Export Consulting: Filling the Tremendous National Need
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[Instructor's Note: This is an introductory course designed to put you on the path to becoming a successful export consultant. Think of it as an Exporting 101 course! It is designed to be a general introduction, but it does contain strategies that are proven to work in the US and international marketplaces.]
There is a great need nationally for export consultants to work with small-to-medium sized businesses, and help them to either begin exporting, or expand exporting to additional countries.Recent college graduates and mid-life career changers who are either unemployed or underemployed are ideal candidates for learning and prospering in this prestigious career field.
Only 35% of 5.7 million small-to-medium sized companies nationwide are currently exporting. And, of these companies, fully 70% are exporting to only one country! With your skillful guidance, companies that are currently exporting to only one country, could be exporting to many more. And, the majority of these companies that are not exporting, can be trained to successfully enter the global export arena. 95% of the global middle class market is outside the United States; that's a lot of market share to ignore!
Exporting is a national strategic issue because it impacts the balance of trade: exporting reduces the U.S. Trade Deficit, creates employment opportunities in the USA, and strengthens communities across the Nation. Exporting helps to fulfill a Patriotic Duty, and as an EIA Independent Consultant, you would be helping to build the fabric of society.
Business owners state that, "We would begin exporting, but we need someone to come in and show us how to set up an export program." With millions of companies across the country that are not exporting and needing export assistance, the government agencies set up to work with these companies are unable to meet the growing demand for export assistance. They do an excellent job with their available resources, have helped countless companies over the years to begin exporting, and are powerful allies for your business. But budget cuts, sequestration, geographic isolation, and staff reductions at these agencies have created a '...Tremendous National Need' for export consultants.
EIA will teach you how to navigate through the various export agencies and learn little-known trade practices that can catapult your client's export business. This of course means that your consulting practice is steadily growing, and your reputation as a source for exporting expertise is reaching a broad audience.
We here at EIA know from years of international travel and trade experience; distributor negotiations and Agreements; opening irrevocable, confirmable Letters of Credit in the millions of dollars (drawn on only the top US Banks); working closely with the government agencies; and, building relationships with the Commercial Staff at American Embassies in many countries how to get the job done: and we will teach you how to do it, too--beginning with this lecture series.
You can make a six-figure income in this profession by commanding retainer fees of between $3,000 and $5,000 per month, per client company, plus, typically a small percentage of the gross dollar value of the goods shipped. We will teach you how to capitalize on the availability of excellent government resources. And you will be performing a Patriotic Duty by helping companies export and contribute to reducing the National deficit.
“You are essentially who you create yourself to be and all that occurs in your life is the result of your own making.”
― Stephen Richards, Think Your way to Success: Let Your Dreams Run Free
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|Section 1: Export Consulting: Filling the Tremendous National Need|
The ‘Export Consulting: Fulfilling the Tremendous National Need’ lecture series describes how to begin your own export consulting business for the purposes of helping small-to-medium sized US companies export their products/services, enable you to earn a six-figure recession-proof income, and for you and your client companies to perform a Patriotic Duty by helping to reduce the U.S. Trade Deficit.
The Export Intelligence Agency, LLC (EIA) has an executive team with a long and successful history of learning, and then implementing the many effective, low-cost export programs available through the many U.S. Government Agencies that help U.S. companies export their goods and services to markets around the world. It is precisely the large number of programs, and need for thousands more export consultants that opens doors of opportunities for you to clarify for business owners the efficient and cost-effective ways to export their products.
As many new and successful exporters have discovered, exporting can be an important source of growth, adding anywhere from 20% to 40% to their bottom line. Yet, exporting is challenging for most company owners and directors: they almost unanimously state that, “We need someone to come in and tell us how to get started, to teach us how to set up an export program tailored for our company, and then manage and direct our growth into additional overseas markets.” That’s where you, with your skill set learned in this EIA lecture series and on-going mentorship from EIA comes in: while there are many U.S. Government Agencies that offer valuable, competent, and highly professional export assistance, there simply are not enough export agents to meet the needs of the US companies. This is due, in part to cutbacks, sequestration, geographic isolation of the 18 Major Regional Offices, and limitations in staff, among other reasons. The information in this lecture series will ease the challenge by offering the support and assistance you need to become a successful EIA Independent Export Consultant.
Please understand from the beginning, that EIA Senior Executives owe their success to, especially, the International Trade Administration for mentorship and establishing key contacts at U.S. Embassies abroad. They, along with approximately 20 other U.S. Government Agencies make up an ‘International Trade Resource Group’ that will act as a ‘force multiplier’ for your client companies. This accelerates their entry into overseas markets while reducing their overall international marketing costs: you will become a Subject Matter Expert (SME) over a period of about 1-3 years as you continue to work with the EIA through its exclusive Members Only Area of its Website.
While the United States remains one of the most competitive and productive nations in the world, a relatively low percentage of U.S. companies are engaged in exporting compared to other developed nations. Although U.S. small and medium-sized companies with fewer than 500 employees make up about 97 percent of U.S. exporting firms, they represent less than 30 percent of the value of U.S. exports. Furthermore, nearly 70 percent of all exporters sell to only one foreign market. Many of these firms could boost their U.S. exports by easily, and with your skill and guidance after this lecture series and becoming an Independent EIA Export Consultant, following your consulting advice will enable them to expand into global markets.
In fact, there has never been a better time to export. Increased use of the Internet, improved transportation, and enhanced trade and investment rules have greatly simplified the export process and made it easier to sell abroad. Exporters strengthen their local communities by creating jobs and new opportunities for American workers. This in turn contributes to the economic growth of the United States as a whole. If your clients do not currently export, they should consider it—especially since fully 95% of the middle class global consumer market exists outside the United States. US companies cannot afford to ignore 95% of the market place!
