Business growth often has to include an eye to international expansion and FITT was there to connect women entrepreneurs to the know-how they need to be successful in global markets. In this article, we will cover 10 of the key learnings that were shared at this productive event.

1. Stay on top of the changing landscape of global challenges

It’s essential for business owners and entrepreneurs to stay informed about the critical issues and trends that may impact their operations and decision-making. The global challenges which are currently affecting businesses worldwide include the debt ceiling, fallout from banking turmoil, inflation, interest rates, China’s reopening, geopolitics (war in Ukraine), and climate change.

Each of these factors can significantly impact the global economy and have a ripple effect on businesses in various sectors. Staying informed about these challenges will enable entrepreneurs to make well-informed decisions and adapt their strategies accordingly.

2. Re-globalization is shaping supply chains

After experiencing both globalization and deglobalization, the world is now witnessing a process known as re-globalization. This process is characterized by a renewed emphasis on global interconnectedness and can be seen as a response to previous trends of isolationism in certain countries and regions.

This transition involves the adoption of new trade policies, such as switching trading partners, revamping supply chains, and focusing on domestic production.

3. Friend-shoring may be the best way to react to China’s “de-coupling”

Another notable aspect is the concept of “de-coupling,” where countries like China aim to reduce their dependence on the United States. While re-globalization offers potential benefits, such as increased stability and reduced vulnerability to disruptions, it also presents risks.

Friend-shoring, a strategy of engaging in trade with friendly nations, ensures continuity, but may come at higher costs and potentially disrupt global trade leading to inflationary pressures.

4. Closely monitor inflation trends

Inflation has been a significant concern in 2022-23. The goal is to bring inflation rates down from their current levels, such as Canada’s 4.4%, to a target of 2%. The decrease in goods inflation can be attributed to a decline in demand as China reopens, and supply chain stability improves.

However, services inflation remains elevated, mainly due to higher wages and salaries. Business owners should closely monitor inflation trends and consider the potential impact on their costs, pricing strategies, and overall financial health.

5. Beware of currency risks and other economic shifts

In the face of these challenges, business owners must remain vigilant and prepared.

Monitor the economy for signs of a potential downturn or recession, which some experts predict may occur in Q2 and Q3.

In addition, the persistence of sticky inflation calls for a cautious approach and the expectation of restrictive monetary policies in the foreseeable future. Markets, including currencies, interest rates, and equities, are likely to remain volatile, demanding attention and proactive risk management.

6. Global ambitions require global skills

Having a strategic mindset is crucial when venturing into international trade. Instead of relying on opportunistic approaches, businesses must develop a well-thought-out strategy, including an organizational pillar, financial pillar and operational pillar.

This mindset ensures that decisions are based on thorough research and analysis, and identifying opportunities aligned with long-term goals.

Going global requires trade-capable individuals within the team who possess the necessary skills and knowledge to navigate global markets effectively.

7. Consider the “double half rule”

The “double half rule” highlights that it often takes twice as much time and efforts to achieve only half the value (compared to domestic business) when expanding internationally. Never underestimate factors such as the amount of time, money, and effort required.

Cultural differences and language barriers can also pose significant obstacles. In addition to that, being up to date with customs regulations, policies, trade agreements and other regional regulations will be the base to establish and maintain the relations with partners.

8. The power of networking

Networking and leveraging available resources play a vital role in addressing these challenges. Establishing connections with organizations such as chambers of commerce, Trade Commissioner Service (TCS), Export Development Canada (EDC), Business Development Centers (BDCs), and Small Business Development Centers (SBDCs) can provide valuable support and guidance throughout the export journey.

Being a part of WPO 2023 Entrepreneurial Excellence Forum proved this point of the value of leveraging the network and mutual support of female leaders.

9. How to determine if your business is export ready

A strong export plan is a critical component of success in international trade. Research is the foundation of such a plan, enabling businesses to make informed decisions. We highlighted five key considerations while creating an export plan:

1. Clearly define objectives
2. Select the right market based in extensive research
3. Choose the right product(s) to enter the market gradually (sometimes you don’t need to go with all your products at once)
4. Establish an appropriate financial model
5. Determine the most suitable fulfillment process

It is important to continuously update and adapt your export plan based on new insights and market dynamics.

10. Get the right people on the bus

Great organizations make sure they have the “right people on the bus” and the right people in the key seats before they figure out where to drive the bus.

Does your business have the right talent in place with solid experience in international trade?

It does not matter where your business originates from or what it does – your priority is to recruit the right talent with relevant experience. So, when it comes to business expansion, you need a team that understands how to:

• Research target markets effectively
• Manage international finance and FX intricacies
• Navigate the complex landscape of international shipping, logistics and transportation
• Engage in appropriate cross-cultural marketing and sales
• Adapt products and services to the many regulations in international markets

Regardless of the position, what is exceptionally important for the success of your team is the amount of professional experience and training they have.

Additional resources:

• How to Take Your Business Global – 5 Important Steps for Female Leaders
• How To MacGyver Your First Export- Laurel Delaney
• EXPORTING: The Definitive Guide to Selling Abroad Profitably

The post Top 10 things we learned at the WPO 2023 Entrepreneurial Excellence Forum appeared first on Trade Ready.

Swaran Singh began his career in international trade while transitioning career paths. Coming from a French-speaking province with an IT background, he was finding it difficult to find field-related jobs. That’s when one of his friends got him into a FedEx Ground hiring seminar. It wasn’t long before he was hired and realized that international trade was something he was always interested in—especially the notion that international trade professionals connect people all around the world together. “During this time, I developed an interest in the import-export process and how to go global with your business,” he adds.

Adversity as one of the greatest career lessons

Before transitioning into international business, Swaran experienced many difficulties landing work. But, as it turns out, these adversities proved to be one of his greatest career lessons and achievements. He notes: “Just like Jack Ma, I got so many refusals for the jobs that everybody was getting hired for. I had so many job refusals that I forgot the count. But what’s important is that I never let myself get distracted by these refusals. I keep my focus and worked on perfecting my skill set.”

Now, as an operations manager at FedEx, he has certainly used the difficult moments in his career to his advantage. Though he is proud of his role, he knows the road ahead will be challenging, so he is looking forward to the many great moments to come. 

