In deciding to become a exporter, a small firm needs to decide whether it has a product suitable for export, can reliably supply foreign countries, can offer foreign buyers satisfactory proces and credit terms, and is willing to commit the time and skills necessary.

Key subject areas of exports are export planning, information and research gathering, preparing product and market profiles, distribution and pricing, financial aspects including product costing and terms of payment, and documentation.
 

Opportunities and challenges in exporting

• Expansion of markets and product diversification.
• More effective use of labor force and facilities.
• Lower labor costs in most countries.
• Availability, and lower cost, of certain desired natural resources.
• Potential for higher rates of return on investment.
• Tax advantages.

• Obtain qualified export counseling and develop a master international marketing plan before starting an export business. The plan should clearly define goals, objectives, and problems that may be encountered.
• Secure a commitment from top management to overcome the initial difficulties and financial requirements of exporting. Take a long-range view of this process.
• Select overseas distributors carefully. International communication and transportation require international distributors to act more independently than their domestic counterparts.
• Establish a basis for profitable operations and orderly growth. Unsolicited trade leads should not be ignored, but the successful exporter will not rely solely on these inquiries.
• Continue to pursue export business even when the U.S. market is healthy.
• Treat international distributors on an equal basis with domestic counterparts, offering similar advertising, special discounts, sales incentive programs, special credit terms, warranty offers, etc.
• Do not assume that a marketing technique that works in Thailand will be equally successful in France. Treat each market individually to ensure maximum success.
• Be willing to adapt products to meet regulations or cultural preferences of other countries.
• Print service, sale, and warranty messages in local languages.
• Provide readily available servicing for the product.

Related Web Sites

http://www.inc.com/idx/idx_t_Qc.html
Provide good resources for entrepreneurs and small business owners in exporting.

http://www.js7.com/export
Explain how to go global effectively with small business.

http://www.citivu.com/inland_empire/doc-eac
Explain the roles of Export Assistance Centers (EACs) which holds the keys to export success and open the door to worldwide opportunities for entrepreneurs.

http://strategis.ic.gc.ca/SSG/mi01459e.html
Provide Ten Steps checklist to export success