It is likely that your client’s competitors are, or soon will be, selling internationally. If they already export, then help them to explore and expand into new markets. Either way, if you are new to export consulting or are an in-house export manager exploring new markets, this ‘Export Consulting: Fulfilling the Tremendous National Need’ lecture series will help you understand the range of Federal export assistance programs.
EIA applauds your interest in exporting and encourages you to partner with us to build a successful Export Consulting career that puts you in control of your future, while helping US companies achieve their exporting goals. We look forward to working with you and providing on-going support for your professional growth and profitability.
Qualified, professional, highly trained, cost-effective Export Consultants with on-going mentorship are in high demand across the entire United States. This is an engaging, recession-proof career that you can learn, become quite professional at, and never-again have to face the specters of unemployment, underemployment, or layoffs: you are your own ‘boss’, and your success depends upon how well you learn what EIA has to offer to you, and whether you can ‘work smarter, not harder’ through efficiency methods that EIA will teach you. EIA Executives have many years of proven international experience: we don’t just talk about international trade, we’ve done it across the globe.
The simple truth is that, of the 5.7 million small-to-medium sized businesses in America, fewer than 35% are exporting. There is a great need for professionally qualified export consultants and in-house export managers to increase this percentage. And, companies who export employ more people, and put over 10%-40% to the bottom line. It is the Patriotic Duty of every company that can export, to export to several or more countries. Why? Because exporting strengthens the U.S. Economy by reducing the trade deficit.
A majority of US Small-to-Medium businesses/enterprises (often referred to as SMEs) are not aware of the possibilities that exist for them to enter export markets. And, they do not have the right competencies, expertise or resources in-house to take the necessary steps.
By offering your assistance as an EIA Export Consultant, it can be a great opportunity for you and the businesses with which you consult to enter specific export markets with the help of key U.S. Government Agencies and EIA’s Commercial Contacts in over 135 foreign countries. The number and complexity of interacting in a cost-effective manner with the U.S. Agencies, is where EIA excels; and where the majority of business owners say they need the most help.
EIA will train you to have the right skills and knowledge to navigate through these agencies and become an export consultant that is ready to start his/her own independent, profitable export consulting business. And then provide you with the option of on-going mentorship and business support through EIA’s Members-Only Area on their Web Site.
A few of the advantages of becoming an EIA Independent Export Consultant are:
·You will be able to use your competencies achieved through this lecture series, and continuing mentorship from EIA in international markets, export, business development, culture and language etc. to build a successful consultancy.
·You will have the opportunity to consult with a large percentage of the 5.7 million SMEs located across the USA, become part of the US international business community, and perform a Patriotic Duty for your country by helping to reduce the U.S. Trade Deficit. SMEs often do not have the resources to hire a full-time, in-house export manager.
·However, with the proper personal approach and confident explanation of how you will help them begin exporting, you will have a chance to demonstrate your international business skills, earn a six-figure income, and become a close business partner of the SME. The business is much more open to entering export markets, since you are providing expert knowledge without them having to take on a full-time employee.
However, you also need to sell your knowledge, identify the opportunities which are open to the SME and address the business’s other demands. EIA has a Members Only Area on its Web Site that provides updated guidance and strategies on working with prospective clients, and landed clients. When you succeed, you and the SMEs will develop a fruitful partnership that will benefit everyone concerned.
With only 30% of the 5.7 million SMEs currently exporting, there is a tremendous opportunity for you to begin your own business and be highly successful at it no matter where in the USA you are located. If you are currently an unemployed/underemployed recent college grad, or a mid-life career changer who got caught in a downsizing or the decline of a market, EIA encourages you to complete this lecture series. Then we invite you to join us through the Member’s Area for resources and the on-going mentorship that you will require to continue to build your business.
For more than 100 years, companies big and small have trusted The Company Corporation (TCC) and its parent company, Corporation Service Company, to meet their business compliance needs. At EIA, we rely exclusively on their professional services, and tremendous customer support—something that is of utmost importance to a small business owner. TCC has offices in all 50 states and the District of Columbia and can prepare and file your formation and regulatory documents error-free and faster than anyone in the business. This is why the EIA recommends exclusively that you use The Company Corporation for the formation of your Limited Liability Company (LLC). Don’t be fooled by “cheaper” online services: “You get what you pay for”. And, TCC delivers tremendous value for a relatively small fee.
The Company Corporation doesn’t just help businesses form LLCs – they have value-added services and are specialists in helping clients such as you meet your compliance needs after LLC formation. By working with hundreds of thousands of customers over the years, The Company Corporation has learned the “ins and outs” of proper compliance management. Their services allow you to focus on growing your export consulting business, while they focus on compliance requirements and the formalities of running a business.
Forming a limited liability company (LLC) is an easy, fail-safe way to separate your personal assets from your business assets. TCC is duly registered in all states to form a Limited Liability Company (LLC) under the laws of a particular state, and assign you an in-state agent required by the respective states mainly for official notices and process service. These agents are required by law, and do not have any legal right, title, or interest in your LLC’s business.
Disclaimer: Please be aware that the services and related information provided by The Company Corporation (TCC) do not constitute legal advice, but rather serve as general information to help you manage your business. TCC is not a law firm and their services and information are not a substitute for the assistance of an attorney or financial advisor. When finalizing any business documents, you should have them reviewed by competent, licensed, legal and financial counsel. You can do the majority of the draft work, but have a professional attorney and CPA sign off on all documents.
When approaching the topic of Global Business, start by choosing the sectors you want to focus on as an export consultant. Then match the sectors with the markets which you know most about. You will create the greatest synergy with client companies that are working in sectors in which you have a high interest and enthusiasm for.
You can then study the sectors in which US export businesses are already excelling. Then look at market opportunities in the target markets which you know about thanks to your education, interests, and EIA training.
