Before you head off into the wild blue yonder of some exotic potential markets you need to ask some key questions.

1. Should you be in that international market?

In answering this question you need to evaluate the real market-opportunities which require you to undertake detailed market research for your product or service. You also need to figure out the key factors that will determine your success.

These could be increased sales, new partnerships, new suppliers or any host of things.

You also must identify who your key competitors are. These are not likely to be the same competitors you face in your own country.

Finally, you have to determine if your 4Ps of marketing (price, place, promotion and product) fit within the business context of the new international market.

2. What is your market entry strategy?

Once you have decided on the international market(s) you want to enter you have to figure out what is the most appropriate market entry strategy for your company.

Will it be to simply set up a distribution or agency agreement? Will you partner or joint venture with a company or make a direct investment and purchase a company in the market.

Each new market will have its pros and cons. The trick is to plan, plan, plan and then implement.

3. How will culture affect your global business?

You also need to know what cultural differences will impact your business.

Culture plays an integral role in all business relationships. You have to understand how this works in the market you are going to enter.

4. Have you considered all the costs of international marketing?

International marketing costs money and you should be prepared and budget for expenses that you do not normally incur domestically. These include at a minimum travel and business development expenses.

Your market analysis should identify your best customers.

It is easier to pick the ‘low hanging fruit’ than go after customers that will take a great deal of effort to bring on board.

Finally, you have to identify your staffing needs. Do you have people on board, or access to, people who understand how the market works and can ease your entry.

5.  Do you have all the documents and processes in place?

You have made the commitment to enter an international market and try your well planned luck. Do you have all the proper forms and documents for company registration and have you got all the appropriate government approvals that will allow you to do business in the country?

You will need to ensure you have a foreign exchange process in place to repatriate profits and you will need to talk with your bank or a government agency such as Export Development Canada (EDC) about financing and payment insurance.

Additional checklist for new market entry

Competition in the global market is intense and widespread. You will need to bring something different or innovative to the market that allows you to compete and beat your competition. It also requires some common sense. Here are a few business tips to help you in your thinking:

1. Be very selective in the markets you want to enter. It is better to succeed in one or two markets than fail in many.
2. Find a partner in the local market. You will be amazed at how much easier it is to succeed with local market knowledge and an established network.
3. Learn about the local business culture, country and politics. If you know the rules of the game you can play. Always remember that the way business is conducted in other countries is not same as in Canada.
4. It is always easier to sell in your own country than to sell internationally. Understand this will always be the case and be prepared.
5. No matter how well you think you understand the country and its culture there will always be something you miss. Listen and learn from your local partner.
6. Make an effort to build and develop local networks. This is time consuming and can be expensive but it is worth every minute and every dime.

What other questions do you think are important to ask before you test out new markets? Share your comments below!

The post 5 key questions before you export into a new international market appeared first on Trade Ready.

Our upcoming #TradeElite chat will focus on a topic that is vital for succeeding in international trade: profit margins. Price your product too high and you might not have a competitive edge on the global stage. Set your price too low and your export endeavors might turn out to be more effort than they’re worth. 

Have experience in this area, have questions about pricing your product or service for foreign market, or just curious about the topic? Join us for some great discussion, knowledge-sharing and networking!

#TradeElite – wlecome all. Q1 – why don’t SME’s export – what is the main reason

— Doug Taylor (@globethoughts) March 6, 2014

@globethoughts #TradeElite I think SMEs may be getting outdated advice. Back a few decades, few SMEs could export like they can now

— Becky Park DeStigter (@intlentreprenr) March 6, 2014

A1 – I think it’s the intimidation factor. It seems like a lot of work and they don’t understand the benefits. #TradeElite

— David Mark Noah (@DavidMarkNoah) March 6, 2014

@globethoughts A1-Lack of knowledge/understanding of other markets, which leads to perceiving risks much higher than they are #TradeElite

— Gaby Castro-Fontoura (@uklatinamerica) March 6, 2014

A1 – Fear of the unknown and also not knowing the resources that are available to make it happen. #TradeElite

— Louei Ali (@LoueiAli)

March 6, 2014

Q2 – should govts support SME export efforts financially #TradeElite

— Doug Taylor (@globethoughts) March 6, 2014

@globethoughts YES!! Definitely. The best at this that I know of is Israel. #TradeElite and their exports show it

