We Are the World Think only gigantic corporations can take part in the global village? Not so. Even for homebased entrepreneurs, international markets are only a click away.
By Moira Allen
Opinions expressed by Entrepreneur contributors are their own.
Once upon a time, the global marketplace was an arena reservedfor the big players-companies that could afford access to theinformation and communications necessary to do business around theworld. Today, the power of the Internet and communicationtechnologies has made the global market just as accessible to thehomebased entrepreneur.
"The Internet is an unbelievable tool," says AbbyShapiro, co-founder and CEO of InternationalStrategies Inc. According to Shapiro, small businesses canaccess a wealth of country reports, market information andinternational business directories online, often at no cost."With a few good sites and a directory of folks to contactoutside the United States, you can do a lot just sitting in yourliving room," says Shapiro, whose Boston-based firm offers awide range of reports and materials for import/export businesses."Using e-mail and faxes, you don't even have to pick upthe phone."
For many homebased businesses, a Web site is the first portal tothe world. Steve Veltkamp, president of Biz$hop, a homebasedpublishing company in Port Angeles, Washington, that producesbusiness guides and newsletters, points out that you don't evenhave to translate your site into another language. "English isthe language of commerce, and the dollar is the currency ofcommerce," says Veltkamp, who began assisting other companiesin developing foreign markets through Biz$hop in 1986. Whatmatters, he says, is making your site "friendly" tointernational visitors.
Shapiro believes your Web site can also be an important sourceof leads if you're thinking of developing an import or exportbusiness. "Analyze where [orders] are coming from. If you havetwo dozen bids out of Canada, that tells you you have leads in thatarea."
Still another option for the homebased entrepreneur who wants toexplore international markets is to act as an export intermediary,connecting U.S. suppliers and international buyers. According toDennis Hessler, whose homebased Pensacola, Florida, company,SpyglassPoint Productions , offers import/export and internationalbusiness advice, all you need is sweat equity-and an understandingof the edge you bring to the marketplace.
One Click Away
International commerce often begins on a company's homepage. Forrester Research reported in 1998 that nearly 50 percent ofall Internet orders placed from outside the United States areignored. "[Many] U.S. businesses have no clue how to send theproduct [internationally]," says Shapiro. "[It'simportant to know] what it will cost to get the product from PointA to Point B."
Shapiro recommends developing a checklist of what you can andcan't do. For example, are you willing to handle multiplecurrencies? Can you calculate different shipping rates, taxes andtariffs? How will you handle background and credit checks? Whatabout returns and service? "You need to understand yourcapabilities and limitations," advises Shapiro.
To encourage international orders, Veltkamp offers these tips tomake your site globally friendly:
- Design flexible online response forms so overseas customers caninsert address information that doesn't fit"standard" U.S. fields (such as Zip code, stateabbreviation or telephone number fields). Make sure forms won'tbe "bounced back" as incomplete if an overseas visitorfails to fill in a section.
- Don't use country flags to indicate translated pages.Veltkamp points out that flags represent geographic regions, notlanguage groups. A visitor from Quebec won't feel welcomed by aFrench flag nor will a Spanish-speaker from Mexico feel that that aSpanish flag represents his or her language.
- Make it easy for international customers to determine how muchit will cost to purchase a product from your company. Consideradding a currency converter to your site so visitors can determineprice equivalents. (A free currency converter is available atUniversal Currency Converter).
- Don't create the impression that you assume the UnitedStates is the center of the commercial world. Avoid terms like"foreign" when referring to international customers."The biggest complaint I hear from people outside the U.S. isthat the Internet is too U.S.-centric," says Veltkamp.
Finally, make sure your page loads quickly. Many overseascustomers pay for their connection by the minute and won'tappreciate time-consuming graphics, Java scripts, animations orvideos. Don't rely on glitz to sell your product; let yourproduct sell itself.
Exporting From Your Living Room
Working at home is no obstacle to entering the internationalmarket, since the vast majority of your customers will never seeyour office. Instead of paneled walls and an oak desk, what youreally need to reach the world is a good computer system-plusperseverance and common sense.
Veltkamp recommends you "first specialize in the type ofproduct you want to sell. Then specialize in a country or smallregion of the world." The second decision, he suggests, can bebased on your personal interests. "If you're interested inCentral America, specialize there," he says. "That canhelp you get to know the people in the area and learn how the [thelocal businesses] deal, negotiate, set prices, do business,etc."