The USA holds a strong position in markets within the following sectors:
After having analyzed the business’s export readiness, you should carry out a SWOT Analysis of of the sectors to which you want to export to. A SWOT analysis looks at:
·Strengths in the business
·Weaknesses in the business
·Opportunities for the business, and
Also find a few ‘weaknesses’ which you can help the business address in your capacity as a consultant. Your credibility may suffer if you don’t present a number of challenges for the business and for your collaboration. However, it is a very good idea to be able to present a solution to these challenges.
Complete the SWOT analysis in collaboration with the business owners when holding your meeting with them. This will give you and the business a much better understanding of the necessary approaches for entering the Global Business Arena.
You don’t have to look hard to find the benefits of exporting. They’re in your neighborhood, where your neighbor is finding a new manufacturing job with a company expanding in the United States due to exports.
They’re downtown, where another small business is adding jobs to keep up with new sales in overseas markets. They’re in your department store, where quality products have a made-in-USA label, and they’re built by American companies who are innovating their production techniques to be more competitive in the global marketplace.
The numbers show that17 states had record exportsin the first half of 2013, building on a trend of U.S. export records. More important than those numbers are themillions of American jobssupported by exports in manufacturing and other sectors.
Finding the benefits of exporting is easy. So is finding out how to become a qualified, knowledgeable export consultant and the Export Intelligence Agency (EIA) wants to help you to command a six-figure, consulting income while fulfilling a Patriotic Duty—the reduction of the U.S. Trade Deficit.
EIA has some of the most knowledgeable trade experts in the world who will teach you how to navigate through these agencies to achieve increased exports for your clients’ trade portfolios. For the typical Small Business Enterprise (SME), trying to understand the number, quality, and effectiveness on the hundreds of export assistance programs is just too daunting: and they understandably back away to manage their existing businesses.
However, the EIA has years of working with the International Trade Administration, the Small Business Administration, and the U.S. Export Assistance Centers across the country [along with over 20+ other government agencies and private-sector organizations that provide export knowledge and programs]. Exporting is like learning a new language, and a new protocol for conducting global business. Fortunately, EIA Senior Management has been trained over multi-year periods by Regional Directors of the U.S. International Trade Administration, and has considerable overseas “on-the-ground” international business experience. We can teach you the best methods to use in navigating through these organizations so that you are a successful EIA Independent Exporting Consultant. Organization, education, diligent work, on-going mentorship through the Members-Only area, will all help you to achieve
There’s no question that exporting is a great way to grow just about any business. It can protect your client companies from fluctuations in a single regional or national economy. It can expand their customer base, increasing sales and profits. It can also help create jobs in your town and boost the local economy.
Here at EIA, we believe that becoming an EIA Independent Export Consultant is your ticket to a successful, professional, stable, and lucrative consulting career. If you are an unemployed or underemployed recent college graduate, or a mid-life career changer that has been forced out of a job, EIA is especially eager to have you take this lecture series and then become a member of the EIA network. Our primary concerns are your success, security, peace-of-mind, independence, and six-digit financial success.
There are numerous U.S. Government Agencies that can help you build your client base. But, the choices are so numerous and full of pitfalls. EIA has over 30 years of experience working with these agencies, traveling abroad, identifying distributor contacts, conducting profitable negotiations, and servicing landed accounts. EIA will explain to you how to get the job done, because we've done it all in many foreign countries.
The majority of non-exporting US small-to-medium businesses (enterprises) SMEs say they would export if they had someone come in with information on how to get started, such as navigating the hundreds of export assistance programs of different types from numerous agencies; how to identify the best markets for their products and/or services, potential buyers, and export procedures. Remember, there are 5.7 million SMEs located across the country and only 30% of them are exporting. And of that group, 70% are exporting to only one country. This opens up a vast field of opportunity for you as an EIA Independent Export Consultant to identify and work with businesses in your region.
While the U.S. Government as a whole is the leading provider of this kind of market information, many company owners don’t know that these programs exist and/or suffer from information overload. They cannot afford the steep learning curve associated with learning about all of these exporting programs while running their businesses. Consequently, they must rely on either an in-house export manager who can devote full-time to exporting which many cannot afford, or they must hire an EIA Independent Exporting Consultant on retainer to come in and guide their company on establishing their export program. Hiring an EIA Independent Exporting Consultant is the most cost effective manner of ‘ramping up’ an exporting program, especially during the first two years. The company gets personalized service tailored to their specific needs from an EIA Consultant who can devote the proper amounts of time, energy, and expertise to meeting their export goals.
Some key sources of export assistance are available to your client’s company at little or no cost and this makes the exporting process much easier. This lecture gives a brief overview of the assistance available through federal, state, and local government agencies, as well as in the private sector.
The U.S. Commercial Service of the U.S. Department of Commerce maintains a network of international trade specialists in the United States to help American companies export their products and conduct business abroad. International trade specialists are employed in offices known as Export Assistance Centers (USEACs) in major cities in the United States to assist U.S. exporters, particularly small and medium-sized companies. The problem for exporters and advantage for you is that these centers are geographically isolated from many companies needing to export, and staffing levels are too low for them to meet the market demand of companies desiring or needing to export. Federal budget cutbacks, staff reductions, and sequestration have all taken their toll on the USEAC’s. However, Export Assistance Centers are known as “one-stop shops” because they combine the trade and marketing expertise and resources of the Commercial Service along with the financial expertise and resources of the Small Business Administration and the Export-Import Bank.
Export Assistance Centers also maximize your resources by working closely with state and local governments to offer companies a full range of expertise in international trade, marketing, and finance. International trade specialists will work with you on exporting, help you assess the export potential of your client’s products, identify the most likely markets, and locate potential overseas partners at relatively low cost factors. But, you, as the expert international trade consultant will be responsible for contacting all of the overseas leads, and putting them through the vetting process that you and the company owner have decided upon.
