 How to 'go global' with your bizQ: My name is Zengzhingliu, I am Chinese. I am living in Fujian Province, China. I can speak Chinese, Japanese and English. I would like to begin doing international business. Could you tell me how to do it? Thank you very much. A: What an amazing world we live in. That a capitalist from China can send me an instantaneous electronic communication half way around the world inquiring about how to begin an international business is further proof that the world is indeed flat. Of course I am referring to the great book by the New York Times columnist Thomas L. Friedman, entitled "The World is Flat." Friedman's thesis is that free trade, technology and politics have combined to level, or flatten, the playing field. We now all live in what futurist Buckminster Fuller once called "a one world island in a one world ocean." The effects of this global transformation are many, but most certainly a big one is that there are far more markets available to the average small business than ever before. Today, any small business not engaged in international business is missing a golden opportunity. Of course, the question is: How does one start such an endeavor? Certainly the simplest way to begin an international business is simply to set up an online store and begin to market your services and products. (Find cost-effective ways to market your business.) But when you have international skills (like our Chinese friend above) it would be a shame to limit your international business endeavors to the online world. So how do you jump in? Here are the steps to take: 1. Analyze your competitive advantage. What is it you can do or offer that is unique, internationally? As in the rest of business, you need to capitalize on your strengths. Do you have international contacts or experience? Do you know foreign languages? Are there countries or foreign companies that need what you have to offer? Come up with a business idea, product, and plan that utilizes your assets. When dealing with international trade especially, it is vitally important that you choose a business you know well. 2. Do your research. In business, I always recommend looking before leaping, and that is all the more true when getting involved in international trade. Research which tells you both whether your idea is viable and how to run that business can save you a lot of time, money and effort. Check and see what free advice and assistance is offered by your government. In the United States, for example, the Department of Commerce is a great resource with scores of trade experts ready to help. Other free, valuable assistance can come from:
The point of all of this research is to discover whether or where there is an international market for what you want to sell, what doing business there may be like, and whether you would like doing business there. 3. Make contact. If you will be exporting a product, you have several options regarding distribution. You can find and hire a fulfillment house in the host country to distribute your product for you. (A "fulfillment house" is a company that handles all matters surrounding distribution of your products, from warehousing to packing, shipping, and even returns.) You can hire agents or representatives in those countries, or you can even set up a joint venture. You will want someone with a track record of selling to the companies or consumers you are targeting and someone who can speak both languages. If you will be offering a service, then you need to use the resources above, as well as the Internet, to create a list of potential foreign companies that may need your services. You will then make contact with them, either by e-mail, fax, phone or letter, and explain who you are and what you offer, your experience and qualifications, your understanding of the market, and why you can represent them and offer them exceptional service. Expect to be turned down a lot as cold calling is never easy, but remember, too, that cold calling is a numbers game: Smile and dial, smile and dial. 4. Prepare your Web site. Your Web site is your best chance for impressing foreign companies. Have a great one. You may even need to create a version of it in a different language. Fees should be in their currency. 5. Make it legal. All countries have laws that regulate imports and exports. Make sure you know what they are and follow the regulations carefully. Check out the Trade Compliance Center. 6. Sell. Once you have a viable plan, know the laws, and have made contact, get out there and go global! How did Steve answer other questions? Read his previous columns Steve Strauss is one of the country's leading small business experts, a columnist for USATODAY.com, and the author of the "Small Business Bible." If you would like to have Steve speak to your group, or to sign up for his free e-newsletter Small Business Success Secrets!, visit his Web site. Have a question for Steve? Send him an e-mail.
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