The Ultimate Guide to Expand Your Small Business Internationally
It is true that the U.S. economy has been and is still on uneven ground for the last few months. Business owners are struggling to not only grow their sales but also even to stay afloat. Meanwhile, the International Monetary Fund has identified as many as 150 emerging international markets in the process of expansion.
For a U.S. business owner, this may be the ideal period to tap into the growing economies of these international markets. The National Export Initiative is helping pave the way for entrepreneurs who want to venture into international markets.
In the beginning, expanding overseas may seem very daunting because of the uncertainties that come with doing business outside the country. Oftentimes, questions arise about the cost and logistics of shipping across the globe and learning new customs and trade laws. Moreover, there is a concern of keeping up with fluctuating currency conversion rates.
This is where the National Export Initiative comes to the rescue. Without a doubt, over 70% of American exporting is currently done by small and medium-sized businesses. The primary goal of the NEI is to double the nation’s exports by providing a platform for U.S. businesses to go international. The program is meant to help American companies and small businesses to win more foreign government contracts and find buyers worldwide. Additionally, the program should participate in more trade missions, trade shows, and learn new ways to sell products and services overseas.
Below is how to expand your small business internationally. With the following tips, business owners can handle the opportunities that exist and avoid some of the potential pitfalls.
Identify a market
Conducting research on countries where you intend to do business is of paramount importance, whether you are importing or exporting. Researching is a vital step in deciding which firms you will buy from or sell to in the other countries. Furthermore, you will get to know which countries have a need for your service or product.
When identifying markets, entrepreneurs should pay attention to specific growth sectors within foreign markets. For instance, Vietnam has a high demand for electronics and fertilizer. On the other hand, Mongolia imports high volumes of sugar, industrial consumer goods, and cars. For an entrepreneur, conducting such a research will help you to know what to export to markets in these countries.
Market research helps in determining which international countries are most capable of meeting your economic, logistic, geographical, and political demands.
Know the rules
Obviously, there are customs, trade and shipping laws that will come into play when you begin exporting and importing business. Notably, these can vary greatly from one country to the next. These laws will govern how your shipment is received and the type of product you are sending.
For example, the life sciences industry will have a different set of laws than a single company selling electronics overseas. In addition, packing of the products may be different, depending on the product and the period it will take to arrive.
Find a good logistics agent
This is perhaps the most important decision to make when taking your firm international. Without a good logistics partner, the movement of your output from the manufacturing plant to international markets will be problematic. If your shipments do no reach the markets on time, you could put a quick end to your growth goals.
It is prudent to find a shipping partner that understands the intricacies of shipping overseas. Moreover, a good logistics partner will ensure that products arrive on time, in proper shape and in a cost-effective manner. Confirm that the logistics company should also have offices that are located within the major international ports and airports. This goes a long way to ensuring proper logistics management.
Secure sufficient financing
Typically, expanding business internationally requires additional funds. Fortunately, capital is generally available for business owners interested in expanding overseas courtesy of the National Export Initiative. In addition, the U.S. Small Business Administration’s program offers financing through its special loans and export loans programs. The U.S. Export and Import (Ex-Im) Bank also provides pre-export financing, export credit insurance, loan guarantees, and direct loans. On average, 85% of Ex-Im’s bank transactions directly benefit small businesses in the US.
Utilize free resources
The best news for entrepreneurs expanding internationally is that they are not alone. There are numerous U.S. government agencies and Chambers of Commerce are with you in your endeavor. They also will provide detailed information and a roadmap on what is you need to become a global company. Small businesses in the US can get help from the following bodies.
An excellent opportunity is knocking for American small business owners to go global. With thorough research, a well-defined strategy, and perfect guidance, you can cross those international barriers. Get in touch with us if you need help to take your business global.
