Now that you decided to dive into the ocean of international trade, you need to decide what approach you will take. Are you going to direct and look for potential foreign partners yourself (use your company staff and resources)? Or should you find an export – management company to represent you for a part of the profit? Or maybe you want to learn and would like to work alongside someone who knows his/her way around. No matter what you choose, make sure you understand the process and find partners that understand your product and the market and can communicate your values (after all, we are talking about your “baby”) abroad while representing you. Let’s dive in and learn a bit more about different strategies:
- Direct exporting (Do it yourself) – This method allows you to control the process from start to end. You choose the market; you choose the international partner (importer/distributor). This method requires the greatest level of involvement in the export process and often requires having a dedicated person who will handle the company’s international business. If you are a small business owner and are wearing several hats simultaneously, it can be overwhelming.
- The second route is to use a dedicated export management company that will handle all aspects of international sales and often take your product title in the US. This method is the easiest for a small business owner, but it comes with a major drawback – almost zero control of the international relationship or brand marketing.
- Somewhere in between lies a third method – having a consultant (an international business development consulting company) that acts as an intermediary between you (the business owner) and your potential partners. Depending on the agreement, the consulting company can handle different aspects of the international market development process, starting with finding a buyer, interviewing and selecting one from a pool of candidates, helping with international Trade Mark Registrations and product registration in foreign markets, assisting with arrangement of international shipping and finally Brand building activities.
No matter which way you choose, the international business development process will require your time and involvement. It will require your desire to learn and grow. Lucky for you, there are governmental and non-governmental resources available that can help you learn and offer assistance with different aspects of exporting. I will discuss some of the tools in my next post.