A Small Business Guide to Exporting: Part 1 - Getting Started

In 2009, "Entrepreneurs and small businesses will learn, if they haven’t already, everything there is to know about how to take a business global."

This is one of the Top 10 Global Trends for Small Businesses for 2009 that small business blogger Laurel Delaney talked about recently in her Small Business Trends blog.

Given the current economic slump, Delaney predicts that her spot-on forecast that small businesses would be "exporting like mad" in 2008, will continue in 2009. With interest rate cuts, the declining value of the dollar and the proliferation of Internet-based technologies, cross-border trade will continue as an attractive business proposition for the year ahead.

There are also socio-economic benefits for small businesses that embrace exporting including better opportunities for employee advancement, a faster growth rate, and an 8.5 percent less likelihood of going out of business than other domestic businesses.

So just how can small business learn "everything there is to know about how to take a business global"?

While there are many resources on the Web related to international import and export trade, the best guide to exporting for small business comes from the U.S. government. Both Business.gov and the Small Business Administration offer a good deal of information to help small businesses break into the trade game. You can also refer to the government’s Export.gov site, which helps businesses plan international sales strategies and avoid regulatory pitfalls.

There are also a number of government programs that offer training, counseling, and financial assistance to small businesses wanting to export their products and services. You can find more about these with this Get Started in Exporting guide.

Exporting Basics to Consider

• Before you Start - Read this primer to help you assess your business' export readiness, understand what you need to know and consider before pursuing an international sales strategy, and, when you are ready, develop and implement your export strategy.

• Commercializing your Product or Service for the Global Market - Get information on developing, marketing, and exporting your products here.

• Trade Agreements - Find out about how your small business can benefit and comply with international trade agreements by country and industry here.

• Finding Business Opportunities - If you are looking to bid on overseas contracts, grants or business opportunities, there are a few programs available to help you with your bid. These include the U.S Department of Commerce’s Advocacy Center and the U.S. Trade and Development Agency. The federal government also offers free in-person counseling services to help small business obtain export financing and locate business opportunities overseas.

• Export Controls and Licenses - Most export transactions do not require specific approval in the form of licenses from the U.S. government, although regulations regarding all exports must be followed. To determine whether a license is needed to export a particular commercial product or service, an exporter must first classify the item by identifying what is called an Export Control Classification Number (ECCN) for the item. Several other federal agencies have specific export licensing requirements.

For general information on export licensing and regulations, visit Export.gov - Regulations and Licenses.

• Exporting of Technology - The exporting of technology has its own set of rules and regulations. Technology and Source Code Exports (Deemed Export Rule) answers frequently asked questions about exporting technology and source code.

Other Resources

• Business.gov’s Get Started in Exporting Online Guide
• Import/Export Management and Small Business Federal Government Contracting - Read Ken Larson’s blog for expert advice on the import/export process as it relates to federal government contracts involving foreign countries. 
• The Global Small Business Blog - The Definitive Blog for Entrepreneurs and Small Businesses Interested in Going Global.
• U.S. Department of Commerce and Ewing Marion Kauffman Foundation Fostering Entrepreneurship Worldwide - An online international community for building entrepreneurial economies.
• Avoiding Faux Pas when Exporting - Taking your product international? Do the due diligence. Misunderstanding foreign customs or languages can destroy your brand.
  

Stay Tuned

My next post will cover how you can obtain export financing to help your small business expand or develop an export market.