William

A: Now, that is a great idea. I have often said that we are living in a remarkable time for small business, probably the most remarkable ever. Not only have there been incredible technological innovations that have revolutionized business (computers, printers, the Net, etc.), but equally, huge new markets have been opened that were never available before (China, India, virtual.)

OK, I think I have run out of superlatives, but you get the idea.

Starting and succeeding internationally, while much easier than ever before, nevertheless poses a variety of challenges you will not face here at home.

Begin with just the cultural differences. Needless to say, business is conducted differently in different parts of the world. Customs that we take for granted may be entirely missing in the region where you may want to do business, and vice versa. Things they find vital may be unknown to you, and not knowing may be the difference between deal or no deal.

So you have to begin by learning more about business in your desired country.

• There are plenty of websites that offer international travelers tips on doing business in different countries and regions. Start there. It cannot be stressed enough how even the slightest misunderstanding can have severe ramifications that could torpedo any possible deal.

• Speak with anyone you know from a host country where you plan on doing business and get their take. That is the sort of “insider info” that can not only warn you of any potential landmines, but similarly, let you know what will play and what to expect.

Next, once you know what is expected of you, you have to get your website ready for international sales. Surf to other websites that are selling internationally and see what they offer, how they do business, and what practices you may need to adopt.

Questions to consider are:

• Do you need to have your site in more than one language? And if so, what do you need to consider as you translate your offerings for an international audience?

• What sorts of terms do you need to consider for international transactions? Will your sales be in dollars, and does the country in question even conduct business in dollars? If you are going to accept international currency, you have to have a merchant solution that accepts that kind of currency, and you better be sure that the conversion rate works out for you.

Next, you need customers. Finding them is always an issue, no matter where you do business.

A good place to start is with online advertising, and if you are going to be relying on your website to generate leads, then you also have to figure out where people in the new country go to search for information. Although search ads are not the only way to generate leads, they are a main one, and different regions rely on different search engines. Google, Yahoo, and MSN are not the only games in town. Many countries have home-grown solutions that you need to discover.

Today’s tip: Every now and then I hear about a cool opportunity for small businesses, and here’s another one: Ever have a questions for someone like Michael Dell? We all know that Dell started his billion-dollar empire as a very small business – out of a dorm room. Got a question for him about business? He is going to be answering some online. Click here to learn more.

Less than a month ago, after showing the weakest sales period in the company’s history, Starbucks announced that it will close 100 stores. This was shocking news considering in the 1990s the company was opening a new shop every workday – and the rapid growth continued well into the 2000s.

So what happened? Where did Starbucks go wrong?

Quite simply, Starbucks went from having a home-away-from-home feel to more of a corporate giant, selling music and Wi-Fi and putting the company’s bottom line in front of their customers. In addition, they stopped making their espressos by hand, switching to robot-like machines that make drinks with an assembly line-like feel.

Remember back when having a Starbucks in your town was something of an elite status? Now what town, rest stop, airport, Target, and Barnes & Nobel doesn’t have one? In fact, what two-block radius of any urban or suburban area isn’t armed with their own personal Starbucks? Comedian Lewis Black put it best when he said the end of the universe as we know it was in Houston, Texas, where there is indeed a Starbucks across the street from a Starbucks .

In a race to please stockholders and board members, Starbucks grew too fast. They put profits and efficiency first and lost sight of what their customers once found so darn endearing about them. Back in the day, every Starbucks store was run with the feel of an independent, local coffee shop. They sometimes had local musicians playing or weekly game nights. They had neighborhood postings on their corkboard and silly chalk drawings on their “Today’s Special” menu board. There were lots of big comfy chairs with magazines and newspapers scattered about and lots of chit chatting going on – even the baristas were fun and talkative with customers, and many even knew them by name.

