Going global is no longer an either/or proposition.

Propelling your business globally could be

as simple as setting up a Website to market your goods and services.
In the ever-changing and ever-flattening world, in order to compete with your neighbors and
competitors going global is no longer an option but a necessity. The world—of both information
and goods—moves at a higher speed than it did even five years ago.

PROPELLING YOUR BUSINESS INTO THE GLOBAL MARKETPLACE

By Robbi Hess

10 www.bizstrat.com
Why Go Global? Delaney Urges
Business Owners to
In her manifesto “Shaking Things Up. Making Things
Happen,” Chicago-based Laurel Delaney, founder and CEO of
GlobeTrade.com writes, “In the future, there will be two kinds of
enterprises: those that go global and those that die.”
Take These Factors Into Consideration
Companies should be going global, Bill Graff, director of Before Going Global:
the Rochester Business Alliance’s International Business Council
says. “It makes sense to look at the international opportunities • GET COMPANY COMMITMENT.

“If 95 percent of your
customers live outside of looking at the world as your
the United States and if
you aren’t catering to
them, you are tossing
that are out there. If 95 percent
of your customers live outside
of the United States and if you
aren’t catering to them, you are
tossing away a large potential
customer base.”
Delaney says, “After
Thomas Friedman’s World Is
Flat book came out, it was the
first time we’ve really had main-
stream America understanding
the ramifications of globaliza-
tion. It’s almost as if you don’t
consider reaching out and
marketplace, you won’t be
competitive. It’s a radically
different world now. The
Internet has exploded and
expanded the opportunities
• DEFINE YOUR BUSINESS PLAN FOR ACCESSING
GLOBAL MARKETS.
• DETERMINE HOW MUCH YOU CAN AFFORD TO INVEST.
• PLAN AT LEAST A TWO-YEAR LEAD-TIME FOR WORLD
MARKET PENETRATION.
• BUILD A WEBSITE AND IMPLEMENT YOUR INTERNATIONAL
PLAN SENSIBLY.
• PICK A PRODUCT OR SERVICE TO TAKE OVERSEAS.
• CONDUCT MARKET RESEARCH TO IDENTIFY YOUR PRIME
TARGET MARKETS.
• SEARCH OUT THE DATA YOU NEED TO PREDICT HOW YOUR
PRODUCT WILL FARE.
• PREPARE YOUR PRODUCT FOR EXPORT.
• FIND CROSS-BORDER CUSTOMERS.
• ESTABLISH A DIRECT OR INDIRECT METHOD OF EXPORT.
• HIRE A GOOD LAWYER, SAVVY BANKER, KNOWLEDGEABLE
ACCOUNTING, AND SEASONED TRANSPORT SPECIALIST.
• PREPARE PRICING AND DETERMINE LANDED COSTS.
• SET UP TERMS, CONDITIONS, AND OTHER FINANCING
OPTIONS.
• BRUSH UP ON DOCUMENTATION AND EXPORT LICENSING
PROCEDURES.

