Misconceptions and Facts about Exporting Peter Thornton NCDA&CS

4 Misconceptions about Exporting 1.Your company has to be big 2.You must have a big export department 3.You must have substantial volume 4.You must be fluent in foreign languages

Fords Gourmet Foods Things you can not export –Peanuts –BBQ Sauce Misconceptions, did it anyway –No international marketing team or experience Grew out of small company Export to 50 countries

Advantages of Exporting Enhance domestic competitiveness Increase sales and profits Extend the sales potential of existing products Economies of scale from manufacturing in larger batches. Sell excess production capacity Gain information about foreign competition

Advantages of Exporting Stabilize seasonal market fluctuations Expand markets, not putting all your eggs in one basket by reducing dependence on your local market Currency benefits. Changes in exchange rates can prove advantageous when selling to a customer against whose currency sterling is weak. On perhaps a less business-like note, opportunities for foreign travel can prove stimulating and refreshing to the entrepreneur used to operating in purely domestic markets.

Where to Start Ten things to do that will not cost you anything (or not that much..)

Job One Get to Know Your Staff NCDA&CS –Guides you through available resources –Provides access to market research and marketing programs Other free resources include: –NC Commerce offices overseas –USDA ATO’s around the world –Freight forwarders –The list goes on

Job Two Train Yourself and Your Staff On line training course videos at SBA’s Dan Holt Exporting 101 courses SUSTA’s Basics of Exporting handbook mailed to you at no cost Additional training opportunities available –Special opportunities for minority owned businesses

Job Three Determine Your Best Market Have NCDA pull state specific trade date on your product Have NCDA pull Euro monitor reports for your product in perspective markets. Research best growth markets for your demographic, competition, price points, etc Pull GAIN reports on your product in perspective markets Speak to USDA APHIS about trade barriers for your product in specific markets Contact ATO in target market

Job Four Determine Logistics and Paperwork Determine your pallet size Determine your “export cost” on-line Speak to a freight forwarder –Get FOB and CIF costs –Lessons learned Call USDA APHIS for a list of paperwork and other export requirements

Job Five Find the Money Think how you are going to get paid Talk to your banker about Letters of Credit and other forms of financing Talk to Ex-Im bank representative about payment guarantee programs

Job Six Get Free Customer Leads Skype! Sign up with USDA’s Trade Lead Service Order USDA listing of established buyers –Use them for market research and sales Sign up with SUSTA –Trade leads –Access to buyers traveling in North Carolina and across the South –Access to subsidized display opportunities

Job Seven Get Your Name Out There Free listings in directories –NCDA –USDA –SUSTA Contact and meet NC Commerce overseas staff Send information and samples to staff and people who can help

Job Eight Look for the Money MAP Branded program MAP Generic program subsidized events State Port Tax Credit SBTDC's International Business Development (IBD) Export Financing Ask your “International Staff”

Job Nine Look For Other Resources Graduate school marketing programs SUSTA and USDA research Trade group programs –Cooperator groups –Processed food organizations marketing overseas Keep in touch with your International Staff!

Job Ten (Actually One) Bookmark It! All these resources, and more, are at: Sign up on-line for upcoming NCDA events