Small Business Guide to Exporting - Basics of Import-Export - FOB Business Forum [A Professional Business Forum]

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Post at 2006-6-11 10:09 Profile Space Site P.M. Buddy

Small Business Guide to Exporting

This article is published by U.S Small Business Administration , help small business to export. It also can help non-US companies on business beginning.FOB Business Forum Z.d%d6z!A!|
FOB Business Forum)H V3i-Q'j!V.Y2m2N
Breaking Into the Trade Game: A Small Business Guide to Exporting[A Professional Business Forum]#?:Q ~0B5\

This publication is the product of a private/public sector initiativeFOB Business Forum'c9T#o3},_*C)C
between the U.S. Small Business Administration and AT&T.  SBA'sFOB Business Forum-m:K.G!r2k/p
participation in this co-sponsorship activity does not constitute an
expressed or implied endorsement of the co-sponsors' or participants'[A Professional Business Forum]9Y,s)o:e0Q6b
opinions, products or services (SBA Authorization Code #93-13-4924710-1). forum.fobshanghai.com#}%H.u%d%}!c
For more information on SBA's programs, call 1-800-8-ASK-SBA.,C5J)q$i0O-Y#T7`2N
FOB Business Forum5k'g6V2\-u
Co-sponsored by the U.S. SMALL BUSINESS ADMINISTRATION AND AT&T.
FOB Business Forum(L.Q.K+~0v;V"\*z
Breaking Into The Trade Game:  A Small Business Guide to Exporting wasbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business/c:N.y7@-}7P
produced under the guidance of G. A. Chiaruttini, Deputy Director, Office
of International Trade, U.S. Small Business Administration.  Special-d3s Q/r2U)h!A:k5f7T
recognition is given to the Editorial Staff of Colleen Allen, Catherine
Funkhouser and Patricia Lefevre, Export Development Specialists, Office of[A Professional Business Forum]0O(V9J;{1M+X;U
International Trade.  A special thanks to Sonja Katharina Satl who provided5N's8p;S7w
meticulous editorial support for this project.  Kathy Parker and Sheldon
Snook, Office of International Trade; Ray Williams, Regional International
Trade Officer, Kansas City, Missouri; and Gene Brosterhous, International
Trade Director, National SCORE Office, also provided additional editorial
support.  Developing Your International Business Plan was written at the q%x)a:j+}6m'a1l
Lake Michigan College Small Business Development Center (SBDC) and
International Business Center.  The materials and worksheets were adaptedbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business-W1{#n4R;Q5U0F
from the Oregon SBDC publication, "Your International Business Plan" atforum.fobshanghai.com }"n5`9~,h"m'U(?0^5M)I
Portland Community College.  The Lake Michigan College SBDC is partially
funded under Cooperative Agreement No. SB-2M-00092-09 by the U.S. Small
Business Administration.  Layout and cover design by Signal Communications,
Bethesda, Maryland.  Breaking Into The Trade Game:  A Small Business Guideforum.fobshanghai.com*|9w)c"V/j-a"X*M/`*h
to Exporting was produced by the U.S. Small Business Administration with/E2~"k4?8U,C0s
the assistance of The Global Source, Inc.

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#2

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Introduction

The U.S. Small Business Administration's (SBA) Office of International[A Professional Business Forum]5a.y'Q$w0A
Trade (OIT) developed this Trade Guide as an information tool to assistFOB Business Forum4b5H)w9L1v*O
American business develop international markets.  This Guide will helpforum.fobshanghai.com"h.f9H%B6y$r4b
answer questions and take the mystery out of exporting.  The United States
government has committed enormous resources to help small businesses, like
yours, reach overseas markets.  Did you know that:[A Professional Business Forum]"p%Y;r;i2m'i1v0I4|
[A Professional Business Forum]%|$P-~,S*t#M
. the U.S. Small Business Administration (SBA) employs 76 District
International Trade Officers and 10 Regional International Trade Officers[A Professional Business Forum]5{!S.{"a9j)T
throughout the United States as well has a 10-person international trade
staff in Washington, D.C.;
. the SBA, through its Service Corps of Retired Executives (SCORE)(I/V!D"R!R0_9k
program, oversees 850 volunteers with international trade experience to
provide one-on-one counseling to active and new-to-export businesses;
. the SBA made 348 loans nationally to exporters for more than $123
million in FY 1991 and 617 loans for more than $241 million in FY 1992;
. the SBA supports over 900 Small Business Development Centers (SBDCs). forum.fobshanghai.com,K6a8|.@(u2m!T
Some SBDCs have designated international trade centers; all SBDCs provide
export counseling, referral and/or training;
. the SBA coordinates the Export Legal Assistance Network (ELAN), abusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business'H9]1o/e!u&x1l5I-u
nationwide group of international trade attorneys who provide free initial!h5l4`;d&l4c7V
consultations to small businesses on export related matters;
. the U.S. Department of Commerce (DOC) International Trade
Administration (ITA) U.S. and Foreign Commercial Service (US&FCS) has 68business forum,trade forum,business opportunity,Business China,Business India,Brazil business8e!`&l+O1G |4|1V
offices throughout the United States and 120 overseas posts, representing
95 percent of the world market for U.S. products and services;FOB Business Forum5f-U!\9f:O:{8_'x#W$K'@
. the ITA in Washington, D.C. has industry-specific specialistsforum.fobshanghai.com,]"N7q)K&o*|9d
monitoring export opportunities for U.S. products and services in every
sector, from abrasive products to zippers;[A Professional Business Forum]-b%L6C;y3@*}-E9W
. the DOC sponsors 51 District Export Councils (DECs), comprised of
nearly 1,700 business and trade experts available on a volunteer basis toforum.fobshanghai.com&@+N7Y3l&_;B,`
help U.S. firms develop export strategies;
. the DOC Minority Export Development Consultants Program supports more
than 107 Minority Business Development Centers throughout the UnitedFOB Business Forum*J1?8t+a(P"r6l6A
States;(R-R1a7D(@9j3| V
. the U.S. Department of Agriculture (USDA) Foreign Agricultural Service
(FAS) maintains a $30 million budget for export promotion of U.S.FOB Business Forum8p;V$|4J!X(I6Z
commodities through trade fairs and other activities;9V1`:P%d-C.x,\8H
. like DOC, USDA has a large group of country specialists focusing on a$r k1t9t&}:D;V6x
range of products from oilseeds to poultry;
. the Export-Import Bank of the United States (Eximbank) has trainedFOB Business Forum*|6W,U6P5a.y
specialists in 24 states and in Puerto Rico through its City/State programFOB Business Forum)G/P2P%c(S$o&m$Q
to provide export financing assistance to small businesses; [A Professional Business Forum]!U"v'l*o(?2_7O
. the Eximbank has financed over $11.3 billion of U.S. exports in 1991,
with 18.4 percent of Eximbank's authorizations going to support small
business exports?

