Post on 29-Dec-2015
transcript
Export University Inc.Export 101
Export University Inc.Export 101
[Instructor Name/Location]
ExportUniversity.com
What is Export University?• Export University is a “branded” approach to conducting trade
education and training which is offered by District Export Councils nationwide in partnership and with the full support of the U.S. Department of Commerce.
What are District Export Councils?• District Export Councils (DECs) contribute leadership and
international trade expertise to complement the U.S. Commercial Service's export promotion efforts through counseling businesses on the exporting process and conducting trade education to promote exports by companies in their local region.
About the Export University ProgramAbout the Export University Program
SponsorsSponsors
• Use this slide to recognize your sponsors
Excellence in Export Education
Export 101Export 101
Export 101, an introductory course designed by exporting experts for exporters to provide the confidence you need to explore exporting as a strategy for business growth.
Learning the basics will lower your anxiety, enabling eye opening possibilities to surface which will motivate you to want to learn more – ask more questions.
Today, through learning some basics, you will uncover business areas for focus, and meet key resources to mentor you through the growth process.
Getting Ready to ExportGetting Ready to Export
[Instructor Name/Location]
ExportUniversity.com
ConnectivityConnectivity
Trade Regulations
& Legal
Building Infrastructure
International Logistics
Managing Payments & Financing
Getting Ready
Growth
Developing Relationships
Export 101 AgendaExport 101 Agenda
1. Getting Ready to Export1. Getting Ready to Export
2. Developing Customer Relationships2. Developing Customer Relationships
3. Building a Global Infrastructure3. Building a Global Infrastructure
4. International Logistics 4. International Logistics
5. Managing Payments & Financing5. Managing Payments & Financing
6. Trade Regulations & Legal Issues 6. Trade Regulations & Legal Issues
Export 101 AgendaExport 101 Agenda
1. Getting Ready to Export1. Getting Ready to Export
2. Developing Customer Relationships2. Developing Customer Relationships
3. Building a Global Infrastructure3. Building a Global Infrastructure
4. International Logistics 4. International Logistics
5. Managing Payments & Financing5. Managing Payments & Financing
6. Trade Regulations & Legal Issues 6. Trade Regulations & Legal Issues
Getting Ready to ExportGetting Ready to Export
This section is designed to help you understand and learn the benefits of exporting.• This section will:
– Show the exporting business opportunities– Sets the stage for learning about the basic elements for
exporting– Get you excited about exporting
• Following this section, you will be better positioned to:– Begin or expand exporting– Determine if you want to further pursue business growth
through exporting
Getting Ready to Export
Agenda
Getting Ready to Export
Agenda
1. Why Export?1. Why Export?
2. Organizational Readiness2. Organizational Readiness
3. Building an Export Plan3. Building an Export Plan
4. Resources and Tools4. Resources and Tools
Building Infrastructure
International Logistics
Managing Payments & Financing
Getting Ready Know Your
CustomerLearn Culture
Build Your Export TeamBusiness ModelMarket Entry
Trade Regulations
& Legal
Developing Relationships
Compliance PlanExport LicensesCountry Requirements
Payment TermsLoan OptionsExpansion Needs
Tariff BarriersNon-Tariff BarriersDistributor ContractsIPR
Why Export?Why Export?
Why would a company consider exporting its products and/or services?• It’s where the money is• It’s where the people are• It’s where the growth will be• Value of the U.S. dollar
4%
96%
Percentage of Wold Population
US
Rest of World
Reasons for ExportingReasons for Exporting
There are many good reasons you should be exporting.• Increased revenue and profit • Increased productivity • Spread risk base of business • Offset lack of demand for seasonal products • New product ideas • Additional markets • Tax advantages
Organizational Readiness Organizational Readiness
Some important questions to ask yourself about your organization’s readiness to export.• Does your company have a product for export sales?• Does your company have an export plan?• Can your company commit sufficient production capacity?• Does your company have the financial resources?• Is your company willing and able to dedicate resources?
Product Readiness for ExportProduct Readiness for Export
Some important questions to ask yourself about you’re the readiness of your product or service for export.• How successful are your products domestically? • What are the unique features of your products? • Are you losing market share to more technically advanced
products on the domestic market?