Constant improvement as a daily goal

Swaran uses a piece of advice from a former manager to guide him daily: “ I’ll never forget one thing my manager said to me. He said: ‘Don’t go for the next thing until you are perfect in the first one.’ So I always focus on getting better every day.”

A fruitful FITTskills experience

As a perpetual learner, it’s no surprise that Swaran decided to enroll in FITTskills training at Collège LaSalle to improve his international business acumen. He had been searching for import-export training and came across the CITP®|FIBP® (Certified International Trade Professional) designation. Understanding the potential with the training, he became convinced after seeing that it was endorsed by EDC (Export Development Canada) too. 

For him, the experience gave him important business training and skills but also introduced him to other people and cultures. “The experience was great. I met a lot of students in the class from around the world. It was a wonderful opportunity to know other countries and their specialties, their culture,” he notes.

During his studies, he also got to dig deep into an area of interest: the flow of goods:

“I think the most important part in any business is the flow of goods. You need to have a better understanding of how the international financial sector works to ensure your business stays afloat. For that reason, my favorite course was International Trade Finance.”

Learn everything an importer or exporter needs to know when it comes to payment, risk mitigation, financing, and the flow of goods and services with the FITTskills online International Trade Finance course.

Swaran became CITP certified in June of 2021 and feels “great” about the achievement.

“I am currently working on my dream project and I hope with the help of this knowledge and designation I will be able to achieve my target.”

We have no doubt that with his determination, ambition, and capacity for endless learning Swaran’s target will become a reality soon.

Want to learn more about the CITP designation? Discover why it is the world’s most recognized professional designation for international business.

The post CITP Spotlight: Swaran Singh, Operations Manager, FedEx Ground appeared first on Trade Ready.

Businesses that operate internationally need to treat their cash flow planning differently than those that operate domestically. There are many additional details to consider for international transactions, including export costs which, ideally, should be determined alongside a timeline that tracks where and when these costs are incurred and when they are due for payment. These costs can be added to the company’s domestic costing worksheet to help the exporter fully understand the cash flow implications of trading internationally.

To help you understand more about some of these common costs in international business, we’ve compiled a list of 10 export costs you need to consider when projecting cash outflows along with an export cost timeline.

Figure 4.1 arranges typical export costs in the order in which they occur as a first step to projecting cash outflows.

For businesses that deal with importing and exporting in their operations, it is important to know which of these costs are the responsibility of the exporter and which ones are the responsibility of the importer. This can be easily determined by looking at the Incoterms® rules negotiated between the two parties during contract negotiations.

Want to learn more about Incoterms® rules?  Take the Incoterms^® 2020 online course, presented by FITT and the Canadian Chamber of Commerce (CCC).

The chosen Incoterms® rule determines the importer’s obligations and the exporter’s obligations, such as who pays the cost of transport, delivery and insurance. Learn more about these export costs below:

1. Business Development Costs

Even before the signing of a deal, there are various business development costs associated with making the sale. These may include travel, telephone and fax, promotional and marketing costs, legal fees, and possibly foreign agent’s fees. Most of these costs must be paid up front, regardless of when/if a deal generates revenues. These initial costs can impose a significant burden on the cash flow, which may make the need for financing even more urgent.

2. Contract Negotiations

Once the importer shows interest in dealing with the exporter, both parties begin negotiating a firm contract. Depending on the complexity of the product, contract negotiations require input from many professionals. A lawyer may be required to help negotiate terms and conditions that secure each party in the event of contract cancellation, non-performance and non-payment, among many other possible scenarios. At times, contract negotiations can take many months, if not years, to conclude. The time invested during this time is at the cost of each company with no compensation other than the hope that the contract with bring fruitful benefits to each company.

3. Manufacturing Cost Per Unit

In most cases, these costs are the same as those for domestic transactions, except where production is modified to meet specific foreign requirements. Coverage of these costs may fall under the company’s existing credit arrangements, unless the export effort is significantly large in comparison with the company’s current capacities. Some differences can occur with product cost per unit if the order is large enough, and special costs will therefore have to be borne. New employees, added export administration, extra factory space, and more expensive materials may be necessary. In that case, a new cash flow worksheet must be completed to factor in the additional costs relative to expected revenues.

Did you know that you can preview FITTskills courses for FREE? This topic is covered in the FITTskills Lite Unit on Cash Flow Management. Get the download below:

4. Labelling

This is one of the up-front costs incurred in exporting. If it’s done in-house, there will need to be special print runs and adjustments made to machinery, although the out-of-pocket costs may be minimal. For many overseas markets, they may need label information translated. If contracting out both translation and printing, the exporter can expect that payment for these services will be due within 30 to 60 days after the order is complete.

5. Packing

Shipments must be ready for international transportation. Many countries have strict regulations. Even if the packings done in-house, the exporting firm may have to purchase materials, such as crates, boards or Styrofoam. Payment for these materials will be within 30 to 60 days of delivery. If packings done by an external supplier, such as a freight forwarder, the costs will be even more significant. In some instances, it may be possible to secure extended payment terms from suppliers in recognition of the length of time that will pass before receivables are paid.

Want to learn more about methods of settlement in international trade and other risk mitigation options? Check out the FITTskills International Trade Finance online course.

6. Forwarding Agents Fees

The forwarding agent’s fees cover activities such as preparing documents, securing insurance and arranging for transportation. These fees are usually payable in 30 to 60 days after loading the shipment onto an international carrier. The timing of the costs may be negotiable, but the negotiation must finish before the transaction occurs.

7. Export Commissions

To earn an export commission the signing of an export transaction must occur, but payment terms may be negotiable. The exporting company should try to move the due date for payment of commissions either close to or past the date on which it expects to receive payment from the importer. If the company is factoring the transaction, however, it may be able to pay sooner without impairing cash flow.

8. Shipping and Storage Costs

The shipping process entails many costs, payable to a wide variety of service providers. Freight forwarders, domestic carriers, port authorities, and international carriers may all perform services requiring payment. As suppliers of shipping services are familiar with the realities of international trade, they may agree to payment terms that are common among domestic suppliers.

