Many people don’t fully grasp business on a global scale until they begin running one themselves. For Nathaly Mesa, CITP, years of running small businesses opened the door to international opportunities—and sparked a new fascination. As she applied her business management background in a global context, it became clear that international trade was the natural next step in her career. 

“I began my journey in international trade out of a deep interest in global markets and how businesses expand across borders,” she explains, adding that, while running businesses, “I often encountered opportunities that involved international clients and suppliers. This sparked my curiosity and motivated me to explore the field further.” 

To advance her expertise, she pursued the FITT Diploma in International Trade, a transformative step that, in her words, “gave me both practical tools and strategic insights into global business operations.” 

Combining two passions: global trade and sustainability

Nathaly is a fan of international business and green practices, so when she had the opportunity to work with a sustainable furniture company, she jumped at the chance. 

“One of my favourite stories from my career was working with a furniture company whose concept immediately caught my attention,” she says.

“Their main material was recycled wood, which really resonated with me because it combined two of my biggest passions: international trade and supporting businesses that contribute to environmental conservation.”

Being involved in their international expansion was both exciting and meaningful, she says. She had the opportunity to support them in navigating logistics, understanding trade compliance, and building relationships with overseas partners. Recognizing that her contributions helped a sustainable business scale internationally, while also promoting eco-conscious practices, made the experience “incredibly fulfilling,” she adds. 

Championing Colombian craftsmanship around the world

Nathaly reflects on another project with pride, one that was significant to her—not only from a business perspective but on a cultural and personal level too.  

Working with artisans from her home country, she led internationalization campaigns for their handcrafted products: 

“I worked closely with local artisans, whose incredible craftsmanship reflects Colombia’s rich cultural heritage. Through hard work, strategic planning, and a deep respect for their work, we were able to introduce these unique products into demanding international markets in Europe and North America.” 

“Seeing them embraced abroad was incredibly rewarding,” she reflects. “It confirmed my belief in the value of combining international trade with cultural preservation and ethical business practices.” 

This work underscores her approach to trade not simply as a means of profit, but as a platform to elevate culture, sustainability, and community empowerment. 

A career shaped by cross-cultural intelligence

Looking back, Nathaly now understands the importance of cultural competence and relationship-building in business. It is a lesson she wishes to impart to new professionals in the field of trade. 

“One piece of advice I wish I had known when I started working in international trade is the importance of building strong cross-cultural relationships from the very beginning.”

She goes on to explain that, early on in her career, she placed heavy focus on logistics, compliance, and strategy, “which are, of course, critical,” she emphasizes. “But I later realized that understanding cultural nuances and building genuine trust with international partners can be just as important for long-term success.” 

Now she takes the time to learn about different business practices, communication styles, and cultural expectations, and this, she believes, has helped her avoid misunderstandings, strengthen partnerships, and ultimately close better deals. “If I had embraced that earlier, I believe some challenges could have been turned into opportunities more quickly,” she says. 

How FITTskills shaped her global expertise

Nathaly describes her FITTskills experience as “extremely valuable,” particularly the practical frameworks that helped transform her hands-on experience into strategic expertise. She felt the courses gave her a comprehensive understanding of key concepts in international trade. 

“What I appreciated most was the practical, hands-on approach that helped bridge the gap between theory and real-world application.”

“The knowledge I gained has been directly applicable to my career, especially in internationalization projects and supporting businesses looking to expand globally. It has enhanced my ability to navigate complex global markets with confidence, and the courses have given me the tools to better assess risks, opportunities, and strategies in international trade,” she adds. 

Though she loved all the courses, two in particular stood out to her. 

The Feasibility of International Trade course, she says, helped her understand how to evaluate whether international expansion is a viable and strategic move for a business. It also gave her the tools to conduct detailed market, financial, and operational assessments. 

She also enjoyed the International Market Entry Strategy course, finding that it complemented her feasibility knowledge by guiding her through the process of selecting the most appropriate entry methods, tailoring strategies to different markets, and managing associated risks. 

“Together, these two courses significantly enhanced my ability to support businesses in making informed and successful decisions when entering global markets.” 

Why Nathaly pursued the CITP designation

For Nathaly, earning her Certified International Trade Professional (CITP®|FIBP®) designation was an intentional step to solidify her place in the global trade community:

“I chose to apply for the CITP designation because I see it as a mark of excellence and credibility in the field of international trade. After completing the FITTskills program and gaining hands-on experience in global business, I wanted to formalize my expertise with a designation that is recognized and respected worldwide.” 

Earning it was deeply meaningful: “It felt like the recognition of years of dedication… and represents a milestone in my professional journey.” She also takes pride in knowing that her work and knowledge met the high standards required for the designation. She describes it as more than just a credential; it also reaffirms her passion for global business and motivates her to keep growing and contributing to the field with integrity and purpose. 

Leadership and supporting global business expansion

With her CITP in hand, Nathaly is focused on expanding her leadership roles in international business while supporting companies pursuing global growth through new networks. 

“With this designation, I feel more confident pursuing leadership roles in global business development, expanding into new markets, or supporting companies through internationalization processes.”

“It also connects me to a respected community of professionals, which I believe will open new opportunities for collaboration, growth, and continuous learning throughout my career.” 

Her blend of cultural insight, sustainability-driven values, and business management expertise makes her a powerful force in international trade. She is shaping connections that benefit not just international companies, but also local artisans, the environment, and countries steeped in deep heritage. 

The post CITP Spotlight: Nathaly Mesa—General Manager, Mangles SAS appeared first on Trade Ready.

Some professionals find their way into international trade by chance. For Ismail Benmezdad, CITP, it was a deliberate choice. From early in his career, he was drawn to the scale and complexity of global commerce; how goods move across continents, navigate regulatory frameworks, and ultimately reach the markets and communities that rely on them.

“I was drawn to international trade because of its complexity and global scope,” he explains.

“I wanted a career that combined strategic planning, analytical problem-solving, and the opportunity to connect markets across borders.”

That combination of strategy, execution, and global integration has defined his professional journey.

Rising through the ranks: where operations meet ingenuity

As Director of Operations at KLN Logistics Inc., Ismail leads large-scale logistics and warehouse operations, aligning service performance with financial and strategic objectives. His career progression reflects a consistent ability to safeguard revenue, manage risk, and deliver operational transformation.

One pivotal experience involved a high-value shipment placed under unexpected customs hold, threatening a major client commitment.

“The hold would have disrupted delivery timelines and placed a strategic account at risk,” he recalls.

“By engaging customs authorities directly and aligning cross-functional teams under accelerated timelines, we mitigated the risk and preserved the client relationship.”

Beyond immediate problem resolution, such situations underscore the importance of structured risk management and proactive stakeholder engagement.

In another initiative, he led a comprehensive warehouse optimization program that reduced operating costs by more than 20% while improving service reliability.

“The real achievement was not only cost reduction,” he notes, “but creating a performance-driven culture that connected operational efficiency with customer outcomes.”

The initiative integrated process redesign, performance metrics, and targeted technology enhancements, laying groundwork for sustainable operational scalability.

Engineering stronger supply chains

In his leadership roles, including Director of Operations and former Terminal Manager, Ismail has overseen complex freight and warehouse networks, implementing initiatives that enhance service levels while controlling cost structures.

“One of the most impactful projects involved optimizing freight operations to simultaneously reduce transit times and operating expenses,” he explains. “The outcome strengthened both customer satisfaction and overall operational performance.”

These improvements were driven by disciplined route analysis, vendor negotiations, workforce alignment, and a willingness to challenge legacy processes.

His experience reinforces a fundamental principle: operational excellence is not accidental, it is systematically designed.

The lesson he wishes he learned sooner

Reflecting on his career, Ismail identifies adaptability as the most critical leadership insight.

“The most valuable lesson I learned is that adaptability must be embedded into operational strategy,” he says.

“Global trade is influenced by regulatory shifts, geopolitical volatility, and market fluctuations.”

“Organizations that succeed are those that institutionalize agility—through scenario planning, diversified partnerships, and continuous improvement.”

For him, adaptability is not reactive. It is a strategic design principle that strengthens enterprise resilience.

FITTskills training: turning experience into strategy

Ismail’s natural leadership was strengthened through formal training. Completing the FITTskills program allowed him to reinforce years of hands-on experience with structured methodology and global best practices.

“FITTskills provided me with in-depth knowledge of international trade,” he says. “These courses have strengthened my ability to evaluate cross-border risk, regulatory exposure, and market-entry feasibility with greater strategic clarity.”