Now take a walk into one of your many local Starbucks and you just won’t have that same sort of fun-loving, fuzzy-warm feeling. All those big comfy chairs? Well, you might see just one or two remaining – they needed the room for sales racks to sell CDs, iTunes gift cards and ground coffee. What about the neighborhood activities? It’s hard to cater to a neighborhood with three other Starbucks locations within walking distance of each other. With so many Starbucks to choose from, customers tended not to have a “favorite” store anymore, they just popped in whichever one was nearest when they needed a caffeine boost. As corporate pushed for efficiency, baristas had less time to chat and get to know their could-have-been-loyal customers, or even make drinks with the same quality Starbucks had become known for back in the day.

What happened to the customers?

You can bet that other coffee shop entrepreneurs learned from Starbucks’ early days and started running their own local shops like funky little coffeehouses, putting their customers and their coffee at the forefront. These local shops started to win the war against Starbucks, offering fresh roasted beans, handmade espresso drinks, and most of all an inviting and cozy atmosphere that surrounded customers with warmth and enjoyment. Just like it felt when you walked into the very first Starbucks in your town.

What growing small businesses can learn from Starbucks

If your business is doing wonderfully and you have plans to branch out and grow, it’s easy to try to streamline the processes that made your company so popular in the first place. Before you make any changes to the original framework of your company, think carefully about each. If you still believe that making a certain modification is the best thing to do, then test it first and see how the customers respond. It’s much easier to find out after a month that customers dislike the new change, then after investing thousands in making it permanent. Change can definitely be good, but change can also ruin what was once a very good thing.

Exporting can seem a bit intimidating to those who have never done it, but if you have all the information and take the time to thoroughly understand the process, you’ll find that exporting can be a fairly simple process.

Here are some basic steps to help you understand the exporting process:

Finding your overseas market - Once you’ve decided that you would like to export your products, you will need to find buyers for your products. Many exporters find that working with a foreign partner makes the most sense, since they have the buying contacts. Finding the right overseas retailers or distributors for your products may be time consuming but it’s definitely not impossible. A good place to start is on two websites that are sponsored by the U.S. Commerce Department: www.export.gov and www.buyusa.gov. Both sites contain directories of foreign buyers.

Making your product ready for a foreign market - This isn’t always simple. If you are selling an electrical product, you may need to make modifications to both the voltage and adapter. Another thing to consider is whether or not your product needs to be in metric standards in order to integrate with other foreign products. Also, your instructions, warranties, product packaging and labels will need to be in that country’s language, with an easy way for foreign customers to submit warranty information.

Shipping Your Products - There is a lot of documentation involved in exporting products and many companies choose to hire a freight forwarder to take care of the shipping and prepare the paperwork. The money that you spend on a freight forwarder will many times be saved by their shipper connections and discounts. For more about freight forwarding, read our article Choosing and Using a Freight Forwarder.

Here are the documents you may need in order to ship your products overseas:

Export license - Normally, exports don’t require this license, however, there are certain categories of products which do need an export license in order to leave the U.S. They are:
* Foodstuffs and chemicals
* Agricultural products

Certificate of origin - In order to qualify for a country’s preferential tariff treatment, you will need to have this form. Many countries allow products a duty-free entrance into their country as long as you comply with their rule of origin.

Insurance certificate - This is usually required in order for your goods to be in transit. Usually the exporter pays for insurance up to the arriving port and then the shipping company provides insurance to the final delivery destination.

Bill of Lading - This is the contract between the exporter and your carrier. The carrier is typically the issuer of this document; however the terms are usually negotiable.

Airway bill - This is only needed for freight shipping via air. Again, the carrier issues it; however, this bill is typically non negotiable.

Invoice - If your goods are being shipped to a particular buyer, and not to a warehouse, then your shipment should include an invoice. This will contain exporter information, payment terms, pricing information, total quantities and the shipment’s weight.

Packing list - The packing list needs to clearly state exactly what is in the containers, the value of the products, and the weight of the products. If there is a mistake on your packing list, it may result in your shipment being delayed in customs.

If you’re a first-time exporter, it may be wise to enlist the help of a freight forwarder to help you with all the details and to make exporting even easier to you. You’ll find that once you understand the process, exporting isn’t as mystifying as you once thought.