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As featured in SUCCESS Magazine June 2010. There's never been a better time to take your business global. Find out why here.

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Page 1: Go Global Now!
Page 2: Go Global Now!

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60 sLtccFSS jrii.ii 2010

Page 3: Go Global Now!

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SUCCESS JUNE 2OIO 61

Page 4: Go Global Now!

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Second, the Internet has exponentialiy increased the ease of workingwith international customers and suppliers. "Technology erases boundaries

,presrclent ot Glotlelrade, a management consultlng and marketlng solutions

trong push to boostexporting, particularly by smal1 to midsized businesses, by providing moreresources and expertise, and making financing more available.

There's never been a better time to go global, says Delaney: "You have

"o

STEPS TO SELLINGWant to sel1 your products internationally? The first step is determining

the right market. Delaney suggests these Web sites as good resources:BuyUSA gov, Exp6itgov-rc-lffie-rade.com and the Internarional TradeAdministration's Trade.gov These sites have information and reports specificto markets and industries, prepared by experts and available lor freeshe says.

Look for a country that nor only has high demand for your product, butis also easy to work with. English-speaking countries, such as the U.K.,Ireland, New Zealand and Australia, are easy to do business with in terms oflanguage, shipping and paymenr. Delaney says.

One way to keep things simple-F6f.-Amg online. For Couch, globale-commerce happened naturally, as international consumers discovered thesite. "If you have something that is truly [unique]," says Perkins, "having a

Web site flauens the globe."

Good search-engine optimization is essential for anyone seiling online.

"IF YOU HAVE SOMETHING THAT ISTRUTY [UN|OUE], HAVTNG A WEBSITE FTATTENS THE GLOBE."

"SEO is like the new Yellow Pages," Perkins says. "lfyou can get listed high insearch results, you're in the world's phone book."

Once your site is optlmized for search engines, "market, market, marketvia every lmaginable platform-blogs, Facebook, YouTube, Twitrer andLinkedln," Delaney says. "Keep a conversation going worldwide on what's so

gt.rt ubor.,t

meisaraGgy- wofledloiCouch. The company's Web sire, blog and e-mailnewsletters emphasize that the products are made tn the United States andhighlight well-known musicians who have purchased the straps-inciudingBeck, The White Stripes and Keith Urban. Perkins believes authenriciryand personal relationships wtth customers are essential, so Couch sendspersonalized responses to orders and includes handwritten thank-you notesin every package. As satlsfied customers blog about the products (and thecustomer service), word has spread worldwide.

While Couch lets internatlonal e-commerce grow organically, you canalso target your strategy. "If you know you want to se1l in Brazil, lor example,then make that clear on your site Brazil opportunities, clich here-andhopefully have that page translated in Porruguese," Delaney says. 'A sma11,

62 SUCCESS JUNE 2OIO

RESOURCES1:i The first step toward global trade is doing youri':. homework. Fortunately, there are dozens oft.1 resources available to help you. Below are some. ofthe best.

-l Alibabd,C0lTl-search for products, manufacturers,

,,:r wholesalers 0r buyers' sources by country, region

a:,: 0r category.

:} BUyUSA.gOv-rnis u.S. commerciat service web

r:..: site has information for both importers and exporters.

,;,: Find U.S. Export Assistance Center 0r U.S. Commercial

irf Service locations near you, as well as country-

fl Export,g0v-The U.S. government's export portat

-:), brings together resources from all the government

..; agencies that deal with exporting. You can find market

=,,,1 research, trade leads, financing information and more.

r:,* Federation of lnternational Tradeii Associations (FlTA,org)-Find internarionar

il:: import/export trade leads and events, as well as links.r.'ri to 8,000 international trade-related Web sites.

il e tonatsources.colJl-source products ontine 0r

:.: find trade shows, events and industry-specific reports.

,1* G lobeTrade, co m-rn is

market, export, im

;iil I nternational Trade Adm in istrationa! (Tfade.gOV)-Find a tocat tTA office, counseting,.::i trade missions and events, research and more.

rISBA's 0ffice of lnternational Trade(s ba. q ov/abo utsba/sba0 ro0 ram s/ihte rnlationaltrade/i ndei. trtin t;-e'tinformation about programs t0 help you import, exportor finance global trade.

r,tTrade Show News Network (TSNN.com)-,i Find vendors and trade shows worldwide.