One course stood out in particular: Feasibility of International Trade.
“It gave me the most value,” he notes. “It helped me, and I use what I learned now in my daily work.”

With this training, he now approaches decisions with a sharper analytical lens, balancing operational realities with long-term strategic considerations.

Why he pursued the CITP designation

For Ismail, applying for the Certified International Trade Professional (CITP) designation was the natural next step.

“I chose to apply for the CITP designation because it’s a globally recognized certification that reflects expertise and commitment in international trade,” he says.

“Earning the CITP designation was a proud and rewarding milestone for me. It validated my expertise in international trade and logistics.”

Recognition matters in an industry built on trust. And for Ismail, the designation amplifies both confidence and credibility.

Looking ahead: using the CITP to unlock future opportunities

Ismail views the CITP designation as an enabler for expanded executive responsibility.

“It positions me to contribute at a more strategic level—supporting enterprise-wide supply chain optimization, cross-border growth initiatives, and long-term operational resilience.”

As global supply chains face increasing complexity, digitization, and geopolitical pressure, he remains focused on building systems that balance efficiency, risk management, and sustainable growth.

The post CITP Spotlight: Ismail Benmezdad — Director of Operations, Kerry Logistics Inc. appeared first on Trade Ready.

Gaps in knowledge are among the top reasons that some small and microbusinesses don’t yet export their goods or services, according to the Canadian Federation of Independent Business (CFIB).

Regulatory hurdles and expenses are other factors keeping many small businesses local. This guide to exporting provides an overview and resources to help you get started if you want to sell your products and services in international markets.

How international trade affects Canadian businesses

In recent years, government statistics show that international trade accounted for nearly two-thirds of the Canadian GDP.

Canadian business exports add 3.3 million jobs to the economy. To put that in context, that’s nearly one in six Canadian jobs.

Even if your business is secure, you may still want to scale it to take advantage of opportunities for growth.

For businesses of any size, exporting provides the opportunity to find new markets, scale your business, and become more resilient in a volatile economy. Yet, as recent research from the CFIB shows, only a minority of Canadian small and medium-sized businesses are currently seizing these opportunities.

Step 1: Are you ready to join the global market?

The first step is to decide whether your business is ready to expand into international trade. Identify which of your products or servicesmay appeal to consumers in other countries. Next, figure out whether the investment is likely to be worth it by doing a feasibility study and thorough market research.

FITT’s Export Vision Board can help you realize what exporting might look like for your business.

You can use the Export Vision Board template to visualize and capture the critical components for your international market expansion.

If you’re not sure what to include, there are 3 examples of completed templates including B2B product exports, B2C product exports, and service exports to inspire you and help you get started.

If you want to dig deeper, consider taking some training like the Feasibility of International Trade course, which was designed to help businesses of all sizes assess whether international opportunities are viable, and if the potential benefits outweigh the risks and costs.

Once you decide whether exporting is a good move for your business, start making a plan so your actions will be strategic, not accidental. Identify your target consumers and how you offer something better than what they might find locally.

Continue to revise and change your export plan as you learn more.

Step 2: Learn the bureaucratic requirements for your industry

Each industry has its own set of regulations and laws to work within when it comes to exporting or importing.

Exporting in Canada means actively engaging with multiple government, legal, and financial frameworks.

Your first step is learning what is required within your industry. For example, exporters must comply with regulations enforced by the Canada Border Services Agency (CBSA). These regulations may include export classification, permit requirements, and rules for export reporting in Canada.

The value of your product plays a role. All exports above $2,000 require a declaration using the CBSA’s Canadian Export Reporting System (CERS) and may also need special permits from Global Affairs Canada. Also, don’t forget taxes that may apply, like Goods and Services Tax (GST) and Harmonized Sales Tax (HST).

As you unravel the requirements, use that information to update your plan. Does this knowledge change the logistics of how you will get the product or service to your prospective customers abroad? How does this affect your budget and costs? How will you cover these added expenses?

Not only do you need to be aware of Canadian trade regulations, but also those in your export destination country. Once you have a sense of the fees, taxes, and tariffs involved, you are in a better position to plan. Just be aware that laws, tariffs, and taxes change.

If you have been keeping up with U.S. news, you may wonder if now is the right time with increased tariffs on certain exports to the United States.

In international trade, like in life, change is one of the few constants.

These changes and potential culture changes make the new trade environment more complex, but you have a couple of options.

Now is a time when you could focus on building your market outside the U.S., or you could focus on learning the ins and outs of expanding your North American market. Either option has a unique set of challenges, and both require a nimble approach as you adapt to any unfolding changes.

Step 3: Identify your supply chain and budget

Map out the specifics within your supply chain from planning, manufacturing, marketing, and getting the product to your consumers. If you offer a service, this may be easier, but you should go through the same steps.

Some of these steps are likely already part of your business workflow. Spend a little extra time on the added steps, such as any permits and reporting you may need to do. Also, note any changes to your product as your export country may have specific standards for its own regulations, safety standards, or documentation requirements. Will you need to translate any of your packaging or materials?

Update your plan and put together a budget. Do you need to raise additional capital in order to build the export branch of your business? If so, take the time to look into business development loans, grants, and investment capital options.

Step 4: Develop your marketing and fulfillment plan

Marketing your products abroad is challenging. But thanks to the internet and social media, your customers are more accessible than ever. The hard part can be effectively communicating with potential customers in a language you are not fluent in. If this is your plan, be sure to partner with a quality translation and localization service.

Since you take on additional financial risks when exporting, you want to be sure to conduct market research and develop a comprehensive marketing strategy.

At this point, you may be in a better position to revisit your risk assessment. What are your export-specific risks beyond those you face as an entrepreneur in your home country? Craft a plan to mitigate those risks.

In summary, learning how to export in Canada is a multi-step process that includes:

• Assessing whether your business is ready
• Developing an export vision that aligns with your business goals
• Conducting market research as well as feasibility analysis
• Understanding export regulations and compliance
• Managing tax, payment, and GST/HST implications
• Identifying and managing export-specific risks
• Building a formal export plan with a timeline for implementation

The challenges and complexities of running an export business can be overwhelming. But there is plenty of support available to businesses of all sizes looking to grow globally.

The thing that trips up many businesses that are new to importing and exporting is “knowing what they don’t know”.

Or in other words, getting a full picture of what is involved in setting themselves up for success in international markets, and how to avoid common pitfalls that come with inexperience.

Exploring training to fill in knowledge gaps, hiring outside help that bring in much-needed expertise, and seeking guidance from trade advisors and locally-engaged support such as the Trade Commissioner Service, can make what may seem daunting doable.

The post How to start an export business in Canada appeared first on Trade Ready.

When Nil Özçelik Razavi, PhD, first moved from Turkey to Canada in 2007 to complete her doctoral research in Translation Studies, she never imagined she would one day be working in international trade. Yet her journey from academia to becoming a Certified International Trade Professional (CITP) shows just how powerful career reinvention can be.

A new professional path

After earning her PhD and teaching for several years, Nil realized that opportunities in academia were limited. “I worked in the field of language instruction for a few years while thinking I might need a career conversion at some point,” she explains.

That career shift came when she was hired as a Trade Expert at the Commercial Office of the Turkish Embassy in Ottawa. Drawing on her research background and analytical skills, she quickly adapted to the demands of international trade. What began as a new opportunity soon grew into a meaningful career helping businesses from Turkey and Canada connect.

Representing her country abroad

For Nil, one of the most rewarding aspects of her work is engaging directly with trade delegations and Canadian businesses. “My favourite moments are the ones shared with our incoming trade delegations and presentations delivered in different business settings in Canada,” she says. These events, she adds, are not just about exchanging information. They are about building valuable connections that can shape future trade relationships.

Collaboration is another part of the role she values deeply.

“I sincerely take immense pride in being part of our Commercial Service, working in a diplomatic setting and serving as a bridge to enhance trade relations between the two countries.”

For her, success in international trade is always the result of teamwork.

Shifting careers required not only new skills but also perseverance. Nil has learned firsthand how vital resilience is in both personal and professional growth. “It does not matter how slowly you go as long as you do not stop,” she says, quoting Confucius. That philosophy has guided her through challenges and continues to motivate her as she grows in her trade career.

Building confidence with FITTskills

To strengthen her expertise, Nil turned to FITTskills training. She describes the courses as both practical and confidence-building.