They work with EIA international counterparts in more than 130 countries to provide American companies with turnkey solutions in foreign markets. Each Export Intelligence Agency, Independent Export Agent is networked into these resources so that they can reliably offer information about the following:
·Services to locate and evaluate overseas buyers and representatives, distributors, resellers, and partners
·International trade opportunities
·Foreign markets for U.S. products and services
·Foreign economic statistics
·Export documentation requirements
·U.S. export licensing requirements and import requirements of foreign nations
·Export trade finance options
·International trade exhibition participation and certification
·Export seminars and conferences
Much of the information about trends and actual trade leads in foreign countries is gathered on site by the officers working with the EIA at the Commercial Service Offices in U.S. Embassies and Consulates abroad. The Senior Commercial Officers have a personal understanding of local market conditions and business practices in the countries in which they work. The Senior Commercial Service officers typically have been in-country for 20+ years, speak the official native language plus 3-5 additional languages fluently, know the business, social, and economic make-up of the local, regional, and country regions, and also are on a personal, conversational level with many of the top executives in the companies that you want to speak with on behalf of your clients.
They provide a range of services to help companies sell in foreign markets:
·Background information on foreign companies
·Agent-distributor locator services
·Assistance in making appointments with key buyers and government officials
·Representations on behalf of companies adversely affected by trade barriers
EIA will help you connect with these key Senior Commercial Officers following a strict and proven protocol that will ensure you the highest degree of success for you and your clients.
We here at EIA know how to navigate the network of foreign offices in order to gain positive results: there is a protocol to be followed, and if you do follow it as we will teach you, then success will be yours!
Chances are you have already asked yourself this fundamental question: Why bother exporting? Exporting can be one of the best ways to grow your business:
·Grow your bottom line.
·Smooth your business cycles.
·Use production capabilities fully.
·Defend your domestic market.
·Increase your competitiveness in all markets.
Exporting is strategic in another way. With the volume of trade growing exponentially and barriers to trade falling, competition in a company’s domestic market is intensifying, particularly from foreign competitors. We need to compete in our own backyard while we simultaneously open markets for our products and services in other markets:
·Ninety-five percent (95%) of the world’s consumers live outside the United States. That is a lot of potential customers to just ignore.
·Foreign competition is increasing domestically. To be truly competitive, companies must consider opening markets abroad.
·Exporting is profitable. In fact, 60 percent of small companies that engage in exporting derive 20 percent, or more as they increase the number of countries they are exporting to, of their annual earnings from exports.
·Exporting helps businesses learn how to compete more successfully.
·Exporting creates jobs in your local community, strengthening the fabric of our society.
·Exporting is a National Strategic Issue because it helps to reduce the U.S. Trade Deficit.
·Exporting is a Patriotic Duty because it strengthens the U.S. economy.
According to a World Bank report, Global Economic Prospects, trade in goods and services is likely to more than triple by 2030. Over the same period, the global economy will probably expand from $35 trillion in 2005 to $72 trillion. The number of people considered “middle-class” will triple to 1.2 billion, enabling them to afford international travel, better education, and imported goods from the United States. Exports from the United States, according to the same report, are expected to grow by nearly 10 percent per year for the next several years. Your client’s products or services could be among them.
With this significant projected growth in global trade, fueled in large part by newly affluent consumers in China, India, and other developing economies, the challenge for businesses of all sizes in the United States is how to dip into this incredible revenue torrent. The Export Intelligence Agency (EIA) will train you and provide on-going support, training, webinars, up-to-date international market intelligence, trade leads, and a host of other vital material available only through the Members Area and Blog of the EIA web site.
As global trade grows, companies report a shift in income derived from their export sales compared with sales in their domestic markets. A 2002 study of U.S. exporters found that 60 percent of small companies in the survey derived 20 percent of annual earnings from exports, while 44 percent of medium-sized companies did. When asked whether export sales would grow at least 5 percent per year for the next three years, 77 percent of the small firms and 83 percent of the medium-sized firms said they would.
Another answer to “Why bother exporting?” is that exporting adds to the knowledge and skills of everyone in a company who does it. Doing business in a market that’s beyond one’s borders can have a transformational effect on its practitioners. The experience of forming new relationships, getting up close and personal with another culture, figuring out how to meet the needs of others, and learning how to be inventive in addressing new business challenges not only is personally rewarding; it also leads to improvements in products and makes companies stronger in whatever market they compete.
Exports accounted for nearly 26 percent of U.S. economic growth during the past decade, and they are expected to grow by nearly 10 percent per year for the next several years. Exporting has brought growth, jobs back to the USA, stability, new revenue streams, and vitality to many U.S. businesses. It can bring the same qualities to your clients’ businesses too.
There are several ways to evaluate the export potential of a company’s products and services in overseas markets. The most common approach is to examine the domestic sales of the products. If the company is successful in the U.S. market, there is a good chance that it will also sell in markets abroad, at least in those markets where similar needs and conditions exist.
Another way to assess a prospective client company’s potential in exporting is by examining the unique or important features of their product(s). If those features are hard to duplicate abroad, then it’s likely that their product(s) will be successful overseas. A unique product may have little competition; thus, demand for it may be quite high.
Finally, a product may have export potential even if sales are declining in the U.S. market. Sizable export markets may still exist, especially if the product once did well here but is now losing market share to more technically advanced products. Other countries may not need state-of-the-art technology and may be unable to afford the most sophisticated and expensive products.
Many small-to-medium companies assume that they can’t compete overseas. Even if their product or service has no obvious foreign market yet, the world is a big place with many needs and appetites. Remember, price isn’t the only selling point. Other factors, such as need, utility, quality, innovation, service, and consumer taste, can make a company’s product competitive and profitable abroad.
Export-ready companies possess certain qualities that increase the likelihood that their exporting efforts will be successful. Answering these important questions about how exporting will enhance a company’s goals will help determine the company’s readiness to export:
·What does the company want to gain from exporting?
