Expanding to International Markets: Exporting 101
95% of consumers are outside of the United States, read to find out the importance of exporting, where to begin, and how to ease into the process of global procurement opportunities. This presentation was put together for Southwest Region SBTRC’s Business Development Program and to assist small businesses with available resources.
1. Sacramento MBDA Export Center
The Minority Business Development Agency (MBDA) at the U.S. Department of Commerce is dedicated to advancing the establishment and growth of minority-owned firms in the United States.
The Sacramento MBDA Export Center, operated by California Asian Pacific Chamber of Commerce, provides technical assistance and business development services to generate increased financing, contract opportunities, and greater access to new and global markets for minority business enterprises (MBEs). The Center is also designed to help identify, screen, promote, and refer MBEs to exporting resources, and to engage in and/or expand exporting.
The Sacramento MBDA Export Center’s service scope consists of:
General international trade consulting
Access to contract: opportunity/contract pipeline development
Access to capital: capital infusion program
Access to global markets: market research project
Technical assistance (Financial/Technical/Logistical/Legal/etc.)
Outbound and Inbound Trade Missions
Networking event/workshops
Specializing in Asia market
2. Why it is important to export
95% of world consumers are outside of America’s borders.
On average sales grow faster, more jobs are created, and employees earn more than non-exporting firms.
Most companies that export have an easier time riding out fluctuation in the U.S. economy and are more likely to stay in business.
3. How to start exporting
Get counseling and training locally
Contact your local U.S. Commercial Service office or MBDA Export Center if there is one in your region. These agencies have training resources and consulting services provided to exporters.
Assess your company’s export readiness
Exporting is a full time process that requires financial and administrative resources. Make sure you have the capacity to provide the product and or services.
Learn about the market in advance
Research which countries demand your product or service at International Trade Centre – Trade Map, the Observatory of Economic Complexityor by contacting the Sacramento MBDA Export Center.
Develop an online presence
Internationalize your company’s website. If you have a web presence you have global marketing and international sales platform.
Arrange for financing and insurance
Contact the Small Business Administration(SBA) for small loans, international trade loans, investment capital, disaster assistance, surety bonds, or grants to expand your business.
Contact Export-Import Bank of the United States(EXIM Bank) to find how they can help your business cover up to 95% of sales invoices by safeguarding against catastrophic losses from buyer nonpayment with Export Credit Insurance.
Participate in a trade event
Research Global Trade Events at export.govor contact the Sacramento MBDA Export Center to find a trade event for your industry.
Research to see if SBA’s State Trade and Export Promotion (STEP) Program is available in your state. For example, California offers the California STEP Programand California STEP Individual Company Export Promotion Programwhere you can receive up to $3,000 in ICEP reimbursements to support your exporting needs. Contact us to see if there is a program for your state.
Connect to buyers or distributors
Work with the right local sales agent, representative, or distributor can help to identify sales and marketing opportunities, manage local regulations, and handle logistics on the ground. Sacramento MBDA Export Center provides business matchmaking service as well as international trade missions to help exporters to connect to buyers and distributors.
Know the rules of trading and resolve trade issues you have
Research necessary certifications or shipping requirements for specific countries or products which could apply to your product.
4. Global Procurement Opportunities
Ease into international business through Global Procurement Opportunities. Unlike going out and looking for buyers, this provides companies the advantage of having established demand for their product in another foreign country.
Federal Opportunities:
You can find federal international opportunities through the Agency for International Development/Overseas Missionsand the United States Trade and Development Agency
International Organizations:
Another resource is the UN Global Marketplace(UNGM). The UNGM provides an excellent springboard to introduce your products and services to 25+ organizations to a global market of over 17 billion dollars annually by only completing one registration form.
Foreign Governments:
Japan https://www.jetro.go.jp/en/database/procurement/
Singapore https://www.gebiz.gov.sg/
South Korea http://www.pps.go.kr/eng/jsp/information/tender/domestic.eng
Taiwan http://web.pcc.gov.tw/tps/pss/tender.do?method=goNews
Sources:
https://www.trade.gov/cs/factsheet.asp
http://www.ciedec.org/resources/exporting-facts/
https://www.sba.gov/business-guide/grow-your-business/export-products#section-header-3
https://www.export.gov/article?id=Finding-Foreign-Buyers-Videos
https://tcc.export.gov/related_links/foreign_government_procurement_opportunities.asp
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