9. Cargo Insurance

This cost is payable within 30 to 60 days of shipment. Shippers may offer extended cargo insurance as part of their service and may thus accord extended payment terms for it. Otherwise, factor this cost into a transaction as being payable before receiving the full funds for deliverables. If packings done by an external supplier, such as a freight forwarder, the costs will be even more significant. It’s possible to secure extended payment terms from suppliers in recognition of time that will pass before paying for receivables.

10. Customs and Clearance Fees

Customs and clearance fees are due immediately on arrival of the shipment in the destination country. For customs brokers employed to clear the goods, those fees add to the other costs. If the contract specifies that the exporting firm is responsible for this part of the transaction, the firm will need cash on hand to cover these costs before the goods can be landed and delivered to their destination.

By keeping these costs in mind, an exporter will be able to work through the cash flow forecasts and ensure the cash inflows match the cash outflows as much as possible to minimize the company’s reliance on financing. This exercise can also help the company negotiate the milestone payments and ensure it follows the contract completion to minimize payment default in future.

Other Costs

The export costing calculation offers an indication of some of the other costs involved in a transaction. It also gives clues as to when they might affect the cash flow. For example, paid monthly for the duration of the transaction are insurance premiums. By contrast, you only feel the impact of discounting a receivable when the receivable sells.  Among other costs to consider are receivables insurance, contract cancellation insurance and various financing charges. When using a line of credit these might be paid monthly or at the end as part of the collection and settlement process.

The post 10 Export costs you need to consider when projecting cash outflows appeared first on Trade Ready.

Taking place every year in the third week of October, Small Business Week celebrates Canadian entrepreneurs and their immense contribution to the Canadian economy with nationwide events that offer them opportunities to learn, network, share ideas, and grow their ventures.

To add to these celebrations, recognize the efforts of Canadian entrepreneurs, and make knowledge more accessible to them, FITT dedicated an entire month to celebrating the event. The FITT Small Business Month consisted of an array of activities, from exclusive access to free training opportunities, exciting giveaways and awesome discounts, to an opportunity to get trade-related queries resolved by an expert.

Through these activities, we also received a lot of great advice, tips and insights that can help entrepreneurs in their business journeys.

As a bonus, all newsletter subscribers in the month of October received a free copy of the FITT Small Business Guide: The Scaling Up Edition – a resource providing great insights into launching and expanding a business.

Here’s a summary of all the activities, special giveaways and advice for entrepreneurs that marked the month-long celebrations:

1. Facebook giveaway – advice on starting a business

Launched in the first week of October, the Facebook giveaway asked entrepreneurs the one thing they wish they had known before they launched their business.

The question elicited several honest and sincere replies, and three winners were selected to receive the prize of one free FITTskills online workshop each, based on the originality of their answers and other campaign criteria.

Here was the winning advice we received:

Livia Pellerin Carrière, Owner, MobilityJunkie – “I wish I had known how to narrow down my big dream into something scalable instead of launching myself in pursuits of ridiculous grandiose labour I couldn’t even work with.”

MobilityJunkie helps weightlifters and CrossFit athletes get past the stigma that the sport creates injury by arming them with effective mobility tactics to keep them injury free, increase ROM, keep joints healthy and STABLE.

To connect with her business on Facebook and Instagram, look for @mobilityjunkie.

Nourhan Hashem, Owner, AITYF (Africa Intra Trade Youth Forum), wishes she had known more about “business networking in new markets, planning, monitoring and evaluation.”

AITYF is an organization aims at developing the capabilities and skills of African youths on the international trade field to contribute effectively to the Intra Trade growth in Africa.

Dale Schaub, Business Advisor at Business Link says that “Market research/designing products and services with clients’ wishes in mind, and proper accounting practices” were the topics he wished he knew more about prior to setting up his venture.

Business Link is a non-profit that helps people start businesses in Alberta. Connect with them on Twitter by looking for @BusinessLinkAB, or with Dale by looking for @daleschaub1.

2. LinkedIn giveaway – advice learned the hard way as an entrepreneur

The following week, entrepreneurs had another chance to win by answering the following question on LinkedIn: What did you learn “the hard way” as an entrepreneur?

The winning response was from Roy Pereira, a serial entrepreneur and tech executive, who offered the following advice:

• “Revenue is the best metric for success.”
• “Your vision is long-term, not the current tactics.”
• “Fire fast, hire slow.”

3. An opportunity to receive free business training

Businesses were invited to apply for free online workshops for a chance to be selected as one of three winners to receive two workshops of their choice each.

The lucky winners were:

• Louis Benatshipama, Owner, Impetus Africa| Corporate Sourcing Solutions and Foreign Investment Facilitation – “We make it easy, efficient and risk free for Canadian companies to do business with Africa”. Connect with Louis on LinkedIn and Twitter.               
• Allan Nichols, President of the Global Canadian Business Forum (@CanadianForum) – “Working with Canadian business organizations abroad, Global Affairs Canada, foreign diplomatic offices and other stakeholders, the GCB Forum provides inspiration, information, and networking opportunities for entrepreneurs looking to grow their business abroad.”
• Badamtsetset Altansogt

4. To celebrate Small Business Week, all FITTskills online training was 50% off from October 21-25.

5. Twitter pitch event

On October 22, business owners pitched their businesses on Twitter in 280 characters or less for a chance to win one of three free EDC-FITT online workshops to boost their business knowledge and skills.

Here are the three winners along with their pitches:

Peter Deitz, UnWrapIt (@unwrapit)

UnWrapIt is #zerowaste corporate gifting that delivers results. We specialize in creating high-volume & personalized gift experiences that engage and inspire any number of event attendees before, during, or after an event. Reveal anything as a gift with @UnWrapIt_ #eventprofs pic.twitter.com/vhIo6GUjV6

— UnWrapIt (@UnWrapIt_) October 22, 2019

Cozy Intentions (@cozyintentions)

We are a Clothing brand with a cause. Canadian Made, Soft Bamboo Jersey ladies pyjamas. A portion of our sales supports local women’s shelters in our province. As an e-commerce store with upcoming opportunity for retail Here & US sales. #womenhelpingwomen pic.twitter.com/mAIhRqPnHG

— Cozy Intentions Clothing (@cozyintentions) October 22, 2019

Doug Lessing, Phin (@phinforgood)

What if you could use your time online and on #socialmedia to create a positive impact? Now you can. Phin offers a new way to incorporate #social causes into your daily online life making it easy to do your part to create a #betterworld.#FITTsmallbizmonth #globalentrepreneur

— PHIN (@phinforgood) October 22, 2019

Doug explains that “Phin is a Pending BCorp which helps companies build relationships with people and meaningful causes by connecting them through sponsored donations.” #PhinForGood #BtheChange”.

