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On Your Mark, Get Set, Go Global

Laurel Delaney Small Business Trends

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December 15, 2008

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Business Forecasting 2012

Our special feature on forecasting sheds light on how to choose the right model, offers advice from Jack Stack and more.

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So you want to take the plunge and go global with your product or service. How do you begin?

Let me give you a competitive start: Produce the highest quality product or service at the lowest cost and sell that product in every market on the face of the earth. If you do this, you will successfully globalize your company.

The real reason for exporting is to globalize your company and prosper in the 21st century and beyond. Any product or service can be exported. You just need a track (or a plan, as my colleague Tim Berry would say) to run on and a manageable process.

My track allows you to close your first export deal in your target country and worldwide markets by following five steps. It won't happen overnight, but by the end of this blog series (if you stay with me), I guarantee you will know how to export. It will be up to you as to whether you actually do it. Each of the steps will be explained. This post covers the trial run phase. Subsequent posts will feature points 2-5:

1. Plan the trial run
2. Prepare the export team and organization
3. Enter the trial market
4. Close the first deal
5. Evaluate the trial run

Plan The Trial Run

In planning the trial run, these are the questions you must ask yourself:

1. Is my product or service exportable?
2. Should I actually export it?
3. Do I want to take a trial run at exporting?

Keep reading, and I will help you answer these questions.

1. Is my product or service exportable?

There are a couple of ways to go about answering this question. The easiest is to take a notepad, jot down the products or services you are considering exporting, and beside each item, indicate why you believe that the product/service might be successful in export markets. In other words: Is your rationalization believable? Would you buy into it here? Would you buy into it in another country? If you are wholeheartedly sold, then you can answer to the above questions and move forward with confidence.

Let me give you an example of how I would prepare a worksheet:

Product: Chicago Treats Nut Snacks. Available in three flavors: honey roasted almonds, honey roasted peanuts and sesame nut mix. Packed in vacuumized tin cans. Shelf life is 18 months. Attractive label. Promotes Chicago, the third largest city in America. Excellent quality. Moderate pricing.

Why being considered for export? I know how to do it. Have some free time on my hands. Like the idea of journeying into unknown territories. Believe there is a demand for this type of product in certain parts of the world. Good way to expand sales and profitability for company. The label is attractive enough -- product will look like an exotic import in overseas markets and is in a multilingual language to generate interest worldwide. Good shelf life: 18 months. Excellent quality and moderate pricing. Manufacturing plant has the production capabilities to keep up with demand. Government offers rebate on nuts grown and exported from the United States, which affords competitive world pricing.

Granted, I have the edge in already knowing how to export, but the idea is to list all the reasons why you think your product/service is exportable. If you find your list shows export promise, then move on to Question 2.

2. Should I actually export it?

Prepare another worksheet with a t-square. Mark the left side with pros and right with cons. These should be based on your current knowledge and assumptions about your product/service. The objective is to determine if you believe that sales could be expanded by exploring export markets. This is how my sample worksheet looks:

PROS

I know how to do it
Expand sales
More competitive pricing
Worldly image
Increase customer base
More competitive in marketplace
Enhanced image
Economies of scale in production
Generate additional profits

CONS

Spend more money
Take away from domestic business
Loss of control over domestic business
Spotty focus

As in my example, if your PROS outnumber your CONS, then you have answer to the second question and are ready to move on to Question 3.

3. Do I want to take a trial run at exporting?

Even if you had 'no' answers to the first two questions go for it anyway! Why? Because you could be wrong on your earlier assessments and have nothing to lose provided you work closely with your banker in securing payment but a little bit of your time. So move on.

But, wait, let's slow down the decision to launch a trail run at export markets is an important one and must be supported by top management and those people in your organization who will be involved in the export process even if you run a one man/woman shop. Success in exporting is very directly related to a company's commitment to properly planning, preparing, tracking and implementing the export program.

If you decide to launch the trial run at exporting, you will have affirmed your commitment to the program. You can do it and better now than before our dollar strengthens. And I will be with you every step of the way.

Stay tuned for the next entry in this series: Prepare the export team and organization.

About the Author: Global business expert Laurel Delaney is the founder of GlobeTrade.com. She also is the creator of "Borderbuster," an e-newsletter, and The Global Small Business Blog, all highly regarded for their global small business coverage. Laurel is a member of the Small Business Trends Expert Network.