Should You Ignore Foreign Markets Just to 'Play It Safe'?

I’m guessing if you own a small business, the term “play it safe” is not one you use frequently. And yet, too many entrepreneurs avoid looking into foreign markets for exactly that reason. In fact, estimates put the number of small businesses (20 employees or fewer) that actually do export at only 20 percent. And of those that do, most export to only one foreign country.

Maybe we are playing it safe after all. 95 percent of the world’s current and upcoming consumers live outside of the United States. That makes for a pretty big market and – despite the challenges – worth taking a second look.

What are the things you can do to start and investigate exports for your company? Here are a few suggestions:

• Get a Plan, but Keep It Simple – It’s absolutely okay to start off with a country that speaks your native language (O Canada!) and whose populace has similar interests to your current market. Remember, baby steps here. You just want to start considering the possibilities.
• You’ve Got Resources, So Use Them – Most business owners are not aware of all the services provided by the U.S. government to help you connect to the resources you need. The Department of Commerce and the Foreign Commercial Service are two great ways to get information and speak to a representative overseas. Do it!
• Don’t Underestimate a Deal in Process – A smart business person overseas or elsewhere is looking to cut costs and get the best deal. Also true with your foreign contacts. Just because someone is excited to work with you or use your product doesn’t mean they aren’t also looking for ways to save dollars. The very fact that they are agreeing to do business with you is an action they may deem worth a steep bargain. Don’t take offense, but do make sure you know what others want. Be clear. Ask questions.
• Be Prepared to Make Some New Friends – While making a new customer is always nice, oftentimes when trying to gain entry into a foreign market, you will need to build new relationships and this may take more time and energy than your stateside contacts. People want to get to know you beyond an email or Skype. Prepare to meet in person if at all possible. Or at least spend more time. Trust takes time to build and that’s what you are both looking to do.
• Don’t Forget to Count Your Currency – One of the more common mistakes is simply not taking the into consideration. You cannot always expect to be paid in U.S. dollars, so you will need to find out in advance and make arrangements with your buyers. Talk to your bank, assess the exchange rates, and determine within your contract language how you will handle currency fluctuations. More banks than you might expect have international finance experts on staff. Ask questions.

I would love to hear about your business adventures in foreign markets. Send me a message or connect with me online. I'm here to help!