“The courses covered a wide range of topics in the field of international trade and offered the core knowledge to enhance my skills as a professional. You feel well-equipped after completing the coursework. It is a good feeling.”

Her favourite course was International Market Entry Strategies, which gave her tools to conduct competitive market research and identify opportunities. She also points to Feasibility of International Trade as particularly useful, since it broadened her ability to analyze sectors at a macro level and anticipate trends. Together, these courses provided her with the analytical frameworks she now uses daily to support businesses in exploring new markets.

Taking the next step with the CITP designation

With her growing expertise and practical experience, Nil decided to formalize her skills with the CITP designation. “The reason I chose to apply for the CITP designation is because this is the highest level of professional accreditation for international business and trade professionals,” she explains.

When she received the designation, it was more than just a line on her résumé. “It is great to be a part of the CITP community, and it means a lot to me, so much so that I proudly hung up my framed CITP designation on my office wall.”

The impact of holding the CITP designation

Earning her CITP has enhanced Nil’s career in multiple ways. It provided validation of her skills and gave her a new perspective on leadership in international trade.

“The designation contributes to my career by officially recognizing my experience and by helping me stay current with new developments and trends.”

Nil also highlights how the CITP has influenced her leadership approach: “In international trade, leadership means creating a culture where every team member feels empowered to think critically, act proactively, and adapt to changes. This mindset is essential for transforming challenges into opportunities and ensuring sustained, trust-based relationships.”

A continuous journey of growth and adaptation

Now that she has been a CITP for over a year, Nil sees the designation as a launchpad for continued growth. She is committed to applying what she has learned to strengthen trade relations between Turkey and Canada and to help businesses navigate the complexities of global markets.

For professionals considering a career in trade—or a career change—she offers one piece of advice:

“Career reinvention is a continuous journey of growth and adaptation.”

Nil’s own journey proves just that. From academic researcher to trade expert, and now a CITP recognized for her expertise, she has shown how resilience, continuous learning, and the right credentials can open new doors and new horizons in international trade.

The post CITP Spotlight: Nil Özçelik Razavi, PhD – Trade Expert, T.C. Ticaret Bakanlığı appeared first on Trade Ready.

It’s an active, creative role, in export experiments.

Why? Well, let’s consider the alternative. If finance leaders don’t involve themselves in the early stages of the process or take their seat at the table, it’s easy (and sometimes tempting) for sales and marketing teams to work around them in the interest of speed (which can mean haste) and simplicity (which can mean lack of oversight).

So to avoid being worked around or waiting to be asked, you can reframe the role. What if international expansion wasn’t a plan to approve, but an experiment to help design?

This article breaks down, in easy-to-implement terms, how finance leaders can add value to international expansion conversations, collaborate successfully with their energetic sales and marketing teams, approach pricing, and help shepherd a sound strategy through the hurdles of budgeting and resourcing.

First off, why should you expand into international markets?

The usual reasons for seeking international expansion are overall business growth or diversification in pursuit of long-term sustainability. Simply put, many businesses see international expansion as a way to grow or maintain their business by finding markets that they can access efficiently, by leveraging their current capabilities and resources.

Simple enough in theory. But to avoid becoming embroiled in a complex reorganization of resources, or blocked by regulatory obstacles, it’s important to have a clear picture of what success looks like ahead of time and what could get in the way.

That starts by acknowledging the various entry paths, and selecting the one that best fits the organization’s needs and abilities.

And you, as finance leader, play a role in these early conversations, as you bring a unique perspective to the table. You’re helping design the experiment after all.

Choosing a balanced path to expansion

Organizations typically choose between two options, or attempt to strike a balance between them:

1. “Run & Discover”: Plan loosely ahead of time and revel in the agile adaptation process as you learn about the new market by actively participating in it
2. “Plan Ahead”: Work out as many details and contingencies as possible ahead of time and methodically enter the new market prepared to conform to its requirements

As you can imagine, these two paths benefit from balance. To enter a new market completely blind, even with a propensity for flexibility, would be fool-hardy. And assuming you could ever understand a market completely without ever being part of it would be naive.

A balance must be struck.

And you can strike that balance by running an “FVP check”:

Feasible, Viable, Profitable.

It’s here that you can speak up in those early export conversations and help the individuals planning for international expansion test the feasibility, viability, and profitability of their entry plans.

Core questions to be asked—and that Finance will help answer:

1. Is this idea feasible?

• Can we do this logistically with what we have today, or do we need to adjust something?
• Can we do this legally, with the permits and certificates we have today, or do we need other credentials?
• How much time and budget would we need to get ready? Do we have that available or accessible

2. Is this a viable path?

• Does this have longevity or is this a seasonal trend?
• Is this a reaction to a domestic market change?
• Are we responding to consumer demand or is this a blank slate approach?

3. Can we do this profitably?

• What is the profit margin we want (or need) to realize?

By identifying the feasibility, viability, and profitability of the expansion efforts, you are rewarded with clues as to which path to choose and how to balance its upsides and downsides.

For instance, if the organization determines FVP is a resounding ‘yes!’ and this is driven by both leadership energy and consumer demand with a seasonal timeline, it may want to lean toward a more adaptive and flexible approach (aka Run & Discover), making changes as the market context reveals itself.

But if the organization needs time to shore up logistical steps and is responding to changes domestically, with narrower profit margins, it may want to lean toward a more thorough and detailed plan before taking the next step. This could help ensure that it doesn’t financially overstretch itself in the early days and put undue pressure on the business and teams.

But it’s one thing to identify a market that might be ready for a new entrant. It’s entirely another thing to ensure the new entrant (your organization) is ready for the expansion.

How can Finance help manage these risks? By seeing things as experiments to be explored, established, and tested. This isn’t about creative brainstorming. It’s about shaping credible, constrained experiments. Ones that protect margin, mitigate risk, and give your team confidence to move.

Selecting the right sales channels

Once you’ve chosen your path, international sales and marketing expansion requires choosing your channels. And these have many financial considerations and impacts:

How will you sell and market your products or services in a different geography? How will customers become aware of the opportunity, how will they purchase it, and how will their purchase be fulfilled or delivered?

These can feel like Sales and Marketing questions, but savvy finance leaders get involved in these creative conversations.

The answer to these questions starts with an “assessment of control”.

Think about it this way: If the organization doesn’t need any control and doesn’t care to have it, you can partner with a firm that will handle all of these pieces for you and send you a cheque for sales and/or a bill for services rendered.

If it requires all the control, you’ll likely need to set up a permanent, local office to handle marketing, sales, distribution, and delivery. Not to mention the legal and regulatory paperwork and communication.

As you can see, the likely best path forward for most organizations is some balance between these two extremes. Therefore, you want to consider your capacity, your customer’s expectations, and the market’s behaviour.

For example, does anyone in the company speak the language? Can someone regularly travel to the market? Do you have the team bandwidth to manage a new market, or will you need to hire? What does your customer expect: hands-on help, asynchronous support?

The ensuing Venn diagram of your capacity, customer expectation, and market behaviour, will reveal an ideal market entry strategy to explore, and direct the pricing strategy to adopt:

• Direct or Indirect (aka Trading Entry) where you can leverage the supports of agents, resellers, distributors and wholesalers if you want extra help along the way
• Through licensing, franchising, or subcontracting (aka Transfer-Related Entry)
• With physical presence in the foreign market (aka FDI Entry)

You’ll notice that all of these have associated costs and/or savings and will impact (and be impacted by) the firm’s profitability.

Choosing the level of profit margin your organization wants to maintain or achieve is often either market-driven or value-based. And your export experiments will be structured around it.

Setting your starting price

Your prices can be set by the market and its expectations and bargaining power, or they can be set based on your costs and the value delivered with an additional margin added on.

This is another critical area for finance leaders to be involved in conversations and decisions. It may not be clear to sales and marketing teams what a planned price will do to the organization’s overall profitability, even if it makes the product or service easier or more likely to sell.

Conversely, sales and marketing teams may not be aware of opportunities to create savings or provide lower prices by benefiting from the firm’s financial capacity or tolerance for risk.

Pricing and selling decisions, made in a vacuum, are unlikely to fully account for your organization’s financial situation, requirements, or goals.

One key area to fully investigate is the “Export Price Floor”: That is, what is the absolute minimum at which you could sell into a new market without losing money?

To design the right experiment, you need to know it, including the often-overlooked export costs that can quietly undermine profitability.