The SBA and a multitude of federal, state and local government agencies areFOB Business Forum$_(q$R!h*Q3t
ready to assist you in opening new avenues of opportunity in theFOB Business Forum3h5N:p9`7L;L)j o,t3q1W7O4H
international marketplace.  With their help, and with the information[A Professional Business Forum]8Q9N)f!f#F3s9q!q"N*{
contained in this guide, you will find that access to international marketsforum.fobshanghai.com"n7t$M:d2o0K
is possible and profitable.

vip (Richard)

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#3

Post at 2006-6-11 10:10 Profile Space Site P.M. Buddy

Overview

A SMALL BUSINESS EXPORT SUCCESS STORYFOB Business Forum-x-C3_+J4O4D(r:j7E.]
FOB Business Forum/z$E7I$i't&m3B5J
Small businesses throughout the United States have gained international
exposure and increased profits through exporting. Consider the case of[A Professional Business Forum]0k5y-v1m0]9]1q3B0u
Novi, Inc., a California-based business.  Company President Michael Stoff,g${;L7[5?2`%a+D
tells his story:

"In November of 1986, when I began my business venture, Novi, Inc., I knew
that my Tune-Tote (a stereo system for bicycles) had the potential to be[A Professional Business Forum] x7G2`#{.u/S
successful in international markets.  Although I had no prior experience in[A Professional Business Forum]7P#B8U7s%n3R
this area, I began researching and collecting information on international
markets. I was willing to learn, and by targeting key sources forFOB Business Forum$h5g-[!Q"r1K#j'`"C:?
information and guidance, I was able to penetrate international markets in
a short period of time.  One vital source I used from the beginning was
SBA.  Through SBA I was directed to a program that dealt specifically with
business development -- the Service Corps of Retired Executives (SCORE). FOB Business Forum9T7S)n7F(h
I was assigned an advisor who had run his own import/export business for 30forum.fobshanghai.com-[,K-q8p%N5{#X {
years. The services of SCORE are provided on a continual basis and areFOB Business Forum:?9y+H/\5e/N
free. As I began to pursue exporting, my first step was a thorough
marketing evaluation.  I targeted trade shows with a good presence of
international buyers.  I also went to DOC for counseling and informationbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business8V2n;M%w/M
about the rules and regulations of exporting.  I advertised my product in
Commercial News USA, distributed through United States embassies to buyersFOB Business Forum*@4D.j5h&z"X
worldwide.  I utilized DOC's World Traders Data Reports to get backgroundFOB Business Forum%X-S:a.z,N5?(j/n!I
information on potential foreign buyers.  As a result, I received 60-702s'b"],X"B,D.S+k
inquiries about Tune-Tote from around the world.  Once I completed mybusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business*u&[$V5j(Q+h6C)J
research and evaluation of potential buyers, I decided which ones would be
most suitable to market my product internationally.  Then I decided to
grant exclusive distributorship.  In order to effectively communicate with
my international customers, I invested in a fax.  I chose a U.S. bank to
handle international transactions.  The bank also provided guidance on
methods of payment and how best to receive and transmit money.  This isbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business+E5b.A#s&f6`
essential know-how for anyone wanting to be successful in foreign markets."

