tag:blogger.com,1999:blog-84013015836999071022024-03-14T00:32:03.131-04:00Quality Small Business ConsultingThe Salvá Consulting Group is a business consultancy group providing quality advice at an affordable price to our clients to ensure sustainable long-term growth. Our areas of expertise are:
Small Business Finance, Accounting and Operations,
United States Federal Government contracting,
Agronomy,
Import/Export,
Non Profit Management with an emphasis on Social Work,
Contact us: ilesportatore@gmail.com
Phone: (+1)(321)305-9140Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.comBlogger28125tag:blogger.com,1999:blog-8401301583699907102.post-57421060753288645122015-03-25T22:24:00.000-04:002015-03-25T22:24:00.649-04:00Fraud in Small BusinessesSmall business fraud is common yet not understood well. This is not small businesses committing fraud, I am talking about small businesses being the victims of fraud. Its hard for small businesses to recover from fraud, many owners simply don't have the resources (i.e. cash flow) to recover and those who do find it extremely difficult to regain the trust and confidence of customers. Recently I read an article by Dr. Bonita Kramer in the Journal of Small Business and Enterprise development (find the article <a href="http://www.emeraldinsight.com/doi/abs/10.1108/JSBED-08-2012-0097">here</a>) in which she explains the fraud triangle: unsharable pressure, perceived opportunity and rationalization. The triangle is in relation to the pressure employees are subject to and how that pressure leads to some committing fraud. The main point is this, the best way to avoid fraud is to make clear to employees that fraud will be detected. The best way to detect fraud is to be actively involved in the management of your small business and have proper internal controls, don't place employees in a position where temptation to commit fraud is too great!<br />
<br />
What are your thoughts on the fraud triangle?Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-64956611684760159402015-01-13T15:20:00.003-05:002015-01-13T15:20:52.668-05:00Limited Strategic Potential for Small Businesses?<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">I read an article in a
journal today (find link <a href="http://www.sciencedirect.com/science/article/pii/S1877042814059825"><span style="color: blue;">here</span></a>) that focused on the challenges of small
businesses in making strategic decisions. The author states that small
independent businesses are limited, contrary to big business, in how strategic
they can be in making decisions. They can basically select a strategy of
growth, retention or harvesting (reducing business functions that lose money)
while big businesses can do all three.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">What was interesting to
me is that the author presented two different ways of making decisions. By time
(long, medium and short term) and by importance (strategic, operational and
tactical) Now I have been part of an organization that tends to use the second
way to classify decisions for almost 15 years, however once classified as such
they are immediately arranged from long to short range time frame decisions. I
don't see why the two ways should be exclusive.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">Do small business owners
have as much time to think strategically as big business CEOs? I think that's
the more pressing question. If time permitted they probably would but with
multiple functions and a very short staff to carry all the tasks needed most
small business owners don't. A "break" even for a day or two to think
about the business, where it is and where it’s going, is essential.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">Thoughts?<o:p></o:p></span></div>
Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-52347585354795371902014-12-19T16:03:00.000-05:002014-12-19T16:03:01.803-05:00Financing Small Business projects<div style="margin-bottom: .0001pt; margin: 0in;">
<span style="font-size: 13.5pt;">A short article on small business financing caught my attention
today. A study conducted in Spain, you can find it<span class="apple-converted-space"> </span><a href="http://www.emeraldinsight.com/doi/full/10.1108/MD-01-2012-0051">here</a>,
attempted to test the hypothesis that small business with a lower risk profile
will self-select financing options that trade collateral for a lower interest
rate while business with a higher default risk will self-select for financing
options that have a high interest rate but no collateral. The study is very
interesting, and although definitely on the academic side, it poses serious
questions for young entrepreneurs.<o:p></o:p></span></div>
<div style="margin: 0in 0in 0.0001pt;">
<br /></div>
<div style="margin: 0in 0in 0.0001pt;">
<span style="font-size: 13.5pt;">1. If I believe my idea is sound and
profitable (almost everyone does) do I raise the necessary collateral to have
access to a lower interest in a loan?<o:p></o:p></span></div>
<div style="margin: 0in 0in 0.0001pt;">
<br /></div>
<div style="margin: 0in 0in 0.0001pt;">
<span style="font-size: 13.5pt;">2. Instead of using the collateral in the
loan should I invest the money in my company?<o:p></o:p></span></div>
<div style="margin: 0in 0in 0.0001pt;">
<br /></div>
<div style="margin: 0in 0in 0.0001pt;">
<span style="font-size: 13.5pt;">3. If I have no collateral, is my business
ever going to receive funding?<o:p></o:p></span></div>
<div style="margin: 0in 0in 0.0001pt;">
<br /></div>
<div style="margin: 0in 0in 0.0001pt;">
<span style="font-size: 13.5pt;">Financing for small business is a touchy
subject. The link between collateral and riskiness of the business can be
argued both way. The bank might be trying to diminish its risk by asking for a
higher collateral. On the other hand the higher collateral might be the result
of conditions within the bank itself or macro-economic conditions outside of
the control of the small business. My advice to small business owners is to
carefully evaluate the need for financing to begin with. Everyone will push
financing, from small banks to venture capitalists, but they have their own
interests. The bank needs a client, the venture capitalist wants a piece of
your company if successful. If you don't have a plan as to what you are going
to do with that money, detailed plan, then seriously reconsidered asking for it
to begin with. Slow, steady, internally financed growth expansion might be a
better option.<o:p></o:p></span></div>
<div style="margin: 0in 0in 0.0001pt;">
<br /></div>
<div style="margin: 0in 0in 0.0001pt;">
<span style="font-size: 13.5pt;">Thoughts?<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
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<br /></div>
Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-23436974322956981372014-12-09T15:59:00.001-05:002014-12-09T15:59:45.588-05:00Intangible Assets ValuationI read an interesting article on Intangible Assets valuations today. The article was published in the Engineering Management Journal, <a href="http://www.asem.org/asemweb-emj.html">http://www.asem.org/asemweb-emj.html</a> (you have to pay to get access). The authors explain how they develop a tool to help SMEs in Italy asses the value of their intangible assets. You can read the article for the full story and methodology but what interested me is that they defined intangible assets as:<br />
<br />
Human Capital(i.e. the skills of the employees)<br />
Internal Structural Capital( i.e organizational knowledge that belongs to the Company)<br />
Relational Capital (the relationship between companies)<br />
<br />