Additional product costs can include:

• Modifications for market requirements
• Certifications for safety testing
• Packaging adaptations

Additional Sales and Marketing costs can include:

• Travel and trade shows
• Website adaptations
• Legal reviews

There are shipping and financial trade costs too:

• Duties, customs, and clearance fees
• INCOTERMS implications for insurance and payment timelines
• Commissions and professional service fees

If the price floor is higher than sales and marketing feel is feasible, this could trigger a careful look at the feasibility of the expansion. If the price floor, however, is well under what is deemed achievable, that represents a significant opportunity for profit.

And then, of course, there is the ceiling. Sales and marketing will likely have a clearer sense of the absolute maximum at which they could sell into the new market and still expect any customer uptake.

It is the balance, the just-right Goldilocks scenario, struck between these two boundaries that represents your “experimental space.”

No matter how thorough the pre-planning or preparation, it is unlikely that the first price will remain the permanent price. Costs will change as scale develops, competitors will emerge as success is demonstrated, and customers will assert their bargaining power as familiarity builds.

That’s why it’s key to see this range of possible prices as a space in which to credibly experiment. To find the right price by experimenting with what is possible and what is preferable to the firm and its customers.

It’s imperative for you to be comfortable with the terms and structure of those experiments. And that’s done by being at the table, collaboratively designing them from the start.

The winning mindset is a team mindset

Success is a team effort.

Financial leadership can guide teams toward successful expansion into new markets. But only if you’re playing an active, interested, and engaged role on the team.

When it comes to international expansion, nobody gets to stand on the sidelines and still expect to influence the final results. Your leadership will be critical to your team’s success.

So, with these reminders and questions on your mind, it’s time to proactively guide your organization’s expansion.

Because when you help design the experiment, you don’t just approve a plan.

You create the ideal outcome.

The post Why the finance team should be part of your international expansion plans from day one appeared first on Trade Ready.

An international business plan acts as a framework that identifies goals and objectives, specific target markets and clients, resources required and strategies to be developed in pursuit of international business opportunities. The plan allows for the monitoring of progress via metrics against which success and failure can be measured. A comprehensive international business plan will be comprised of a number of integrated strategies related to business functions, including communications, sales and marketing, finance and production.

What Is an International Business Plan?

An international business plan is a valuable management tool that describes who a business is, what it plans to achieve and how it plans to overcome risks and provide anticipated returns. It can be used for a wide variety of purposes, such as to:

• Set goals and objectives for the organization’s performance.
• Provide a basis for evaluating and controlling the organization’s performance.
• Communicate an organization’s message to managers and staff, outside directors, suppliers, lenders and potential investors.
• Help the planner identify the cash needs of the business.
• Provide benchmarks against which to compare the progress and performance of the business over time.

A comprehensive and detailed plan forces the planner to look at an organization’s operations and re-evaluate the assumptions on which the business was founded. In doing so, strengths and weaknesses can be identified.

Although highly dependent on the individual business case, on average it takes a three-year commitment to establish a successful presence in a foreign market. This process may require tremendous human, technical and financial resources during the developmental period.

Want to learn more about conducting proper research, selecting the most effective entry strategy and implementing it efficiently? Check out the FITTskills International Market Entries Strategy online course!

The Planning Process

An international business plan is subject to repeated adjustment and revision to keep it current with the changing circumstances of the organization. The plan is a feedback mechanism through which new information is continually incorporated into the organization’s operations. Planning always precedes action. Therefore, planning must be thought of as a continuous cycle. The analytical tools presented here are not intended to be used just once. If they are to be useful, they should be used repeatedly as part of a process of improvement and incremental adjustment.

Plan Preparation Guidelines

These 7 guidelines will help in preparing a comprehensive international business plan:

1. Clearly define the objectives for producing the plan: Who is going to read the plan, and what will they need to do? These objectives can help you decide how much emphasis to put on various sections.
2. Allocate sufficient time and resources to thoroughly research the plan: A plan is only as good as the research that went into producing it.
3. Show drafts of the plan to others: It can be very useful to obtain feedback from others, both inside and outside the business.
4. Create an original plan that is done specifically for each business case: A common mistake entrepreneurs make is to borrow heavily from a sample plan and simply change the names and some of the numbers. There are two big problems with this approach. First, the emphasis placed on various sections of the plan must reflect what is important to the particular business in question. Second, a good plan should flow like a story, with the sections working together to demonstrate why the business will succeed. Plans that borrow too heavily from other plans tend to be disjointed, with some sections contradicting others and various key issues left unaddressed.
5. Outline the key points in each section before the writing starts: These points must then be reviewed to ensure the sections are consistent with each other, there is little duplication and all key issues have been addressed.
6. Ensure financial projections are believable: For many readers, the financial section is the most important part of the plan because it identifies the financing needs and shows the profit potential of the business. In addition, a good financial plan will give the reader confidence that the author really understands the business.
7. Consider writing the executive summary as the last step in the process: It is usually easier to provide a concise overview after the detailed content has been created.

If you’re having trouble getting started with your business plan, try writing like it’s a series of tweets—one for every section of your business plan. To get your point across, 140 characters is all you need.

Forcing yourself to boil each section of your business plan down to one main point is an exercise in decision making and strategy all in itself. When you’re done, you’ll have everything you need to take your next step, whether that’s practicing your pitch to potential investors or a business partner, or sitting down to expand each tweet into a full section of a more traditional business plan.

Core Content

The international business plan is the culmination of all of the work done to determine the appropriate venture for the organization’s growth. As part of the feasibility process, the organization will have determined its own internal readiness, conducted comprehensive target market research and carefully analyzed any relevant risks.

For more information on this topic, see the FITTskills Feasibility of International Trade online course.

At this point, the organization can take all of this information and analysis and formally document the plan for moving forward. There are many different models and examples of how to put together a formal business plan, rather than one correct way.

The right format will depend on the organization, the venture being pursued and who will be accessing the business plan and for what purpose. However, there are some basic guidelines to follow.

One of the reasons business plans are developed is to convince investors and/or bankers to invest in the venture.

Increasingly, they are looking for a business plan to include two sections: one relating to online strategy (in terms of e-marketing, social media and ROI) and the second relating to corporate social responsibility (including quality, health, safety and environment policies).

The inclusion of these topics gives more credibility to the company by demonstrating its commitment to the community and to employees’ well-being.

Telling a Story 

One trend in business planning is to use a narrative structure in the document, rather than traditional technical writing techniques. Storytelling techniques are increasingly being used throughout the business world to create personal and organizational brands, deliver marketing messages and develop persuasive plans.

Stories make presentations better. Stories make ideas stick. Stories help us persuade. Savvy leaders tell stories to inspire us, motivate us. That’s why so many politicians tell stories in their speeches. They realize that “what you say” is often moot compared to “how you say it.

Instead of using bulleted points and cold, technical language, organizations employ a “beginning, middle and end” narrative style. This engages the audience by establishing the context, describing the conflict or obstacles and arriving at a successful resolution.

The Executive Summary

Usually the last step of preparing the international business plan is to develop the executive summary, a short overview of what the plan proposes to accomplish. For some purposes, a one-page business plan can also be useful.

There is not a great deal of difference between an executive summary and a one-page business plan. The most significant distinction is the one-page plan must completely fit on one page in a readable font, while an executive summary may spread over two or three pages.

One-Page Business Plan

There is a trend towards the one-page business plan, especially if the plan is to be presented to potential partners for their consideration. Audiences for the one-page plan will be looking for a “quick hit”: a clear and concise description of what the opportunity is and how it is being pursued.

For example, a one-page business plan might include the following topics, as described in Noah Parson’s article “How to Write a One-Page Business Plan” on the website Bplans:

• Customer problem/opportunity
• Your solution/approach
• Business model (how you make money)
• Target market (who is the customer and how many are there)
• Competitive advantage
• Management team
• Financial summary
• Funding required

The one-page plan (or the executive summary, if used in place of the one-page plan) may provide the first impression the audience has of the business. This is the most important document generated out of the business planning process, and significant effort and care should be taken in its creation.

There are many websites the provide blank samples of one-page business plans, including Bplans, the GoForth Institute and Startup.com.

A Note on Strategic Plans

A strategic plan covers many of the same points as a business plan. However, a strategic plan sets out the detailed action plan to be followed to achieve the objectives of the international business plan.