Michael Stoff knows about success in foreign markets.  In just one year of
exporting, sales topped $1 million and increased 40 percent in the second
year of operations.  Today, Novi, Inc. is a large distributor of wireless
intercom systems which exports to over ten countries.  Breaking Into The#p9n;J%R:g;y&p*v*^#Z-T
Trade Game:  A Small Business Guide to Exporting can assist your company's8H&h+L/\:J.S&V
international marketing efforts.  This Guide highlights the export successFOB Business Forum/L#N%n7C)P,E0B5f
stories of many small businesses.  It is both a comprehensive how-to manual
and reference book providing you with the contacts and resources to ease
your entry into markets around the world.
FOB Business Forum#N5x4C;S.i)X)R%H3J1R
   Part I:  Becoming an Export Success Story takes you through the
exporting process with stories of small businesses all around the United
States that have found exporting to be an exciting and profitable way to*L"U!u/K*A'Q:c-m
expand their business.FOB Business Forum7v,m*z;t$a2^"l&p,a+^
   Chapter 1:  Making the Export Decision includes an international
business plan to assess your company's export readiness, business goals and)L%M$}(j"@5D0I
commitment;5t/j4z&E.N:e0o
   Chapter 2:  Identifying International Markets explains how to conductforum.fobshanghai.com!I5y5s*J0s1k
foreign market research and the resources available to assist you;
   Chapter 3:  Foreign Market Entry discusses methods of distributing[A Professional Business Forum])c+]+V&K*S+H5K4B)e
your product abroad with an emphasis on exporting;forum.fobshanghai.com2N7`9o)~'^8C1^'l
   Chapter 4:  The Export Transaction details the steps involved in[A Professional Business Forum]3K1u!d(r*h%X$_/U-q6h)v
making trade happen, including setting prices, negotiating the sale and
determining legal aspects of exporting;[A Professional Business Forum]"O;U$U2h!J5k
   Chapter 5:  Export Financing outlines government and private sector
financing resources and methods of payment;FOB Business Forum%t1{5[%z,v
   Chapter 6:  Transporting Goods Internationally focuses on moving goodsFOB Business Forum*}9J9p4G,~&_3t:@
overseas, including packaging and labelling; and Chapter 7:  StrategicFOB Business Forum;Y2H/h#Y/g0[!X:^*d
Alliances and Foreign Investment Opportunities explores other methods of
market entry beyond exporting, such as joint ventures and off-shore#L,D:\5~)m6k#f8D3v
manufacturing facilities.FOB Business Forum$L)@8f0J2i

   Part II:  The Exporter's Directory is a comprehensive directory offorum.fobshanghai.com-l'T)_6i!K(z
contacts and information sources to assist you as you go global.

vip (Richard)

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#4

Post at 2006-6-11 10:11 Profile Space Site P.M. Buddy

PART I: Becoming An Export Success Story

A SMALL BUSINESS EXPORT SUCCESS STORYFOB Business Forum2b-I0|%Z%V
FOB Business Forum)U/M"C5?$a3i9^'r8B/i#D
Small businesses throughout the United States have gained international[A Professional Business Forum];Q-g'x-L+d9p
exposure and increased profits through exporting. Consider the case of
Novi, Inc., a California-based business.  Company President Michael Stoffforum.fobshanghai.com:]"[5s/B8@&r0U$[;H%h;O R
tells his story:FOB Business Forum$[1r+_9}6f:J
&R-R$D.@,`2^!N
"In November of 1986, when I began my business venture, Novi, Inc., I knewFOB Business Forum/_0y3y4]!M0Y$Q2]1h'{
that my Tune-Tote (a stereo system for bicycles) had the potential to beFOB Business Forum4w Y5g;R;x-G
successful in international markets.  Although I had no prior experience in
this area, I began researching and collecting information on internationalFOB Business Forum(l#|0B-I'H0\'{:A
markets. I was willing to learn, and by targeting key sources for
information and guidance, I was able to penetrate international markets in
a short period of time.  One vital source I used from the beginning was[A Professional Business Forum]"G;P7I8~(i#A8r)Y2W |4L
SBA.  Through SBA I was directed to a program that dealt specifically with
business development -- the Service Corps of Retired Executives (SCORE). FOB Business Forum-W)x;R2d$I)z$n8D$l
I was assigned an advisor who had run his own import/export business for 30FOB Business Forum V5{6m#B/H-U*Z.e;h0K
years. The services of SCORE are provided on a continual basis and areforum.fobshanghai.com%T9x7R(@#X$\;a.Y
free. As I began to pursue exporting, my first step was a thorough
marketing evaluation.  I targeted trade shows with a good presence of
international buyers.  I also went to DOC for counseling and informationforum.fobshanghai.com(a/~1g1N)M#T
about the rules and regulations of exporting.  I advertised my product in[A Professional Business Forum]'N)u"s,V:_'p7m%?
Commercial News USA, distributed through United States embassies to buyers
worldwide.  I utilized DOC's World Traders Data Reports to get background
information on potential foreign buyers.  As a result, I received 60-70
inquiries about Tune-Tote from around the world.  Once I completed my
research and evaluation of potential buyers, I decided which ones would be
most suitable to market my product internationally.  Then I decided to
grant exclusive distributorship.  In order to effectively communicate with(u$@)A(U g:q a#a
my international customers, I invested in a fax.  I chose a U.S. bank to
handle international transactions.  The bank also provided guidance onbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business h!A/s*e;p:['N
methods of payment and how best to receive and transmit money.  This is[A Professional Business Forum]3m4K4Q,Y&N-k
essential know-how for anyone wanting to be successful in foreign markets."
FOB Business Forum(O,l!p/l2`
Michael Stoff knows about success in foreign markets.  In just one year ofbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business$i;T'O6G1H:~.^"|/?
exporting, sales topped $1 million and increased 40 percent in the second
year of operations.  Today, Novi, Inc. is a large distributor of wirelessFOB Business Forum!b0i*]:U$^/X&x(p.S1d)s
intercom systems which exports to over ten countries.  Breaking Into The
Trade Game:  A Small Business Guide to Exporting can assist your company's
international marketing efforts.  This Guide highlights the export success2e6M%^(R.Z5d
stories of many small businesses.  It is both a comprehensive how-to manualbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business2l"w6N0]8p4@
and reference book providing you with the contacts and resources to ease
your entry into markets around the world.business forum,trade forum,business opportunity,Business China,Business India,Brazil business#y-G'P*n._;A)A7]3N