— Becky Park DeStigter (@intlentreprenr) March 6, 2014

A2 – indirectly. not with subsidies but with the indigenous assistance on the ground in mkt (e.g. @exportgov #goldkey) #TradeElite

— Ed Marsh (@edbmarsh) March 6, 2014

Q2 – absolutely! but don’t limit your export efforts into areas funded by your govt, they’re also politicians! #TradeElite

— Gaby Castro-Fontoura (@uklatinamerica) March 6, 2014

Q3 – in your opinion what are the most promising markets for SME’s? #TradeElite

— Doug Taylor (@globethoughts) March 6, 2014

.@globethoughts A3 – For US companies new to export, Canada is a great market to cut your teeth!

— David Mark Noah (@DavidMarkNoah) March 6, 2014

@FITTNews @edbmarsh I am a huge fan of E. Europe and L. and S. America for Cdn. exporters #TradeElite

— Doug Taylor (@globethoughts) March 6, 2014

A3: Depends on your commodity. We sell cosmetics not aerospace tech, the demographics, income level & need are different. #TradeElite

— audrey ross (@tresAudrey) March 6, 2014

#Turkey, #colombia, #ghana and similar manageable vibrant markets provide diversification #TradeElite

— Ed Marsh (@edbmarsh) March 6, 2014

Q4 – is it more difficult for service or product SME’s to get involved internationally #TradeElite

— Doug Taylor (@globethoughts) March 6, 2014

@globethoughts A4 – #TradeElite Each has its complexities. It depends a lot on delivery, service, etc.

— Becky Park DeStigter (@intlentreprenr) March 6, 2014

Q4 – I find services companies find LatAmerica easier than product companies (logistics, import barriers, etc). #TradeElite

— Gaby Castro-Fontoura (@uklatinamerica) March 6, 2014

A4 – often see companies trying to sell products into markets where they simply don’t fit – then products R tough #TradeElite

— Ed Marsh (@edbmarsh) March 6, 2014

@globethoughts A4 – #TradeElite Each has its complexities. It depends a lot on delivery, service, etc.

— Becky Park DeStigter (@intlentreprenr) March 6, 2014

#TradeElite – just about out of time – could each of the panel provide a final word of wisdom please

— Doug Taylor (@globethoughts) March 6, 2014

it’s not wisdom. strategy – planning – execution | hard work | #marketinglocalization | travel – not by email! – #export #TradeElite

— Ed Marsh (@edbmarsh) March 6, 2014

#TradeElite Final advice: Lots of research & conversations to learn about true opportunities & risks. Exporting can be a biz accelerator!

— Becky Park DeStigter (@intlentreprenr) March 6, 2014

#TradeElite. SME to push more to enter new market. Great product +excellent team will result to profits. Consider language, culture,politics

— Albert Aguirre (@albertaguirreca)

March 6, 2014

We look forward to seeing you at our next #TradeElite chat and virtual networking session.

Look here for details on how to participate and build visibility for your international business and brand.

The post Upcoming #TradeElite networking session & recap of how to get more SMEs involved in export appeared first on Trade Ready.

Global trade veteran and one of our newest board members, Alexander Malaket (CITP), will soon be moderating our first #TradeElite discussion on Twitter (Twitter chat). This offers all participants a great opportunity to network with professionals and businesses in the international trade community.

It’s our pleasure to invite you to take part in this casual discussion on Risks and risk management in international business.

Topic: Risks and risk management in international business

Date: Feb 6th 2014

Time: 2.30 p.m. – 3.30 p.m. EST (you can jump in and out at any time during the chat)

Chief Moderator: @ARMalaket_OPUS

Alexander Malaket (CITP).

Alexander is a globally recognized specialist in international business, trade and trade finance. He is President of OPUS Advisory Services International Inc. (Canada), and the Founder/Managing Director of Trade Finance Associates Pte. Ltd (Singapore).

Supporting Moderators: @FITTNews
Your friendly FITT Twitter sidekicks Daniella and me.

Special Guests:

Sarah Cogliati, Account Manager at Export Development Canada @SarahCogliati

Sarah works with Canadian companies across Western Canada. EDC helps support Canadian exporters with Bonding guarantees, Financing programs and Risk Mitigation solutions (Accounts Receivable Insurance and Political Risk Insurance).