Placing a value on this can be quite difficult but essential for SMEs as it is usually these assets that are the most valuable for small businesses that do not have huge financial assets. I am curious about the small business owners themselves. How many small business have you encountered that have even attempted to place a value on this, should this be taken into consideration when looking at financing options? If so by whom the bank or the small business owner?<br />
<br />
Relational Capital in particular is interesting. Its the "Who do you know?" concept. A business might be small but if the owners are well connected, say with city hall or the city procurement officer, this is a huge asset with potential value. I understand that the ethical considerations are there but to believe that a small business owner will not exploit such a relationship is naive at best.<br />
<br />
Thoughts?Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-26402971343097405582014-12-08T15:03:00.000-05:002014-12-08T15:03:30.424-05:00Market Research Lessons from the Czech RepublicI read a good article today in the International Journal of Management Cases, you can find the complete article here <a href="http://ijmc.org/IJMC/Vol_16.4.html">http://ijmc.org/IJMC/Vol_16.4.html</a> . If you want to read about the methodology and actual research study more in depth please visit the site. The authors basically surveyed Czech Republic small businesses to determine what did they consider to be barriers to exporting and what are the actual barriers to exporting based on data. They found that many small business believe that the following are their main barriers:<br />
<br />
1. Lack of language skills<br />
2. Lack of experience with foreign markets<br />
3. High costs of promotion<br />
4. Lack of public support<br />
5. Lack of information about foreign markets<br />
<br />
The findings suggest that the main barrier to exporting is actually:<br />
<br />
1. Lack of information or experience in foreign markets.<br />
<br />
Those companies that either searched for information about foreign markets or had key employees with experience in foreign markets actually had decent volumes of export sales (as a ratio of total sales). Although the first list is intuitive and i think almost every business owner that has not exported will list the same reasons, I wonder if small business owners in the US have the exact same concerns?<br />
<br />
Thoughts.Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-73151615714289267412014-10-16T20:01:00.001-04:002014-10-16T20:01:11.092-04:00Small business valuation<p dir=ltr>I read an intetesting piece on small business valuations today. It was mainly focused on Succession planning and how valuations are essential at the time of selling or transition the business to new owners. This is a very essential service for SMEs yet its in short supply. Maybe a possible business opportunity?</p>
Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com2tag:blogger.com,1999:blog-8401301583699907102.post-86527062969088959382014-09-24T20:05:00.001-04:002014-09-24T20:05:16.578-04:00Financial tools for SME<p dir=ltr>What financial tools do you use in your small business? I have mostly stuck with either Quicken or QuickBooks. I must say that after going thru numerous versions of both software packages the differences are starting to blur.Yes, Quickbooks is better for invoicing and P/L reports but Quicken is not far behind in the reporting arena and frankly even Excel can create fairly decent invoices. My point is that Small Busineses might have to start thinking about these tools, and their characteristics, as commoditized. Having them will not give your company a competitive advantage, its just the price to pay to stay competitive. </p>
Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-46061736148025813882013-12-24T18:55:00.001-05:002013-12-27T08:59:26.883-05:00New Year's resolutions<p dir=ltr>The year is almost over. Hopefully it was a succesful year for your business but maybe it was not. During this time of the year just like we usually take stock of our lives its a good idea to take a look at how your business is performing. Many consultants recommend doing this often, however I tend to recommend to do this at least twice a year, but no more. We have to give time for our ideas to be Implememted, take hold and yield results If any. Take some time to ask yourself some of the following questions:</p>
<p dir=ltr>1. What have you failed at this year? Its easy to think of the successes,  its a bit harder to acknowledge mistakes. Think about those things that didnt go quite as planned.</p>
<p dir=ltr>2. Did your customer base increase or decrease? This is a fact that will tell you whether you are providing the right products to the right customers. Think about your offerings and what is working or not.</p>
<p dir=ltr>3. How do your employees think the business is doing? This is not a one man operarion, seek the input of others. If you think everything is going great but when you ask your employees its all doom and gloom then there is something wrong and they might be on to something that you missed entirely. </p>
<p dir=ltr>4. Am I focusing on the customer or my profits? There is one right answer to this one, you should know which one it is.</p>
<p dir=ltr>What do you think? How are you reshaping your business for 2014?</p>
<p dir=ltr>Look forward to your comments.</p>
Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-86751971001043595102013-08-05T20:11:00.000-04:002013-12-15T11:35:55.652-05:00Challenges in Small Businesses<div style="margin-bottom: .0001pt; margin: 0in;">
<span style="color: black; font-size: 13.5pt;">Recently I have noticed that some fellow small business owners are
finding some new regulations challenging. Whether it be grappling with the new
health care law or trying to figure out how to charge taxes on online sales,
new regulations are continually forcing owners to adapt. This is not
necessarily bad as it forces some sort of "survival of the fittest",
or "creative destruction" via Schumpeter, however doing so by
imposing more regulations is hardly ideal. As a small business owner below are
some tips that you can use to stay informed:<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<br></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<span style="color: black; font-size: 13.5pt;">1. Be "involved" with your area
chamber of commerce. Now this is different from joining, which usually involves
a fee. Joining the Chamber of Commerce is not for every owner, but selecting a
few chamber of commerce functions a year and paying the non member rate to
attend will allow you to get some insights into what the business community in
your area is facing. Listening in these functions is key!<o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<br></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<span style="color: black; font-size: 13.5pt;">2. Stop by City/County Council meetings at
least once a quarter. These governmental bodies are notoriously slow, you dot
have to be there for every meeting, it usually takes them months to get
anything done. Go once a quarter and see what issues they are discussing.<o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<br></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<span style="color: black; font-size: 13.5pt;">3. Talk to your business partners and
customers. If you have suppliers talk to them about their issues and how
business is going. Talk to your customers about their issues. Most importantly
listen. Their issues will ultimately affect your business. I am not talking
about long conversations (although if you want to have those go ahead) but 2 or