   Part I:  Becoming an Export Success Story takes you through the[A Professional Business Forum].f-y1a;F;e#Z(s2x
exporting process with stories of small businesses all around the United6j4H+\4L)t8`#@.E
States that have found exporting to be an exciting and profitable way to[A Professional Business Forum](o'E3k6C7J/J
expand their business.
   Chapter 1:  Making the Export Decision includes an internationalFOB Business Forum(C0j(C-Q.C
business plan to assess your company's export readiness, business goals and
commitment;#d6Q#\.{-w
   Chapter 2:  Identifying International Markets explains how to conductFOB Business Forum'S.c5W4T8R&^(}
foreign market research and the resources available to assist you;FOB Business Forum6x6X9_-d#F)u"_.O;P
   Chapter 3:  Foreign Market Entry discusses methods of distributingforum.fobshanghai.com5H1_8~8N!^0_8G5J#Z:b
your product abroad with an emphasis on exporting;%L&O9}2C3c1D+S
   Chapter 4:  The Export Transaction details the steps involved in
making trade happen, including setting prices, negotiating the sale and7K.^7H$v)n&k
determining legal aspects of exporting;
   Chapter 5:  Export Financing outlines government and private sector[A Professional Business Forum]&y6N!n9B;T3}5L2@;f4I/_
financing resources and methods of payment;business forum,trade forum,business opportunity,Business China,Business India,Brazil business;H/v4A k4L k5Z
   Chapter 6:  Transporting Goods Internationally focuses on moving goods
overseas, including packaging and labelling; and Chapter 7:  Strategicbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business7v)h;K%S8Q-U"T+r;}
Alliances and Foreign Investment Opportunities explores other methods ofFOB Business Forum;},r,G4H D6W8v*Y
market entry beyond exporting, such as joint ventures and off-shore
manufacturing facilities.

   Part II:  The Exporter's Directory is a comprehensive directory ofbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business)q;K%T6R/Q1v6](U
contacts and information sources to assist you as you go global.

vip (Richard)

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#5

Post at 2006-6-11 10:11 Profile Space Site P.M. Buddy

Chapter 1 Making the Export Decision

Exporting is crucial to America's economic health.  Increased exportsbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business2e&G$P;f/|-P,k0O"F#g
mean business growth, and business growth means more jobs.  Yet, only a
small percentage of potential exporters take advantage of theseFOB Business Forum8u&~!i*E2C'S"t3T
opportunities.  It is critical for U.S. businesses to think globally.  Your
decision to read this book indicates an interest in exporting.  However,
you may have discovered your company is already competing internationally[A Professional Business Forum]5~2`0E3\"?(|"B
-- foreign-owned companies are competing with you in your "domestic"
markets.  The division between domestic and international markets is
becoming increasingly blurred.  Your business cannot ignore internationalFOB Business Forum&T*n3K%z&v3u'x1n
realities if you intend to maintain your market share and keep pace withbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business2K-A/h0Q9@'m
your competitors.  Making the export decision requires careful assessmentbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business0A6Y2T-{.U+|.i
of the advantages and disadvantages of expanding into new markets.  Once
the decision is made to export, an international business plan is
essential.  This chapter presents the advantages and disadvantages of
exporting and offers a sample business plan.