It must outline specific activities, their due dates and who is responsible for each activity. It is a project plan with a critical path. A strategic plan ensures any venture is carried out in a coordinated, informed and systematic way.

A key consideration in action planning is how quickly to enter the market, which is driven by the chosen market entry strategy. If market entry is done too quickly, the potential for costly mistakes increases. However, if it is completed too slowly, opportunities may be missed and competitors will have more time to react.

The Planning Cycle

Attaching the word “cycle” to planning implies that it happens more than once. International business plans need to be reviewed periodically because new information that has an impact on both planning and operations is continually coming in.

All plans, including international business plans and strategic plans, need to be reviewed every time there is a major event impacting the business, such as civil unrest, a currency fluctuation or the presence of a new competitor.

The post A Guide to Preparing an International Business Plan appeared first on Trade Ready.

Even when conditions indicate that a potential market might be suitable, certain political and legal issues—such as import restrictions or lack of copyright protection—could make the market less attractive. When trading with another country, organizations are directly influenced by the political, legal and business conditions of that country. A crucial step in deciding whether a new international market is a feasible one for your business to enter is to identify and analyze any possible political risks. The first step in analyzing political risk is to collect and review as much of the relevant data related to this target market.

Review historic and current data related to political risks

The following 11 potential political risks can be identified and evaluated through research:

1. Political instability: A country’s level of political instability is determined by the likelihood that its government will be destabilized or overthrown by violent or unconstitutional means, such as terrorism and civil war. This instability can include a rise in nationalism, civil unrest and labour issues. It can result in frequent changes to the legal requirements, destruction or appropriation of property or goods, inflation volatility, rapid price rises and a decrease in the quality of life for the country’s inhabitants.

2. Political cycle:  The timing of the election cycle may have a bearing on the launch of a new international trade initiative, especially if there is the potential of a change in the type of political leadership, such as from dictatorship to democracy.

3. Hostility to foreigners, foreign trade or foreign investment: Some countries openly welcome foreign trade and investment by offering incentives or beneficial tax reductions. However, in other markets, discriminatory legislation, trade barriers, “buy-national” procurement policies, quotas and tariffs are applied to foreign organizations.

4. Corruption and control over commerce: In some countries, control over commerce can lead to situations in which organizations feel pressured to befriend, persuade or even bribe officials in order to secure the permits required to conduct trade. However, gift giving and bribery can result in severe criminal and civil penalties.

International trade research helps identify markets in which organizations are likely to face trade barriers unless they or their representatives act in an illegal manner.

5. Weak legal protection for property and Intellectual Property rights: In countries with weak protection for property rights, there is an increase in black market activities (e.g. where illegal copies of products are being manufactured, distributed and sold in a foreign market with the consent of the intellectual property owner). Organizations are wary about investing in such countries because of the possibility of large property losses when property is stolen or misappropriated without recourse or when contracts are not honoured. Intellectual Property rights are also important. The degree to which Intellectual Property is protected influences the flow of innovative ideas and creation of new products in a  country, which impacts creative and economic wealth. Intellectual Property includes inventions, literary and artistic works and symbols, images, names and designs used in commerce.

Looking to determine if your new trade opportunities are viable? Check out the FITTskills Feasibility of International Trade online course!

6. Legal restrictions on trade: These restrictions can apply to both the import and export of goods and services.

In 2021, Pacific Gateway Holdings,  a  seafood  importer  in  British  Columbia,  was  fined  CDN  163,776  for  importing  endangered  eel  species  products  from  a  supplier  in  Xiamen,  China.  The  company  had  declared  that  the  shipping  containers  contained  American  eel,  but  five  of  seven  containers  that  were  inspected  were  found  to  also  contain  a  percentage  of  European  eel  meat  (which  is  not  legal for importation). The shipment, which was valued at roughly CDN  400,000,  was  also  seized  by  the  Crown  at  the  border  and  ultimately scheduled for destruction.

7. Legal requirements for business registrations, incorporation, local partnering or other types of  performance: Because a company’s legal structure has an effect on liabilities and taxes, it is important to consult with a tax accountant and legal expert to investigate each form of legal structure before making a decision. Organizations must also ensure that they adhere to all legal requirements and payments.

8. Tax regimes: Tax rates on identical items vary from country to country and sometimes even between regions within the same country. A country’s tax practices might be unusual or complex. If tax treaties between a foreign country and a company’s home country are not established, a foreign company might have to pay tax twice (i.e. they may have to report, and be taxed on, earnings in both countries).

9. Relationships with other countries: It is important that an organization is aware of the relationships the target market has with other countries, including alliances and conflicts. For instance, if an exporter sells a product to a country that is known to then trade that product to a country with international sanctions against trade in that product, the exporter may face legal consequences.

In 2021, Biomin America, a company based in Kansas, U.S., agreed to  pay  a  penalty  of  USD  257,862  to  the  Government  after  being  found  to  be  in  violation  of  the  U.S.  Department  of  the  Treasury’s  Office  of  Foreign  Assets  Control  (OFAC)  regulations.  Although  U.S.-based  companies  can  sell  food  to  importers  in  Cuba,  the  United  States  carefully  regulates  and  monitors  all  shipments  to  the  country  so  a  permit  is  required.  In  this  case,  the  shipments  to  Cuba  were  actually  made  by  subsidiaries  that  Biomin  America  owned  in  other  countries  and  the  goods  were  not  produced  in  the  United  States.  However,  since  the  companies  involved  were  owned  by  the  U.S.  parent  company,  a  permit  was  still  required,  and since it had not been obtained, the company was penalized.

10. Infrastructure failure: It is important to consider the potential of infrastructure failure for government-owned assets such as electric power and transportation.

11. Cultural misunderstanding: Organizations must always be aware of the potential for cultural misunderstanding in business dealings.

This information will have been collected in the research phase. An excellent source for this type of information are country reports, many of which are free or available at low cost.

Organizations, especially larger companies involved in complex trade deals, may also hire specialists in the political risk analysis to complete the research and target market analysis. These specialists provide reports and recommendations that inform business planning decisions.

It is critical that organizations identify the requirements of the target market and their own countries. Misinterpreting these requirements can lead to difficult situations – for example, you could be required to remove a product, such as veterinary products and live animals, from a foreign country that cannot be re-admitted to your own. Once  the  information  is  collected,  you can identify  the  key  areas  of  concern and measure the probability of occurrence of each risk and the potential impact your  business  activities.

The post The 11 political risks that could sink your imports and exports appeared first on Trade Ready.

This factor distinguishes them from indirect investments in securities, bonds, funds, or currencies. Understanding these different investment options is critical to researching which ones best suit a given organization, target market, and/or venture.

Ownership-based investments

One type of foreign direct investment is based on establishing an ownership position over an asset or assets. The following are some of the most common types of ownership-based investments:

Greenfield

The investing organization establishes a completely new operation in a target market, building it from the ground up.

Brownfield

Similar to Greenfield, this is an aggressive market entry strategy. Brownfield investments are an acquisition of existing facilities in the target country. Often this strategy involves some site remediation, such as the clean-up of soil chemicals.

Acquisition

The investor purchases an existing operation in the target market.

Joint venture

The investor identifies a partner with complementary capabilities, and they set up an entirely new operation in the target market, each of them owning a stake proportional to the value of their original contribution. The original founding organizations continue operations as entities distinct from the newly formed joint venture.

Merger

The investor identifies an operation with complementary capabilities, and the two organizations abandon their original distinct identities to join forces into a single, combined new firm. Situational Analysis

Looking to determine if your new trade opportunities are viable? Check out the FITTskills Feasibility of International Trade online course!

Investments based on strategic alliances

This is a category of investment in which resources are contributed directly but do not create a distinct asset. Usually, such investments create partnerships in which the relationship is the only real asset. Investments based on strategic alliances are as follows:

Supplier alliances

Many organizations are investing in stable long-term relationships with suppliers of parts, technology, equipment, or other key inputs. Such investments require more than simply entering into a long-term supply contract. In many cases, they involve harmonization of standards, agreements on quality control, and integration of manufacturing and delivery processes. In technology-driven industries, supplier alliances can include agreements to share research and development (R and D).

Research consortium

There is a growing number of organizations in particular sectors pooling their R and D efforts to improve their ability to face related challenges. In some cases, such consortia focus on developing common standards that allow products to interconnect and interact. In others, they organize something akin to a division of labour by apportioning research tasks to the consortium members best able to carry them out. This can be significant internationally if organizations from different countries bring different kinds of expertise into a relationship.