3 minutes here and there with a big enough sample might help you make
generalizations about your business environment.<o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<br></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<span style="color: black; font-size: 13.5pt;">The point here is that in order to adapt
you must identify the problem and in order to do so you must listen! These are
just different venues to arrive at the same conclusion. Listening will give you
an edge on what the problems are now, what problems might arise and how to
tackle them. <o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<br></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<span style="color: black; font-size: 13.5pt;">I look forward to your comments.<o:p></o:p></span></div>
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Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-35508060694851826332013-05-30T17:40:00.000-04:002013-05-30T17:40:03.256-04:00GSA Schedules and GWACsSo you are looking for business. Your company is growing but you are looking for potential markets. What about the Federal Government? With sequestration the time might not seem the best to pursue this work but that is not the case, with the increasing number set aside contracts it is a potential huge market for any small business.<br />
<br />
GSA Schedules creates "vehicles" for Federal agencies to procure products and services. In simple term, these are contracts which Small Businesses could potentially bid on in order to provide their services/products to federal agencies. GSA Schedules, and their IT counterparts the GWACs, make it easy for those agencies to procure those services/products. If these vehicles make it easier for those agencies to order from the contract holders then it behooves small business to be one of those contract holders.<br />
<br />
Additionally the GSA has generously created programs for small businesses to have an ADVANTAGE over other when bidding for these contracts, from 8(a) to Service Disabled Veteran Owned Small businesses.<br />
<br />
So what do you need to know. You can visit the GSA website,www.gsa.gov , and get knowledgeable on what the schedules are and how they operate, you can visit the Internet for many providers of this service or you can visit our website at www.ilesportatore.com and purchase one of our short and simple guides on the subject. Whatever you do, make sure you take advantage of this opportunity.<br />
<br />
Look forward to your comments,<br />
JuanAnonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-20971734394345603072013-04-07T18:08:00.003-04:002013-04-07T18:08:57.314-04:00How do you do it? Finding Buyers IILast post we quickly went over how to locate a place and a specific potential buyer for your products/distributor. This example was rather quick, however repeating it will yield numerous locations and numerous potential buyers/distributors. What do you do now?<br />
<br />
The first step is to limit your choices. Yes, its possible that you could sell your products to a buyer/distributor in New York or China but it might be easier to negotiate with a distributor that's close to you. In this business face to face interactions, and establishing trust, is essential as methods of payment can vary widely. I have found that narrowing your selections to between 3 and 5 is a good start. At least one of these should be local or driving distance from your location.<br />
<br />
Second you must research the terms that some of these buyers/distributors are offering. Are they asking for exclusivity? Will they buy from you to keep inventory or just-in-time? In the blueberries example that I used on the previous blog some questions to ask is if the distributor buying my entire crop? If so at what price per pound? What happens if the market price fluctuates? What are my responsibilities in getting the crop to the distributor? Is this a multi-year or yearly contract? The list can go on and on but you get the picture, drill into the details. Many buyers/distributors are shrewd negotiators but these are questions that any sales manager should easily answer. Be smart about creating a deal that is beneficial to both parties.<br />
<br />
Finally, this is a continuous process. Just because you close a deal with a buyer or distributor does not mean that your job is done. Immediately start looking for other buyers or distributors. This is key for two reasons; first terms always change and so does the market. If you wait until you have lost a buyer to find another one your bargaining position is not quite as strong. Second, this allows you to focus on your scaling. How many buyers/distributors I can supply? How may do I want to supply? Knowing where your business is and how do you want to scale it is key to having a successful business. As always I look forward to your comments.Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-66107997600273402552013-02-11T15:54:00.002-05:002013-02-11T15:54:21.895-05:00How do you do it? Finding Buyers<!--[if gte mso 9]><xml>
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This is a question that everyone trying to export their
products comes up against. How do I find buyers for my product? I am currently
involved in a small project whose sole purpose is to find buyers. The product
is blueberries, the place is Florida and the buyers could be anywhere.</div>
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<br /></div>
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<span style="mso-tab-count: 1;"></span> A quick
background on this search is required. Most the blueberry farmers in my area,
north Florida, are not too keen to find buyers for their entire crops. Many
utilize the u-pick method, basically a real simple cash transaction.<span style="mso-spacerun: yes;"> </span>Others decide to take their crops to market, Farmer’s
markets that is, and directly sell to customers.<span style="mso-spacerun: yes;"> </span>Both of these methods are profitable with
many farmers making a decent living (I recently had an interview with a farmer
who claimed $175,000 yearly net profits on using a combination of both of these
methods) However if you don’t want random people walking through your farm, or
prefer to do something else on your weekends (most Farmer’s Market convene on
Saturdays) then how can you find a buyer?</div>
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<br /></div>
<div class="MsoNormal" style="text-indent: .5in;">
Well like all market research, it’s
a process. I first started by looking at the USDA Market News (<a href="http://www.ams.usda.gov/AMSv1.0/marketnews">http://www.ams.usda.gov/AMSv1.0/marketnews</a>)
this at least gave me an idea of what cities in my area are offering
decent prices for the crop. Since it’s currently off-season I looked through a
lot of the archived news. I quickly centered in one city, Plant City, FL and one
particular marketer, Wish Farms (<a href="http://www.wishfarms.com/how-we-grow/growers/">http://www.wishfarms.com/how-we-grow/growers/</a>).
Now like in every research, finding one answer usually leads to more questions….</div>
Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-4036086038641420192013-01-18T16:10:00.002-05:002013-01-18T16:10:53.128-05:00Sharpening your Consulting Skills: set up a meeting with entrepreneurs<!--[if gte mso 9]><xml>
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I had an interesting meeting today. I know that business meetings can be
tedious sometimes, but that was not the case with this one. I met with an
emerging entrepreneur in Florida that is trying to put his business together.
