Posts Tagged ‘global business’
Beat the Weak U.S. Dollar–Go Global!
Wednesday, April 30th, 2008
Expanding overseas is a common idea entrepreneurs have in their business plans as a "down the road" growth option but with the recession and subsequent weakening of the U.S. dollar, it might just be the key to keeping your business afloat. Many companies are able to sell their products for twice as much as they can here!
While opening a brick and mortar store is certainly optimal, if you are a small company who doesn’t think you can spare the capital to do so, don’t fret. Another perfectly viable option is to open an international website (ie. a .uk site). Yet another option is to ship over seas and accept various forms of currency, if you’d prefer to test the international "waters" before you take the plunge.
Be forewarned however…going global is no easy (or small) task. Tracey Mullin of the NRF’s STORES Magazine states:
"In addition to potential hurdles with vendors, disparities in laws and differing customer priorities, retailers must identify a merchandise mix that appeals to a new demographic. While the transition may be a bit easier for online retailers, these companies face their own challenges nuances in language, inventory control, even the selection of website colors and fonts."
Yes, it’s risky and a lot of work…but it just might keep your business from succumbing to this dismal stateside economy.
Check out our Doing Business Internationally articles for more tips on how to get started going overseas.
Tags: Doing Business Internationally, economy, global business, international business, national retail federation, Rebecca Button, STORES Magazine
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Avoid Being Taken When Selling Internationally
Tuesday, February 19th, 2008
When you make your living off retail sales, you don’t want to turn away anyone who is poised to give you their money for your products. But there is one selling arena that can be little tricky - international sales.
Unfortunately, any number of seemingly perfect international sales opportunities could very well be scams in disguise. As you consider selling internationally, there are some precautions you need to take to make sure you don’t end up the next victim.
Where Do You Want To Sell?
While you may want to think the whole world is your oyster, there are some parts of the world that may not be the pearl you hope they will be. Some countries are more common locations for fraudulent buyers than others. For example, many areas of Eastern Europe are seemingly havens of fraud.
As you expand your business activities around the world, start with areas you are comfortable selling to - such as the UK, Australia, or Canada.
Eventually, as you learn the ropes of international selling and how to spot a scam, consider adding other countries to your list of places to do business.
What Payments Will You Accept?
It’s best if you take payments that are international, such as PayPal. The PayPal website will allow you to accept payments from people with accounts in any country. It will also take care of all the monetary conversions. If you use a credit card service, you can run any credit cards through your system.
Be leery of someone who wants to pay you through a wire service or by some sort of odd check. Many alleged “wire payments” are really scams that can make you believe you have money waiting so you will ship a package, but in reality, there is no money when you go to claim it at the wire transfer office.
Also, international checks can take much longer to clear than domestic ones. They may well be bad checks that you won’t know about until you have already shipped the item to the fraudulent buyer.
If you plan on accepting international checks, at least wait until the check clears before shipping the item. But the best advice we can give you is to not accept international checks at all, especially from buyers in high-risk countries.
Shipping
International shipping is not like US shipping. Prices can vary substantially for the same package depending on the destination. Make sure to weigh your complete package and use an online shipping calculator to find the proper weight and shipping price before you send the buyer the cost.
International shipping requires extra forms to be filled out as well. Some customers from other countries will ask you to lie on the customs forms you fill out to say the items are a gift, not a purchase. They’re trying to avoid duties charged by their country. If you’re caught in the lie, you can get in trouble - so don’t do it.
One big problem with international shipping is being able to prove the package made it to the destination. You should purchase insurance and tracking (and charge the buyer for these services); although when shipping out of the country, being able to keep track of a package is spotty at best.
If you don’t take these precautions, you may well find that fraudulent buyers will claim they never got the package and ask for their money back, even if they did receive your items.
Legalities
While some things are legal to sell in the US, they are not always okay to sell in other countries. Before you ship your items, make sure the things you are selling are legal to ship into the destination country - or you could be considered someone trying to ship in illegal contraband.
While it sounds like more of a nightmare than it’s worth, doing business internationally can be a very profitable venture and a rewarding experience. You open your business to multitudes of new sellers who may not be able to get the items you offer in their countries.
The important thing to remember is to balance the possible profits with caution and research to know what you are getting into.
Tags: Doing Business Internationally, global business, international payment, International shipping, Leeia Ladipoh, scams
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Distributing Your New Product Globally
Friday, September 28th, 2007
Everyone has an idea that they are certain will change the world. However, although the idea for an invention may come from one person, it takes a world of “interested parties” to truly get the idea up and going. Bringing an invention from idea to fruition requires the work of designers, licensing agencies, manufacturers, marketing experts, and distributors. This article assumes that you have already completed the proper paperwork to patent and license your invention.
Target your worldwide market
If you have spent any time in the social circle of other inventors, you are already familiar with the phrase “target your market.” No matter how beneficial or practical, an invention doesn’t have a chance if it’s not marketed to the right people. Since you’re considering international distribution, you will have to put some creative thought into your marketing campaign. Each country is culturally, socially, even scientifically unique. For example, electrical devices run off a different voltage and current system in Europe and Asia than they do in the United States and Canada. While this might seem like a trivial fact, it can mean the difference between success and failure if you have invented an electronic device.
When you’ve decided where you would like to sell your invention, it is time to begin the marketing process itself. But because you cannot know all of the traditions or taboos of each country you’re marketing in, you might want to consider working through a foreign sales representative. This person is already familiar with market conditions in the country you’re trying to appeal to. He or she might even have connections to local distributors. Of course, a foreign representative works on commission, and will often ask for a multi-year contract, so it is in your best interest to choose your representative carefully.
Trade shows are a good place to find a foreign representative. You can find out when and where a show is in your area. By calling ahead, you can find out what sectors are represented and how many booths are set up. This will tell you if the show is worth your time and money. But don’t go to a trade show expecting to find that perfect rep. Just as you had to sell your idea to your friends, family, designers, or capitalists, you will have to convince this person that your invention is the best thing to come along since the wheel. If you’re lucky, you might even meet foreign buyers, who often frequent trade shows to scout out products that they would like to distribute in their country.
If you don’t have the resources to attend trade shows, which may be counties or states away, you can often find a foreign representative by contacting your local Department of Commerce for a list of leads. By going this route, you bypass some of the legwork of the process, but you’ll still have to sell your idea. You may find someone who expresses an interest in your product right away, but don’t let your excitement lead to an impulsive decision. You want someone who has as much passion for the potential of your invention as you do.
Export Management Firms
For some, going it alone is just too much to handle. If you are one of these types, you can try to find an export management firm to serve as your invention’s agent. This firm will represent your product to foreign distributors. However, an export management firm won’t work with you if you cannot prove that your invention will be in demand where you plan to market it. This means you’ll have to do your research before approaching them with your product. You will also want to consider the business atmosphere of the country you’re planning to work with. In the United States, business owners often make decisions on their own, but many foreign entrepreneurs are attached to a group, and must have their approval before accepting a new product.
Having an export management firm doesn’t mean that you are free from the menial tasks of marketing. New products need exposure, and that means putting them out for everyone to see. Place advertisements in popular magazines, develop a direct-mail campaign using lists from the Office of International Trade, attend international trade shows, or hire a translator to help spread the word about your invention. If you’re patient–and a little lucky–your product might just become the “next big thing.”
Tags: distribution, Doing Business Internationally, export, global business, jennifer ratliff, Trade Shows
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