ADVANTAGES AND DISADVANTAGES OF EXPORTING
   Consider some of the specific advantages of exporting.Exporting can
help your business:business forum,trade forum,business opportunity,Business China,Business India,Brazil business0t(y/E"T7T&z+R
   . enhance domestic competitiveness+b,E7n4U,Z
   . increase sales and profits
   . gain global market shareFOB Business Forum$c0P%}&L4C(i
   . reduce dependence on existing marketsFOB Business Forum;D2N"|%` y,c4i)Y
   . exploit corporate technology and know-how
   . extend the sales potential of existing products
   . stabilize seasonal market fluctuations S1n8L"p3G&F2m
   . enhance potential for corporate expansionbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business3R)B/`;\%F9K/s
   . sell excess production capacity
   . gain information about foreign competition
FOB Business Forum;}.S#V6?$f9[0v
   In comparison, there are certain disadvantages to exporting.Your
business may be required to:
   . develop new promotional material
   . subordinate short-term profits to long-term gains[A Professional Business Forum]+e'}1A%n,y9a'i/l
   . incur added administrative costs business forum,trade forum,business opportunity,Business China,Business India,Brazil business4Y!_-L:R#~*r
   . allocate personnel for travel
   . wait longer for paymentsbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business T:R:r8F:w!f$S0E,t#n+V
   . modify your product or packaging
   . apply for additional financing
   . obtain special export licensesforum.fobshanghai.com;Z-p:`8n2?&i*m"U
business forum,trade forum,business opportunity,Business China,Business India,Brazil business)I3M,l,l/D)o%G1|#I'd
These disadvantages may justify a decision to forego exporting at the
present time.  For example, if your company's financial situation is weak,
attempting to sell into foreign markets may be ill-timed.  On the other
hand, some companies have been successful selling abroad even before they8g5N(c b8V1J'y"C+[
have made any sales domestically:FOB Business Forum5U!g;t-W$R"k e0x
FOB Business Forum"w.l:w/z*M8l E&U
Landmark Systems of Vienna, Virginia, had virtually no domestic sales
before it entered the European market.  Landmark had developed a software
program for IBM mainframe computers and located an independent distributor
in Europe to represent their product.  In their first year, 80 percent of
their sales were attributed to exporting.  In their second year, salesbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business+};x,J3f.G,I
jumped from $100,000 to $1.4 million -- with 70 percent attributable to[A Professional Business Forum]$_9a1v4@'e
exports.  business forum,trade forum,business opportunity,Business China,Business India,Brazil business8M4}'L1T7K,C6?.U

   As you can see, there are no hard-and-fast rules as to whichbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business:`;J:X/?(k6f-h
businesses should export, and which should not.  In the case of LandmarkFOB Business Forum)_6r9[*g,d2h-l
Systems mentioned above, a foreign distributor produced results before any
significant domestic sales occurred.  Landmark Systems' decision to export,
like that of many other small business exporters featured in this guide,[A Professional Business Forum]&W#z0A8d'H'u
was based on careful planning.  [A Professional Business Forum]*z!K z:M(x+E/C8H

THE NEED FOR AN INTERNATIONAL BUSINESS PLAN'U/u:h#t!X!b
   Behind most export success stories is a plan.  Whether formally
written down, or sketched out informally at a meeting of your management
team, an international business plan is an essential tool to properlyFOB Business Forum3o1p0`#q&m-k.U.l,K
evaluate all the factors that would affect your company's ability to go[A Professional Business Forum]'r&[+A"e.A*o1r+I(b
international.
[A Professional Business Forum]-e&u+x c t-H T F
   An international business plan should define your company's:FOB Business Forum$J,T0W5Z:E,}+a9B
   . commitment to international trade;$K+@5e$@8O
   . export pricing strategy;
   . reason for exporting;[A Professional Business Forum]5\8|:M1e:J8F+W"E
   . potential export markets and customers;[A Professional Business Forum]3T&w(t)f+i!Q!Q']
   . methods of foreign market entry;FOB Business Forum3L-M5v!_:f"?/q:f:q5S+i!g
   . exporting costs and projected revenues;
   . export financing alternatives;[A Professional Business Forum]*U.]!k%n%@)F
   . legal requirements;
   . transportation method; andFOB Business Forum#J(d4~,s#H8w'T
   . overseas partnership and foreign investmentcapabilities.FOB Business Forum+d2i$\&D"H&~
   Creating an international business plan is important for defining yourforum.fobshanghai.com.X"i0s7c7M:X%x
company's present status, internal goals and commitment, but is also[A Professional Business Forum]-z(D;_'Y+{+s$y A+Y
required if you plan to seek export financing assistance.  Preparing the
plan in advance of making export loan requests from your bank can save timeFOB Business Forum;C"m&r3A't4@%t7u.f
and money.  Completing and analyzing an international business plan helps
you anticipate future goals, assemble facts, identify constraints and
create an action statement.  It should also set forth specific objectives,
an implementation timetable and milestones to gauge success.

vip (Richard)

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#6

Post at 2006-6-11 10:12 Profile Space Site P.M. Buddy

International Business Plan

The purpose of the International Business Plan workbook is to prepare your
business to enter the international marketplace. This workbook will serve
as a step-by-step guide to lead you through the process of exporting your
product to an international market.  The workbook is divided into sections.
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Each section must be completed before you start the next section.  After[A Professional Business Forum]/s5y&\&r%f)J
you have completed the entire workbook, you will be ready to develop an
international business plan to export your product.  Once the business plan
is completed, an in-depth analysis of your readiness to export can be
completed.

PPRODUCTS/SERVICES

STEP 1: Select the most exportable products to be offeredFOB Business Forum9q9N,W'W+R)E ^+E7}"`:p
internationally.FOB Business Forum v3@!a:[:z%}2h-T;i0U-v!f

To identify products with export potential for distribution
internationally, you need to consider products that are successfully6g A2v'v-D
distributed in the domestic market.  The product needs to fill a targeted
need for the purchaser in export markets according to price, value to
customer/country and market demand.
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What are the major products your business sells?
forum.fobshanghai.com't8]:E;R9e
1.