·Is exporting consistent with other company goals?
·What demands will exporting place on the company’s key resources, management and personnel, production capacity, and financing, and how will these demands be met?
·Are the expected benefits worth the costs, or would company resources be better used for developing new domestic business?
It is helpful to examine some of the motivational and organizational factors behind your client company’s decision to export. Thinking about these factors will help you and the company owner decide if the company and its products or services are ready to export.
Motivational factors include the following:
·Long-term expansion. Building an exporting plan takes time, so it is important to focus on expanding your business over the long term and not to look for immediate returns.
·Increased competitiveness. By selling internationally, a company can gain insights into different ways of doing business.
·Exploitation of unique technology and expertise. If product quality or expertise is superior, the company will have a competitive edge in the international marketplace.
·Improved return on investment. A company should seek multiple benefits from exporting, such as expanded customer networks and exposure to new ideas and technology.
·Increased capabilities. Your client will develop better products and services, acquire better leadership abilities, and collaborate better with customers and suppliers.
Many companies never explore the possibility of exporting because they think that they are too small. However, nearly 97% of U.S. exporters are small and medium-sized companies. [Now referred to as small and medium-sized enterprises, or SMEs]
Organizational factors include the following:
·Management commitment. Total backing from management is the number one determining factor of export success.
·Funding support. Management must be willing to allocate sufficient time, enough resources, and an adequate budget for export activities.
·Personal expertise and commitment. Having staff members with international experience or having employees learn about the target market’s language and culture will help to enter the international marketplace.
·Product capabilities. A company must possess the space and equipment needed to manufacture for the specific countries they are selling to (each of which will have its own product standards and regulations).
·Company’s exporting goals. Whatever the goals, consider whether the expected benefits outweigh the costs.
Depending on the target market, it can take months, sometimes even several years, before an exporting company begins to see a return on investment of time and money. However, in all cases, written export strategy plans provide a clear understanding of the company’s long-term exporting objectives and ensure that management is committed to achieving them.
Finally, many companies begin export activities haphazardly and are unsuccessful in their early efforts because of poor or no planning, which often leads them to abandon exporting altogether. This is clearly a short-sighted mistake. By formulating an export strategy that is based on good information and proper assessment, the chances increase that that the best options will be chosen, that resources will be used effectively, and that company’s efforts will be carried through to global exporting success.
Once your client company decides to sell its products abroad, they will need to develop an export plan, with you guidance.
A crucial first step in planning is to develop broad consensus among key management personnel on the company’s goals, objectives, capabilities, and constraints. In addition, because they will ultimately be responsible for its successful implementation and execution, the personnel involved in the exporting process should agree on all aspects of an export plan.
The purposes of the export plan are (a) to assemble facts, constraints, and goals and (b) to create an action
The following 10 questions should ultimately be addressed:statement that takes all of those elements into account. The plan includes specific objectives, sets forth time schedules for implementation, and marks milestones so that the degree of success can be measured and motivate personnel.
1. Which products are selected for export development, and what modifications, if any, must be made to adapt them for overseas markets?
2. Which countries are targeted for sales development?
3. In each country, what are the basic customer profile, and what marketing and distribution channels should be used to reach customers?
4. What special challenges pertain to each market (for example, competition, cultural differences, and import controls), and what strategy will be used to address them?
5. How will your product’s export sales price be determined?
6. What specific operational steps must be taken and when?
7. What will be the time frame for implementing each element of the plan?
8. What personnel and company resources will be dedicated to exporting?
9. What will be the cost in time and money for each element?
10. How will results be evaluated and used to modify the plan?
The first time an export plan is developed, it should be kept simple. It need be only a few pages long because important market data and planning elements may not yet be available.
The initial planning effort itself gradually generates more information and insight. As you learn more about exporting and your client company’s competitive position, the export plan will become more detailed and complete.
From the start, the plan should be written and viewed as a flexible management tool, not as a static document. Objectives in the plan should be compared with actual results to measure the success of different strategies. Your client company should not hesitate to modify the plan with your oversight, and make it more specific as new information and experience are gained.
A detailed plan is recommended for companies that intend to export directly. Companies that choose indirect export methods may use much simpler plans.
|Section 2: International Marketing|
Many foreign markets differ greatly from markets in the United States. Some differences include climatic and environmental factors, social and cultural factors, local availability of raw materials or product alternatives, lower wage costs, varying amounts of purchasing power, availability of foreign exchange, and government import controls. Once you’ve decided that your company is able to export and is committed to it, the next step is to develop a marketing plan.
A clear marketing strategy offers six immediate benefits:
1. Written plans readily display strengths and weaknesses.
2. Written plans are not easily forgotten, overlooked, or ignored by those charged with executing them. If deviation from the original plan occurs, it is likely to be the result of a deliberate and thoughtful choice.
3. Written plans are easier to communicate to others and are less likely to be misunderstood.
4. Written plans allocate responsibilities and provide for an evaluation of results.
5. Written plans are helpful when you are seeking financial assistance. They indicate to lenders that you have a serious approach to the export venture.
6. Written plans give management personnel a clear understanding of what will be required of them and help ensure a commitment to exporting.
This last advantage is especially important. Building an international business takes time. It often takes months, sometimes even several years, before an exporting company begins to see a return on its investment of time and money. By committing to the specifics of a written plan, you can make sure that your company will finish what it begins and that the hopes that prompted your export efforts will be fulfilled.