6. Free tickets to the Startup Canada Canadian Export Challenge Event

Interested entrepreneurs could register for and receive, on a first come first serve basis, a limited number of complimentary passes, arranged for by FITT, to the final Canadian Export Challenge event in Toronto.

7. LinkedIn Ask Me Anything (AMA) with Igor Chigrin CITP|FIBP

The AMA session offered entrepreneurs and business enthusiasts a unique opportunity to get their trade-related queries answered by an expert. The session was a huge success with questions pouring in from across Canada and the world. Igor Chigrin, CITP, Export and Import Consultant at Win Global Partners, offered informative solutions and sound advice to every participant, lending a helping hand with some of their most pressing concerns.

Some excerpts from the session:

The FITT Small Business Month campaign ended on a successful note and proved to be a win-win for aspiring entrepreneurs, small business owners and their employees, and others in need of accessible, quality business training.

Looking to expand your business? Here are some pointers to help you with your next steps.

• Learn more about FITT’s online training
• Download your free copy of the FITT Small Business Guide: The Scaling Up Edition
• Subscribe to FITT’s newsletter for the latest updates, events, and more

Stay connected with FITT on:

• Facebook
• LinkedIn
• Twitter

The post Recapping the celebrations and advice for entrepreneurs from FITT’s Small Business Month appeared first on Trade Ready.

Most domestic businesses, at some point, nurture dreams of selling into several overseas markets across the world. At face value, such dreams are extremely valid.

Canada is, after all, a first-class economy built on trade, with 30% of its GDP directly connected to its ability to send goods and services around the world.

Trade unleashes vibrant economic activities and creates jobs; it makes companies competitive, fosters organic growth, and delivers outstanding corporate results to stakeholders.

Available World Bank statistics support the notion that trade is the engine room of Canada’s economy, and that Canadian companies that export tend to fare much better than those that don’t.

Canadian businesses aren’t as global as we think

However, what those statistics usually fail to highlight is a fundamental defect in the structure of our trade: 75% of all Canadian exports destined for the U.S. market.

Invariably, roughly 8 of every 10 vessels laden with Canadian goods heading overseas will likely dock at a U.S. port. So much for the dream of exporting all over the world.

Proximity plays a huge part in all of this, as well as long standing historical and cultural ties, and a shared loyalty to global supply chain management principles.

A change of mindset post-CUSMA

But the unnerving diplomatic spats surrounding the CUSMA (referred to as USMCA in the U.S.) negotiations and its aftermath has exposed the vulnerable underbelly of Canadian trade, and I believe we should all worry.

I’ve always suspected that if U.S. markets sneezed, Canada could catch cold, and that the after effects may be severe enough to tailspin this economy into a mild recession.

What we never saw coming was the sudden change in the political equation in the game changing U.S. presidential elections on November 8th, 2016, and how it would affect America’s relationship with Canada.

The world changed that night; and the great partnership of equals that had served Canada so well in trade and commerce collapsed under the weight of protectionism.

We should no longer today conduct Canadian trade with the same pre-November 2016 mindset, and must instead reconfigure the balance of trade.

Thanks to CUSMA, the U.S. markets will still be the first choice for our exports for a long time to come, but Canada needs a game changing strategy that puts it firmly back in the driving seat.

Canadian exporters must be encouraged to shake off the overreliance that led to locking down 75% of our exports in one multifaceted regional market, for better or worse.

It’s time to explore new markets – especially emerging markets

A good place to start is with the recent trade agreements inked in Asia and Europe. You can also include India, South America and Africa. Target ramping up trade in the emerging markets by 20 – 30% over the next 5 years.

Canadian companies should start playing to their global reputational strengths by becoming dominant players in markets where guarded risks give way to decent returns.

It is said that the spirit of enterprise plus a flair for adventure penetrates new markets, as seen with American, European and Chinese enterprises, but Canada needs to play catch up.

It is a big plus that in terms of perception of quality, Canadian standards are arguably the most highly regarded in the world. Take our educational standards as a base case.

It is no mere coincidence that each year our schools attract thousands of overseas students. This trend creates a real boom for several small and medium enterprises providing marketing and logistics services to help schools acquire these students and help them succeed in Canada.

These overseas students become Canadian-trained professionals and then go back home after graduation with knowledge of the Canadian market and a positive view of Canada, dotting the business landscape of their home countries. While many Canadian businesses could identify, accelerate or execute more entry strategies to these markets with the help of these professionals, this incredible resource is sorely underutilized by Canadian businesses.

Indeed, Canadian small enterprises have so much to offer the emerging market world in ICT, energy, agriculture, mining, manufacturing, health & safety, general goods and more.

Many such emerging markets had GDP growth rates above 5% in 2017, (double the U.S. rates), have healthy population and purchasing power dynamics, and posted above 15% p.a average returns.

Fortune favours the bold business

Some might ask, what about risk? Risks are embedded in all export markets, but they can be dimensioned and adequately mitigated to reflect individual risk appetites.

The bigger risk by far is doing nothing to change the lop-sided structure of our trade. Bonding with a close market is good, but Canadian trade needs the energy of new markets.

The post Why Canadian businesses need diversification to survive in today’s economy appeared first on Trade Ready.

In our current trade environment, trade wars will increase costs to the consumer, and the risks for employers, shareholders and employees of cross-border businesses. However, what will remain unchanged will be Canada’s need to generate our standard of living through success in the global marketplace. Current customers need to be retained and new ones found. Input cost changes will require significant creativity to preserve trade flows and margins.

Canadian politicians and economists have been talking for a very long time about our over-dependence on the U.S. market and the need to diversify. The diversification message coming from the Canadian government to businesses today has a special note of urgency, reflecting the risks which are being added seemingly daily for cross-border businesses.

And there’s been all kinds of attempts over the years to encourage Canadian companies to look elsewhere. Well, now you have a circumstance in which our best market, the United States, may become less attractive as a place to do business. This should provide Canadian corporations with an opportunity to reassess where else in the world their products can be marketed, products and services.