2. FOB Business Forum(T:V!~(P!J3L)]3b
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3. FOB Business Forum'X%R&i2V5S7s1E
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What products have the best potential for international trade?
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1.

2.

3. [A Professional Business Forum]3q!k#Z+G0O/v

STEP 2: Evaluate the products to be offered internationally.business forum,trade forum,business opportunity,Business China,Business India,Brazil business)t)\ U+s$d f'H$\

What makes your products unique for an overseas market?[A Professional Business Forum]"|"M(l*K2v/s#E9q
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1.
2.

3.

Why will international buyers purchase the products from your company?
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1.

2.
3.
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How much inventory will be necessary to sell overseas?

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Exercise:
IDENTIFYING PRODUCTS WITH EXPORT POTENTIAL
List below the products you believe have export potential.  Indicate theforum.fobshanghai.com(v1k3S,`"G!C5H
reasons you believe each product will be successful in the international
marketplace.

Products/Services             Reasons for Export Success

1.                            1.
2.                            2.[A Professional Business Forum]"S.J Z&f F
3.                            3.
4.                            4.
5.                            5.
6.                            6.
7.                            7.
8.                            8.
9.                            9.
10.                         10.
11.                         11.
12.                         12.FOB Business Forum-V+r!G:[(h7^%x
13.                         13.FOB Business Forum(S-f%W,@,}-c!m5w.k
14.                         14.
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Decision Point:  These products have export potential.
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            YES             NO
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PLANNING
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What is the purpose of completing this workbook?
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   You know that you want to see your company grow through exporting.

Five reasons it will be worth your time and effort:
   1. Careful completion of this workbook will help evaluate your level
of commitment to exporting.[A Professional Business Forum](C.{"X'f;r/y+j'k'N
   2. The completed workbook can help you evaluate your product'sFOB Business Forum!R:x)\-o'k#t
potential for the international trade market.
   3. The workbook gives you a tool to help you better manage your
international business operations successfully.FOB Business Forum(R"c(|7~(p*m
   4. The completed workbook will help you communicate your business
ideas to persons outside your business and can be an excellent starting
point for developing an international financing proposal.
   5. Businesses managed are more successful when working from a
business plan.
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Can't I hire someone to do this for me?
   No!  Nobody will do your thinking or make decisions for you. This is
your business.  If the business plan is to be useful, it must reflect your
ideas and efforts -- not those of an outsider.

Why is planning so important?  [A Professional Business Forum]/x6d$Z7}"N*N:f7S,m
   The planning process forces you to look at your future business
operations and anticipate what will happen.  This process better prepares
you for the future and makes you more knowledgeable about your business. FOB Business Forum;Q1T!}1X,x+L,E6p
Planning is vital for marketing your product in an international[A Professional Business Forum]1?"U&O:[1q w
marketplace.  [A Professional Business Forum],U U!V)l;a"h
   Any firm considering entering into international business transactionsbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business/d6K n9c,W1V9}.y
must understand that doing business internationally is not a simple taskbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business9]#J'l(}'R!H4R/R
nor one for the faint of heart.  It is stimulating and potentiallyFOB Business Forum6e6r*n1W*^)}
profitable in the long-term but requires much preparation and researchbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business&\3R)\'b8p)j-u#Z1G
prior to the first transaction.  !U'Q!G$W.@6y
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In considering products for the international market, a business needs to
be:%u&~3`1r'l't!O*G9b
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   1. Successful in its present domestic operation.FOB Business Forum&^8G.f5~4R p/G:D.A5{'Y
   2. Willing to commit its resources of time, people and capital to
the program.  Entry into the international market may take as long as two5g/s%D,V:z/|&I!m
years to generate profit with cash outflow during that period.FOB Business Forum0O9A q5B(w+@#Z
   3. Sensitive and aware of the cultural implications of doingbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business4M;[1G6K9z;v+B
business internationally.
   Developing a business plan helps you assess your present marketbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business!r"q:j%c.I3F6x;a*K"W7K
situation, business goals, and commitment which will increase your
opportunities for success.
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What's the bottom line for me if I do the plan?
   Research shows that small business failure rates among new businesses
are significantly lower for new businesses that have developed a business
plan.
forum.fobshanghai.com"_!N:Q)K#b1n6?
Isn't planning just for the big companies?FOB Business Forum.y#i(X"F:h)e+M0~
   Planning is important for any organization that wants to approach thebusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business/W4X&Q#b&a8U$q
future with a plan of action.  The future comes whether you are prepared
for it or not.  A business plan helps you anticipate the future and makeFOB Business Forum v+t-[(E)G p2l.G:G
well-informed decisions because you have thought about the alternatives you
will be facing.
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How often do I have to do this?
   A plan must be revised as needed, at least once a year.  Planning is
a continuous process. You will be surprised how much easier it is to7T(S%~-G.r5c
develop a business plan after the first time.  Plus, after a revision or[A Professional Business Forum] ` Q/|8O'_
two you will know more about your international business market
opportunities to export products.
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GOAL SETTING
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   Determining your business goals can be a very exciting and oftenbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business%`(I&u0t%r:N"I1J-E
challenging process. It is, however, a very important step in planning your
entry into the international marketplace.  The following exercise is%f%n"q+q:o&T!T)],i
intended to help you clarify your short and long-term business goals.
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STEP 1: Define long-term goals.[A Professional Business Forum]3~9y+e.r6W*`;z1f