Co-marketing alliance

Some organizations enter into an agreement to market each other’s products or services as part of their own set of offerings. They do this to fill out product lines and to provide consumers with a comprehensive offering. When the two organizations operate in different countries, this type of arrangement allows one to sell its products in the other country without setting up its own marketing organization. Such arrangements are not cost-free; partners must invest not only in making the relationship work but also in costs such as relabeling and rebranding.

Co-production alliance

Just as organizations exchange marketing services, they can also exchange production facilities. Rather than shipping finished products to a distant market, an organization can enter into an alliance with a local manufacturer to assemble components or manufacture a complete unit according to original specifications. Again, this can be a cost-effective way of entering a market, but it requires an investment in the relationship as well as in the transfer of knowledge, skills, and design.

Bidding consortium

Perhaps the loosest form of strategic alliance occurs when organizations enter into a consortium to bid on a project that none of them could carry out individually. Such consortia are very common in large international infrastructure projects. Even though the organizations retain their distinct identities, entering into a consortium does require some longer-term commitments, especially if the bid is successful and the winners are obliged to work together for several years. The simple fact of participating in a bid can require a significant investment of time, human resources, and money, especially if bid bonds are required.

The post The most common forms of foreign direct investment (FDI), including ownership-based investments and investments based on strategic alliances appeared first on Trade Ready.

Karmesh Patel first became interested in international trade during childhood. His interest was twofold, as he was fascinated by trade’s importance to both the global economy and international development.

“Growing up, I was always passionate to learn about importing and exporting and how the world economy relies on international trade. I also strongly believe that before the rapid development of technology that we see today, it was the international movement of goods and people that helped spread international culture and language. When you look into history, many civilizations were developed near oceans and international borders, since they were able to capitalize on transportation of goods and people.”

To pursue this interest as a career path, he earned his Bachelors of Commerce from Ryerson University, with a specialization in global management studies. During his studies, he worked on projects that gave him his first experience of what exporting companies have to deal with on a daily basis, and won a Global Citizen award from the school for his accomplishments both in the classroom and the community. After finishing his degree, he then also earned a post-graduate certificate in international development from Humber College.

Moving halfway around the world to pursue his career goals

Once he completed his studies, Karmesh wanted to improve his knowledge of international business and cultures, and decided the best way to do so would be to gain international experience. To do so, he accepted a position as Program Manager with the TATU Project, based on Moshi, Tanzania.

The organization’s focus is sustainable development in rural communities in northern Tanzania. His responsibilities mainly involved managing project finances, social business projects and the transport of goods to the rural communities he worked with. The final of these responsibilities led to one of the most memorable stories of his career to date.

“One of the major bridges we crossed on a regular basis was under construction and we were faced with a big challenge, because we needed to transport bulk goods to the community. Given that we were not provided with a concrete time frame for when the bridge would be repaired, and that we couldn’t purchase too much food in bulk, because of spoilage, we had to make some critical decisions.”

“Luckily, during the construction of the main bridge, the local administrative government built a small temporary bridge for the purpose of walking or driving via motorcycle only. When we spoke to local officials about our dilemma, local youth overheard and offered to help transport bulk bags of goods via motorcycle, since the overall goal was to help keep the local community and its businesses operating. Due to our bridge dilemma, we decided to work with the local youth to transport goods to our community stakeholders.”

“I really like this story because it shows you how community support and collaboration and help overcome any obstacle.”

Learning online at his own pace to further his career in international trade

Still passionate about international trade, he began taking the FITTskills online courses to continue learning about the industry, earn his FITT Diploma and expand his career options.

“I had a wonderful experience taking the FITTskills courses. The FITTskills courses all provided highly detailed information and really helped me further understand each area of international trade. They are perfect for anyone who is interested in gaining a broad-spectrum perspective about international trade and business. I found the material in the Global Value Chain and International Sales and Marketing courses really helped me excel in my Program Manager role with the TATU Project.”

His favourite course, International Market Entry Strategies, was also helpful for his current work and in helping him plan to make a career dream come true.

“I found learning about the research and analysis required to choose the most advantageous market entry strategy to be very fascinating. This course demonstrated the reality of what international businesses have to go through to be prepared for a new business venture.”

“Another key reason why this was my favourite course is that it has always been my goal to be part of a foreign direct investment team/organization implementing a greenfield investment in a foreign market. This course provided detailed information and helped me gain knowledge on how I can make this dream come true one day.”

Joining the Livingston team and the CITP community

Early in 2018, shortly before earning his FITT Diploma, Karmesh began his current job as a Cross Border Agent with Livingston International, one of North America’s biggest customs broker and freight forwarding companies. His responsibilities include processing electronic manifests, resolving shipment issues with CBSA (Canadian Border Services Agency) and CPB (U.S. Customs Border Protection), and ensuring shipments are in compliance with all relevant rules and regulations.

He says his role has helped him develop a better understanding of North America’s international trade traffic. His FITTskills training has also been helpful in settling into the role.

“I found that the Feasibility of International Trade course really helped me, as the course provide in-depth knowledge of creating an export plan and clearly explained import/export procedures.”

Wanting to prove himself to his clients and employer, Karmesh also successfully applied for the CITP®|FIBP® designation. He is optimistic it will help him stand out from the crowd, as well as learn from and connect with others.

“I chose to apply for the CITP designation because I wanted to join the CITP community, meet fellow designation holders and learn from some of the industry’s elite. As a young international trade professional, the designation also provides me with a further level of credibility for my employers and clients. I foresee my CITP designation playing a major role in assuring employers and clients of my credibility in international trade and business.”

With the credibility the CITP designation provides, I know I am one step closer of achieving my long term goal to implement a greenfield investment in a foreign market. I also foresee the CITP designation helping me start my own international business to help small agriculture business owners in developing countries.

The post Karmesh Patel, CITP|FIBP – Cross Border Agent appeared first on Trade Ready.

Tapping into new international markets presents growth opportunities for businesses of all sizes and yet, as of January 2018, only about 15 percent of Canadian SMEs were engaged in global trade.

SME exporters generate more revenues than non-exporters according to SME Profile: Canadian Exporters, a report by Industry Canada. Evidence shows that exporters generate higher sales, pre-tax profit margins and returns on assets, on average, compared with non-exporters. So why don’t more businesses go global?

Among the many challenges faced by businesses seeking to tap into global markets, finance might be the most fundamental.

So how do small and medium sized businesses prepare themselves to take advantage of the opportunities of going global?

We asked a panel of experts in our latest #TradeElite Twitter chat, to find out how SME’s can best get financially prepared to access new global markets. What we discovered is that there is lots of information, support and assistance for business of any size.  Check out the highlights of the chat  below and you can scroll through the #TradeElite hashtag to follow the entire chat.

Moderator: Nicole Chevrier, Content Marketing Specialist, FITT (@FITTNews)

Panelists:

Scott C. Ferris, @ScottCFerrisPEI,  CEO of The Saddle Up Management Co.  and Biz Dev Professional. Scott established the Saddle Up Management Company after 25 years of experience in export sales planning, domestic and international business development, investment attraction, negotiations and partnership engagement. His experience stems from participating in and organizing more than 30 trade missions on four continents.

Stacey Gordon, @StaceyCGordon, Director, International Trade, ATB Financial. Stacey is the Director of International Trade at ATB Financial, where she introduces trade and helps to remove roadblocks. She previously spent 9 years at EDC where she worked with hundreds of companies at all stages of their export journey.  She teaches International Marketing at MacEwan University, where she hopes to influence the next generation of leaders and entrepreneurs about the advantages of diversification.

Jeff Shepherd, @JeffMShepherd, Marketing Coordinator, Mentor Works Ltd. Jeff is a Marketing Coordinator and Government Funding Planner at Mentor Works Ltd. As an educator about the Canadian government funding landscape, Jeff identifies opportunities where businesses could scale and reach new international markets with grants, loans, and other government incentives.

What are some of the most common financial barriers to international trade for small business?

