example, more than 300,000 small and medium-sized U.S. companies exported to at least one international market—nearly 28 percent more than in 2005. The value of goods and services exports was an impressive $2.28 trillion, nearly a 25 percent increase since 2010. And 2014 topped the previous year, with exports valued at $2.34 trillion./pp class=BodyThe following list is of a href=https://www.export.gov/article?id=Why-Companies-should-exportsales channels/a are available to global trading partners active in the export process,/ppstrongspan style=text-decoration:underlineSales channels can include/span:/strong/pulliDirect to end-user/liliDistributors in country/liliSupplier to the U.S. government in a foreign country/liliYour e-commerce website/liliA third-party e-commerce platform where you handle fulfillment/liliA third-party e-commerce where they handle fulfillment/liliSupplier to a large U.S. company with international sale/liliFranchise your business. /li/ulp class=BodyYou are not limited to one of these channels. As it is also noted in the a href=https://www.export.gov/article?id=Why-Companies-should-exportExport.gov/a study, today’s global trading system is ideal for the smaller company employing more than one marketing and sales channel to sell into multiple overseas markets. But most U.S. exporters currently sell to one country market—Canada, for example. And the smaller the company, the less likely it is to export to more than one country. For example, 60 percent of all exporters with fewer than 19 employees sold to one country market in 2005./pp class=Bodyspan style=text-decoration:underlinestrongTips For Potential And New Exporters/strong/span/pp class=BodyIn a recent report from a href=https://www.shippingsolutions.com/blog/export-basics-7-tips-for-new-expo... Solutions/a, these seven tips will provide helpful guidance for businesses new to exporting:/pp class=Bodyspan style=text-decoration:underlineTip #1 – Make a Commitment/span/pp class=BodyBusinesses new to exporting can expect to face numerous challenges such as redesigning packaging or establishing a new distribution channel. /pp class=Bodyspan style=text-decoration:underlineTip #2 – Do Your Research/span/pp class=BodyTo be successful overseas, do some research on potential markets. Which countries have the lowest duties? Write an international marketing plan, which addresses a range of potential issues such as unique labeling requirements./pp class=Bodyspan style=text-decoration:underlineTip #3 – Focus Your Efforts/span/pp class=BodyFor example, first-time exporters in Minnesota often target Canada as the first international market to enter. The proximity of Canada and the benefits of the reduced North American Free Trade Agreement (NAFTA) tariffs are advantageous for new Minnesota exporters ramping up on their export knowledge./pp class=Bodyspan style=text-decoration:underlineTip #4 – Set Aside Resources/span/pp class=BodyEntering new markets requires resources—primarily time and money. Companies in the best position to export already have an established track record of domestic growth and a steady revenue stream. For many companies, gearing up a business to export means having to reallocate resources from domestic business opportunities./pp class=Bodyspan style=text-decoration:underlineTip #5 – Increase Your Company’s Export Knowledge/span/pp class=BodyLook for opportunities to develop and expand the export knowledge of your staff. Work toward credentials to ensure you develop a baseline of skills. For exporting companies, encourage staff to attain the Certified Global Business Professional credential. /pp class=Bodyspan style=text-decoration:underlineTip #6 – Line Up Experts/span/pp class=BodyIt's unlikely that one person will know all aspects of the export process in full detail. As you prepare to export, establish a network of specialists with expertise across a range of issues such as export documentation, letters of credit, or international contracts. /pp class=Bodyspan style=text-decoration:underlineTip #7 – Leverage Government Resources/span/pp class=BodyThe U.S. Commercial Service, which has Export Assistance Centers located across the U.S. and offices in many American Embassies and Consulates overseas, is a global network of trade professionals who can provide ground support in many overseas markets to assist U.S. exporters. /pp class=BodyThe Small Business Administration (“SBA”) has published through its website at a href=http://www.sba.gov/business-guide/grow/export-import-products-trade-inte... useful tools/a to help get started with exporting. Note the following:/ppstrongStep 1: Complete the Free Export Preparedness Questionnaire/strong/ppDetermine your a href=https://www.usa.gov/import-export?source=busabusiness’s preparedness for exporting/a and find useful info about exporting that can help grow your exporting business./pp class=BodystrongStep 2: Training and Counseling/strong/pp class=BodyThe federal government offers free, in-person counseling services to help small businesses locate business opportunities overseas, understand shipping logistics and international payment options, and obtain financing for their export sales./pp class=BodystrongStep 3: Create an Export Business Plan /strong/pp class=Bodya href=http://www.sba.gov/exportbusinessplannerCreating an export business plan/a is important for defining your company’s present status, internal goals and commitment. You will learn how to develop an export plan by assembling facts, identifying constraints and setting specific goals and objectives as milestones to success./pp class=BodystrongStep 4: Conduct Market Research/strong/pp class=BodyUse a href=https://www.export.gov/Market-IntelligenceMarket Research/a to learn your product’s potential in a given market, where the best prospects exist for success, and common business practices. The a href=https://www.export.gov/ccgCountry Commercial Guides/a are the latest information prepared by commercial and economic experts in U.S. embassies worldwide./ppstrongStep 5: Find Buyers/strong/ppFederal, state and local governments are continually organizing highly focused export events directly putting U.S. sellers and potential foreign buyers in direct contact. /ppstrongStep 6: Investigate Financing Your Small Business Exports, Foreign Investment or Projects/strong/ppa href=http://www.sba.gov/business-guide/grow/export-import-products-trade-inte... familiar with SBA’s export loan programs/a and other a href=https://www.export.gov/Financial-Considerationsfederal government financing, insurance and grant programs/a./pp /pp class=Bodystrongspan style=text-decoration:underlineConclusion/span:/strong/ppExperience has shown that increased revenues and profits vis-a-vis an exporting business strategy can become a living reality by applying critical preparation and planning./p