Exporting Requires CommitmentExporting Requires Commitment
Expanding or starting your export operations requires commitment in a number of areas.• Sacrifice short-term profits• Increased travel and administrative costs• Hire additional staff• Develop appropriate marketing materials• Comply with international standards• Obtain the necessary export licenses and import permits• Foreign currency exchange fluctuations• Seek out additional financing
The Importance of Market Research for Exporting
The Importance of Market Research for Exporting
Your company MAY begin exporting without any market research if it
receives unsolicited orders.
Businesses that invest time in market research INCREASE their chances of
succeeding.
The Importance of Market Research for Exporting
The Importance of Market Research for Exporting
Researching potential markets can help you company in multiple ways.• Finding where your products are most likely to sell • Identifying market segments and niches • Determining both domestic and international competitors • Discovering how to overcome barriers to market entry • Understanding customers' needs and accommodating as
appropriate• Identifying new trends• Determining your price competitiveness
Conducting Market ResearchConducting Market Research
When conducting market research there are some factors to consider.• Demographics and the distribution of population by age and
income• Per capita income, rate of economic growth, stages o• economic development• Political stability, rule of law, regulations, ease of doing
business• Culture and business practices• Market entry, taxes, duties, import license, inspections, etc• Infrastructure, ease of moving products, communication,
roads, ports and airports
Market Research SourcesMarket Research Sources
Export.gov - Market Research Library
Why Write an Export Plan?Why Write an Export Plan?
There are several benefits to writing an export plan.• It becomes a selling tool to management • It becomes a tool to measure progress and adhere to an
assigned export marketing budget• Keeps focus on objectives or goals• Written plans are not forgotten• Clearly written plans are easy to understand and follow
Steps for Creating an Export PlanSteps for Creating an Export Plan
1. Analysis• Research and Analysis Needs• Identify Data Sources
2. Target Markets• Prioritize Countries – Where do you want to go?• Identify target markets within those countries
3. Country Strategy• Identify marketing strategy for each country
4. Logistics• Shipping• Financing • Other resource requirements (i.e. repairs, warranty)
5. Monitor Results• Measure strategy success and focus areas• Get the most from your distributor
Export Plan ContentExport Plan Content
Export Plan
Executive Summary
Export Policy
Commitment
Background Analysis
Market Analysis
and Implement Strategy
Financial Analysis
Addenda
U.S. Department of Commerce Resources
U.S. Department of Commerce Resources
The U.S. Commercial Service is part of the U.S. Department of Commerce, and agency of the United States government.• Mission of the agency
– To promote the export of goods & services from the United States, particularly by small- and medium-sized businesses
– To represent U.S. business interests internationally– To help U.S. businesses find qualified international partners
Our Network & What It Can Do For YouOur Network & What It Can Do For You
The Commercial Service has Trade Specialists in over 100 U.S. cities and in 83 countries worldwide.• We can:
– Locate international buyers, distributors and agents– Provide expert help at every stage of the export process – Help you to enter new markets faster and more profitably
• Gold Key Service• International Partner Search• International Company Profile• Commercial News USA
Business Matchmaking
• Catalog Exhibitions• International Buyer Programs• Trade Missions/US Pavilions
Trade Promotion
Events
• Advocacy• Single Company Promotions• Business Consulting• FUSE (Post-Web Promotion)
Tailor-Made Programs
• Market Research Library• Customized Market Research• China Commercial Brief
Market Research
U.S. Commercial ServiceU.S. Commercial Service
www.export.gov - country and industry specific reports from the U.S. Commercial Service
www.buyusa.gov/eme - Industry specialized reports and bulletins from the U.S. Commercial Service
www.strategis.ic.gc.ca - U.S. and Canadian statistical trade information
www.census.gov
www.tradestatsexpress.gov
www.bna.com/itr/custom.htm
www.buyusa.gov
www.comtrade.un.org
www.gtis.com/gta
www.usatradeonline.gov
www.thinkglobal.us/ Commercial News USA
Other Tools and ResourcesOther Tools and Resources
Next StepsNext Steps
Successful business growth incorporates exporting.
Ensure Exportability of Products Identify
Strong Target
Markets
Gain Organizational Commitment
Use US&FCS
Gold Keys& TPPs
Frequently Asked QuestionsFrequently Asked Questions
• What country should I start with, to begin exporting?• If my product does not sell well here, should I turn to
exporting?• Should I just buy a plane ticket and fly to the foreign
country and make cold calls?• Should I just get started selling if I have a contact in the
foreign country?• My customer is asking for free samples, what should I
do?• How can I find out if my foreign customer is reliable?
What Questions Do You Have?What Questions Do You Have?