Companies can’t diversify their global markets without the right tools

We’ve got to turn this to our advantage. This is a real moment in time for Canadian trade and organizations striving to do cross-border business.

We know that knowledge preserves margins. Knowledge is power in all human activities, but particularly so in international trade. Market intelligence translates directly into market power. Value-added exports create higher margins the closer the producer gets to the customer. Availability of information is therefore critical to export growth, sustainability and job growth in a supplier’s jurisdiction.

The Forum for International Trade Training (FITT) and Export Development Canada (EDC) are heavily involved in efforts to grow the number of small businesses taking advantage of opportunities in the global marketplace through upskilling and building international business know-how.

As more people take FITTskills courses, their businesses will be increasingly prepared to make the risk calculations necessary to do the business and preserve their margins.

But this is also the perfect opportunity to refocus the way trade promotion services (TPO), such as the Canadian Trade Commissioner Service and private sector advisors, have been relating to their client base.

Trade promotion organisations and advisors need to give businesses what they really need – qualified leads

Look to TPOs like Saskatchewan Trade and Export Partnership, who are doing it right! Their number one deliverable to their Saskatchewan member companies are qualified trade leads.

Provide the qualified international leads to local businesses that are prepared and interested in doing a transaction. This is very difficult work. It’s far easier to do a speech to a chamber of commerce talking about how the GDP in Costa Rica has gone up 6.4% last year. Frankly, businesses don’t care about that. What they care about is who in Costa Rica is buying what I’m selling.

When I was an ambassador to the Philippines, we had the Asian financial crisis in ’97-’98. I went to a meeting of our ambassadors from around Southeast Asia and many people were despondent that the region would no longer be a priority market for Canada. I asked, “What’s the problem? Indonesia hasn’t stopped. Imports haven’t stopped. There may be fewer customers now, but go and identify some new ones.”

These guys were all tied in up in the idea that if you’re not a priority market, then you’re not quite as good. We don’t need priority markets. Canadian business needs customers and partners.

Serving businesses by thinking like one

Trade advisors and trade promotion services need to think more like the small businesses they serve and less like economists.

A major impact of the internet has been the facilitation of direct connection between buyers and sellers all over the world. Thanks to cyberspace, more customers are now in touch with more suppliers than ever before. A larger portion of Canadian companies became active and successful in international trade through the receipt of an unsolicited request for their product than you might think. One day, somehow, somebody heard about their product who wasn’t in Canada, and they became “accidental exporters.”

So, rather than establishing and promoting priority markets and sectors, TPOs and advisors’ priorities should instead concentrate on the selection of strategic services that will be offered to any qualified client.

Let’s leverage our assets to mitigate common exporter challenges

Classic trade promotion programs remain very important to the success of national economies in the global marketplace. Focused, targeted offshore marketing strategies work well. If exporters are to sell on something more than price, quality must be anticipated by a customer before it is experienced.

Similar challenges face exporters in every country:

• Need for a healthy and growing customer base
• An absence of support organizations in their communities
• Need to understand new markets, domestic and foreign
• Lack of skilled international trade practitioners in the economy
• Shortage of time to pursue opportunities over the horizon
• Low level of understanding in the community of how integrated local business has become in the international economy

We have the assets to facilitate global business:

• Young, highly educated professionals whose talents are at a global standard
• Access to the internet and global television news
• Access to global support organizations ex: logistics, standards, design, etc.
• Access to telecommunications and air connections enabling anyone to be anywhere in a day
• Access to public resources devoted to economic development initiatives (international and domestic public sector resources)

Public sector resources devoted to addressing these challenges, or capitalizing on these assets tend to be wasted when trade advisors endeavour to determine, rather than facilitate, the direction of the economy. The role of government advisors should be to leverage the efforts of the business community. Best practice dictates, therefore, that all advisors and service providers both public and private should apply resources to save the exporter time and effort.

Measures of success for trade advisors

Without the effective intervention of TPOs and advisors, business will still happen. But exporters, particularly SMES and those new to cross-border business, will be less equipped to handle challenges in the global marketplace, and will yield margins to someone in the process (customers, agents, or distributors).

How can TPOs and advisors measure success in their efforts to equip businesses to go global? Focus on the creation and impact of deliverables. For example:

• Capture the number and measure impact of qualified business leads to client companies
• Measure the number, and impact on corporate behaviour, of market research reports
• Track the retention and growth of the TPO or consultant’s client base
• Track client participation in trade fairs, missions, conferences and other events and document feedback

These are relatively simple measures, but they are effective. The challenge is to demonstrate real value to SMEs who have the potential to become clients and, in turn, successful exporters.

Help for business new to trade

Another challenge SMEs and organizations new to trade face is the overwhelming number of public and private organizations offering solutions. How do they know where to go? Overlap, duplication, scattering of resources and ignoring real areas of need are all too common within these organizations. Emphasis must be placed on cooperation and coordination between agencies focusing on economic development and reducing anxiety at early stages of development.

The key driver in the domestic and international support networks can and must be the TPOs and export advisors. They are in a unique position to:

• Create and drive the vision behind the national export strategy
• Make visible the current and potential impact on international trade on the economic wealth of the nation
• Identify and build the trade support networks which serve the needs of exporters
• Translate demand from the global marketplace into transactional market intelligence delivered to interested and active export companies

Trade advisors must lead the effort to create cross-border support networks that are driven by vision, designed by the private and public sectors, and guided by performance measures. The measures chosen have to impact the daily work of all involved.

The unfortunate truth is that no trade agreement ever created a direct job, except perhaps for the negotiators. Jobs are created when suppliers identify and satisfy buyers or visa versa. The needs of business are universal: qualified business leads, competitive intelligence, contacts with key decision makers and data on technical standards.

Equipping exporters with the knowledge they need to qualify customers and understand the competitive forces at work the will translate directly to more success and the higher margins.

The post How trade advisors can help today’s exporters to go global appeared first on Trade Ready.