Although this might be familiar territory for other business consultants for me
this was fairly new, most of my business involves negotiating with already
established and very savvy business owners (that’s the export consulting part
of it) who very quickly want to get to the bottom line. This meeting was refreshing
and a good test of my skills. Below are several reasons why I think every
business consultant should every now and then meet with emerging entrepreneurs:<br />
<br />
1. It will test your skills. These young emerging business owners have very
different perspectives and questions about how businesses operate. Spending a
couple of hours answering their questions will help keep you sharp and will
show you the flaws in your skill set.<br />
<br />
2. It will give you new ideas. The conversation will make you think about
current business trends just a little different, it will help you
understand what challenges business owners are facing and what opportunities are
out there.<br />
<br />
3. It is a key step in expanding your network. Some will make it, others
will not. However it is much easier to meet with an emerging business leader
than with the head of an established company. They still do not have all the
administrative duties that are associated with established business. However
the new entrepreneur that you just met might become a successful business owner
in a couple of years, you want those leaders to remember, and most importantly
refer, you.<br />
<br />
As always let me know what you think and please share your own experiences
in this area,<br />
Regards,<br />
Juan<br />
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Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-53766030030250585322012-11-27T14:11:00.002-05:002012-11-27T14:11:55.745-05:00Guides to Nowhere? The ITA’s good guides with no plan.
<br />
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<span style="font-family: Calibri;">I just finished reading the International Trade
Administration’s Trade Finance Guide (you can find it at http://export.gov/static/TradeFinanceGuide_All_Latest_eg_main_043219.pdf
). There is plenty of useful advice on it on things such as Export Credit
Insurance, Factoring and a brief summary on Letters of Credit.<span style="mso-spacerun: yes;"> </span>The guide is useful and its language is plain
and easy to understand.<span style="mso-spacerun: yes;"> </span>I tend to read
most of the products that come from the ITA, such as A Basic Guide to
Exporting, but after reading this one a concern seems to continue to come up. The
ITA seems to be publishing good products but without any clear cohesive
strategy, the SME owner basically has a guide that explains the basics of
exporting and then another guide that gives information about financing. There
is no “cradle to grave” guide that tells you HOW to export!<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: Calibri;"><span style="mso-spacerun: yes;"></span>The most fundamental and basic step, finding
clients for your products overseas, seems to be overseen at best or assumed at
worst. <span style="mso-spacerun: yes;"> </span>A guide that explains the
business process could be more beneficial. Clearly defining steps such as
assessing your products/services, finding clients overseas, negotiating with
clients overseas (to include method of payment and negotiations), financing, shipment
of products/delivery of services and receipt of payments would be good a start.
Obviously the business process is far more complicated but a coherent guide
that takes the SME owner from the “cradle” of exporting (i.e. product or
service self assessment) to the “grave” (i.e. goods shipped/service provided
and payment received) is far more beneficial than good guides published at what
seems to be random times. I know that services such as Gold Key Matching exist
to find overseas buyers but not all SMEs prefer to pay the associated premiums
of such services. </span></div>
<br />
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<span style="font-family: Calibri;">As always I look forward to your thoughts. </span></div>
Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-70901874136873448682012-08-31T14:28:00.001-04:002012-08-31T14:28:40.047-04:00Florida: Exporting and SMEsRecently I came across a report from International Trade Administration (<a href="http://www.trade.gov/mas/ian">www.trade.gov/mas/ian</a> )regarding Florida Exports, Jobs and Foreign Investment from June 2012. The report had some interesting facts that I thought i will share. Florida is were i operate my business so i also have some selfish reasons to share this with you:<br />
<br />
1. 37,687 companies exported from Florida in 20009 of those 36,109 were Small and Medium Sized enterprises (SME)<br />
<br />
2. 67% of Florida's total exports are from SMEs<br />
<br />
3. The largest trading partners are Switzerland ($7.3 billion in export sales), Brazil ($5.3 billion)<span style="font-family: Calibri;">, Venezuela ($4.5 billion), Canada ($4.1 billion) and Colombia ($2.8 billion)</span><br />
<span style="font-family: Calibri;"></span><br />
<span style="font-family: Calibri;">These figures seem impressive, however, when I see these figures i think of the challenges and opportunities of exporting. Consider these other figures from the Census Bureau (<a href="http://www.census.gov/">www.census.gov</a>):</span><br />
<span style="font-family: Calibri;"></span><br />
<span style="font-family: Calibri;">1. Florida has 491,249 private non farm establishments</span><br />
<span style="font-family: Calibri;"></span><br />
<span style="font-family: Calibri;">2. Total number of firms in Florida is 2,009,589 for 2009</span><br />
<span style="font-family: Calibri;"></span><br />
<span style="font-family: Calibri;">Do you see it? According to these figures only 7% of businesses in Florida engaged in exporting! I know some of you might point out that private non farm establishments are not the same as companies but even accounting for different types of establishments there is still a vast number of Florida companies that do not export. The opportunity to expand our exports is enormous! Do you see the second opportunity? Most of our exports are going to South America, a few to Europe. What about Africa, Central America, Asia? There are numerous places were Florida businesses can expand and export. I see these challenges as opportunities and as we all well know running a business is about seizing opportunities.</span><br />
<span style="font-family: Calibri;"></span><br />
Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-78347827843832839832012-08-09T15:17:00.001-04:002012-08-09T15:17:40.710-04:00Is your next business breakthrough in Sub Saharan Africa?I read a press release from the International Trade Administration this morning. Its an old one, dated June 14th, 2012 but the information is still relevant. In thepress release the World Bank's "Doing Business in a more transparent World" document is cited as evidence that 36 out of the 46 economies in Sub-Saharan Africa have improved business regulations this year and 6 of the world's 10 fastest economies are in this area as well. Hopefully this translates to better export opportunities for our businesses. The point here is simple. This COULD be the next big market for your business.<br />
<br />
I know many of you are thinking do not put too much thought into this area. Asia occupies most of the commercial "bandwidth" out there and Latin America follows as our business are far more adept at conducting business in those countries than in sub-Saharan Africa. For this same very reason this is why it could be a potential market, the competition might be less fierce and the opportunities might be more abundant. Obviously this is just food for thought, a proper market research needs to be conducted before ANY business decides to take this leap but the facts are there, this area is growing, its growing fast and many are not paying attention.<br />
<br />
You can read the press release at the following link:<br />
<br />
<a href="http://blog.trade.gov/2012/06/14/growth-and-opportunities-in-sub-saharan-africa/">http://blog.trade.gov/2012/06/14/growth-and-opportunities-in-sub-saharan-africa/</a><br />
<br />
I look forward to your comments.Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com2tag:blogger.com,1999:blog-8401301583699907102.post-24581071408855265092012-07-08T18:18:00.006-04:002012-07-08T18:18:56.238-04:00Those busy bastards...<!--[if gte mso 9]><xml>
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Those "busy bastards"...</div>
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<br /></div>
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I was recently reading Colin Powell's new book "It
Worked for Me: In Life and Leadership" and the General had an interesting
concept that I have never heard of before, he called it the "busy
bastards". Now I don't remember how General Powell came about with that
term, I do remember that he heard it from one of his colleagues in the Army
during his long and distinguished career. Nevertheless it is an interesting
concept. The General was referring to those individuals who sometimes have
exceptional skills but confuse being "busy" with being productive.
