Export Readiness Review
An export development plan can help bring success overseas.

By Brian Gauler

     When organizing your export development plan, there are four key topics to consider:
1.    Marketing and sales
2.    Shipping and documentation
3.    Banking
4.    Legal

The most important is marketing, or making the sale. You can accomplish the other export functions with help from foreign freight forwarders, international bankers, legal counsel and trade assistance organizations (state and federal trade specialists). And, in most cases, you can pass on much of the costs to your foreign customer.

Getting Started
To keep your initial assessment simple, focus on two aspects: The things that are essential to global marketing success, and the things other qualified service providers can do for you so you can market and sell your products or services. Two necessities are your ability to serve identified markets and having someone to “champion” your efforts.

Current Business Status
How well your company is serving the domestic market is an excellent indicator of how ready you are to serve the same needs in foreign markets. It’s been said that international business is simply applying the principles that make a company successful domestically, with a basic understanding of a few cultural nuances. Marketing 101 always has been based on the “Four Ps”—product, price, promotion and plan. Those are a good place to start your evaluation.

Rate yourself on the following business aspects on a scale of one to 10. One means you need work, and 10 means it is a company strength.

•    Increasing sales. You have a history of increased sales over a period of time. This is an indicator of your product acceptance in the marketplace.
•    Ability to respond to company inquiries. You have printed information for your products, as well as corporate information that explains who you are—promotion.
•    Receipt of unsolicited inquiries from overseas. Although not an “essential,” these are an excellent indicator your promotional efforts are creating market interest.
•    Competitive price. The international markets tend to be more price-competitive than the U.S. market, so pricing can be a big initial issue.
•    Following your domestic marketing plan. A good marketing plan can be essential for keeping on track and using limited resources wisely.

Champion
It takes more than good intentions to make things happen. In the global markets, having a “champion” to lead the way is essential. If there is no designated person in your company who takes to heart your interest in exporting, it simply won’t happen.

Although many items are necessary for your company to export successfully, you can appoint service providers to help with most of them. They generally are better qualified to handle these issues than your staff. Even large, successful companies who have exported for years continue to use a freight forwarder, international banker, attorney and trade specialists. By forming an export support team of these service providers, you can spend your time on making the international sale. Without a sale, nothing else will happen.
 
Shipping and Documentation
Once you make an international sale, you have to get the goods to the buyers. The Foreign Freight Forwarder is the service provider who can do that for you. The freight forwarder books the shipment, assists in providing all correct documentation, and can even provide insurance and other services (e.g., export crating) as needed.

Getting Paid
Most companies already have a banker, but for global marketing, you should use an international banker. If the bank has an international department, then it’s probably an international bank. If it doesn’t, it can provide you with international banking services, but will do so using another bank with an international department. Although that can work, it usually isn’t the best way because you are adding another party in the transaction. The international bank can help with methods of payment for your overseas sale and financing programs specifically designed to assist the exporter.

Legal Considerations
Two initial legal concerns generally include contracts. The first is the type of contract needed to form a working relationship with an overseas distributor or representative. The second is over international property rights (i.e., patents, copyrights, trademarks and trade secrets). Good business practices dictate using qualified legal counsel.

Overseas Contacts
Another big issue facing companies that are new to exporting is how to make contact with an international company that is interested in buying your products for resale in the foreign country. Most U.S. companies go to market internationally the same way they do domestically, using distributors or manufacturer’s representatives. How do you find them? Trade contact services are available from Missouri’s International Trade and Investment office and the Kansas Department of Commerce Trade Development office. In addition, the U.S. Department of Commerce offices in Kansas City and St. Louis provide trade contact services. The World Trade Center in St. Louis and Kansas City are additional trade contact resources.

Exporting is a big step for most companies. But with the proper assistance and a company champion to lead the way, the world can be your market!

Brian Gauler is director of business development for Environmental Dynamics Inc., in Columbia, Mo. He can be reached at (573) 474-9456 or .