Q1. What are some of the most common financial barriers to international trade for small business?
A1. Business development spending and Pre-shipment/pre-/service costs #TradeElite

— Stacey Gordon (@StaceyCGordon) October 18, 2018

A1 – in my experience the most common financial barrier is lack of knowledge and lack of preparedness. This can be a daunting area for many companies and a “fear of looking unaware” prevents many from addressing a very important business area. https://t.co/RiWqF1pN9b

— Scott C. Ferris (@ScottCFerrisPEI) October 18, 2018

A1. Supporting upfront and ongoing costs of #internationaltrade is difficult for most small businesses. If outside capital is required, it’s often difficult to secure lines of credit and other sources of investment. #TradeElite

— Jeffrey Shepherd (@JeffMShepherd) October 18, 2018

A1. Monetary systems and dealing with the risk of #currencyfluctuation is often a concern. What currency will you bill customers in? How will you mitigate risk if accepting international currency? #TradeElite

— Jeffrey Shepherd (@JeffMShepherd) October 18, 2018

What’s the best way for business to assess their financial readiness? Is an expert required?

#TradeElite 1. Understand how financing works: ie: which costs can be covered by your FI institution ( ie: cost that are related to a defined cash flow or have assets attached) and which costs will have to be covered out of pocket ( ie: soft costs )

— Stacey Gordon (@StaceyCGordon) October 18, 2018

2. If the area of trade finance or lending is new to an entrepreneur, they should absolutely seek the help of an expert, talk to your banker and enlist the help of financial resources like @ExportDevCanada who can help you understand how to finance trade. #TradeElite

— Stacey Gordon (@StaceyCGordon) October 18, 2018

A2. Upfront costs can range from setting up local offices with foreign personnel and purchasing #insurance to getting product certification and developing new packaging. Ongoing costs include transportation, warehousing, and paying #duties and taxes. #TradeElite https://t.co/PSRsb9ypE6

— Jeffrey Shepherd (@JeffMShepherd) October 18, 2018

A2 – Any business should know its cash flow & assess its overall operations in terms of profit/loss. Beyond this to assess for capital purchase requirements, expansion/growth, new market entry etc. then a detailed examination of available cash, options for financing, is needed https://t.co/QD0Uuq0D1z

— Scott C. Ferris (@ScottCFerrisPEI) October 18, 2018

A2 – #TradeElite Also companies need to have a good understanding of what their expected costs to engage in import/export will be. @FITTNews has excellent resources available through its workshop series with costing worksheets, export plan templates and more

— Scott C. Ferris (@ScottCFerrisPEI) October 18, 2018

A2. While not essential, using experts is advised. Small businesses often lack insight to the long-term financial commitment of exporting; expertise from organizations like BDC provide an objective view and can help show the big picture. #TradeElite https://t.co/PSRsb9ypE6

— Jeffrey Shepherd (@JeffMShepherd) October 18, 2018

What are some tools and resources that small biz can use to gauge their state of readiness?

A3 – #TradeElite Economic development/trade agencies from the municipal, provincial and Federal levels have great resources to help exporters. Of course @FITTNews provides in-depth readiness through its training, but so does @ExportDevCanada @bdc_ca and others. https://t.co/8VHNwITvcB

— Scott C. Ferris (@ScottCFerrisPEI) October 18, 2018

A3. Innovation, Science, and Economic Development Canada (ISED) also provides a comprehensive set of #exportreadiness questions that cover several areas of exporting. https://t.co/hvW4cLHDhy #TradeElite https://t.co/OtU4MdFoLE

— Jeffrey Shepherd (@JeffMShepherd) October 18, 2018

A3. The Canadian Trade Commissioner Service offers an export quiz that helps #smallbiz owners check a range of export readiness factors. https://t.co/nFXk0zilzq #TradeElite https://t.co/OtU4MdFoLE

— Jeffrey Shepherd (@JeffMShepherd) October 18, 2018

A5: #TradeElite 1/2 There are plenty of resources to help small businesses, but there will always be a large responsibility on the company to do as much of their own due diligence as possible, however, here are some resources to consider state of readiness, but provide info:

— Stacey Gordon (@StaceyCGordon) October 18, 2018

2/2A5: #TradeElite @TCS_SDC @TFOcan @calgaryeconomic – Trade Accelerator Program@ExportDevCanada – @cme_mec – Canadian Manufacturers and Exporters @bdc_ca has commercial consulting services to help move your trade business forward

— Stacey Gordon (@StaceyCGordon) October 18, 2018

How do you prepare a financial plan to access new international markets? Where do you start?

1/2
A4:
Where does trade fit in your overall company strategy? What resources is your company prepared to put behind the development of the strategy. Do you want international markets to represent a small portion of your revenue or a larger portion. #TradeElite

— Stacey Gordon (@StaceyCGordon) October 18, 2018

2/3 What is your market entry strategy going to be? There are plenty of ways to sell into foreign markets; you can go in alone, license, use local agents, sell through domestic suppliers already in those markets. #TradeElite

— Stacey Gordon (@StaceyCGordon) October 18, 2018

3/3
Each strategy has their own risk/return ratio and some countries/industries will have more market entry options than others. Research Research Research. #TradeElite once you have a clear understanding of your resource allocation and market entry plan, set up a budget

— Stacey Gordon (@StaceyCGordon) October 18, 2018

A4. Start by analyzing revenues and projected costs in the #export market. Will company #cashflow be sufficient in covering long-term commitments in your new markets, or will you need to secure additional #financing to make it work? #TradeElite https://t.co/e1euH8jDwh

— Jeffrey Shepherd (@JeffMShepherd) October 18, 2018

A4 – #TradeElite – Start with an export costing worksheet. There are many templates widely available and I have mentioned some sources already. But companies will need to know everything from additional production/service delivery costs right through to moving goods into market. https://t.co/CeFQ0GMUEd

— Scott C. Ferris (@ScottCFerrisPEI) October 18, 2018

How do you forecast the cost of getting into a new market?  What kinds of initial costs and ongoing costs are there?

A5 get expert advice local partnership info if possible to minimize risk #TradeElite

— Mike Au (@Mike_Au1) October 18, 2018

@TCS_SDC is a great service for that, they are located in most countries!

— Stacey Gordon (@StaceyCGordon) October 18, 2018

Understanding your market entry strategy, ensuring you are familiar with each step of the supply chain and who is responsible for what.
Your market development plan, invest in resources to determine the plan and budget that allows for some unexpected expenses. #TradeElite

— Stacey Gordon (@StaceyCGordon) October 18, 2018

A5 1/2- #TradeElite Ultimately you will have to have done some extensive research into the target market. As @StaceyCGordon said, know your market entry strategy, sales channel(s), logistics options etc. https://t.co/k6hKs8qzKF

— Scott C. Ferris (@ScottCFerrisPEI) October 18, 2018

A5 – 2/2 #TradeElite Initial costs will be potential prod/service modifications, packing changes, packing, logistics again ( know your INCO terms https://t.co/5Umqwz7GIF) Ongoing costs will include additional shipments, customer care, returns/warranty. https://t.co/k6hKs8qzKF

— Scott C. Ferris (@ScottCFerrisPEI) October 18, 2018

A5. Upfront costs can range from setting up local offices with foreign personnel and purchasing #insurance to getting product certification and developing new packaging. Ongoing costs include transportation, warehousing, and paying #duties and taxes. #TradeElite https://t.co/swKc2oRkYj

— Jeffrey Shepherd (@JeffMShepherd) October 18, 2018

A5. Developing #cashflow forecasts is the best way to understand market entry costs. Developing monthly, quarterly, and annual projections will show what you’ll need to cover in the early stages of #exporting. #TradeElite https://t.co/swKc2oRkYj

— Jeffrey Shepherd (@JeffMShepherd) October 18, 2018

A5. Once #cashflow projections are complete, use a break-even analysis to ensure sales can cover these costs. Are there gaps? If so, explore #financing options. #TradeElite https://t.co/swKc2oRkYj

— Jeffrey Shepherd (@JeffMShepherd) October 18, 2018

A5.
Lipsticks made in Cda sell to EU.
Cost of Goods
+Check Cosmetics Rules
+EU Consultant Fee
+QA Dossier Fee
+New Labels/Packaging
+$ Ship CdatoEU
+Brokerage
+Duty Rate
+VAT
+Origin Port fee
+Local Delivery
+Ads / Marketing
+Exchange Rate
+Mark up
etc.#TradeElite

— audrey ross (@tresAudrey) October 18, 2018

Are the financial implications for getting into global trade different for smaller businesses?

#TradeElite, A6. 1/2 :Smaller business may have a harder time accessing capital and financing the “startup” costs to trade. Many small companies I have worked with start by supplying to a large local exporter who can shoulder some of the cost and risk associated with trade.