away a large potential and you should be out there • IMPLEMENT AN EXTRAORDINARY AFTER-SALES
hard-charging to gain a foot- SERVICE PLAN.
customer base.” hold.” • MAKE PERSONAL CONTACT WITH YOUR NEW TARGETS.
As someone who has been • INVESTIGATE INTERNATIONAL BUSINESS TRAVEL TIPS.
– Bill Graff, Director, Rochester • EXPLORE CROSS-BORDER ALLIANCES AND PARTNERSHIPS.
in international trade for 13
Business Alliance’s International • ENJOY THE JOURNEY.
years, Laurie Ritter, export
Business Council manager at Newtex Industries—
as well as owner of Export Compliance Council—explains that a
company may be content with the market share it has in the
United States and associated revenues.
“But once a product becomes mature in the U.S. market,
going global allows a company to either reposition its product or
introduce the same product into new geographical areas. Global
trade opens business opportunities, new product development,
and new customers.”
“Unless you offer a unique, niche product, it’s a necessity to
look beyond your own backyard in order to remain competitive,”
Ritter adds.
At some point someone involved in the same industry as you
are will find out how to compete in the global marketplace and
will start snatching up your customers, according Delaney.
“Today, companies in the U.S. find themselves competing with
companies outside of this country for business.”
Business Strategies Magazine | May 2006
11
 From Here
to There
While Delaney believes that compa-
nies must go global, she also recognizes
that some companies may not lend them-
selves to that level of production. “If you
are a mom-and-pop organization making
jams and jellies in your kitchen, you could
certainly sell a jar or two globally but you
might not have the resources, or desire,
to compete on a larger scale,” she
explains. She adds though, that with
e-bay, many individuals are finding it
much easier to sell products—whether
one jar of jam, homemade items, or other
products—on a global scale. “I am a fan
of eBay for a small-business person selling
their wares but I am not a fan of it being
used as a model of going global when it
comes to talking about selling a single
item to a single customer in a foreign
country. True globalization means that an
organization is selling a large volume to a
wide variety of customers across interna-
tional borders.”
A Website, Delaney says, is the first
step in moving a business out of the local
market to the international one. After
that she suggests checking out govern-
mental resources such as www.buyusa.gov
which offers myriad information and tips.
“You don’t have to do business in your
own backyard,” Delaney states. “The
world is your new marketplace. And the
technology that we have available to us
now is the ramp to launch your business
to the next level.”
Ritter adds that once Newtex had its
Website operational, business “found”
them.
Before going international, Ritter
cautions businesses to research what’s
involved and to know their own limita-
tions and restrictions: U.S. export regula-
tions; pricing differences in both cost and
currency exchanges; units of measure
(kilos vs. pounds, etc.); payment terms,
patents, language barriers; customs when
visiting or in marketing materials
(e.g. the number 4 in China is bad luck);
12
Did You
Know?
and dealing with distributors, agents, and
direct salesmen are all issues that may have
to be addressed when exploring the global
arena.
THERE ARE MORE THAN Filling a need or finding a niche may
230,000 SMALL BUSINESSES be the way to propel a business into the
EXPORTING IN THE UNITED global arena, Graff explains, adding that
STATES ALONE. Web commerce makes sense if you are
offering goods or products that are
THE NUMBER OF SMALL
industry-specific.
BUSINESS EXPORTERS ROSE
Is It For Every
250% FROM 1987 TO 2001.
Business??
ABOUT ONE OF EVERY FIVE
U.S. FACTORY JOBS DEPENDS
ON EXPORTS.
It’s a matter of products and attitude,
Graff says. “We have companies that do a
EXPORTS MEAN NEW
CUSTOMERS AND MORE THAN
tremendous amount of business over-
95% OF THE WORLD’S seas—competing globally isn’t contingent
CONSUMERS LIVE OUTSIDE on company size. It’s a matter of finding
THE UNITED STATES. out whether it makes sense for you. Due
diligence must be undertaken to under-
SMALL BUSINESSES WITH stand the potential markets, benefits, and
FEWER THAN 500 EMPLOYEES pitfalls before taking your goods to
EXPORT ROUGHLY 182 USD market.”
BILLION ANNUALLY, OR 29%
The United States Department of
OF ALL EXPORTS.
Commerce’s export assistance center in
Rochester, Graff says, is an excellent
starting point. “They have access to market
data that can help you determine if you
can compete globally and make it finan-
cially viable.”
Sometimes people have a short-
sighted view and think they can’t compete
globally. Graff says that likely isn’t true.
“It depends on where you fall on the value
chain of price versus cost. Companies
need to provide not only low cost but a
best value solution.”
Are you going to blanket the globe
with your products? Are you planning to
target specific international markets?
Those are questions a business must
research as it explores business beyond its
borders. “Look at your core competencies
and go from there,” he advises.
Businesses wanting to go global need
to be open to new practices, says Ritter.
“Global trade is not textbook in university
teaching. In my experience, businesses
cannot take for granted the importance of
www.bizstrat.com

“The Internet has exploded and expanded the
opportunities and you should be out there
hard-charging to gain a foothold.”
–Laurel Delaney, Founder and CEO, GlobalTrade.com
Business Strategies Magazine | May 2006
knowing their products and how they relate to Export Admin-
istration Regulations (EARs).”
Also, she says, alternative payment options may need to be
explored. Gone are the days of cash in advance and net 30.
“Contract negotiations can take months or years, depending on
project size and could involve numerous overseas trips, meet-
ings, and yes, unexpected expenses. Relationship building is
important for customer loyalty in overseas markets.”
Going global involves importing as well as exporting as
global sourcing is used to help lower production costs or
source products not available in the U.S.
Rochester Poised For the
Global Market
Rochester is in a unique position, Graff says. “We are very
heavily involved in a community that embraces international
business; I think that goes back to Kodak and Xerox. Another
shift we’ve seen is that small to mid-sized businesses have made
international businesses a significant part of their
revenue streams.”
BSM
13