Developing Customer Relationships
Developing Customer Relationships
[Instructor Name/Location]
ExportUniversity.com
Developing Customer RelationshipsDeveloping Customer Relationships
This section is designed to provide techniques to build and manage lasting relationships with international customers.• This section will:
– Demonstrate that business outside of the U.S. have different cultural practices, thus different needs
– Show you that managing customer relationships is critical to increasing your sales
• Following this section, you will be better positioned to:– Work with a culturally diverse customer base– Manage your customers’ expectations
Developing Customer Relationships
Agenda
Developing Customer Relationships
Agenda
1. Establishing Credibility1. Establishing Credibility
2. Building Your Network2. Building Your Network
3. Leveraging the Web3. Leveraging the Web
4. Challenges of International Markets 4. Challenges of International Markets
Developing Relationships
Building Infrastructure
International Logistics
Managing Payments & Financing
Getting ReadyPartner Due Diligence
Avoid Legal Battles
Building Trust = PayEasier Terms
Proactive Planning
Builds Global Network
Win-Win PlansCompetitive RatesGood Service Levels
Trade Regulations
& Legal
Next StepsNext Steps
Take the time to build a lasting relationship with your customer.
Consider Product
Differentiation
Research Product
Approvals
Establish Pricing Matrix
Gain Some Basic Language
Skills
Search the Web for
Customers
Frequently Asked QuestionsFrequently Asked Questions
• What kinds of products or services are in demand overseas?
• How do I build relationships with my customers?• Should I be concerned about civil unrest and anti-
American tendencies? • What sort of things should I bring with me? Are gifts
appropriate? • How can I protect my company against foreign
disruptions?• Is E-Commerce popular overseas?
Building a Global InfrastructureBuilding a Global Infrastructure
[Instructor Name/Location]
ExportUniversity.com
This section is designed to help you understand and learn how to build and expand your international operations.• This section will:
– Teach you that exporting is not overly complicated– Give you the confidence and knowledge to export and believe
you can do it• Following this section, you will be better positioned to:
– Grow your business and create value for yourself and your customers
– Craft an actionable sales and marketing plan to achieve your goals and expand globally
Building a Global InfrastructureBuilding a Global Infrastructure
Building a Global Infrastructure
Agenda
Building a Global Infrastructure
Agenda
1. Organizing for Export1. Organizing for Export
2. Methods of Exporting2. Methods of Exporting
3. Channels to Market3. Channels to Market
4. After Sales Service Networks 4. After Sales Service Networks
International Logistics
Managing Payments & Financing
Getting Ready
Sales ContractsLoyalty
CultureQualityTrust
Developing Relationships
Customs ClearanceFrameworkNetwork
Financial RiskGetting PaidCash Cycle
Market Entry Logistics PlanMode ChoicesService Options
Building Infrastructure
Trade Regulations
& Legal
Getting Ready
Next StepsNext Steps
Focus on your global infrastructure and stay engaged.
Evaluate Your
Teams Often
EstablishBudget
Fill the Void with Outside
Resources
ConsiderDistribution &
Service Method
Go Out and Sell
Something
Frequently Asked QuestionsFrequently Asked Questions
• Where do I start?• Which markets do I go to first?• Where can I find government help?• How do I ship product overseas?• How do I finance my transaction?
International LogisticsInternational Logistics
[Instructor Name/Location]
ExportUniversity.com
International LogisticsInternational Logistics
This section is designed to provide you with basic information relative to the logistics of moving goods across international borders.• This section will:
– Teach you that the logistics choices you make affect your profit margins
• Following this section, you will be better positioned to:– Select your transportation mode– Identify needed resources– Complete documentation– Identify physical risk
International Logistics
Agenda
International Logistics
Agenda
1. Comprehensive Plan Components1. Comprehensive Plan Components
2. Logistics Providers2. Logistics Providers
3. Costs of Choices3. Costs of Choices
4. Terms of Sales - INCOTERMS4. Terms of Sales - INCOTERMS
5. International Documentation5. International Documentation
Developing Relationships
Building Infrastructure
International Logistics
Managing Payments & Financing
Getting Ready
Regulatory ComplianceDenied Parties
Profit ProjectionsLetters of Credit
Proactive Planning
IntegrityLoyalty, TrustPartnerships
GoodsInformationMoney
Trade Regulations
& Legal
Next StepsNext Steps
Incorporate logistics before setting sales prices.