To successfully export your product, you should research foreign markets. The purpose is to identify marketing opportunities and constraints abroad, as well as to identify prospective buyers and customers.. Market research encompasses all methods that your company may use to determine which foreign markets have the best potential for your products. Results of this research tell you the following:
·The largest markets for your product and the fastest-growing markets
·Market trends and outlook
·Market conditions and practices
·Competing firms and products
Your firm may begin to export without conducting any market research if it receives unsolicited orders from abroad. A good first step is to review your current customer list; if you are engaged in e-commerce, you probably already have customers in foreign countries or have received queries from foreign buyers. These current and prospective foreign customers can be a good barometer for developing an export marketing plan. Although this type of research is valuable, your company may discover even more promising markets by conducting a systematic search.
The London School of Business and Finance (LSBF) presents a brilliant and concise overview of International Marketing Management.
In recent times of global recession the role of the export marketer has become more crucial than ever. Versatility within this vast field of expertise is also highly sought after among employers across the world, and employees with the skills and ability to develop a long-term sustainable strategy are worth their weight in gold. The Export Intelligence Agency, LLC Marketing Program provides EIA Independent Export Agents with the invaluable knowledge and expertise they need to succeed in an increasingly competitive business environment.
This lecture begins to build a solid understanding of the constantly evolving area of international marketing. Modern marketers have more communication channels and marketing tools at their disposal than ever before, and this lecture will introduce you to the perfect up-to-date marketing knowledge to succeed internationally.
The LSBF International Marketing Management lecture presented here enables EIA Independent Export Agents to gain a unique competitive advantage over standard marketers. Their lectures are part of cutting-edge degree programs that build a solid understanding of the constantly evolving area of international marketing. Modern marketers have more communication channels and marketing tools at their disposal than ever before, and LSBF and EIA will give you the perfect up-to-date marketing knowledge to succeed internationally.
From global economic patterns to domestic cultural diversity, international considerations have a huge effect on today’s marketplace. This means the in-depth market research, data analysis, strategic planning and management skills have never been more important.
Primary Market Research
You may research a market by using either primary or secondary data resources. When conducting primary market research, you collect data directly from the foreign marketplace through interviews, surveys, and other direct contact with representatives and potential buyers. Primary market research has the advantage of being tailored to your client’s needs and provides answers to specific questions, but the collection of such data on your own is time consuming and expensive and may not be comprehensive. The U.S. Commercial Service can collect primary data for you and help you analyze it. This service costs, on average, several hundred dollars for each market analyzed and does not require you to travel to the target country. Therefore it is quite a cost-effective option for your client company, and for you. The U.S. Commercial Service can also help you find intermediaries with specific market expertise.
Secondary Market Research
When conducting secondary market research, you collect data from various sources, such as trade statistics for a country or a product. Working with secondary sources is less expensive and helps your client company focus its marketing efforts. Although secondary data sources are critical to market research, they do have limitations. The most recent statistics for some countries may be more than a few years old, or the data may be too broad to be of much value to your company.
Many SMEs export indirectly, through intermediaries such as EIA Independent Export Consultants. If your client companies do also, it is wist to select markets and conduct market research before selecting the final target markets.
Methods of Market Research
Because of the expense of primary market research, most firms rely on secondary data sources. These three recommendations will help you obtain useful secondary information:
1. Keep abreast of world events that influence the international marketplace, watch for announcements of specific projects, or simply visit likely markets. For example, a thawing of political hostilities often leads to the opening of economic channels between countries. A steep depreciation in the value of the dollar can make your product considerably more competitive.
2. Analyze trade and economic statistics. Trade statistics are generally compiled by product category and by country. Such statistics provide your firm with information concerning shipments of products over specified periods of time. Demographic and general economic statistics, such as population size and makeup, per capita income, and production levels by industry, can be important indicators of the market potential for your company’s products.
3. Obtain advice from experts. There are several ways of gathering this advice:
·Hire an EIA International Export Consultant; they are the most qualified sources for navigating the numerous U.S. Government Agencies and programs both quickly and cost-effectively.
·Have your in-house export manager contact experts at the U.S. Department of Commerce and other government agencies. He/she will have a steep learning curve to climb unless they have taken the EIA Lecture Series, and signed up for the Members Only Area of the EIA Web Site.
·Attend seminars, workshops, and international trade shows in your industry.
To succeed in exporting, you must first identify the most profitable international markets for your products or services. Without proper guidance and assistance from an EIA Trained Independent Export Consultant, however, this process can be time consuming and costly — particularly for a small business.
Here are a few tips:
·Thorough market research is key to success. Understanding your export markets will give you vital information about how to manage your efforts.
·Do not choose too many markets. For most SMEs, three foreign markets will be more than enough, initially. You may want to test one market and then move on to secondary markets as your experience level develops.
·Focusing on regional, geographic clusters of countries can also be more cost effective than choosing markets scattered around the globe.
The steps you will have to take in screening for markets include the following:
·Classify your product
·Find countries with the largest and fastest growing markets for your product
·Determine which foreign markets will be the most penetrable
·Define and narrow those export markets you intend to pursue
·Research export efforts of U.S. competitors
·Determine which countries might be profitable markets for your product/service
|Section 3: Concluding Activities|
By: Richard J. Yanni, Garden City, NY
Published: September 20, 2013
The Export Intelligence Agency LLC (EIA) is a US National Network of EIA Independent Export Agents who service small-to-medium sized businesses [termed, ‘small-to-medium enterprises’ or SMEs in some trade literature]. EIA is based in Garden City, NY where it serves a nationwide network via online mentorship. EIA Independent Export Agents advise these companies on how to find overseas agents, partners, and distributors for their goods and/or services.
As of 2013, approximately 70% of the 5.7 million US SMEs are NOT exporting (U.S. Census Data). And of the 30% who are exporting, the majority are exporting to only one country. This is unfortunate for the companies, and for the United States Trade Deficit as a whole because 95% of the world’s middle class consumers live outside the USA (SBA). That’s a lot of market share to simply ignore, especially since US companies that do export report that exporting accounts for 20% or more of their annual revenue. And, this financial contribution takes place within two years, or less of launching an exporting program.
