Guest Blogger Kevin Smith
Principal, Global Sales Initiatives
Every business is focused on growth. This includes top and
bottom lines, along with managing many details in between. In that pursuit, one
of our daily challenges is finding new sources of revenue, whether it’s selling
more of our current product set, developing new products or penetrating additional
markets.
When we have multiple markets and customers within our
reach, we can make decisions about which opportunities hit our sweet spot and
which ones are less attractive, rather than feeling we must take everything
that comes along in order to keep our business moving forward. This revenue generates
the cash flow we need, and finances the necessary investment in the facilities,
equipment and people we need to continue our growth cycle.
In the pursuit of revenue, a big step for small companies is
making the decision to sell their products or services in another region of the
world. If you have never sold outside the US before, this can be intimidating
and you may find yourself asking “Where do I start?” The most effective way to
address this challenge is to break it into manageable pieces. For example:
Do Your Homework
– Understand why you want to sell overseas, where you should sell and why you
think there is a need. This means knowing the market for your product or
service. You may decide to immediately invest in costly market research or a
market entry program however, to avoid spending a large sum of money prematurely,
you can start by using resources that are available at no charge or have a
minimal fee, and will allow you to learn about your targeted market and begin
developing a plan. This is where resources like the Department of Commerce Export Assistance Centers, Small Business Development
Center, World Trade Center and the State of PA Department of Community and
Economic Development play an important role. These agencies and
organizations have access to market data, experts on export regulations and
documentation requirements, and representatives on the ground in many countries,
who can help you understand the market and competitive landscape. Check out
their websites to learn about what they have and how it can help you.
Develop A Plan
- No plan is perfect and all plans will change as you grow. But in order to be
successful, you must have one! As you do your homework and identify your
network of resources, also begin to visualize and document your specific objectives,
financial goals, budget, customer value proposition, potential barriers to
entry and a Sales and Marketing strategy. If you need help getting started, the
Small Business Administration
(www.SBA.gov) provides a basic plan outline on their website. Remember to also
use your network to find a mentor and ask for help at various stages of your
planning process. The resources mentioned above can identify companies who have
successfully navigated international markets. This will provide you with a
valuable sounding board as they can explain the keys to their success and the mistakes
they made along the way.
Align Your
Resources - An important part of your planning process is understanding
the resources you need to launch your global initiative successfully. This
includes finding a lawyer to help with domestic and foreign laws, export
regulations and contract reviews, securing the financing needed for your global
transactions, working with a logistics company that can handle customs documentation
and find the most favorable freight terms for you, identifying channel
partners, defining your insurance needs, documentation translation requirements
and many more. There are many resources required and many excellent service
providers in the Harrisburg area who are happy to help, so ask for
recommendations and work with them to develop a budget and timeline you can
live with.
Commit - Once you have completed
the homework, planning and resource activities, and you still believe establishing
a global footprint is the right move for you, MAKE THE COMMITMENT! Position the
capitol and resources to put your plan into action. This may include signing an
agreement with a sales representative or channel partner who knows the local
market and will sell your products, traveling to your targeted country or region
to attend trade shows, translation of web pages, product brochures and business
cards to the local language, or setting up an in country stocking location. Also
keep in mind that new exporters may apply for a Market Access Grant sponsored by the Office of International Business Development within the PA Department
of Community and Economic Development. MAG’s can provide you with up to
$5,000 in matching dollars to help you fund these export activities.
Remember, there
will be unexpected events that may require you to modify your plan, so analyze
the situation, make the adjustment and keep moving forward with conviction.
Show Up - Once you commit to penetrating a foreign
market, it’s critical that you establish a visible presence in the targeted
country or region. By now you have identified a channel partner who knows the
local market to sell your products, but it’s also important to spend time on
the ground there. Several reasons for this: 1) You will have a better
understanding of the local market and customer requirements 2) Your partners
and customers will need training as they begin to embrace your products 3)
Communication is a key to your global success. Much of this will be done via
email and phone, but you also need to see firsthand what is happening, provide
clarification and direction, and avoid misunderstandings from language
barriers. 4) Relationships are critical, and when you show up, your partners
and customers know you are committed and will help you understand their
culture, traditions and work environment which allows you to learn how to effectively
conduct business with them. And when you share a meal, you will know more about
each other personally and begin establishing the element of trust you need with
your business partners. They are proud of their country, eager to make a good
impression, and help your experience be a positive one. Plus, there is so much
incredible food you can share!
Be Focused and Patient
– We all demand results. After all, that’s why we are in business and how we measure
ourselves. We are also impatient, and a key to our success is that we
continually strive to achieve better results, faster. You should maintain that focus
when doing business overseas, but you must also realize that you are now
dealing with new people, rules, customs and expectations. Jump into your global
initiative with enthusiasm and as you execute your plan and identify the opportunities
and gaps, make sure you are patient and receptive to fresh ideas and
approaches. There is a world of them out there.
Kevin Smith is a global Sales, Marketing and
Business Development executive with over 20 years of leadership success at
corporations such as Tyco Electronics, AMP Inc., and Philips, which includes
senior management assignments based in Asia and Europe. As the Founder and
Principal of Global Sales Initiatives
LLC, he now focuses in two areas: 1) Working with small to mid-size US
companies who want to accelerate top line growth by developing and executing a
plan that identifies and penetrates new markets and customers, both foreign and
domestic. 2) Partnering with foreign companies to develop a penetration plan
and establish a presence for their products or services in the US. Kevin received his degree in Business Administration
from the Whittemore School of Business and Economics at the University of New Hampshire
and lives in Harrisburg with his wife.