Shapiro recommends beginning by exploring markets with languagesand customs similar to your own background. "Don't startwith China [if you're unfamiliar with Chinese language andculture]; start with Canada or the United Kingdom. Then when youquery for information, you know what they're saying."
Dennis Hessler agrees. "Canada represents an idealopportunity to conduct research on a foreign country," henotes in his Import-Export Entrepreneur newsletter."[And] just about anything that sells in the U.S. will be apotential product for the Canadian market."
Steps in the Right Direction
Regardless of where you begin, Shapiro notes that certain stepsare essential to success:
- Do your market research. "Find sources that can give youreliable current information [on your target country],"suggests Shapiro. "How stable is the government? What are thecurrency controls? Will there be a labor problem? How will you shipyour product? Will it need continued service and who will provideit?" Shapiro notes that a host of online sources (includingher own Export Hotline at http://www.exporthotline.com) offer in-depthcountry reports that can help an exporter learn about internationalmarkets, trade barriers and related topics.
- Look for contacts within your target country. Agencies that canhelp include the U.S. Department of Commerce's InternationalTrade Administration "country desks," the U.S. Embassy oran AmCham (American Chambers of Commerce Abroad)within your target country. Your target country's embassy inthe United States can also help.
- Network with other exporters. "Talk to people who aredoing it, even if they're not in your industry," saysShapiro. "Get their experiences; listen to what they say andwhat they went through."
- Attend export workshops at colleges or financial institutions."Make sure you fit the profile of the intended audience,"Shapiro warns, noting that seminars hosted for large companies maynot meet the needs of a smaller exporter.
- Find a distributor or agent. Ask your overseas contacts forreferences, Shapiro says. "Don't use the recommendation ofsomeone's uncle or cousin. You need independent, objectivereferrals," she says. "Always ask for references and acredit check." Shapiro notes that there are lots of people whocan help you through the hassles of international commerce,including brokers, distributors, freight-forwarders and customsagents. Many of these are now listed in online internationalbusiness directories.
Veltkamp adds an additional recommendation: "There's alot to be said for actually traveling [to your targetcountry]." Part of the fun of international commerce, he says,"is the acceptance of other cultures, the enjoyment of dealingwith different folks. A sense of adventure is useful in making thatinternational jump; exporting surprises you at everyturn."
Making Connections: Becoming an International Intermediary
If you're not ready to take the plunge into exporting yourown products, Dennis Hessler has an alternative: Become animport/export intermediary.
The task of an intermediary, according to Hessler, is to helpsmall and midsized businesses hook up with buyers and cope withissues like currency transfers and translations.
Hessler recommends finding a supplier first, then looking for abuyer. "If you already have a supplier, you'll have theinformation [a buyer needs]," says Hessler. "You canquote prices and know you can deliver 'x' container loadsof widgets at 'x' price. You may be able to direct thebuyer to the supplier's Web site to find out more about theproduct. You can even e-mail pictures of the products incrediblyquickly and cheaply."
The key to success is discovering your "edge," whichmight be your knowledge of the market, the product or the targetcountry. "If you're a shoe salesperson, use your contactsin the shoe industry to make your first sale," says Hessler."If you have contacts in India, use them to find out whattypes of products sell in India, then find suppliers of thoseproducts in the U.S. Your edge gives you credibility, a clearconnection the supplier can understand."
Hessler points out the importance of building relationships withsuppliers and buyers. "Don't look at a trade as a one-timedeal. Avoid 'fax-jockeying'-just faxing paper back andforth with no real dealings with the individual. It's better tobuild relationships with both sides, so everyone knows you-so youcan count on them and they can count on you. Then your contacts canhelp you expand markets and product lines so you don't have tostart over every time you put a new deal together.
"You don't have to sell 747s to make a lot of money asan intermediary," says Hessler, who notes that it usuallytakes about six months for that all-important first deal to cometogether. "Don't go crazy looking at the hundreds ofbuy/sell offers on the Internet and think you're going to getrich quick; build it up slowly. Patience is thechallenge."
Resources
- World Trade Centers Online:Links to more than 300 World Trade Centers in 100 countries
- American Express Small Business Exchange: Free country reportsand articles on exporting.
Moira Allen is the "Global" columnist forEntrepreneur magazine and editor of Global Writers'Ink, a newsletter for international writers. Her Web site forwriters can be found at www.writing-world.com.