Doug Taylor (CITP). @globethoughts

Doug is a creative, results-driven lateral thinker with a wealth of international business experience. He’s the Managing Director of Pacific Business Intelligence Ltd. (Canada).

Craig Atkinson (CITP). @craigaatkinson

Craig is a rising star in international trade and development who has been living and working abroad for the past two years. He founded his own consultancy Lexmerca International Trade in 2010, and he is currently consulting in Geneva, Switzerland with the International Trade Centre (ITC).

Sarah Barnes (CITP). @icecorplog

Sarah has been in the logistics industry for over 17 years, and currently works as the Director of Marketing and Client Partnering at Icecorp Logistics. Through her extensive experience and knowledgeable insight into the movement of freight, customs clearance and warehousing, she is focused on helping her clients through the complexities of the industry.

How you can take part

Alexander will be posing a few questions and observations around the chat topic.

E.g.:

These will be discussed and answered by the international trade community, including our special guests and you.

E.g.:

Please do use this opportunity to provide your perspectives on questions, have your own doubts addressed, and engage with the moderator, special guests, and each other.

Find someone’s answer or perspective to be particularly helpful or insightful? Go ahead and retweet (RT) it! This is a common method of supporting other participants while sharing the value with your own networks.

You can also simply observe (lurk), but we’ll miss your participation. The idea is to get involved; learn and share valuable information with each other.

New to Twitter chats? What you should do:

Login to Twitter (www.Twitter.com) and follow these very simple rules.

1)   It is NOT OK to use the chat to blatantly promote your products. Instead, add value to the conversation and help others gain confidence in your knowledge.

If your product is highly relevant to the topic at hand you can position it as an option AFTER you provide other valuable tips.

Blatant promotion is often ignored and considered low in credibility.

2)   Always, always use the hashtag #TradeElite when you ask a question or reply to a tweet related to this Twitter chat. If you don’t, the other participants probably won’t know that you’re part of the conversation.

E.g.: If you’re asking a question.

Note: The special guests will prioritize replies to your questions after they answer the main moderator’s questions. Depending on the level of activity, your questions may remain unanswered. Don’t be discouraged, and continue to take part in the conversation.

TIP: Cut the #TradeElite hashtag into the clipboard or your notepad so you can easily insert it into relevant tweets.

3)   Track the conversation by using the ‘search’ option in Twitter to isolate tweets relevant to the chat. Use #TradeElite in your search box.

We recommend that you use a Twitter client like Hootsuite (free version available) to make it easy to track the chat in a dedicated area.

TIP: Refresh your browser often so you’ll see the latest tweets.

TIP: If you come in late, when you join the chat spend a few moments scanning the tweets around the hashtag (#TradeElite). Who’s talking? What are the hottest topics being discussed?

4)   If you’re answering a question posed by the moderator, preface the answer appropriately.

E.g.: A2 (Answer 2) to answer question Q2

There can be multiple answers and perspectives for the same questions. You’re encouraged to provide your own answers and insights or add value to the perspectives of our special guests and other participants.

5)   You can use other relevant hashtags along with the main chat hashtag

E.g.:

6)   DO NOT use the hashtag unless it’s relevant to the chat topic and the ongoing conversation.

7)   Do let your current Twitter followers know you’ll be participating in a Twitter chat about 2-5 minutes before the chat. This will warn your network to expect a high volume of tweets from you during that time.

8)   Participate with a positive attitude. Present your views, even if you dissent, in a respectable manner. Negativity will only isolate you from the community.

9)   The chat may extend past the designated time period. Feel free to continue with the conversation beyond the time when the moderators announce the end of the chat. After the chat, do follow up on the conversations by visiting and following Twitter profiles that can add value to your existing network and developmental goals.

As you may have deduced, this free-flowing chat will be held in the spirit of learning from each other, sharing valuable tips, and establishing valuable connections with our peers in the international trade community.

Let’s help each other thrive in global trade! We hope to see you there!

The post You’re invited to the #TradeElite Twitter discussion on global trade: Risks and risk management appeared first on Trade Ready.

I recently asked three of our international business veterans, what they thought was more important for success in international trade. Was it attitude or skills?