A)  What are your long-term goals for this business in the next 5 years?
Examples:  increase export sales by ___% annually; develop country culturalFOB Business Forum H;F&Z"{7x6V+i9@
profiles.FOB Business Forum,z(O!X-z.R*N,J)H

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B)  How will the international trade market help you reach your long-term
goals?forum.fobshanghai.com(x;B5j)[;l$m'K6Q4v

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STEP 2: Define short-term goals.
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A)  For your international business, what are your first year goals?
Examples: attend export seminars, select a freight forwarder.
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1[+u7M.r6w3e&u5B!A

B)  What are your two-year goals for your international businessFOB Business Forum X8j7k1|3z)i)j3u#o9F
products/services?FOB Business Forum;q%\8P:I(i0Y s6K#D4x

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STEP 3: Develop an action plan to reach your short-term goals by using
international trade.

INDUSTRY ANALYSISFOB Business Forum:s:V6F.Q5A-c5R4`
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STEP 1: Determine your industry's growth for the next 3 years.
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   Talk to people in the same business or industry, research
industry-specific magazines, attend trade fairs and seminars.

STEP 2: Research how competitive your industry is in the global markets.business forum,trade forum,business opportunity,Business China,Business India,Brazil business&H ?,},l$D%O5e0f%A

   Utilize the National Trade Data Bank (NTDB), obtain import/exportFOB Business Forum(z'_/_4`*q*g)]
statistics from the Bureau of the Census, and contact the U.S. Small[A Professional Business Forum];h&D$W#~+};^&l!o2|
Business Administration (SBA) or the U.S. Department of Commerce (DOC)FOB Business Forum,@+\8N4Z1^&c9]
district office in your area.7_,I#e6@9M ]*o8f3c

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STEP 3: Find out your industry's future growth in the international
market.

   Contact the SBA or the U.S. Foreign & Commercial Service (US & FCS)
district office and contact a DOC country or industry desk in Washington,forum.fobshanghai.com!b.C"|7N9d*h,V2V
D.C.business forum,trade forum,business opportunity,Business China,Business India,Brazil business&M7V6{9[ q3m K7k7T*w4w

7@$d3~)Z/O4Z2d

STEP 4: Research federal or state government market studies that have
been conducted on your industry's potential international markets.

   Contact SBA, your state international trade office, a DOC country or
industry desk in Washington, D.C.business forum,trade forum,business opportunity,Business China,Business India,Brazil business"@({"u/|5F(},q;A0C

forum.fobshanghai.com!|;Z*F3y-w'F8?8`

STEP 5: Find export data available on your industry.,A1v9g;F+G9F4j!}
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   Contact your SBA or DOC district office.FOB Business Forum"X3O1Q+k3T7|'q
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YOUR BUSINESS/COMPANY ANALYSISFOB Business Forum)_$M:|5w$n&d7y']
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STEP 1: Why is your business successful in the domestic market?  What's
your growth rate?business forum,trade forum,business opportunity,Business China,Business India,Brazil business)j0l3N+@"h W,{$?)|$R$i

STEP 2: What products do you feel have export potential?FOB Business Forum"N#s4i%N O'b.C6p+t4X

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STEP 3: What are the competitive advantages of your products or businessforum.fobshanghai.com(o,l:|:_%B:W6z*A!r$i
over other domestic and international businesses?
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PROS AND CONS OF MARKET EXPANSIONbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business9Y%H/r7_5|"l!q#o2L
   Brainstorm a list of pros and cons for expanding your market
internationally.  Based on your product and market knowledge, determine
your probability of success in the international market.[A Professional Business Forum]6L7Q2^:t/m5G(a,v
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Industry/Product:

Pros                                        Consforum.fobshanghai.com'{$T;S-Z-L+{
1.                                        1.FOB Business Forum+a&h.h!Q5W%A7Q,C
2.                                        2.5@3x9b3i#l5g"C.F#D7o
3.                                        3.FOB Business Forum+s7l(Z;]#D9t'A%z2d9M7k
4.                                        4.FOB Business Forum*W2u%H5^"E3k.S(m4c7t1J.b
5.                                        5.
6.                                        6.
7.                                        7.FOB Business Forum0w,y!V)Q8h*P*C:`#H
8.                                        8.FOB Business Forum2H8I8T.B)X
9.                                        9.
10.                                        10.
11.                                        11.
12.                                        12.FOB Business Forum1g3k6A"U/~)_$Y3y7H)z5N0C
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PROBABILITY OF SUCCESS

0%          25%          50%          75%          100%FOB Business Forum1\4L4s/p8d7S3y x!H:z f

MARKETING YOUR PRODUCT#`0r-Y4f.x+Z(H2~'s;g:|
   Given the market potential for your products in international markets,
how is your product unique?:t&o)z/[$J.C8`,K,P

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1. What are your product's advantages?[A Professional Business Forum]#I9R+w:Y*{ H7E3c

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2. What are your product's disadvantages?