Changes to export grants and funding

The Ontario Chamber of Commerce’s Global Growth Fund is no longer accepting government funding applications. Both programs managed through the program, including the Export Manager Program (EMP) and Export Market Access (EMA), are fully subscribed and not likely to re-open under these naming conventions. While provincial funding programs for export initiatives may be accessible in the future, businesses are encouraged to direct all existing funding applications towards federal export grants.

From 2014-2016, Export Market Access helped 423 Ontario companies generate $89 million in export sales by de-risking popular export market entry strategies.

In the absence of these two funding programs, businesses are encouraged to apply for federal grants and incentives instead. While nothing is available federally to replace the Export Manager Program, companies looking for marketing and trade show support should explore the CanExport and AgriMarketing programs. CanExport is generally open to most businesses with 1-500 full-time employees, and AgriMarketing is only open to agriculture and agri-food businesses with fewer than 250 employees.

Export Manager Program and Export Market Access

The recent closure of the Export Manager Program (EMP) and Export Market Access (EMA) came as a surprise to many Ontario businesses who’ve tapped into the programs. EMP encouraged the hiring of an experienced export professional who could help spur revenue in foreign markets and EMA supported hundreds of businesses to reach new markets each year. Together, these programs strengthened the ability of businesses to succeed internationally.

Applications will no longer be accepted for either program, and applications that were in review are likely to be rejected. Previously approved projects will still have access to funding and need to report their outcomes once the project is complete.

Export Manager Program (EMP) Grants

The Export Manager Program provided funding for hiring an Export Manager or International Business Development Manager to help develop a business’ international revenue streams. Applicants could receive up to 50% of the new hire’s salary to a maximum $40,000 per year for a maximum of two years, offering a total value of up to $80,000 per company.

Export Market Access (EMA) Grants

The Export Market Access program helped businesses participate in trade shows, develop marketing tools for foreign audiences, perform market research, and bid on foreign projects. Applicants could receive up to 50% of eligible project expenses to a maximum $50,000 per application, and companies could apply twice per 12-month period to a lifetime maximum $250,000.

CanExport and AgriMarketing funding programs are open

Although those two Ontario government funding programs no longer accept applications, there are Canadian government grants for exporting that can provide similar support. The CanExport and AgriMarketing programs are very similar to the Export Market Access program, which makes it easier to pivot your EMA project towards available export grants.

CanExport Grants

The CanExport program is a government funding mechanism that supports export marketing projects including participation in trade shows and government-led trade missions. A wide range of businesses can access its funding to target international markets where less than $20,000 or 10% of total international sales have been generated over the previous 24 months.

Through the CanExport program, companies may access up to 25-50% of trade show costs to a maximum $50,000 per project. Up to two applications can be submitted per government fiscal year to a maximum $99,999.

To qualify for CanExport funding, companies must maintain 1-500 full-time employees, not be in the agricultural or agri-food sector, earn annual revenues of $100k to $100M, be federally incorporated, and generate eligible project expenses of at least $20k.

AgriMarketing Grants

AgriMarketing is like CanExport in terms of the projects it offers funding towards, but the type of applicant it seeks is quite different. The program supports food and beverage businesses performing international expansion projects, including trade shows and related marketing activities. As part of the Canadian Agricultural Partnership suite of funding programs, AgriMarketing manages a pool of funding that will last until 2023.

Through the AgriMarketing program, Canadian agri-businesses may receive up to 50% of project costs to a maximum $50,000 per year. Businesses may apply multiple times to a maximum $50,000 annually or $250,000 over the program’s lifetime.

To qualify for AgriMarketing export market development grants, agricultural producers and processors must perform prior market research to identify an opportunity-rich target market, maintain fewer than 250 employees, and earn less than $50M in annual revenue.

Get help with export grants and funding for global expansion

The Canadian government funding landscape is constantly evolving. For many business leaders, this creates confusion and can impact project plans. Through interactive business funding events, Mentor Works helps clarify government funding trends and can show your business additional grants and loans that can help support your strategic projects.

To learn more about export grants and additional business expansion opportunities, register for a Canadian government funding event.

Mentor Works is a business support organization specializing in Canadian government funding. The Ontario-based business has helped hundreds of businesses build and execute their funding strategy through a mix of federal and provincial government grants, loans, and tax credits. Mentor Works offers free online resources, funding webinars, and news via their website at www.mentorworks.ca.

The post Discover the changes to Export Market Access and Export Manager Program funding appeared first on Trade Ready.

Tara Kelly is a self-described “serial innovator” with a passion for using technology to help people—and with a little assistance from a program to help Canadian exporters, she hopes her software will change lives around the world.

Kelly is president and CEO of SPLICE Software, an Alberta-based company that also has offices in Chicago and Toronto. SPLICE is an artificial intelligence (AI)-based software suite with the ability to deliver personalized messages via multiple channels, including phone, short message service (SMS) messaging, and speech-to-speech technologies like Alexa and Google Home.

Growing with the help of CanExport

SPLICE Software has seen an impressive amount of success since its inception in 2006, and Kelly credits the Canadian Trade Commissioner Service (TCS)—part of Global Affairs Canada (GAC)—with being tremendously supportive and helpful in identifying opportunities to help her achieve success outside of Canada. Kelly networks through the TCS’s Business Women in Trade (BWIT) group. She says GAC’s CanExport program is a particularly valuable tool for Canadian companies looking to do business abroad. Her company received funding from the CanExport program in 2017.

CanExport is a five-year, $50-million program providing direct financial assistance to small and medium-sized enterprises (SMEs) seeking to develop new export opportunities and markets, especially high-growth emerging markets. The CanExport program reimburses up to 50 percent of eligible expenses to participating companies, contributing up to $99,999 in matched funding.

“If you know you’re getting 50 percent back, that helps a lot,” Kelly says, adding she found out about the CanExport program from a Canadian trade commissioner in Los Angeles, CA. “It’s nice that they are supportive of the commercialization, not just the development of the technology.”

Finding opportunities to expand internationally

In order to become a global leader in the industry, SPLICE must compete with other businesses from known technology hubs around the world, including California and Eastern Asia. GAC—through its CanExport program and its network of trade commissioners around the world—has been extremely helpful in her efforts to find more opportunities to expand SPLICE in the international market, Kelly says.

One of the first things the government does a really great job of, is just creating a network of colleagues and peers that are doing business abroad. The matchmaking services that they offer are pretty sophisticated.The CanExport program is really awesome if you’re looking at expanding into a new country that you haven’t done business with in a significant way.

