How to Be a Global Entrepreneur

Market your products to consumers all over the world.

Businesses should not limit themselves to the United States marketplace. According to the United States Small Business Administration, 96 percent of all consumers live outside the United States. Given this information, business owners should be seeking new customers and markets beyond domestic borders. Resources within such organizations as the Small Business Administration, local chambers of commerce, economic development centers, as well as state and local governments, are available to help entrepreneurs reach out to markets all over the world.

Instructions

1. 

   Make a game plan for your export business.

   Perform market research to gauge the international market potential of your product. This includes finding specific countries that import similar products, identifying which of those countries has the most favorable trade conditions, such as taxes and low competition, and testing the market by finding and contacting specific prospects within the country. Organizations such as the Trade Information Center have the knowledge and expertise to help you determine whether a product has potential for overseas success. Local small business and economic development centers can also provide access to resources and expertise to those businesses wishing to expand their business reach beyond United States borders.

2. 

   Language is just one of the considerations in international trade.

   Determine if you company is ready to do business overseas. There are many aspects to global commerce over and above cultural understanding and language barriers. Your company needs to have a plan for shipping and distribution, import and export documentation, as well as other requirements for international trade. Business owners may not be experts on international trade, but by coupling their own industry expertise with the international trade knowledge of other businesses, as well as local, regional and national support organizations, they can examine the readiness of their own products and services for international markets.

3. 

   Research trade partners carefully for compatibility with your business.

   Narrow the list of trade partners that you found in your initial market research. Your chosen trade partners should be compatible with your business processes as well as meet the requirements of your target market. Just as with your domestic customers, you should choose those that best complement your company's goals and with whom your product will be best represented. The Trade Information Center can help businesses identify both target markets and international trade partners. The TIC provides listings of domestic industry trade associations, manufacturers and suppliers as well as specific companies already engaged in international trade and export. These can be valuable resources for companies seeking to export goods.

4. 

   Determine the best financing for your trade initiative.

   Get your export financing in place. The Trade Promotion Coordinating committee is a group of seven core United States government agencies that promote international trade and financing. The group includes the U.S. Small Business Administration, U.S. Department of Commerce, U.S. Department of Agriculture and the Overseas Private Investment Corporation. Financing is not limited to large businesses. The Overseas Private Investment Corporation has small and medium sized enterprise financing available for businesses with annual revenue of less than $250 million.

5. 

   Overseas tax burdens can take a bite out of your trade profits.

   Review and ready your business for the compliance aspects of overseas trade for your chosen marketplace. Some of the issues for your chosen country may include specific product regulations and licensing, local taxes and import duties, as well as locally mandated subsidies and import quotas.

Tips & Warnings

• Use local trade association, industry groups and economic development centers as well as national goverment resources.

• Determine a fit for your product or service in a targeted international marketplace before establishing export agreements.

References

• Small Business Administration: A World of Opportunity
• Export.gov: FAQ - Export Basics
• Colorado: International Trade Office
• Overseas Private Investment Corporation: Financing

Resources

• "Entrepreneur" Magazine: Grow Your Business International Business FAQ
• SBDC Global: Trade Information
• Small Business Administration: Conducting Market Research