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3. What are the competitive product's advantages?

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forum.fobshanghai.com8f'r7F5s#n;B%j#g

4. What are the competitive product's disadvantages?

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What are the needs that will be filled by your product in a foreign market?
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What competitive products are sold abroad and to whom?
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How complex is your product?  What skills or special training are required3h,^2},l1I6s
to:business forum,trade forum,business opportunity,Business China,Business India,Brazil business.C'e"O3U*I*]&b*_2|.J

1. Install your product?

2. Use your product?forum.fobshanghai.com8N-@2{'o6?

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3. Maintain your product?FOB Business Forum.|&b-G%N.S,u"X3Z2v2t

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4. Service your product?  forum.fobshanghai.com)|:J&U5@#C*v/k,i4K

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What options and accessories are available?

1. Has an aftermarket been developed for your product?FOB Business Forum8^'W \$[ _0K \4U
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2. What other equipment does the buyer need to use your product?
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3. What complementary goods does your product require?business forum,trade forum,business opportunity,Business China,Business India,Brazil business)b-c,{1z7p9M6u:k

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If your product is an industrial good:

1. What firms are likely to use it?FOB Business Forum3N3^%K(_-Y(`3A
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2. What is the useful life of your product?
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3. Is use or life affected by climate?  If so, how?
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4. Will geography affect product purchase, for example transportation
problems?FOB Business Forum/P7i&q$L&G9k#G
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5. Will the product be restricted abroad, for example tariffs, quotas orbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business,Y/A,n)M(y t(G _0g
non-tariff barriers?FOB Business Forum5R/H9w-q%^
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If the product is a consumer good:

1. Who will consume it? How frequently will the product be bought?FOB Business Forum%|*Q0p)U1Q/^/^3}%l6_ z

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2. Is consumption affected by climate?
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3. Is consumption affected by geography, for example transportationforum.fobshanghai.com:b,p)d-B1F$F7q-L
problems?

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4. Will the product be restricted abroad for example tariffs, quotas orforum.fobshanghai.com$@)}"c"w w/V8r
non-tariff barriers?
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5. Does your product conflict with traditions, habits or beliefs of*g"k+N0y%k/}
customers abroad?
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STEP 1:FOB Business Forum8|$N;b-s#T T
Select the best countries to market your product.(K-n$t4V-N
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   The U.S. Small Business Administration and the United States and
Foreign Commercial Service may be of assistance in providing product market
analysis.  [A Professional Business Forum]+N7z0b(q"?'Q z*P,\9I6Z
   Since the number of world markets to be considered by a company is3L/Q7x#L-K&G'U*b
very large, it is neither possible nor advisable to research them all.
Thus, your firm's time and money are spent most efficiently by using a
sequential screening process.forum.fobshanghai.com-a)K5v2Q!W)z5{*k
   The first step in this sequential screening process for the company isFOB Business Forum;S:E2{;k)O/K0m
to select the more attractive countries for your product.  PreliminaryFOB Business Forum5G+~$@*C2l,z;J+G;~
screening involves defining the physical, political, economic and cultural
environment.  Rate the following market factors in each category.forum.fobshanghai.com,V#S!t'f)s%[%p4m$z
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   (1) Select 2 countries you think have the best marketpotential for
your product;/A*A$~6G6@&H
   (2) Review the market factors for each country;
   (3) Research data/information for each country;forum.fobshanghai.com6T$l-@:y;n0K
   (4) Rate each factor on a scale of 1-5 with 5 being thebest; and2P$Y1h7z7]9H(g'B
   (5) Select a target market country based on your ratings
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MARKET FACTOR ASSESSMENT          COUNTRY/RATING  COUNTRY/RATINGbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business/~1J1}8V'H6w3J f7z
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Demographic/Physical Environment:9r0I4m)Z9m;p
   . Population size, growth, densityforum.fobshanghai.com)e5i9J6Z4|"Y
   . Urban and rural distribution
   . Climate and weather variationsbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business3w2A)W"p%Q2B I0e
   . Shipping distance
   . Product-significant demographics
   . Physical distribution and FOB Business Forum4s,t o3^,C#I Z
      communication networkFOB Business Forum }#C*x5D'n.?6R
   . Natural resources

Political Environment:
   . System of government
   . Political stability and continuity
   . Ideological orientationbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business7N h9|,g,i:i/v:@#?
   . Government involvement in
      business4_8f2b5i ]+f!q0o5Z#@
   . Attitudes toward foreign business
      (trade restrictions, tariffs,
      non-tariff barriers, bilateral
      trade agreements))\(c2@$b(\3{)u+n
   . National economic and
      developmental priorities

MARKET FACTOR ASSESSMENT          COUNTRY/RATING  COUNTRY/RATINGforum.fobshanghai.com/?+p P4h/s8C
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Economic Environment:FOB Business Forum4b7P;d'A"j;}3r;A%M;|
   . Overall level of development
   . Economic growth:FOB Business Forum7U#x:]5S.J2m"h3p
      GNP, industrial sectorbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business/P$l(\2o8c/W,]
   . Role of foreign trade in the