Having spent a short time in the Army myself, I stopped and thought about this
for a while, in such a short time a met plenty of "busy bastards"
too! Don't get me wrong, many of the guys I served with are exceptional leaders,
Soldiers and human beings but many of them truly believed that the way to show the
"boss" that we were being productive was by being busy.<span style="mso-spacerun: yes;"> </span>I started thinking about this concept as it
applies to business ownership and entrepreneurship and I thought "Many of
the small business owners I know are busy bastards too!"</div>
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<br /></div>
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Let's think about this for a minute. Usually small business
owners are pressed for time. We have to figure out how to market our products,
plan and supervise our operations,<span style="mso-spacerun: yes;">
</span>manage our resources effectively, maintain our financial accounts, pay
our employees, etc, etc.<span style="mso-spacerun: yes;"> </span>More often than
not we don't have a Human Resources department or a Finance department that can
do this for us, we have to do it on our own. However a business owner doing all
of these tasks doesn't necessarily mean that he must be "busy". We
need to strive to move beyond being busy. Is the way I am operating the most
effective way? Is my marketing really working? Am I doing payroll the most
efficient way? Being a "busy bastard" prevents us from <b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">THINKING</i></b>
about our business and how to improve. If a business owner stops thinking and
innovating they are bound to fail.</div>
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<br /></div>
<div class="MsoNormal">
In the export/import business it is REALLY easy to fall on the
"busy bastard" rut. Try completing a SED or using AES for a minute
without being frustrated.<span style="mso-spacerun: yes;"> </span>Do not let the
tasks become "busy work". Take the time to think about your business
and how to improve, constantly. We must always be productive but never
"busy". That is a good lesson that I have learned from this book,
which by the way I recommend, it is an amazing read.</div>
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<br /></div>
<div class="MsoNormal">
Look forward to your comments. </div>Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-84667092938390797802012-06-09T13:39:00.001-04:002012-06-09T13:39:14.499-04:00Export Broker: Building your Network of Trust<!--[if gte mso 9]><xml>
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Exporting can be complicated.<span style="mso-spacerun: yes;"> </span>Fortunately if you are like me you picked the
least complicated position in the export/import industry, being an export
agent/broker. Our friends doing distribution or manufacturing require much more
time and capital to get their businesses of the ground. We focus on the deal,
as long as you have a penchant for getting two parties together and completing
a deal you have a good foundation for being an export agent. <span style="mso-spacerun: yes;"> </span>Most experts on the subject start with the
same basic advice, find a good product and try to find a buyer for the product
abroad, all for a commission. Although this is sound advice it is not as easy
to find a "good" product to export, or for that matter a manufacturer
that is willing to let you try to sell their product abroad. </div>
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<br /></div>
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I do not suggest that you should deviate from this advice,
finding a good product to export IS the best way to complete a deal but this
other advice might be helpful as well.</div>
<div class="MsoNormal">
<br /></div>
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1. Plan for your venture to take time. Exporting is all
about building relationships. It is difficult to find a manufacturer that will
trust you with a product because they want someone they can
"trust".<span style="mso-spacerun: yes;"> </span>Exporting is a difficult
business with many pitfalls, building and maintaining that trust is essential
and it takes time.</div>
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<br /></div>
<div class="MsoNormal">
2. Plan to take even more time building your network.<span style="mso-spacerun: yes;"> </span>Your network is the basis of your
"sourcing". In a business where trust is key your network is the way
to get your trust noticed. In exporting, word of mouth still counts. Spending
the time to get to know others in the industry and try to carve your own niche
will yield results.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
So there it is, being an exporting agent is more than just
having the right product. It requires building the trust and creating a network
to support your business.</div>
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<br /></div>
<div class="MsoNormal">
As always your comments are always welcomed,</div>Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-58653958977885376992012-05-14T11:51:00.000-04:002012-05-14T11:51:07.341-04:00Export Broker: Adventures in the Trade " The Export Assistance Centers"<!--[if gte mso 9]><xml>
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If you are like many of us on the export/import arena you probably read, or
at the very least browsed, "A Basic guide to exporting". This
"document" has been produced an important resource for distributing
the basics of exporting to the widest possible audience for more than 70 years.
Reading the 2012 version, which was advertised as completely revised and
updated in the export.gov website, I have arrived at 2 conclusions that might
help others in the export/import broker business.<br />
<br />
1. The revised and updated edition is neither much revised nor much updated.
If you have a copy of the old guide I suggested that you should hold on to that
and wait for another "revision". Many of the examples are from the
pre recession era (i.e. 2005 and 2006). This might have been good enough a
decade ago but we all know that the market is changing at light speed this
days, a guide with information that is 6 years old is not keeping much up to
date. The problem is not that the information is obsolete, the issue is that
much of the information loses its relevance. Save yourself the time, keep using
your old guide.<br />
<br />
2. Don't be discouraged by the Export Assistance Centers. In the guide all
of the answers seem to rest at the Export Assistance Centers. With such a phenomenal
organization, how are independent consultants going to survive? Surely the EACs
will run all of us out of business. Not true. First let us remember that the
EAC are just plain government agencies, i.e. not known for being efficient or
providing the best service. Granted that there are excellent trade specialists
in many of the EAC but overall the service is not much different than other
government agencies. Second, the EAC can provide a lot of the information, but
they can't represent a sole party. Your attention is divided among many
customers and your best interest, although important, are not the sole interest
of the center. Independent consultants fill many voids that the EAC,
simply by being government agencies, can never fill. Learn to leverage their
expertise and work with them, but constantly remind your clients that there is
a difference, in quality and service, between a government agency and a private
company.<br />
<br />
As always I am open to your comments on the opinions presented in the blog.<br />
<br />
I look forward to your comments.<br />Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-6912552828173236032012-04-02T15:44:00.004-04:002012-04-02T15:44:45.640-04:00Export Broker: Adventures in the Trade " The Sales Department"<!--[if gte mso 9]><xml>
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Brokering deals, what I specialize in my business, can sometimes
be dull as well as exciting.<span style="mso-spacerun: yes;"> </span>Regardless
of the day to day events I always learn something new. A couple of weeks ago I
had a Central American client who was interested in a product, the client had
specifically stated that she wanted the product to be manufactured in the
United States. Now, I am an advocate for U.S. companies exporting their
products but I honestly had nothing to do with this request, for whatever the
reason this client wanted her products to bear the "Made in the
U.S.A" stamp.<span style="mso-spacerun: yes;"> </span>I go about doing my
normal research,<span style="mso-spacerun: yes;"> </span>after a couple of days
I narrowed it down to a couple of companies that had the product.<span style="mso-spacerun: yes;"> </span>After narrowing the list I started to make
phone calls. This is where I made my mistake, and I relate it to you so you
avoid it. Once I started calling I usually contacted the Sales Departments...
