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concluding prematurely that it’s not worth the effort or that it’s easier to serve customers closerto home even if that business may not grow, and could very well shrink, in the future. Doing thehard initial work of deciding how you want to develop and grow your international sales increasesyour chances that the best options will be chosen, resources will be used wisely, and executionwill lead to a successful result. Remember that while 58 percent of all U.S. exporters export to onlya single market (predominantly Canada), many small exporters sell to more countries than theyhave employees, and these sales account for a growing percentage of total sales, without whichthey’d be toast. These mini-multinationals are becoming more common, and your company canbe one of them.Some Additional Benefits of Plans• Written plans display your strengths andweaknesses more clearly.• Written plans are not overlookedor forgotten.• Written plans may be required in seekingfinancing to build the export side ofthe business.• Written plans are easier to communicate toothers including new hires who come onboard as your business grows.• Written plans assign responsibilities,keep you on track, and provide ways tomeasure results.• Written plans allow for the articulation ofunexamined assumptions about you andyour business that can lead to new insightsand better plans and results.• Written plans give you a clearunderstanding of specific steps that needto be taken and help assure a commitmentto exporting over the longer term. The planrepresents a commitment to exporting.• With a written plan you’ll be less likelyto ignore inquiries or actual orders fromforeign buyers or not know what to do withthem when they arrive.A plan can help challenge assumptions, answer questions, and dispel fears, such as:• “No one outside the United States will buy my product.”• “I can’t think of a country market to target.”• “Acquiring export expertise is too expensive or time consuming.”• “If I can’t think of another country to enter, why bother with a written export plan?”Length of the PlanYour plan need only be a few pages to start, and you can use sections of this chapter to createone. The process of creating a simple plan will generate additional questions or areas ofinformation needed. So your plan will evolve and become more detailed as you gain experience.The Planning ProcessReading this book and acting on the information provided contribute to your export plan.Congratulations! You’ve taken a significant step toward planning for export success by thinkingand acting strategically. Here are some important preliminary questions to ask and the answerswill become an important part of the plan.Chapter 2: Developing an Export Strategy19
Product or Service• What need does my product orservice fill in the global marketplace?• What modifications, if any, must bemade to adapt my product for theoverseas market?Pricing Considerations• How much will it cost to get myproduct to market (freight, duties,taxes and other costs)?• Do I need special licenses orcertificates from my or the buyer’sgovernment?• Do I need to modify my packagingor labeling?• Given an estimate of the costs ofgetting my product to the buyer,what is my pricing strategy?• What, if anything, do I need toprotect my intellectual property?Promotion• What modifications, if any, should I make to my website to make it easy forpotential buyers to understand the value of my product or service, to contact me,and to make a purchase?• Should I sell my products on third party e-commerce platforms?• What kinds of social media should I use to build awareness?• Should I attend a trade show where international buyers are present?Management Issues Involved in the Export DecisionManagement Objectives• What are the reasons for pursuing export markets? Are they solid objectives (suchas increasing sales volume or developing a broader, more stable customer base),or are they frivolous (for example, the owner wants an excuse to travel)?• How committed is top management to an export effort? Is exporting viewed asa quick fix for slumping domestic sales? Will export customers be neglected ifdomestic sales pick up?• What are management’s expectations? How quickly does management expectexport operations to become self-sustaining? What level of return on investmentis expected?Experience• With what countries has businessalready been conducted, or fromwhat countries have inquiries alreadybeen received?• Which product lines are talked aboutthe most?• Are any domestic customers buyingthe product for sale or shipmentoverseas? If so, to which countries?• Is the trend of sales and inquiries upor down?• Who are the main domestic andforeign competitors?• What general and specific lessonshave been learned from past exportattempts or experiences?20U.S. Commercial Service • A Basic Guide to Exporting
Page 1 and 2: A BASIC GUIDE TOEXPORTINGThe Offici
Page 3: export.gov/basicguideLibrary of Con
Page 6 and 7: Table of ContentsChapter 1: Introdu
Page 8: global GDP and 30 percent of global
Page 11: A GEE might consist, for example, o
Page 14 and 15: Success StoryPedaling Through Trial
Page 16 and 17: Chapter 2Developing anExport Strate
Page 18 and 19: specified in the EAR under a specif
Page 20 and 21: All U.S. businesses have many ways
Page 23: Answer these 11 questions:1. Which
Page 27 and 28: Sample Outline of anExport PlanTabl
Page 29 and 30: 5. Current Trends and Practices•
Page 31 and 32: 16. My Product’s Harmonized Code
Page 33: Success StoryDownloading NewInterna
Page 36 and 37: This last advantage is especially i
Page 38 and 39: Gathering and evaluating secondary
Page 40 and 41: Drawing ConclusionsAfter analyzing
Page 42 and 43: United Nations Statistical Yearbook
Page 44 and 45: Private-Sector Product and Industry
Page 46 and 47: Success StoryHelping Feed the World
Page 48 and 49: Chapter 4Export AdviceIn this chapt
Page 50 and 51: Some of the more important services
Page 52 and 53: the important difference that the b
Page 54 and 55: at no cost to the small business ex
Page 56 and 57: A commercial bank can perform many
Page 58 and 59: location and construction of manufa
Page 60 and 61: To prevent reverse engineering in C
Page 62 and 63: We are agnostic on the question of
Page 64 and 65: Distribution ConsiderationsHere are
Page 66 and 67: Often, the first company does not p
Page 68 and 69: your ability to terminate agreement
Page 70 and 71: Once your company has prequalified
Page 72 and 73: Choosing a ForeignRepresentative or
Page 74 and 75:
Success StoryDon’t Wait—Innovat
Page 76 and 77:
Chapter 6Finding QualifiedBuyersIn
Page 78 and 79:
