Your next big opportunity could be just around the globe. Make connections, and watch your business thrive.

By Laurel Delaney

These days, the status quo is a prescription for disaster. The business climate of the 21st century is characterized by speed, change and chaos. Companies constantly have to learn, adapt, innovate, create value, provide superior service and look for new customers. How can this occur on a larger scale if we choose not to do business with the world? It can’t.

According to the U.S. Census Bureau, Department of Commerce, in 2003 more than 200,000 U.S. exporters accounted for nearly $630 billion in exports, or almost 87 percent of the total U.S. export value. These fearless business owners—a new breed of born global entrepreneurs who deviate from conventional companies to do their own web thing—recognize that if you ignore globalization, your business just might be on the verge of extinction.

So what does this mean for you, the experienced businessperson who wants to expand a business globally but doesn’t know where to start or what to expect? It means this: You better run, not walk, to reach out to the world and grab a bigger chunk of business. But before you dash ahead, let us ask you this: Do you have a solid, successful domestic base, or can you progressively duplicate the success factors of your local strategy? If not, then you better wait. On the other hand, if you can answer yes to one of those questions, let’s get started.

Develop the right attitude. Entering the global marketplace requires a special understanding of the world, along with an ability to listen well. If you pursue a vision of becoming global and are determined to be a leader in your space, then you have the right attitude.

“Global means more than just sourcing or selling in foreign markets. It means recognizing that as we become more interconnected and interdependent, the basic processes of leadership and management must evolve to keep pace with the changing marketplace,” says Albert Vicere, professor of strategic leadership at Penn State University’s Smeal College of Business. “It means that leaders need to not just ‘go global,’ but ‘think global.’”

2. Get organizational support. Before you begin your journey, every employee should be a vital member of your international team, from the executive suite members to customer-service personnel. Once you recognize the resources you have available and what it takes to export, import or outsource your product or service, prepare a list of what is required from each area of your company, and present the list to the people who are willing to be a part of your global team.

3. Write a good international business plan. It’ll help you define your company’s present status and internal goals and commitment, as well as evaluate all the factors that will affect your company’s ability to expand internationally. Your local SBA office can guide you through the process.

4. Invest in your international expansion efforts. Realistically, developing international sales can take anywhere from a few weeks to several years, depending on the nature of your product, its competitive position, your experience, the economic climate, pricing and worldwide demand. If you have a long-term outlook, it might take three to five years to build a permanent overseas market position. If your vision is shorter, then sales can start happening immediately.

In terms of money, think back to when you first started selling your product. At that time, did you have an action-oriented plan in place to cover progress made no more than 12 to
18 months down the road? Did it work for you? How much money did you spend? Think along the same lines when you begin to expand internationally, but double the amount of time and money expended.

After you’ve developed the right mind-set, gotten companywide commitment and determined how much you are willing to invest, you’ll need to let the world know you exist.

5. Build a globalized website. Many companies offer affordable packages for building a website, but you must first decide on a language for your site. Only 28 percent of the European population can read English, and the percentage is even lower in Asia and South America. Over time, it would be best to slowly build a site that communicates sensibly and effectively with the world.

“Just as your English-language website opened a new world of opportunities domestically, so, too, will each localized website. But localization will only succeed if your entire organization supports it,” says John Yunker, president of Escondido, California-based Byte Level Research, a web globalization consulting firm. “People often assume that the most challenging aspect of web globalization is translation, but often it is such things as customer support, fulfillment and usability.”

Which language should you start with? “Begin with one market or one language, and build from there,” says Yunker. “The lessons you learn doing Spanish, for example, will help you avoid mistakes in subsequent languages.” And remember, going global doesn’t mean you have to leave home—there are more than 30 million Spanish-speaking consumers in the United States.

6. Conduct market research. Where do you start? First, pick something to take overseas or to bring back home, then conduct detailed market research to find the fastest-growing, most penetrable market for your product. One of the best places to look is BuyUSA.gov (www.buyusa.gov/home/export.html), where you can find information on just about any country in the world. This process will also alert you to the possible barriers to entering your target market.

7. Prepare your product for globalization. You should expect to adapt your product for sale outside domestic markets before you make your first sale. Packaging plays a vital role in enabling international connections.