Most small-to-medium sized business owners state that, “Our company needs someone to come in and explain to us how to set up an exporting program.” And, given the number of government agencies that offer export assistance, and the complexity of navigating these organizations, it’s easy to understand the confusion that exists for a company owner. Self-education on global trade issues takes a lot of time, baseline export education, on-going mentoring like any profession, and a grasp of the most efficient ways in which to utilize the resources of each agency. There is a proven methodology to optimizing these resources, and obtaining a synergistic effect in global business: EIA executives are Subject Matter Experts [SMEs] in export trade.
Quite frankly, most business owners are too busy running their companies to climb the export learning curve. And, the government agencies, who do an excellent job of assisting SMEs, are generally unable to meet the market demand for export assistance—just look at the export statistics. Problems range from sequestration, budget reductions, staff cutbacks, geographic isolation of the major offices [excluding field and satellite offices—that while more numerous, offer uneven services, restricted hours, and are suffering under the ‘trickle down’ financial pressures faced by their parent organizations].
All of this adds up to an excellent opportunity for unemployed or under-employed college grads, and mid-life career changers to learn about, and then provide bonafide export consulting services for these companies. In the process, it is reasonable to expect to earn a six-figure income through monthly retainers and a small percentage of the goods or services exported globally by client companies. Additionally, EIA Independent Export Consultants are performing a Patriotic Duty by helping to reduce the U.S. Trade Deficit, bring jobs back into the US, and strengthen the very fabric of our society. And they have the satisfaction and economic independence of owning their own Limited Liability Company [LLC].
The place to begin acquiring an EIA export trade skill set is at Udemy’s Online Lecture Series, “Export Consulting: Meeting the Tremendous National Need”. Consider it an investment in your near-term financial future. EIA’s executive team is highly educated and export trained by years of working with the Regional Directors of the International Trade.
Then continue to build your export consulting business by subscribing to the 'Members Only' area of the Export Intelligence Agency, LLC website. We've spent hundreds of hours researching resources that you will want to meet your client's needs, and make your job easier. And, EIA will continue to update the information and add to it as important export-trade related news and resources become available. It's only $250 for the first year, and a guaranteed $50/year for all successive years. This you should find is quite a bargain, and frees you up to respond to your client accounts rather than investing hundreds of hours into research that we've already done with pinpoint accuracy. EIA predicts that most EIA Independent Consultants will have about five (5) client companies within the first 90 days of starting their LLC according to our recommendations. So, the question you have to answer is, "Can my LLC prosper on $25K/month plus a small percentage of the goods and services shipped by your clients?
We here at EIA believe in your success, and stand ready to support you in achieving export consulting professionalism.
Richard J. Yanni, BS, MA
|Section 4: EIA Supplemental Resources|
This video is another in a series of SBA export success stories from small-to-medium sized businesses. These are precisely the types of companies you might be working with as an EIA Independent Export Consultant.
Watch the video, and you will see how successful you will be as an EIA Independent Consultant guiding companies such as this one through the maze of governmental agencies? Can you envision your 'value-added' expertise that you bring to the table in advising companies on the logical and correct paths to take in establishing and building their export programs?
The European Union (EU) Helpdesk is a tremendous resource in understanding the trade regulations and policies of doing business with the EU.
There are over 500 million customers in the European Market, and the EU Helpdesk advises you on how to export to the various countries that make up the EU. The EU is the World's largest single market comprising 16,1% of all imports.
The EU Helpdesk is an easy tool for you to use in identifying trade opportunities and pertaining regulations, requirements, and tariffs, if any.
Exported from Detroit
A leading US manufacturer of aircraft and equipment is highlighted as they tell their export story. Starting small, they now export to over 30 countries.
RICHARD J. YANNI, BS, MA
INTERNATIONAL ACCOUNT EXECUTIVE & SENIOR PARTNER
Vietnam War Era Veteran
Masters in Curriculum & Instruction-Educational Technology; Graduate Certificate in Physics & Applied Technology
NASA Curriculum Coordinator, Global On-Line Science Project
Richard J. Yanni is the Founder and Senior Partner of the Export Intelligence Agency, LLC a duly registered New York Corporation in Good Standing specializing in export training and international representation. Yanni has a 15+ year successful background in international marketing, and 10+ years of an exemplary collegiate and secondary teaching background.
Yanni holds multiple degrees from several universities: a Bachelor of Science, magna cum laude in Industrial Manufacturing from the State University of New York; a Masters of Art, summa cum laude in Curriculum & Instruction with an emphasis in Educational Technology from Colorado University in Colorado Springs; and a Masters Certificate in Applied Physics from Colorado University.
Additionally, Yanni was trained and then mentored on an on-going basis by the Regional Director of the International Trade Administration (ITA) in all aspects of exporting over a multi-year period. As a result of his successes in international trade, he received two, consecutive Gubernatorial Appointments to the Colorado District Export Council that met monthly at the Denver Capitol to advise the Colorado Legislature on how to boost Colorado Exports.
As an international marketing account executive for a US manufacturer of large scale, overhead sprinkler center pivot irrigation and linear irrigation systems [electro-mechanical and digital] used on large corporate farms, Yanni handled accounts such as General Motors of the Middle East (agricultural division) based in Riyadh, Saudi Arabia with major division offices in Jeddah and Dammam; the Jordanian King's Farms at Wadi Araba south of the Dead Sea. This account was handled through the Royal Jordanian Family based in Amman, Jordan; and the largest Massey-Ferguson Distributor in the world based in Casablanca, Morocco, to name a few of his accounts.
Yanni travelled extensively internationally qualifying prospective distributors through on-the-ground meetings with U.S. Embassy Officials and corporate prospects, engaging in contract negotiations with heads of corporations, handling of letters of credit to finance product sales related to distribution agreements, on-going account management, technical and sales training, and warranty support. Trips were made solo, and lasted between 4-6 weeks, several times per year. Yanni also handled accounts for solar-assisted heat pump systems and ultra sensitive, high speed, non-contact electronic sensors in Germany, Canada, the PRC, and other international markets.