While they had overlapping opinions on the subject, I have extracted three qualities that were emphasized by our experts.

1. Cross cultural adaptability

With over 30 years of experience in international trade, Doug Taylor has seen a lot of beginners in global trade overestimating the importance of technical skills.

   If you are thinking of pursuing a career in international business it won’t matter much what your technical or business skills are if you cannot work comfortably and professionally in other cultures. ~ Doug Taylor

“I think there are five major themes that separate those who are successful from those who aren’t;

• First is the ability to think widely and understand that your approach to solving issues is not the only one.
• Secondly all business is about win-win, and you need to understand that the pie must be shared.
• Third you must be able to adapt and listen to the cultural nuances in foreign markets.
• Fourth, you must understand that business is not about contracts but about trust and developing worthwhile business relationships.
• Finally, good businesses last over time. It is never about quarterly results, but developing a business relationship over the long term.”

Doug Taylor is a results driven, creative and lateral thinker with a wealth of international business experience.  He is the Managing Director of Pacific Business Intelligence Ltd. (PBI). www.pacificintel.com.
PBI provides professional consulting services in the core areas of international business development, strategic market planning, market research, international marketing and corporate guidance. PBI has undertaken assignments in over thirty countries in Europe, Asia, North America, the Middle East and the Caribbean for private industry, governments and international organizations. Connect with Doug on twitter: [followbutton username=’globethoughts’ count=’true’ lang=’en’ theme=’light’]

2. Willingness to work long hours

It should come as no surprise that international trade is conducted over different time zones. This usually means long hours, even if you have over 25 years of international business success like Diane Girard. I caught up with Diane last month and she drove home the same pertinent point.

“In June, I conducted three webinars from 11p.m. to 1a.m. for my clients in Indonesia who are eleven hours ahead of me. Tonight, I am booking six flights for a trip in two weeks – Toronto-Barbados-St.Lucia-Grenada-St.Vincent-Barbados-Toronto.  That’s the easy part. The prep and follow-up for each of these country visits is mind-boggling.
In addition to this trade mission I will be on, I am also working on two proposals and trying to manage a bit of vacation time with my family. My formula for international business success is quite simple: know what you need to do and get it done!”

Whether you are an international business student or a veteran, FITT has a free online tool that can be quite helpful in assessing your aptitude and/or attitude. Integrative Trade Competency Diagnostic Tool ~ Diane Girard

Diane Girard (CITP), has been involved in projects in over 50 countries.  Her areas of specialty include trade in business and professional services, trade-related capacity-building of trade promotion organizations, sector associations, business support organizations and SMEs.
Services include strategic planning, market research and development, business development, sector strategies, curriculum development, training and coaching, project management, outsourcing, marketing and communications, all with a focus on results.

3. Relationships

While already mentioned, this is one point that bears repeating. One should not underestimate the importance of developing enduring relationships.

   When I ask my students what they think (about what is important in global trade), they of course come up with the usual: language skills, patience, fat wallet, knowledge of export laws, etc. ~ Bill Kosar 

Bill has three rules of doing business internationally. It sums up what, he believes, is the most important thing about doing business internationally: relationships.

1. Do business with friends
2. If you can’t do business with friends; do business with other friends.
3. And if you can’t do business with these friends; do business with still other friends.

Prof. William Kosar, CITP, is a senior legal advisor, trainer, project manager and institutional development professional.
He has worked throughout the world assisting governments and private sector entities with legal reform, legislative drafting and capacity building and is currently with the USAID-funded Iraqi Financial Development Project as Legal & Regulatory Advisor.

There is a now popular mindset that companies should hire for the attitude and then train for skills. If you consider what our experts have mentioned above, they seem to be agreeing with the attitude ethos in the points they make.

This is not to imply that technical skills aren’t important. Our tips for international trade rookies are clear on that aspect. Practical global trade training like FITTskills is well-suited to address the challenges faced by international trade professionals.

However, like our experts have pointed out, long-term success also requires cultivating qualities that can augment any technical knowledge.

Do you agree? As a beginner or a global trade veteran, what are your thoughts on attitude vs. skills when it comes to success in international trade? Can you provide an example to support your viewpoint?

The post What is more important in global trade, attitude or skills? appeared first on Trade Ready.