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company helps

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Page 5: Go Global Now!

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Globol GuiloristDon Perkins exponded his vegon guitorstrop business from his goroge to o globolmorketploce using the lnternet.

recognizable icon, such as a country's flag, helps enormously for visitors

in determining where business gets conducted."

You've made the sale; now how do you ship? If you're shlpping a

big order to a distributor, you may want to hire a broker or freight

lorwarder to handle shipping and customs lssues. If you're selling direct

to customers, like Couch does, FedEx, UPS or the U.S. Postal Service

(USPS) are options. Because Couch wan[s to keep cuslomer costs low,

Perkins uses USPS plus Endicia postal software (Endicia.com). "Even ifyou're starting small, if you want to do it we1l, set up that type of program

to ship," Perkins recommends. "You'll be that much more organized and

efficient, and won't spend time standing in llne at the post office ."

Whether seliing directly to consumers or to distributors, how do you

ensure you'll get paid? For smaller transaclions (under $5,000), Delaney

_ t:gg.ryuym€nt methods such as PayPal

.For larger transa@

.'ffierences, trade associations and your bank's internatlonal trade deparr

ment to assess a new distributor's reputation. "Use the resources backed

by our tax dollars, such as the U.S. consulate or U.S. embassy in that

60untry," Delaney adv ises.

Comilunicatron is key, she adds: "You h4ve to f,nd oul how much

'i ybu can'trtXst eacil other and what you dan er$ect,of each party." Once

you're comfortable with the distributor, you may be able to ask for partial

payment before you ship the product, or even get a down paymenl tofinance making the product.

Sales to distributors are not high-priority for

Couch, whose business model is to ellminatethe middleman. But when dlstributors in Tokyo,

Austria and Germany found the company, Perkins

built relationships gradually: 'Just like in the

United States. we start someone out with a sma1l

order and see how it goes."

Today, Couch guitar straps are sold directto consumers worldwide and in approximately70 stores in the United States and overseas; the

company has also launched a line of vegan camera

straps, belts and wallets.

STEPS TO SOURCINGLooking to source products overseas? The

Federation of International Trade Associations(FITA.org) rs a good place to begin your search.

You can also get help from your state's Commerce

Department, the U. S. Commercial Service Products

and Services (Trade.gov) and Export.gov's Gold

Key Matching Service (export.govAalesandmar-

keting/eg_main-018195. asp).

Attending an international trade show is a smart

way to get started. At trade shows, you'll findproducts, manufacturers and brokers to help you

with the complexitles of international sourcing.

Adam Rizza took the trade-show route when

> 5 BIGGESI DO'S AND Dr,N'TSWhen Doing Business Overseos

1. 00 keep it simple. Start in English-speaking countries with a

legitimate banking system and established transportation methods and

regulations. "You want to import, export and manage payment without

major hassle," says global expert Laurel Delaney.

2. 00il'f overlook communication. trust and understanding

are crucial to the success 0f any international business relationship.

"[0ngoing] miscommunication and misunderstandings should be a red

flag," Delaney says.

3. D0 have a unique product. Whether importing 0r exporting,

"someone in another country will undercut you 0n price," warns small-

business owner Dan Perkins, "so make sure you have a product that

doesn't exist anywhere else."

4. D0il'Ttry to go it alone. From free resources provided by

the government t0 freight forwarders, brokers and consultants such as

GlobeTrade, there are myriad sources t0 assist you.

5. D0 be cautious. "Anything that comes out 0f nowhere and l00ks

like you can earn fast money is probably a scam," !9]gleylryqns,--'lf it

s0unds too good to be true, it probably is."

SUCCESS JUNE 2OIO 63

Page 6: Go Global Now!