When opening new international markets, Yanni worked closely with the U.S. International Trade Administration in Denver and in Washington, DC. He defined new territories and learned a protocol for interacting successfully with the U.S. Embassy Consular staff(s). This translated into multimillion dollar deals. For instance, in Saudi Arabia he landed an initial contract worth $75OK in six months with GM of the Middle East (The Al-Jomaih Company based in Riyadh). Al-Jomaih was ranked 200 on the Saudi 1000 List of Companies, and also was the region's largest Pepsi canning facility. Early the next year, Al-Jomaih placed a second order worth $7.5 million dollars. Yanni cultivated this relationship into total sales of $45 million dollars over a five-year period.
In Jordan, Yanni was the Account Executive to the Royal Family working closely with his counterpart, H.H. Sharif Hussein bin Nasser—nephew to then H.R.H. King Hussein, and cousin to His Majesty Abdullah II the current monarch of Jordan. Extensive travels to reach the King's Farms at Wadi Araba in Jordan took him to the Nabataean 'Red Rose City' at Petra several times, through 'Wadi Musa' (the Valley of Moses), past the Tomb of Aaron, Jabal Harun, or Aaron's Mountain, and into Karak (Al-Karak الكرك). Karak is a city in Jordan that is known for the famous crusader castle Kerak. [It was here that in 1188 the Great Muslim Leader and Military Strategist Saladin defeated the Crusaders after a siege that lasted more than a year].
Overlooking the Dead Sea, Al-Karak is the point beyond which a special military travel permit is required to descend to the Dead Sea, and into the patrolled 'security zone' running along the Dead Sea area facing Israel on the opposite side. This was the route to Wadi Araba that Yanni took during his business travels to the King's Farms in the Hashemite Kingdom of Jordan.
In Morocco, working closely with the U.S. Embassy commercial staff, Yanni was able within three hours of landing at King Mohammed V Airport, and making his first stop the U.S. Embassy in Casablanca-Commercial Section, to secure a meeting with the Chairman of the Board of the world's largest Massey-Ferguson distributor. After touring their facilities and several corporate farm projects around the country [Rabat, Fez, Meknes, Kenitra], he was able to win a joint venture agreement on behalf of the US manufacturer.
In this Exporting Consulting training course, Yanni will teach you how to successfully become an export consultant or increase your skill set if you are already an export manager. Export consultants are in high demand to assist the approximately 57 million (U.S. Census) small-to-medium sized businesses to begin, or expand, their exporting programs. Fewer than 35% of US small-to-medium sized companies are exporting (U.S. SBA). And of those that are, 70% are exporting to only one country. With your EIA professional export consulting help, those companies can either begin exporting, or expand their exporting programs into additional countries.
Exporting is a National Strategic Issue because it strengthens the U.S. economy, creates jobs here in the USA, and positively impacts current trade deficit by reducing it with each export shipment. It is a Patriotic Duty that you will be performing by assisting companies to enter or expand into export markets. This, in turn, will make these companies 'part of the trade-deficit solution' and enable them to contribute as Patriotic Americans to our National Strength.
When you complete this training program you will be professionally prepared to begin presenting yourself as an EIA Certified, Independent Export Consultant (additional certifications are pending at this time). As a former college professor teaching graduate courses, Yanni estimates that these courses are the equivalent of 9 CEU Credits in International Trade.
Finally, EIA is in the final stages of designing a membership-only site that is optional, although highly recommended for the long-term success of all export consultants. It replicates the mentorship that Mr. Yanni received, and shares with you the collective experience of the EIA in exporting. It is essential to your success that, as in all professional endeavors, that you receive on-going mentorship and "stay connected" to a resource and knowledge-base. First year membership is one set fee, while additional years are billed at a significantly reduced, fixed level. We are doing everything in our power to assist you in successfully establishing your business credentials and income levels. And we cannot over-emphasize your contribution to fulfilling a Patriotic Duty by helping US companies begin and/or expand their export programs.
The exclusive EIA Membership Area will contain many export trade and business-related resources, EIA global contacts in over 130 countries abroad, commodity listings, export forms, sample contract forms, contacts at key U.S. government agencies that will facilitate your business and impress your clients with your knowledge and rapid responses to their questions.
Retainer fees paid to you by your client companies are negotiated between you and your prospective client company. However, EIA has found that it is reasonable to expect monthly retainers in the range of $3,000-to-$5,000 per month, plus a small percentage of the goods shipped or services provided (anywhere from 3% to 7%). The EIA Membership Area provides you with an analysis of the costs of retaining export help versus the costs associated with a company hiring a full-time export manager. When you are successful, you may be recruited by one of your client companies to go exclusively with them; that decision is strictly up to you. EIA is interested in your success, regardless of the direction it takes you in; whether as an EIA Independent Consultant for years to come, or as a stepping-stone into an in-house, export management position.
This is an interesting and rewarding career area; and it is in high demand because the U.S. Government Agencies that do an excellent job of assisting companies in exporting are, unfortunately, located in only 18 major offices nationwide, are under staffed due to budgetary restrictions, and geographically isolated from the vast majority of small-to-medium sized businesses requiring export assistance.
We look forward to working with you, providing cost-effective training, on-going mentoring, camaraderie with other EIA members [professionally and with possible joint-venture deals], and reasonably priced membership assistance that puts all of your resources in one spot enabling you to concentrate on meeting the needs of your clients and growing your client base. Through the membership area EIA will also be answering specific questions through our membership-only Export Blog, free professional development webinars, and support.
Inviting you to join us on this journey of building US export strength,
Richard J. Yanni, EIA Senior Partner