Learn Country Import Rules
Identify Packaging
Needs
Identify Required
Documents & HS
Codes
Select the Best
Transportation Mode
Frequently Asked QuestionsFrequently Asked Questions
• Where can I locate the correct tariff code for my commodity/product?
• Why should I use a harmonized code?• Why does the information about the commodity as
written on the waybill need to be repeated on a commercial invoice?
• Are electronic documents acceptable?• When should I consider a multiple piece shipment versus
a palletized shipment?
Managing Payments & Financing
Managing Payments & Financing
[Instructor Name/Location]
ExportUniversity.com
Managing Payments and FinancingManaging Payments and Financing
This section is designed to provide a broad explanation of payment risk mitigation, trade finance strategies and best practices.• This section will:
– Show you that prudent transaction management minimizes risk and stimulates growth
– Demonstrate that companies are more competitive when they can secure payments with competitive terms
• Following this section, you will be better positioned to:– Develop an export financing and risk mitigation strategy utilizing
external resources and programs– Develop a strategy to access working capital for export growth
Managing Payments and Financing
Agenda
Managing Payments and Financing
Agenda
1. International Payment Methods1. International Payment Methods
2. Trade Credit Insurance2. Trade Credit Insurance
3. Working Capital Financing Programs3. Working Capital Financing Programs
4. Foreign Exchange Markets4. Foreign Exchange Markets
Trade Regulations
& Legal
Developing Relationships
Building Infrastructure
International Logistics
Managing Payments
& Financing
Getting Ready
Regulatory ComplianceDenied Parties
DocumentationProof of Deliveries
Working CapitolFinance TermsCash Cycles
IntegrityLoyalty, TrustPartnerships
Sales ContractsLoyalty
Next StepsNext Steps
A flexible financial structure is key
Identify the
Political Risks
Understand Foreign
Exchange
Learn the Legal
Issues of Finance
Find a FinancialAdviser
& Banker
Frequently Asked QuestionsFrequently Asked Questions
• I have been asked to consider open account terms. Who do I talk to first about the payment risks?
• What is political risk? What is commercial risk?• Letters of credit have been suggested. How to I get an
explanation of what they are? The costs?• I have heard “terms of sale” affect my pricing. How do
open accounts terms & LCs impact my revenue?• Do I need to talk with a lawyer and/or accountant to
explain the legal risks in international finance?• Can I finance my insured receivables with a bank?
Trade Regulations & Legal Issues
Trade Regulations & Legal Issues
[Instructor Name/Location]
ExportUniversity.com
Trade Regulations & Legal IssuesTrade Regulations & Legal Issues
This section is designed provide you with an overview of the legal issues and regulations that affect exporting.• This section will:
– Make you aware of the legal and regulatory issues you have to consider in order to be a successful exporter
• Following this section, you will be better positioned to:– Identify and manage legal and regulatory risks in international
trade
Trade Regulations and Legal Issues
Agenda
Trade Regulations and Legal Issues
Agenda
1. Export Legal Risks and Exposures1. Export Legal Risks and Exposures
2. Export Sales Quotes & Contracts2. Export Sales Quotes & Contracts
3. Distribution Network Legal Issues3. Distribution Network Legal Issues
4. EEI Filing Requirements4. EEI Filing Requirements
5. U.S. Export Regulations5. U.S. Export Regulations
6. Foreign Regulations & Trade Barriers6. Foreign Regulations & Trade Barriers
Trade Regulations
& Legal Developing Relationships
Building Infrastructure
International Logistics
Managing Payments & Financing
Getting Ready
ComplianceProduct Standards
Solid Sales ContractsIPR
Distribution NetworkProduct Warranties
DocumentationComplianceDenied PartiesHS Codes
Claims, RiskLetters of Credit
Next StepsNext Steps
Having an awareness of legal issues is the key.
Strategically Approach
Legal Issues Execute Solid
Contracts for Exporting
Manage Your Legal Risks
Be Compliant
with Export Regulations
Frequently Asked QuestionsFrequently Asked Questions
• How do I decide between using a foreign sales representative or a distributor?
• Do agreements need to be in writing? If so, what kind of document is necessary?
• Do I need to review in detail legal documents such as bills of lading or letters of credit?
• Should I register my trademarks in my export markets?• Should I outsource export compliance?• When do I need to use an attorney?
ConnectivityConnectivity
Trade Regulations
& Legal
Building Infrastructure
International Logistics
Managing Payments & Financing
Getting Ready
Growth
Developing Relationships
What Questions Do You Have?What Questions Do You Have?