G*Ir.{GGL@BAL

he began seeking overseas sunglasses suppliers. He and his brother,Wa11y, began retailing sunglasses at kiosks in 1995; by 1999, theirIrvine, Callf., company had 25 locations. But the product availablein the United States "wasn't cool enough," he recalls. Rizza attendeda trade show in Hong Kong, found brokers, and the brothers beganimporting.

Sourcing overseas revolutionrzed the Rizzas' buslness model.Today, their business is primarily wholesale. Sunscape EyewearInc. (of whrch Adam is president and CEO), imports and distributessunglasses, readers and optrcals to 1,500 boutiques and 32 majorretailers worldwide. Their retail business, Rizza & Associates (of

which Wa11y is president and CEO), has four southern Californiakiosks they use as testing grounds to see what products sell.

"There are all these myths about [overseas] factories," Adam says."That's why we went with brokers at first-you pay a litt1e bit more,but they manage it lor you and guarantee you'11 get rhe product."By 2000, however, the Rizzas were ready to start dealing direct."Through the brokers, we lound factories and slowly began commu-nicating with them," Adan-r says.

While some preliminary communication can be done vla e-mailand phone, when sourcing overseas, Adam cautions, "That face-to,face meeting is priceless. Anybody can te1l you they have a milllon-square-foot factory and send you someone else's pictures-and,unfortunately, a lot of people do that."

Meeting in person is essential to assessing a company's trustwor-thiness. "You don't go to China and spend a day at rhe facrory; youspend a couple weeks," Adam says. "You're living with them, seeing

therr day-to-day operations and understanding what rhey're about.When you meet the rlght people, you'l1 feel that comfort zone." Ofcourse, you should also do your due diirgence, just as you wouldwith an overseas distributor.

Asyou get quotes

lrom potentialsuppliers, assess

the bottom line."Bringlng some-thing from overseas

5 revolutionized lheirF business modelf bv beoinnino toa'E SOUTCe OVerSeOS.

is ve ry expensit'e To manage the logistics of importing, including shipping, paymenttransportation- and cusloms, most businesses hire a lreight forwarder. "Look forwrse," Delaney one that is well-versed in the region where you're doing business,"says. "wffi Delaney says. Depending on the scale of your importlng, she says.

you trying to .rtaccomplish Ibyimportingl? Is the

net result going to

be a cost savings?"

For importrng tobe worthwhile, you

Eye on ExponsionThe Rizzo brolhers

ng at first,

"It's like getting the first olive out of the.lar, and then the rest justtu

Culturcl lssues to Wotch Out For

Doing business overseas requires sensitivity to culturaldifferences. "As in anything new, you must take time tounderstand and learn to respect people, however different theymay be," says global expert Laurel Delaney. Her tips:

+ Fallow your foreign csiltacts' lead. "Pay attention to how

[they] do things, and try to model that behavior," she says.

r ASk a lot af qiiestions. "This not only helps you understandhow they do things, but conveys that you sincerely care,"Delaney says.

+ Get an introdUCtion. tne lnternational Trade Association'strade missions are a great way t0 learn about a new country;organizers not only arrange lodging and appointments for you, butalso explain cultural do's and don'ts.

+ For women only: Women still face extra challenges in manycountries. Depending on the region, Delaney says, you may need

to put a male employee in charge oltourlniEineftnat business.

+ D0 y0ur homework, using all the resources available to learn

what is expected. Two books Delaney recommends: Gestures: The

Do's and Taboos of Body La@ound the Wortd,by Roger E.

Axtell, and Leading with Cultural lntelligence: The New Secret to

Success, by David Livermore.

typically need to be doing a large volume of business or getring a

product you can't get anywhere else. Adam Rizza, for example, uses

Chinese factories to produce his own eyewear designs more cheaplythan he could in the United States.

Also analyze the demand for the product locally and know howyou plan to sell it. "Have an axis of drstribution before you buyanything," Adam Rizza warns. "You don't want to get stuck withproducts-that's how companies go belly-up."

but if you do your homework, take advantage of rhe many resourcesavallable and start small, it can spur your business to heights younever irnagined.

market or nrst customer, you'll want lo do more of the same." 5

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64 SUCCESS JUNE 2OIO

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