A Small Business Import/Export Primer
By Priscilla Y. Huff

Whether you are the owner of an established or new business or are contemplating a business start-up, you may want to consider entering your goods and/or services into the global market.

Advancements of technology and Internet connections, plus an increase in trade relations among countries are helping small businesses to find markets the world over. Because exporting helps create new jobs and improves a country’s balance of trade, most governments offer a number of free or low-cost comprehensive information and support services to promote and assist businesses in their exporting ventures.

With importing, helpful information is given by countries’ customs offices, some federal small business development centers and different international trade organizations within individual countries. Government support for importing matters is more likely when there are joint ventures between businesses located in different countries.

Preliminary Considerations – An International Business Plan
Whether you live in the U.S., Canada or another country, here are a few suggestions offered by both Canada and U.S. international trade experts on what you should consider before you begin an international trade venture:

Preliminary Research
“What I tell any company that wants to start exporting is that it’s like any new venture,” says Hans Koehler, Director of the Wharton Export Network (WEN) located in Philadelphia, Pennsylvania. “They should look in the mirror, and at certain factors ask ‘Do I have the right product? How do I find that out?’”

“Well, maybe my competitor is selling abroad, the same product more or less that I do. That’s an indication that I can sell, too. Maybe I’ve traveled overseas and found an untapped market niche,” he says. “That is why I say you have to ‘look in the mirror,’ and ask ‘What are my indicators of success? Why am I successful at home? Is it price? Quality? Both? Is it unique? Can I take those advantages and flop them over into another country?’"

Market Research
First of all, see if there is a market for your product or services. Conducting market research on the country to which you are thinking of exporting is the key to exporting success.

“You have to ask basic questions such as, ‘Is English mandatory?’” says Koehler.

“For example, if you are selling software, does it have to be in German, French, and Chinese? Starting out maybe you cannot do that, so you will only look at English-speaking markets—England, New Zealand, Australia…” he continues. “Internationally, market research is a little bit tougher because you are dealing with foreign people, foreign markets, but the problems and issues are the same. It just has more parts."

Determine Costs
If market research results show potential foreign markets, you then have to determine your extra trade costs such as tariffs, transportation, etc. After figuring your costs, you have to then ask “Can I still sell it at a profit?”

Realize, too, your price for your product or services will vary according to each country and their population’s ability to pay your prices.

Management Commitment
“There should be ‘top-down’ commitment from everyone, management has to be willing to support the exporting process,” says Angela Dawkins, U.S. Export Assistance Center (USEAC) in Philadelphia, PA.

Study the Process
“Realize there is a ‘learning curve’ in International trade, meaning it takes time to learn about countries, how people buy things there, what kind of packaging works for them, and how to deal with the cultural aspects,” says Catherine Spillman, international trade expert at Lehigh University’s Small Business Development Center (SBDC) in Bethlehem, PA.

“A very important part of mastering the trade process is learning what is required to complete the international transaction in terms of necessary documentation, shipping, payment mechanisms, compliance with export/import laws and regulations, and so forth”

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