Kelly previously worked in health services, creating reminders for doctors and health practitioners, where she found that such highly personal relationships should require highly personalized reminder services.

“Any organization that’s committed to a strong brand relationship with their customer really should be using a more personalized approach,” she says. SPLICE Software specializes in insurance, finance, and retail, focusing on large enterprise with the goal to humanize the digital experience.

One of SPLICE Software’s advantages, Kelly says, “is the data security of our platform and the ability to offer customers access to the right information at the right time without putting their private information at risk.”

Harnessing the power of AI technology

AI technology is rapidly becoming a regular part of everyday life. It is becoming more normal to be able to speak to your car, your refrigerator, your dishwasher, and other household appliances and have them speak back to you. SPLICE is on the forefront of this new technological movement, she says.

“We’re unbelievably excited about what the future holds,” Kelly says. While some people may worry about potentially negative impacts of AI technology, she is confident that computers will only be as smart as humans train them to be.

“I think that artificial intelligence is going to require human assistance for a significant period of time,” Kelly says, adding she believes AI technology is very valuable in healthcare and in many other fields, “as long as there’s a human factor present.” Society need not fear AI technology, but rather should embrace it, she says.

The post How a tech business is growing and going global with help from CanExport appeared first on Trade Ready.

Trade agreements are great but you still need a breakthrough strategy

By signing the CPTPP agreement, the Canadian government has provided greater access to the Asia-Pacific/ASEAN region and new customer opportunities. However, the CPTPP is not a silver bullet to successfully building your ASEAN export business. While the agreement will result in the reduction of tariffs and non-tariff barriers, these changes will be phased in over a ten-year period.

To rise above the myriad of competitors and succeed in the ASEAN region you will need a well-designed market-centric strategy, elite salespeople, dedicated channel partners and a pathway to the biggest and best customer opportunities. Your level of regional knowledge, experience, and commercial expertise will make the difference between exceptional or mediocre growth, and as such, exporting companies should consider contracting professional help to direct their ASEAN expansion.

Simplify and focus your strategy for the best results

As a strategic marketing and business development professional with two decades of experience building businesses in Asia, I believe a simplified, focused and disciplined approach works best.

A strategy tailored to effectively cover and penetrate ASEAN’s diverse and hugely fragmented market has two key pillars. Firstly, markets and marketing strategy determines where and how to compete, and more importantly how to win based on facts and logic supported by keen analytics. Marketing also plays a key role in unifying and aligning the functional parts of the business into a coherent approach.

Secondly, an effective communications strategy needs to include both digital and personal forms of customer engagement. These efforts then need to be linked to CRM (customer relationship management) and other sales technologies to form a structured, integrated selling methodology

Invest in the best sales leadership and develop the rest

The Asia-Pacific region is intensely competitive. The market contains many multinationals as well as intra-regional rivals, all competing at varying levels of quality and price-points. Moreover, customer buying behaviors and value perceptions differ significantly throughout the region. Sales is the front-line face of your company and vitally important to gaining distribution and customer trust and confidence. Ironically a recent study conducted by Objective Management Group (OMG) revealed the Asia region ranks highest in percentage of weak salespeople

In this context, an elite salesforce needs to become your competitive advantage. Developing one starts with investing in regionally experienced and commercially competent leadership capable of recruiting, coaching and developing the skills and effectiveness of your direct and distribution salespeople. Furthermore, to truly differentiate and rise above your competitors, you must establish a structured, effective, start-to-finish selling process based on set milestones with supporting CRM and sales enablement technology.

Whatever methodology, process and CRM platform you choose, developing your salespeople is essential. Companies selling in the ASEAN region should avoid a few common misconceptions of recruiting salespeople:

1. Recruiting product experts as salespeople does not generate product enthusiasm or win customers. It’s better to hire, train, coach and develop talented salespeople.
2. Poaching salespeople from competitors will not convert customers, as top customers are loyal to brands and local distributors. You may convert a few small scale customers but you need to focus on the biggest and best selling opportunities and these prospects need a compelling reason and material gain to change.
3. Recruiting sales managers and designating them as sales directors does not give you access to more high-quality customers, or improve a manager’s selling skills. It’s better to train your salespeople and promote them once their skills meet the level required by the position.

This model serves as an example, showing the integrated process I developed for Asian markets.

Integrated markets, marketing and selling model

4 criteria to choose the right partners

A well-designed distribution network is essential to optimize customer reach and accelerate growth. Assessing your partners should include the following criteria:

1. Can the partner access your target customers? The right channel partner will have strong customer relationships that you must exploit. Make joint customer visits to gauge their relationships through customers interactions and engagement. Customer visits with favorable responses to new products and brands will elevate your value to the channel.
2. Does the partner have the financial resources to support market entry and growth? Supply-chain interruptions due to unexpected financial limitations will impair growth.
3. Does the partner have sales and marketing resources to proactively sell your products? ASEAN distribution channels are improving their commercial capabilities by establishing business development / product specialists to drive growth of select products to expand customer-share. Partnering with these more sophisticated partners will prioritize your products and accelerate growth.
4. Can you and your potential partner agree on prices that are market competitive and profitable for both parties? Product positioning should be defined in your markets and marketing strategy and refined with partners as you create the communications strategy for specific countries, verticals and target customers. Fair and equitable partner profit begins with accurate product and price positioning. To achieve this, use a value-based pricing model. Determine the price for customers in each market by including a value-add premium and reversing distribution margin, duty and logistics costs to arrive at the distribution exworks cost price. Using a typical cost-plus pricing strategy may extend you beyond the threshold of acceptability and impede growth. You also need to think long-term: price your goods based on what will be best for long-term progressive revenue and profit growth, rather than immediate profit percentages.

Consider the longer-term progressive trajectory:

1. Entering the ASEAN region by launching your export business
2. Establishing a regional presence through a representative office
3. Establishing a trading company to better serve customers gained
4. Foreign direct investment (FDI) to localize supply chain and maximize profitability

Think of the longer-term financial gains – is a flagging $2m start-up business with 50% gross margin more appealing than a $5m scalable business with 43% gross margin?