wrong answer. These Sales departments are ruthless, and obscuring the truth
seems not to be an issue. However many of them, specially with other small
companies, are just way out of their league when it comes to exporting.<span style="mso-spacerun: yes;"> </span>They usually don't have the knowledge or the
decision making authority to obligate the company to an export deal. I wasted
about a week doing this with little feedback, almost no information to give my
client and as far away from the deal as I started.<span style="mso-spacerun: yes;"> </span>I changed tactics and started
researching<span style="mso-spacerun: yes;"> </span>the leadership of these
small companies, you will be surprised how much info you can find online.<span style="mso-spacerun: yes;"> </span>I started contacting V.Ps and Owners and the
answers and I got were way more helpful.<span style="mso-spacerun: yes;">
</span>Some of the manufacturers that I contacted, companies known for their
U.S. products, were even made in the U.S. at all.<span style="mso-spacerun: yes;"> </span>I received an answer stating that " our
products are Chinese made but we distribute in the U.S" now talk about
useful information! I am still working on the deal, but now we are finalizing
details of a trade rather than on the initial market research stage. Here are
some tips for your own search:</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
1. If contacting a large supplier, contact the sales
department first. However, double check absolutely everything that the
department tells you. Ask about their exporting history and for point of
contact<span style="mso-spacerun: yes;"> </span>information of officers if the
company exporting history is flimsy.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
2. If contacting a small business or supplier, contact the
officers directly.<span style="mso-spacerun: yes;"> </span>Ask about the
exporting history and on what terms they would be willing to conduct an export
if no previous history.</div>
<div class="MsoNormal">
<br /></div>
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3. Double check the answers you receive! There is nothing
worse than presenting false information to your client. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
4. Be prepared to answer numerous questions, make sure you
understand the requirements of your client, the regulations that will govern
the trade, the terms of your client,<span style="mso-spacerun: yes;">
</span>request of samples if necessary, etc. You are the expert for both your
client and the supplier.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
5. Stay positive, sometimes the deals fall through, The
details might not be favorable or the client loses interests, there are a
million reasons for the deal to go bad. Don't dwell on it, learn from the
experience and move on to your next deal.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
As always, look forward to your comments.</div>Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-61422318305854296392012-03-07T11:40:00.001-05:002012-03-07T11:40:47.964-05:00U.S-Korea Trade Agreement. Whats in it for you?<!--[if gte mso 9]><xml>
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Last fall news of Free Trade Agreements appeared in the media for a brief
period. The U.S. had finally signed three different FTAs; one being with South
Korea. The news quickly faded more "pressing" matters like politics
or the newest movie in Hollywood. But if you are a business owner, what does
these news mean for you?<br />
<br />
This morning I was reading my daily newsletters when I came across a brief
article from the International trade Administration on the U.S. - Korea Free
Trade Agreement. If you are a business planning on dealing these following
points might be of interest to you:<br />
<br />
1. The agreement comes into effect on March 15, 2012 (yes, in about a week!)<br />
2.Almost 80% of exports from the U.S to Korea can be imported duty free,
this is good news for both companies doing business there and those planning to
do business there. You can use the FTA tariff tool,
http://export.gov/FTA/ftatarifftool/index.asp , to see if your product
qualifies.<br />
3. Nearly 2/3 of all U.S. Agricultural exports to South Korea become duty
free starting on March 15.<br />
4. Commitments concerning intellectual property rights and the opening of
Korea's enormous service market will also come into effect on March 15, 2012.<br />
<br />
As most government regulations, if you do not claim the benefits of this
agreement on your import/export activities you will simply not get them, you
must explicitly claim them in order to take advantage.<br />
<br />
FTAs are a great incentive for exporting, knowing the details and how they
can benefit your operations is key. If you want to read more about this
particular FTA go to
http://blog.trade.gov/2012/03/06/how-u-s-companies-can-start-taking-advantage-of-the-u-s-korea-trade-agreement/<br />
<br />
Look forward to your comments<br />Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-65576490361065810482012-02-19T14:01:00.000-05:002012-02-19T14:01:21.411-05:00The competitiveness and innovative capacity of the US. Any good info in there?<div style="font-family: Arial,Helvetica,sans-serif;">
<span style="font-size: small;">The U.S. Department of Commerce was tasked, in consultation with the National Economic Council, by the President of the United States to create a report about the current state of innovation in the U.S. " The competitiveness and innovative capacity of the U.S." is the result. </span><!--[if gte mso 9]><xml>
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<![endif]--><span style="font-size: small;"><span style="line-height: 115%;"> Although a standard government report, by this i mean dry and not too exciting, it consists of about 160 pages, many of which are graphs and cover pages so your reading might be close to a hundred. The weather in the Washington D.C. area is not that great today, so i sat down this morning and read it.</span></span></div>
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<span style="font-size: small;"><span style="line-height: 115%;"><br /></span></span></div>