Rebecca Herwick, president and CEO of Global Products Inc.—a St. Peters, Missouri, global distributor, manufacturer and wholesaler of custom products, giftware and novelties—knew all along that her company’s product categories would be well-received internationally. As a licensee to Harley-Davidson, Herwick crossed borders swiftly, but throughout the process, she had to adapt and adjust her products accordingly. Says Herwick, “All our products have to be packaged with individual packing slips on each and every box, with the harmonized code associated to the SKU and the invoice generated in the currency of the country that it is destined for.”

Adapt your offering to local culture and taste, make your product the best in its class, and you’ll be able to sell it anywhere in the world.

8. Find cross-border customers. There is no business overseas for you unless you locate customers first. And you can find all you need to know online.

Start with good governmental information resources (see “Go Worldwide With the Web” on page 46) for free assistance and research. Try the Department of Commerce (www.ita.doc.gov/index.html), the SBA (www.sbaonline.sba.gov/OIT/) or The U.S. Commercial Service (www.buyusa.gov). Contact the organization, describe your product, and ask for a list of likely customers.

9. Search out data. After you’ve found your customers, you must ask yourself: Will they buy? For example, if you are selling technology services to clients in France, are they internet-savvy? Check Forrester Research (www.forrester.com), Internet World Stats (www.internetworldstats.com/) and JupiterResearch (www.jupiterresearch.com). They can help you assess whether your target market is tech-savvy. If not, you might be in for a big surprise.

10. Prepare pricing. Pricing a product for the overseas or local market is a
critical step in the sales operation. First, test your price on your customer to see what reaction you get, and negotiate from there. Then, contact a freight forwarder to secure good shipping rates that will meet with your customer’s approval. A forwarder will also show you how to put together a pro forma invoice, a key document in every international transaction.

11. Set up a payment method. Many circumstances and priorities will influence your choice of payment method, but it’s best to first consult with a good international banker. He or she will suggest one of three payment methods: payment in advance, a letter of credit, or a sight or time draft. Check out some of the online options available—for example, PayPal (www.paypal.com) is reputable for online transactions of less than U.S. $10,000; VeriSign’s CyberCash (www.cybercash.com/) offers specialized products and services for high-volume merchants; and Ec-Finance (www.ec-finance.com/) provides letters of credit that guarantee payment.

Whatever terms of payment you negotiate, always make sure they are understood and approved in writing by all parties. This prevents any unpleasant surprises later.

12. Brush up on international regulations. If you find it too time-consuming, hire a freight forwarder or international shipping company that can fill you in on international documentation, regulations and compliance measures. Ask a lot of questions, and use their expertise to your advantage.

“Proper documentation and compliance need not be complicated or intimidating for small businesses expanding as exporters or importers,” says Susan Rosenberg, director of PR for supply chain solutions at UPS. “We can [help] international shippers identify country tariff codes; land cost estimates for duties, taxes and transportation; and locate up-to-date compliance information.”

13. Qualify your cross-border contacts. In preparing to go boldly where you have never gone before, plan accordingly. Sure, you have a sale, but if the customer in the country you are about to do business in asks for an in-person visit, find out what risks you face. If you must travel in a hostile or unstable country, have a plan in place. “You can’t just go in blindly to conduct business with anybody. Know who your customers are,” says Mike Ackerman, president and CEO of Miami-based security consulting firm The Ackerman Group LLC.

Adds Rosenberg, “Even UPS allows global shippers to search for restricted trading partners defined either by the U.S. government or countries embargoed by the U.S.” (See www.ups.com/globaladvisor.)

The U.S. embassy in the country where you hope to do business can help, too. Run your prospective customer’s name by them, just in case they know anything.

Don’t think for a minute that jumping into the global market is a sure ticket to sales success. Making mistakes comes with growth, and learning from your mistakes is a skill vital to international success. But if you develop an international action plan and cultivate one other fundamental skill—stick-to-itiveness—before you go global, your chances for success overseas will certainly improve.

Laurel Delaney runs GlobeTrade.com and LaurelDelaney.com, Chicago-based firms that specialize in international entrepreneurship. She can be reached at ldelaney@globetrade.com.