Another Pocket of Opportunity Amid the Economic Crisis

I know I am coming across as the world’s greatest optimist, but I’m actually a wholly committed realist. That’s why I’m convinced that there are real pockets of economic opportunity to be exploited. Today, I’m focused on exporting to overseas markets. The limping dollar has created significant economic hardships (see current exchange rates). But, it has also created significant opportunities for small companies that export or produce and sell products overseas. U.S. exporters reported a record $1.4 trillion in goods and services in 2006, and final 2007 numbers are forecast to exceed 2006 totals. Exporting, a pocket of opportunity

Overseas businesses are seeking bargains. Savvy small business owners are answering that call by ramping up their exporting or overseas sales operations. U.S. exports have surpassed imports, growing at a historically fast rate over the past decade. Obviously, organizations that have the infrastructure and knowledge to ramp up quickly and act now are in the best position to capitalize. But, there are plenty of resources to help all small business owners position themselves to sell to overseas markets.

The best place to start is with the U.S. Department of Commerce’s International Trade Administration (ITA). The website is packed with information essential to understanding the issues and opportunities involved in foreign trade–trade agreements and other regulatory information, facts on what is being exporting to whom, training and business and career opportunities.

Another recommended resource–this one for businesses that are further along in their efforts to sell products overseas–is online marketplaces, such as Alibaba.com, the leading online marketplace for global and domestic China trade. These marketplaces are not for the ill-prepared and uninformed. In fact, some are downright risky due to security issues, large numbers of scammers and a lack of accountability or regulation. Keep in mind that many of these sites are just match-makers, not responsible for ensuring that you are dealing with reputable companies or individuals.

To capitalize on this opportunity to sell products overseas, U.S. business owners must first ensure that their businesses are prepared to service foreign clients in foreign countries. They must ensure that they understand business laws, trade regulations, tax laws, even business customs and consumer buying trends. Because many countries have intellectual property laws that are not as stringent or easily enforced as U.S. laws, business owners would do well to investigate how the countries to which they intend to sell usually address trademark or patent infringement issues. Finally, smart business owners will need to have a solid logistics plan for producing, packaging and shipping products, and an operations plan that allows their organizations to divert talent and capital resources to handle this new initiative.
RECOMMENDED RESOURCES

U.S. Department of Commerce, International Trade Administration - Key resource for all things related to international trade

Export.gov - Free export counseling and advocacy services

Office of Trade and Industry Information - Data on exports of goods from major U.S. metropolitan areas (Learn the top exports from your state or which countries are buying the most of what kinds of products, and much more)

Trade.gov - Attend a trade event near you

TradeAgreements.gov - Latest information on America’s trade agreements

U.S. Department of Agriculture, Foreign Agricultural Service (FAS) - Information, technical assistance, trade and funding opportunities specific to agricultural producers

U.S. State Department - Latest information on trade regulations and other issues important to U.S. business owners visiting, sending employees or operating businesses in foreign countries

UPCOMING EVENTS

February 19 - Export Documentation Fundamentals Webinar: Learn the roles that each party has in the export transaction, learn what documents are required to minimize the risk of delays, and identify the warning signs of high-risk exports.

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