<span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%;"><span style="font-size: small;"><span style="font-family: Arial,Helvetica,sans-serif;">Most of the report is standard, a document used by the administration to support its policies. It identifies three area or "pillars" in which government investments are essential; federal support of basic research, education and infrastructure. The report focuses on how the federal government needs to invest in basic research as private companies are not inclined to do so, how STEM education investments are essential and how improving infrastructure will benefit commerce. The benefits of these investments are rarely debated, the debate occurs when deciding who has to pay for them. This post will focus on two area that were presented, but not discussed in depth, in the report; Regional Innovation Centers and Trade agreements.</span></span></span><br />
<br />
<span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%;"><span style="font-size: small;"><span style="font-family: Arial,Helvetica,sans-serif;">Regional Innovation Centers (RICs) are geographic areas around the U.S. in which particular industries are clustered. Some examples include the Institute for Advanced Learning and Research in the Dan River Region of Virginia focusing on research and STEM education and the Joint venture Silicon Valley Network, focusing on IT. RIC are important because its a mutually supportive environment, companies in the area depend on each other for growth and the success of one can mean future growth for other companies in the area. The link for small businesses to RICs can occur in the SBDCs. Most land grant public universities have some sort of relationship with a RIC, and most of the innovations created at the university are funneled directly into the RIC for commercialization. Having a good relationship with your SBDC could help you understand two things; if your area is a RIC and what are the terms of entry into the regional community. Small start ups and small businesses struggle with R&D since it is expensive, tapping into a whole network who help its members with these costs might enhance your business.</span></span></span><br />
<br />
<span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%;"><span style="font-size: small;"><span style="font-family: Arial,Helvetica,sans-serif;">The second area that i noticed were the trade agreements. The report, in its entirety, only devotes about 1.5 pages to trade agreements. it mentions the signing of the Colombia, South Korea and Panama agreements and the ongoing negotiations for the Trans-Pacific Partnership (negotiations currently include Australia, Chile, Peru, Singapore, Brunei Darussalam, Malaysia, New Zealand and Vietnam) This is not enough. Mentioning trade agreements that have already been signed and the negotiations for another is not enough to help our small businesses export their products. Program from the U.S Commercial Services should be discussed, as well as the SBA and the Export-Import Bank. Signing FTAs with other countries is just one of the answers, more avenues for our business to learn and follow trade leads are necessary.</span></span></span><br />
<br />
<span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%;"><span style="font-size: small;"><span style="font-family: Arial,Helvetica,sans-serif;">The whole report can be found here </span></span></span><br />
<br />
<span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%;"><span style="font-size: small;"><span style="font-family: Arial,Helvetica,sans-serif;">http://www.commerce.gov/sites/default/files/documents/2012/january/competes_010511_0.pdf </span></span></span><br />
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<span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%;"><span style="font-size: small;"><span style="font-family: Arial,Helvetica,sans-serif;">What do you think? Can RICs help your business grow? Is assisting companies in their export endeavors really a priority or not? </span></span></span><br />
<br />
<span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%;"><span style="font-size: small;"><span style="font-family: Arial,Helvetica,sans-serif;">I look forward to reading your comments. </span></span></span><!--[if gte mso 9]><xml>
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So you have a product that you wish to export. But what do
you do now? There are several key things that you need to do to organize your
research. In this series of blog posts I will explain a method, there are
plenty of ways to doing this, for conducting your research.<span style="mso-spacerun: yes;"> </span>The initial stages are very simple and you
should focus on two research areas.<span style="mso-spacerun: yes;"> </span>How
is the product exported from your nation? Where can I export it to?</div>
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<b>Can I export my product?</b></div>
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One of the first things you should figure out is if there
are any restrictions on exporting your product. The Bureau of Industrial
Security might be an initial stop for your research. The Department of Homeland
Security and the Department of Commerce can further help you determine if your
product can be exported or if there are restrictions on it. Most of the
restrictions arise from dual-use items (those that have both civilian and
military uses) but restrictions vary.<span style="mso-spacerun: yes;"> </span>It
is important to do this, you don't want to have your shipment of exports
stopped at the port because of export restrictions, you will lose money and
will probably not be able to complete your export transaction. The second
step<span style="mso-spacerun: yes;"> </span>would be to look for any assistance
that the government might be providing for exports of your particular product.
The Small Business Administration, U.S. Commercial Services and many other
government agencies have programs specifically tailored to certain products, if
yours falls under this it might make your exporting endeavors a lot easier.
This forms the basis of your research, determine what you need to do to get
your product through the port and out of the country and determine if the
government is willing to help you do this.</div>
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<b>Where are my exports headed?</b></div>
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Shipping requires a destination, your products must reach a
buyer who is willing to pay a favorable price in order for you to make a
profit. The first step is determining the places that you can't export to. The
Department of State can be of assistance in determining places where U.S.