Value based vs. cost plus pricing model

Choosing customer categories and precision targeting is critical

You must focus on developing the biggest and best opportunities, rather than those on the peripheral. Choosing customer categories and precision targeting the best opportunities is one of the most crucial decisions facing both new entrants and established companies.

The ASEAN region consists of three distinct customer categories with unique buying characteristics; premium, value-added, and price customers. Customer categories should be evaluated and determined in your chosen markets based on strategic intent and alignment. From my experience, the value-added category is rapidly growing. Both premium and price customers migrate into the value-added category seeking products and services that align best with specific needs within the threshold of price acceptability.

Customer categories model

The biggest and best customer prospects need to be determined by precision targeting based on economic value and probability of success modeling. Every business has unique probability of success factors that need to be leveraged as relevant to customer differentiators.

Your probability of success factors could include complex problem solutions, superior products, localized technical support, immediate supply, brand affinity, top-tier channel partners, trade terms, or compliance. Evaluate these regularly, as situations often change and your probability of success can change rapidly.

Based on the chart below, prospects in category 1 (high value, high probability of success) require 80% of your focus and  those in category 2 require the remaining 20% focus. Category 3 (low value, high probability of success) should be developed directly by channel partners, and category 4 (low value, low probability of success) can be ignored. Stay focused on the 80 but stay connected to the 20 as they often pivot, and when they do – you want them to pivot to you!

Precision 80/20 customer prospect focus model

Use digital and personal approaches to reach a wide audience

Digital media is borderless (in most cases) and highly effective in reaching new customer prospects, but your content must be relevant and engaging. Posting social media cut-and-paste product images and inviting opportunities to provide more information or to quote a price is largely ineffective.

Instead, show a quality image of your products in an application, reference the customer to gain credibility, and explain the value proposition and customer gain. Direct customers to your website and connect your prospects with local channel partners. This removes language barriers and more quickly connects buyers with sellers in the same timezone.

Trade shows provide an excellent first contact platform with customer prospects, but you need to be selective. To manage costs, consider country and industry specific trade shows versus larger, interregional or international exhibitions.

As an example, while contracted to help a safety footwear SME expand beyond Singapore, my analytics supported a significant opportunity overlooked in the Manila Philippines construction sector. Participating in the right tradeshow (Worldbex) immediately accessed more than $2.5 million in new business with the two largest construction companies in the Philippines. It’s very unlikely that these prospects would have been discovered during an international or ASEAN regional tradeshow outside of the Philippines.

Research, prepare and be ready to call upon the experts

In international trade, know-how is survival. Take all the steps to ensure you have the knowledge and information you need so that you’re prepared to take advantage of the opportunities while minimizing the risks.

Knowledge of the region and your commercial expertise will make a difference, but an important part of success in trade comes from knowing when to call in the experts.

The post How to build a successful Asia-Pacific ASEAN export business appeared first on Trade Ready.

2018 was quite an eventful year for the popular CanExport funding program. Earlier in the year, it was updated to re-align the amount of funding available per application and the eligibility criteria for target export markets. By the end of 2018, it was updated again to further expand applicant eligibility criteria and enable more businesses to qualify for export funding.

CanExport now accepts Canadian government funding applications from businesses with 1-500 FTE employees and $100k-$100M in annual revenues. Under the program’s expanded eligibility criteria, both large and small companies previously ineligible for funding can now be considered.

Previously, only Canadian businesses with 1-250 FTE employees and $200k-$50M in annual revenues were eligible for export funding. The expanded funding will help more firms across Canada develop international markets and diversify revenue streams.

CanExport Applicant Eligibility Criteria Updates

Since CanExport was established in 2016, it’s helped more than 1,000 businesses perform exploratory export market development projects. This has led to more than $375 million in new exports and helped businesses to gain market share across the world. In fact, 42% of CanExport recipients successfully generated export revenues in the market(s) they accessed funding to explore.

Due to this overwhelming success and increasing demand from Canadian businesses, the CanExport program was updated twice in 2018. The first update adjusted how much funding can be awarded per project, while also providing greater context on which export markets are eligible.

The current and most significant update to CanExport will lead to even more businesses accessing export marketing grants. Due to a CanExport funding top-up in Summer 2018 and additional funds provided through the Fall 2018 Economic Update, the program seeks a wider range of applicants than ever before.

CanExport now accepts applications from businesses with 1-500 full-time equivalent (FTE) employees and $100k-$100M in annual revenues.

The increase in CanExport’s funding pool will help more high-quality export projects receive funding. This includes projects submitted from smaller applicants ($100k-$200k in annual revenues) and larger applicants ($50M-$100M in revenues; 250-500 employees) that were previously ineligible. These companies that now qualify for funding should explore the program further and discover how much they can receive in export grants.

What is the CanExport Funding Program?

CanExport is an international market development grant that helps companies expand into countries where limited to no revenues have been collected in the previous 24 months. Funding is commonly used to participate in an international trade show, provide on-site translation services while at the trade show, translate marketing materials, and perform market research.

The CanExport program provides businesses up to 50% of eligible project expenses to a maximum $50,000 per application and up to $99,999 per year.

To qualify for the program, applicants are advised to propose a high-impact export marketing event that is likely to lead to increased international sales. Applicants must plan to further develop that market post-trade show and deliver post-project updates to demonstrate its effectiveness. Additional eligibility criteria apply; please see Mentor Works’ CanExport Eligibility blog for a more extensive look at the program’s applicant, project, and expenses eligibility factors.

How to Access Export Market Development Funding via CanExport

To get started with CanExport funding, business leaders should start by selecting an upcoming international trade show that they intend to participate in, build a budget for the event, and forecast the intended outcomes (leads, clients, revenue) that would make the project a success.

Once there is a well-established project plan, companies should develop and submit a comprehensive funding application that reviews the strengths and opportunities the project addresses, as well as a rationale for how much funding is required. These details are critically reviewed by the program and only strong projects with clear benefits will receive approval.

Applications can be submitted to CanExport throughout the year; companies are advised to apply well in advance of the international event to ensure the application is processed by Global Affairs Canada in advance of incurring eligible expenses. It typically takes six to eight weeks for application approval.

The post CanExport Grants: Expanded Eligibility Criteria for Businesses appeared first on Trade Ready.