Starting in Exporting: The Opportunity
Spy Point
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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