go global now!
DESCRIPTION
As featured in SUCCESS Magazine June 2010. There's never been a better time to take your business global. Find out why here.TRANSCRIPT
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SUCCESS JUNE 2OIO 61
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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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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."
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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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