Starting in Exporting: The Opportunity
Dennis Hessler
A few years ago, a friend asked me why everybody was so excited
about international trade. He explained that the really BIG
money for home-based entrepreneurs was in multi-level marketing.
Guess what? After about 18 months of trying out every kind of
MLM plan and losing large and small amounts of money in the
process, he went back to his 9 to 5 day job sniffing that the
little guy just can't make a go of it. He blamed the government.
He blamed big business. He blamed everyone except the real
culprit.
Himself! You see, there are very few legitimate ways to make a
lot of money in a hurry. Sure, there are many, many hucksters
out there who will tell you that they have the secret. They may
be making money but their customers seldom are. The point is, if
you want to be a success in international trade you need to know
it takes time and it takes effort. Is it worth it?
Look at it this way. Some 95 per cent of the world's population
live outside the United States. And the majority of these people
would dearly love to buy U.S.-made products. More than two-
thirds of the world's purchasing power is outside the United
States. How are we doing in selling to them?
Well, exports are increasing three and four times faster than
the Gross Domestic Product. That makes it sound like the market
is saturated. Hardly. While U.S. companies export an average of
almost 9 per cent, companies in Europe and Japan frequently
export more than 50 per cent of their product. The U.S. Commerce
Department estimates that only one-third of U.S. manufacturing
companies export their manufactured goods. Most small and mid-
sized U.S. companies are not exporting at all. It is this core
of small and mid-sized companies that are your target for
profits in the international marketplace. They are not exporting
for many different reasons:
* Ignorance. They are unaware of the potential market and
profits.
* Fear. They are worried about language problems, tariff
difficulties, shipping, insurance, currency, etc. etc.
* Resources. They don't have the time or manpower to pursue
international trade.
By starting your own export management company, you can become
an intermediary between the supplier in the U.S. and the buyer
overseas. This independent or third-party exporter works with
the supplier and shows him the profit potential in international
trade. The intermediary promises to deal with concerns about
language, shipping, insurance and the rest of it and works on
commission so the small or mid-sized company doesn't have to
expend any resources. The intermediary brings another benefit to
the international trade transaction. He usually specializes in a
particular product line, country or area of the world.
While nobody can say for certain what the future holds with
regard to international commerce, one trend is clear: there is a
continuing movement toward more open trading policies and fewer
restrictions on trade. Look at NAFTA. Look at GATT. Despite all
the commotion over lost jobs, the REAL insiders know that for
every $1 billion of U.S. products sold overseas, 19,000 U.S.
jobs are supported. Today 12 per cent of the GDP comes from
exports. That's why the U.S. government and governments
everywhere are seeking to increase trade.
****** WHAT ARE THEY BUYING? ******
Certain U.S. products are in high demand around the world. This
does not mean you must export only these products to be
successful. The small exporter can make a good living exporting
just about anything that will sell in the U.S. as long as
similar needs and conditions exist in the target country.
This morning I spoke with a man who is looking for suppliers of
rags and waste paper. He wants to ship these products to eager
buyers in India. I have no idea what these items are used for,
but this is just one example of the wide range of products
exporters seek and sell successfully. Last month, I spoke with
a man who is searching for scrap metal to sell in Turkey and
Greece. So you see, even products some people would consider
trash can be exported!
Just as you don't want to select a product for export based
solely on a list of biggest exports, so too you shouldn't select
a target country just because it is one of our biggest export
markets. Small exporters can make a comfortable living exporting
just about anywhere. Take advantage of your edge.
One of my customers was a Nigerian who worked in a U.S.
supermarket. He wanted to export food products to his country.
Normally, I wouldn't recommend a newcomer export to Nigeria
(there is lots of corruption there and it is not a huge market)
but in this case I did. More important than the size of the
market or the target country was this man's familiarity with the
country, its people and his contacts there. He started with a
few small shipments and last I heard, he was doing well.
****** WHAT ABOUT THE FUTURE? ******
It's true that exports are booming right now but the future
looks even brighter. New exporters might want to consider
products that hold great promise for the years ahead. These Big
Emerging Sectors include the following product areas: chemical
processing, energy, environmental technology, health-care
technology, industrial machinery, information technology and
transportation.
You may discover that new companies and small and mid-sized
companies are reluctant to butt heads with big exporters in
established markets. Officers in these companies should be told
about emerging markets in other parts of the world.
Although the risks can be greater, these emerging countries
offer the potential for greater profits as well. Countries in
Latin America, Asia and the Pacific Rim represent huge potential
thanks to rising incomes in those countries and lots of
investment. In Asia, Singapore, Taiwan and South Korea are major
emerging markets. In Latin America, big emerging markets include
Columbia, Venezuela and Brazil.
****** ARE YOU EXCITED? ******
Good! There's a lot to be excited about. Over the next few
weeks, I will give you a tested 8-step plan for starting your
own home-based exporting company. It's one that's been
successfully used by hundreds of my clients around the world. It
will work for you too.
If you want to learn more about getting started in exporting
including frequently asked questions, common mistakes and some
of my favorite Internet links, go to my web site at
http://www.spyglasspoint.com You can also download a sample copy
of my monthly newsletter written for new international traders,
the International Trade Connection, by emailing to
newsl...@spyglasspoint.com.
I'll see you again next week!
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Dennis Hessler | http://www.spyglasspoint.com
Spyglass Point Productions | Den...@spyglasspoint.com
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Publisher of The "International Trade Connection"
newsletter and "The Computer User's Guide to Running
Your Own Exporting Company."
SAMPLE NEWSLETTER: newsl...@spyglasspoint.com
PHONE: (850) 438-5527
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