companies cannot export. Finding a buyer is a little bit trickier. Visiting
places such as your local SBDC, <a href="http://trade.gov/">trade.gov</a>, U.S Commercial Services Offices,
local Chamber of Commerce, foreign trade promotion agencies, etc. are just various
ways of finding that essential buyer. The key here is to diversify and use any
assistance available.<span style="mso-spacerun: yes;"> </span>This requires
extensive research and is by far the most difficult part of an export endeavor.<span style="mso-spacerun: yes;"> </span>How can I trust the buyer? Will he pay? Do I
need to visit the buyer in person before making the deal? Is it a scam? These
are just a few of the questions that immediately arise, and these are the
questions that your research must answer.<span style="mso-spacerun: yes;">
</span>There is always a risk in exporting, as in many business deals, the intent
of doing research is not to eliminate risk but to lower its probability by
being prepared. Do you want to make sure your buyer pays? Then determine a
payment method that will ensure that he pays either up front or when the goods
at are the importing port. There are plenty out there, you just need to find
one that suits you.</div>
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The next entrance in this blog will explain the first step,
how to determine if your product can be exported from the U.S</div>
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.</div>
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Please share your comments and opinions,</div>
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Thanks for reading </div>Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-69503682223378217082012-01-09T14:58:00.000-05:002012-01-09T14:58:08.172-05:00How do I get trade leads?<div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">This is a question that every owner who wishes to export its products asks. How do I find out who wants to buy my product? It’s a simple question with a complex answer. There are numerous options that a company can take to find out who wants to buy their products in the international market.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">1. Export Management Company</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">This is the easiest, and probably the most expensive, option.<span style="mso-spacerun: yes;"> </span>There are numerous export management companies in the U.S. and abroad, whose sole purpose is to help you export your product, obviously at a price. <span style="mso-spacerun: yes;"> </span>Some of these companies include Amex International Sales Outsourcing (</span><a href="http://www.amexinc.com/"><span style="color: blue; font-family: Calibri;">www.amexinc.com</span></a><span style="font-family: Calibri;">), Tradewinds (</span><a href="http://www.tradwinds-global.com/"><span style="color: blue; font-family: Calibri;">www.tradwinds-global.com</span></a><span style="font-family: Calibri;">) and Sefco (</span><a href="http://www.sefco-export.com/"><span style="color: blue; font-family: Calibri;">www.sefco-export.com</span></a><span style="font-family: Calibri;">) .The advantage of using thess companies is that it’s almost a ready-made service. Many of these companies will not only find someone who wants to buy your product but will also provide shipping services and customs brokerage services.<span style="mso-spacerun: yes;"> </span>Furthermore many of these companies already have distributors overseas in place to distribute your product. These companies are excellent; however the greatest drawback is the price tag. Although many large and some medium sized business can pay for this service, many small business simply can’t. Researching and comparing prices will help you in determining if this is the right option for you.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">2. Federal/ State government Agencies</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">There are many government agencies that encourage export and attempt to provide export assistance to US companies.<span style="mso-spacerun: yes;"> </span>The Department of Commerce (export.gov), the Export-Import Bank, the U.S. Commercial Services and even the Small Business Administration have programs to help you in your exports. The advantages are numerous.<span style="mso-spacerun: yes;"> </span>Many of these agencies can help you in conducting the necessary research and finding a buyer. Some even provide capital for you to export. Most of these services are very affordable and many small businesses could easily use them. The greatest drawback of these services is that they are government services, many are subject to current political conditions, and some bureaucracies aren’t exactly “customer friendly”. Furthermore you have to take the first step and although they can help in several ways many of the actions necessary to complete a transaction will ultimately rely on your research, planning and coordination. Understanding your need and your willingness to devote time to engage a government bureaucracy will help you determine if this is the right option for you.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">3. Export Brokers</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">These are specialized service providers.<span style="mso-spacerun: yes;"> </span>In full disclosure I belong to this group, but there are advantages and drawbacks to using brokers. Some of the export brokers include my own company Il Esportatore, LLC (</span><a href="http://www.ilesportatore.com/"><span style="color: blue; font-family: Calibri;">www.ilesportatore.com</span></a><span style="font-family: Calibri;">) and Export Trade Brokers (</span><a href="http://www.exporttradebrokers.com/"><span style="color: blue; font-family: Calibri;">www.exporttradebrokers.com</span></a><span style="font-family: Calibri;">). It is important not to confuse customs brokers with export brokers. Customs brokers are mostly involved with the documentation and freight arrangements necessary to get your product overseas once a deal has been reached, the export broker specializes in getting you the deal. <span style="mso-spacerun: yes;"> </span>The advantage is that many of these services are very affordable as many export brokers work on commission (usually no more than 10% of the total value of the deal) and depending on your industry specialization many of these brokers can get you deals that the larger export management companies can’t (either due to contacts in the industry or a better understanding of your product and market). The drawback is that it’s a loose group; the standards of professionalism and expertise that you pay for vary. Some will take the interest of your company to heart, ensuring that you not only export one sale and they get their commission but actually helping you establish a relationship with a foreign buyer that might generate further sales for you, even if it means no commission for the broker. Others will simply take their commission and run, even if your product ends in the wrong port of the wrong nation.<span style="mso-spacerun: yes;"> </span>The nature of your product and your willingness to devote time to get to know the broker will help you determine if this is the right option for you.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">Exporting is not easy, it requires consistent research, networking and the willingness to try new things, and sometimes fail at those new endeavors. Export Management Companies, Governmental organizations and Export Brokers are just some of the entities out there that can help you achieve your exporting goals. Deciding which one to use will require, once again, some research on your part.</span></div>I look forward to your comments,<br />
V/R<br />
Juan A. SalvaAnonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0tag:blogger.com,1999:blog-8401301583699907102.post-64378150099369622232011-12-19T14:03:00.000-05:002011-12-19T14:03:20.790-05:00Exporting- Essential Market Research<div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">Exporting, like everything in business, requires extensive research. Selling your product/service in the international market can be a daunting task; it’s hard enough to get your product/service to be recognized at home, let alone in a foreign country with a different language and culture. As a business owner it is important to be organized, in order to be successful in exporting you need to be even more organized, and it starts at the market research phase. </span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">Exporting requires capital, sometimes extensive capital, so before you go and spend your capital on a failing venture you need to know several things. Some of the questions you can ask yourself are:</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">1. Is there a market for my product/service in the region?</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">2. Do i target an area or a specific country?</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">3. What is my competition, both at home and the export destination?</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">4. Any government regulations concerning my potential exports?</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">The list of questions to be answered can be extensive, but it is important to spend the time and effort to do this. You are the small business owner and exporting could either create opportunities or put you out of business. I suggest a "business rhythm", this derived from my days in the Army doing "Battle Rhythms", for your research. The caveat is this is not a routine! It’s a framework, you a lot time to complete the research tasks that you need to get completed, on a weekly or monthly basis, and try to stick with those. If you can’t its fine, but you shouldn’t be exporting if you can’t put the time to do research. Some of the tasks that i do for my market research business rhythm include:</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">1. Read local news about the region/country that interests me</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">2. Go to export.gov and read market analysis for the region/country</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">3. Research the commerce department of the export destination</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">4. Research conferences or trade shows focused either on my product or on the region i want to export too.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">These are just a few, just as the questions, the tasks associated with your business rhythm should be tailored to the amount of time you are willing to spend and you specific business needs.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;"> </span><span style="font-family: Calibri;">Conducting research is not glamorous, even an enjoyable part of being a business owner. In exporting though, it is essential to do so, and do it extensively. Market research will lay the foundation for a successful exporting venture.</span></div>Anonymoushttp://www.blogger.com/profile/14446675552000260146noreply@blogger.com0