International Business
- Is my product or service needed in other countries?
- Will my product or service have to be adapted for international markets?
- How should I market my product or service internationally?
- Do I need to translate my sales literature?
- Will I need to learn another language?
- How do I learn about differing customs that could affect my company, product, or way of doing business?
- How should I ship my product overseas?
- How can I finance my international sales?
- How can I ensure I'll get paid for my international sales?
- How long will it take to see a profit from international sales?
- What agencies, groups, or others can provide assistance to my company on the various facets of the exporting process? How much will this expertise cost?
1. Is my product or service needed in other countries?
Before you make the decision to "go international," make certain that there is a market for your product or service. State and federal trade development agencies publish trade
statistics and country market reports that can help you learn more and make informed decisions.
2. Will my product or service have to be adapted for international markets?
The factors that will determine whether you need to modify your product or service for your target markets are government regulations, nongovernmental standards, geography and
climate, cultural sensitivity, and servicing.
3. How should I market my product or service internationally?
Strategies that work in the United States probably won't work in Japan or China and may not work in Europe or Latin America without some adapting. Learn more about specific
strategies by talking to experts in the countries in which you're interested.
4. Do I need to translate my sales literature?
If you are serious about succeeding in the market, it is strongly recommended that you translate your marketing materials into the language of the prospective buyer. You'll also
want to convert all measurements from the U.S. system of measurement to the metric system, which is used by virtually every other country of the world.
5. Will I need to learn another language?
Having someone within your company who is capable of speaking in the language of the culture in which you are doing business demonstrates commitment to the market. While it's true
that much international business is conducted in English, to be truly successful you must respect your partners' culture. If necessary, hire a translator or interpreter.
6. How do I learn about differing customs that could affect my company, product, or way of doing business?
The best way to learn the ins and outs of doing business in another country is to travel there to learn and to have face-to-face meetings. But, first, do your homework. There is a
growing body of resources available on each country's history, social and political systems, protocol, and business etiquette available online. Many firms specialize in intercultural
communications for businesspeople, whether traveling or hosting foreign visitors.
7. How should I ship my product overseas?
A successful export program uses reliable, cost-effective transportation. The buyer should compare competitive products on the basis of delivered cost. Your company
needs to make sure that the product is delivered in good condition and on time, and that the cost is kept in line with that of competitive products. The transportation choice,
therefore, should blend the most cost-effective of these factors.
8. How can I finance my international sales?
A top concern of most new exporters is where to get help at both pre- and postexport financing stages of the export process. Pre-export financing is the financing required of the
exporter that covers the period from building the product to shipping. Postexport financing refers to the financing that spans the period from shipment through receipt of payment from
the overseas buyer. Government sources of export financing are the SBA Export Working Capital Program and EX-IM Bank's working capital guarantee program.
9. How can I ensure I'll get paid for my international sales?
Before making the sale, evaluate the risks of doing business in a particular market. Once you and your buyer have come to terms, you will need to agree on one of the many
different methods of payment, including cash in advance, letter of credit, and open account.
10. How long will it take to see a profit from international sales?
Naturally, the time from when you initiate your international activity to when you make your first sale and start enjoying profits will vary greatly from firm to firm and depend
on your export experience and the challenges of the market. In general, expect the turnaround to be at least one to two years.
11. What agencies, groups, or others can provide assistance to my company on the various facets of the exporting process? How much will this expertise cost?
SBDC consulting services are free. Its education and training programs are offered at a nominal fee. Industry trade associations also sponsor a variety of programs specific to
their industries. Watch the business calendars in the local media and on this Web site to keep up with export training opportunities.
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