Exporting

Exporting is crucial to Washington State's economic health. Increased exports mean business growth and more jobs. Yet only a small percentage of potential exporters take advantage of export opportunities. For the economic well being of our state, it is important that area businesses think globally.

Your company may already be competing with foreign-owned companies in your domestic markets. If you intend to maintain and grow market share, your business cannot ignore international realities. Making the decision to export requires careful assessment of the advantages and disadvantages of expanding into new markets.

You may find some of the following documents helpful: 

FAQs

• What are the advantages of exporting?

   Exporting can help your business:

  • Enhance domestic competitiveness
  • Increase sales and profits
  • Gain global market share
  • Reduce dependence on existing markets
  • Extend the sales potential of existing products
  • Stabilize seasonal market fluctuations
  • Enhance potential for corporate expansion
  • Sell excess production capacity
  • Gain information about foreign competition
• What are some of the challenges I'll face?

  If your company's financial situation is weak, attempting to sell into foreign markets may be ill-timed. On the other hand, some companies have been successful selling abroad even before they have made any domestic sales.

  Your business may be required to:

  • Develop new promotional material
  • Subordinate short-term profits to long-term gains
  • Incur added administrative costs
  • Allocate personnel for travel
  • Wait longer for payments, impacting cash flow
  • Modify your product or packaging
  • Apply for additional financing
  • Obtain special export licenses
• What are the most important prerequisites for successful exporting?

   There are three key areas that will influence your success:

  • Management commitment - Exporting takes time and commitment
  • Competitive product - Are you prepared to adjust your product and service mix to compete internationally?
  • Sound planning and marketing - Marketing and distribution practices vary by country and are often dictated by law, custom or necessity. Can you adapt your marketing methods?
• What are some common misconceptions about exporting?

  Here are a few misconceptions about exporting:

  • My company is too small - the vast majority of exporting firms in most countries are small and medium-sized enterprises. Many have fewer than 50 employees with annual sales in the $1 million to $10 million range.
  • I can't compete overseas - If your product sells at home, it may well be wanted somewhere else in the world. Price is important but it is not the only selling point. Don't assume your price isn't competitive. Your product may be a bargain in strong-currency countries.
  • I can't afford to export - There are low-cost ways to market and promote abroad, handle new export orders and finance receivables. These don't require hiring new staff or setting up an export department. At little or no cost you can get online market research, worldwide market exposure, generate trade leads and find overseas distributors to represent you.
• Is an export plan important?

  Systematic market planning is essential to exporting and can be instrumental in avoiding costly mistakes. As the old adage goes, unsuccessful companies don't "plan to fail, they fail to plan." What may have worked for you domestically may not work overseas. Exporters encounter different income levels and demand cycles abroad; different languages, cultures and environments; different laws and regulations; different ways of doing business; and different risks (e.g., foreign exchange fluctuations, civil strife, nationalization, etc.).

  You need an Export Market Plan (EMP), and it must take account of these differences and the resulting potentials and pitfalls. The objectives, goals and timetables set in the plan must be within your means -- realistic, affordable, manageable and achievable.
  

• How do I find buyers in foreign countries?

  Finding the "right" buyers for each market is crucial. You need good overseas business partners to generate ongoing sales. Clearly, the best leads are the first-hand leads you uncover on foreign business trips, trade shows, or that your overseas reps find for you. While better, these leads are often more costly to develop. 

  If you don't have overseas reps, or can't afford overseas sales trips, give the "second-hand" leads a try. They're often solid and substantial. However, since your competitors can learn about them too, you want to follow up quickly on these leads. Many states have their own overseas trade offices. Whatever your source, use due diligence to assure that the buyer is reputable.

• How do I find potential agents or distributors?

   Finding and keeping good overseas reps is a four-step process:

  • Identify and contact prospects in each market
  • Screen and select the best prospects
  • Contractually appoint the selected reps
  • Support the reps over time

  Once you've located some prospects, how can you tell who's the best? The key is to identify the qualifications needed for effective representation. Five basic qualities are fundamental:

  • Experience
  • Capability
  • Motivation
  • Loyalty
  • Honesty

Online Resources

• A Basic Guide to Exporting
  

  This edition of A Basic Guide to Exporting has been prepared by the U.S. Department of Commerce with the assistance of Unz & Co., Inc. The cooperation of Unz & Co. in this effort does not in any way imply an endorsement by the Department of Commerce of Unz & Co. or their products or services

• Basic Guide to Exporting
  

  A comprehensive overview of how to export? For more than 70 years, A Basic Guide to Exporting has been the resource that businesses have turned to for answers to their questions about how to establish and grow overseas markets for their products and services. Purchase price of around $20.

• Export Readiness Assessment Test
  

  This questionnaire is tailored to agricultural exporters, but highlights characteristics common to successful exporters in any industry. 

• Export-Import Bank of the United States
  

  The Export-Import Bank is the official export credit agency of the United States. Ex-Im Bank's mission is to assist in financing the export of U.S. goods and services to international markets.

• Export.gov
  

  Brings together resources from across the U.S. government to assist American businesses in planning their international sales strategies and succeed in today's global marketplace.

• Find Freight-Forwarders
  

  When exporting products it will be helpful to develop a relationship with a reputable freight-forwarder who can help ensure that your company complies with the laws and regulations governing exports.

• Private Export Funding Corporation (PEFCO)
  

  Assists the financing of U.S. exports through the mobilization of private capital as a supplement to the financing available from commercial banks and other lenders.

• Register today with Alibaba.com
  

  CTED has been invited by Alibaba.com, the world's premier business-to-business website (http://www.alibaba.com/), to promote Washington companies and products around the globe. With over 16 million users, Alibaba is the world’s largest B2B marketplace and a great place to sell and to buy. The "State Your Products Program" is a free service for Washington businesses and there will be no financial obligations for participating companies.
  
  By completing the online survey, your company and the products you post will be processed and placed onto the Alibaba.com marketplace. Participants must be a registered business in the state of Washington and supply all required product and contact information. If you include the URL of your product catalog in the survey, we will be sure to integrate that directly into the portal at no cost to you or your company. Alibaba will notify you via email when your products are posted and you will be able to review your company and product profiles. You will also be able to edit and add images to customize your store front.

  To have your company listed on Alibaba.com, simply fill out this online registration form. For specific questions, please contact Troy DeFrank at 206-256-6145 or troydatcted.wa.gov. We look forward to your participation! 

• Restricted Export Sales-Office of Foreign Assetts Control
  

  Consult the "do not sell" lists maintained by the Bureau of Industry and Security of the U.S. Department of Commerce by the Office of Foreign Assets Control of the United States Treasury Department.Under U.S. law you have an affirmative obligation to "know your customer," including the ultimate buyer if your customer re-exports the products. You will not be able to plead ignorance if your Canadian customer sells your products to the Cuban military and you knew or should have known that this was your customer's intention.

• Restricted Export Sales-US Dept of Commerce
  

  Consult the "do not sell" lists maintained by the Bureau of Industry and Security of the U.S. Department of Commerce. Under U.S. law you have an affirmative obligation to "know your customer," including the ultimate buyer if your customer re-exports the products. You will not be able to plead ignorance if your Canadian customer sells your products to the Cuban military and you knew or should have known that this was your customer's intention.

• Restricted Imports
  

  Imports from some countries may be restricted (e.g., goods from Cuba are generally banned from entry into the U.S.). Additionally, quotas may limit imports of products of certain categories, such as textiles.

• SBA's Office of International Trade
  

  Learn more about export financing and other SBA programs such as international trade loans and export express.