companies are available from many p
Page 80 and 81:
Trade Fair Certification Program (e
Page 82 and 83:
Millennium Development CorporationT
Page 84 and 85:
Who Is the “Ideal”International
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Scores of new franchising concepts
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Success StoryCast a Wide Net to Cat
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Chapter 8Preparing YourProduct for
Page 92 and 93:
You can also contact the Office of
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training seminars, or DVDs. Zeigler
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The ChallengeSmith first looked tow
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encompasses services in transportat
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give U.S. companies a competitive e
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Success StoryRecruiting New Franchi
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Chapter 10International LegalConsid
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For more information from the U.S.
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When goods enter a bonded warehouse
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under the UCC. Older works may also
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Trade names are also protected on a
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knowledge, in turn, promotes furthe
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prevent him or her from obtaining a
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Business-to-Consumer E-Commerce Wor
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Because such a website is often sta
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An online exporter may choose to pu
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important to identify and incorpora
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other business contacts) options re
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Success StoryGrowing Strong withInt
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Chapter 12Shipping YourProductIn th
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One popular method of shipment is t
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Certificate of ConformityRequired b
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The cost of the shipment, delivery
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To learn more about comprehensive r
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China but needed to do a lot of hom
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price is too high, the product or s
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CompetitionIn the domestic market,
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Commonly Used TermsIt is important
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Success StoryAligning Innovationwit
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Chapter 14Methods ofPaymentIn this
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Letters of Credit and Documentary C
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You must provide documentation show
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associated with open-account trade
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payment. This is because the export
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ut they were willing to make the sm
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• The need for preshipment financ
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Thus it is in your best interest to
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to support ongoing export sales or
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To be eligible, a business must hav
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Medium Enterprise Department and OP
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Success StoryManufacturingInternati
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Chapter 16Business TravelAbroadIn t
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Planning an ItineraryTravel agents
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Business Culture TipsAlways answer
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Gift giving is an important part of
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particularly intense issue. So the
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Here are a few suggestions.• Expe
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Building a Working RelationshipOnce
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negotiations and agreements with it
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Chapter 18Rules of Originfor FTAsIn
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5. Determine if the foreign content
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The original ROOs are listed in an
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Example Rules of OriginCombining Mu
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Israel, Jordan, Morocco, Bahrain, a
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The importer may ask the exporter w
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Generic CertificatesIf a good does
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Architectural Association of Kenya
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Appendix A: Glossary of TermsAdvanc
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Export-Import Bank of the United St
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Market SurveyReport that provides a
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Appendix B: Definitions of Abbrevia
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Appendix D: FormsHere, you will fin
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228U.S. Commercial Service • A Ba
Page 218 and 219:
Tech International1000 J Street, N.
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COMMERCIAL INVOICESELLER: INVOICE N
Page 222 and 223:
Copyright © 1998 UNZ & CO.SHIPPER/
Page 224 and 225:
DEPARTMENT OF HOMELAND SECURITYU.S.
Page 226 and 227:
PACKING LIST© Copyright 2001 Unz &
Page 228 and 229:
1a. U.S. PRINCIPAL PARTY IN INTERES
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U.S. $13220of this FIRST of Exchang
Page 232 and 233:
IndexAA2ASee account-to-account (A2
Page 234 and 235:
Global Entrepreneurship Ecosystem (
Page 236 and 237:
Swinko, RonSee Jet IncorporatedSzuc
Page 238 and 239:
International OfficesAfghanistanKab
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