— Stacey Gordon (@StaceyCGordon) October 18, 2018

2/2 A6. They then use that opportunity to springboard into the markets they are supplying into.

— Stacey Gordon (@StaceyCGordon) October 18, 2018

A6. Smaller businesses must focus on #cashflow and ensure that they can manage #financial commitments. Larger firms with more mature domestic operations can often avoid cash shortages more easily. #TradeElite https://t.co/RaaEYgEriO

— Jeffrey Shepherd (@JeffMShepherd) October 18, 2018

A6 – #TradeElite Personal opinion here – yes. Smaller firms need to be more aware of starting financial position, ensure they have the cash/access to financing & will feel the impacts of negative situations more on their bottom lines. Hence the need for better preparation. https://t.co/IBVIj9LmGz

— Scott C. Ferris (@ScottCFerrisPEI) October 18, 2018

A6 – #TradeElite On the upside for smaller firms, global trade can be a difference maker for them to launch exponential growth. There are risks, but there is so much support available for SMEs that can ensure they are prepared and supported in going global. https://t.co/IBVIj9LmGz

— Scott C. Ferris (@ScottCFerrisPEI) October 18, 2018

A6. ABSOLUTELY. Financial institutions are hesitant to invest in SME’s, they have to leverage their own money or be more creative abt investors. This means they have different burdens for repayment / access than larger companies. It’s getting better. #TradeElite

— audrey ross (@tresAudrey) October 18, 2018

What are some of the common financial mistakes small businesses make in embarking on global ventures?

A7. The less fixed you are on an expected outcome the less stressed you will be. Things change quickly when you go global. Agility & Flexibility are your new buzzwords. #TradeElite

— audrey ross (@tresAudrey) October 18, 2018

A7 – #TradeElite Not assessing their starting point and having a good snapshot of available resources. Failing to plan and engaging proper research to estimate costs. Either get your feet on the ground in target market or work through really good sources of intel.

— Scott C. Ferris (@ScottCFerrisPEI) October 18, 2018

A7 – #TradeElite Also many companies don’t take the time to learn about what supports are available to them. Reaching out for mentorship in this area can be a huge advantage, a real time saver, and point companies in the right direction for solid resources

— Scott C. Ferris (@ScottCFerrisPEI) October 18, 2018

A7:
1/3: Often companies get too caught up in the idea of making a lot of money and they miss taking key steps to mitigate their risks
Going into a market, “hoping on a plane” to “check things out” without a plan.

— Stacey Gordon (@StaceyCGordon) October 18, 2018

A7:2/3
Check out the @AB_EDT Trade Missions before going into a market, they provide a tremendous opportunity to travel with other AB companies and will use their resources to get you in front of the right people. #tradeelite

— Stacey Gordon (@StaceyCGordon) October 18, 2018

A7: 3/3 :Not properly planning the relationship/market development piece, either not understanding the upfront investment it will take to make a sale or not knowing when to move on to the next relationship. #TradeElite

— Stacey Gordon (@StaceyCGordon) October 18, 2018

A7. Businesses need to consider #export expansion as a long-term commitment. Don’t underestimate #exporting’s demand on #cashflow and ensure you have buy-in across the management team. #TradeElite https://t.co/dReLIEstdS

— Jeffrey Shepherd (@JeffMShepherd) October 18, 2018

A7. Also, a big mistake is not using #governmentfunding programs to #finance your international expansion. Small businesses can access government #grants to offset a range of market development activities. https://t.co/mcG6nQKqXd #TradeElite https://t.co/dReLIEstdS

— Jeffrey Shepherd (@JeffMShepherd) October 18, 2018

A7. Lack of an #exportplan is the worst mistake of all. The more effort your #smallbusiness puts into developing an export plan, especially in relation to finances, the fewer surprises you’ll have along the way. #TradeElite https://t.co/dReLIEstdS

— Jeffrey Shepherd (@JeffMShepherd) October 18, 2018

What are some hidden or often forgotten costs businesses need to account for in their planning?

A8: Given that many of the added costs come from the unknown, there are a few: taxes, delays due to processes (many industries are still gov’t owned in other countries), the difference in the amount of time it takes to build a relationship with your buyer, local content laws.

— Stacey Gordon (@StaceyCGordon) October 18, 2018

A8 – #TradeElite In my experience product/packaging modifications, including translation, are often overlooked. As are packing costs. But there are a ton of others – loading/off loading, tailgaiting, demurrage/storage, documentation fees, trade finance product fees… https://t.co/cut9fiSFy0

— Scott C. Ferris (@ScottCFerrisPEI) October 18, 2018

A8 – #TradeElite IP costs, licensing fees, agent/broker fees or commissions, legal fees, in-country fees (that could include facilitation payments – yes that’s still a thing) https://t.co/cut9fiSFy0

— Scott C. Ferris (@ScottCFerrisPEI) October 18, 2018

A8. In consumer goods? Courier costs. These are going to shoot up high as you are sending samples back & forth for approval, PR or QA review. Your local courier peep, may not be your int’l courier peep. COURIER COSTS. #TradeElite

— audrey ross (@tresAudrey) October 18, 2018

What are the most critical financial management issues for small biz getting into global trade?

A9. Getting paid and generating cash to cover export costs is essential. Using products like @ExportDevCanada credit insurance can help reduce #financialrisk and support long-term export success. #TradeElite https://t.co/errGSvLm51

— Jeffrey Shepherd (@JeffMShepherd) October 18, 2018

A9 – #TradeElite Agree Jeffrey, using @ExportDevCanada and your banks for risk mitigation and currency hedging tools is also important. https://t.co/2LVSEGjIUC

— Scott C. Ferris (@ScottCFerrisPEI) October 18, 2018

A9. #Cashflow planning should be the most prominent consideration your business makes. Take time to develop conservative and realistic forecasts. Being prepared for multiple scenarios will enable agility in foreign markets. #TradeElite https://t.co/errGSvLm51

— Jeffrey Shepherd (@JeffMShepherd) October 18, 2018

A9. Developing and communicating payment terms to your customers is of utmost importance. Don’t leave any room for misunderstandings, and proactively follow-up on invoices to speed the accounts receivables cycle. #TradeElite https://t.co/errGSvLm51

— Jeffrey Shepherd (@JeffMShepherd) October 18, 2018

A9 – #TradeElite It can be very sexy to be in new markets and companies can get caught up in wanting to be in certain markets (for travel, enjoyment purposes for example). It’s crucial to keep an eye on costs and your returns. Know when to take a loss and move on. https://t.co/H43VrqwHM3

— Scott C. Ferris (@ScottCFerrisPEI) October 18, 2018

A9:
The MCI is not having the #cashflow to make it through the export cycle and not considering all of the true cost when bidding. #TradeElite

There most likely will be delays and extra expenses that were not considered, so it is important to build in some contingency.

— Stacey Gordon (@StaceyCGordon) October 18, 2018

A9. Cash flow.
You pay your supplier.
You are paid on terms after delivery.
The farther out your market is, the more time before you can start the clock on payment. Ex, a project could ship in June, be delivered in July & be paid in Oct. #TradeElite

— audrey ross (@tresAudrey) October 18, 2018

What kind of finance skills are typically needed from in-house resources? Do you need to hire a financial expert?

A10: 1/3 #TradeElite No two trade deals or relationships are ever the same, so a general financial plan, understanding of what you want your capital structure to look like and how you are going to finance each stage of your export journey, is important.

— Stacey Gordon (@StaceyCGordon) October 18, 2018

A10: 2/3 #TradeElite Talking to another Canadian company who is experienced in your market is also very helpful. Hiring an experienced consultant is an option.

— Stacey Gordon (@StaceyCGordon) October 18, 2018

A10: 3/3 #TradeElite As the company starts to negotiate contracts and recognize revenue in foreign markets, I highly recommend enlisting the help of an accountant and trade lawyer in addition to a risk mitigation specialist.

— Stacey Gordon (@StaceyCGordon) October 18, 2018

A10. Your internal #finance expert must be able to understand and mitigate economic risks, process and report international payments, and proactively manage cashflow. #TradeElite https://t.co/U7d2aKFepS

— Jeffrey Shepherd (@JeffMShepherd) October 18, 2018

It’s worth it. They seem expensive, but not as expensive when you have to pay out for some silly mistake they could have saved you from. Remember – long term investment. #TradeElite https://t.co/XRCcV30QiA

— audrey ross (@tresAudrey) October 18, 2018

A10. If building in-house skills is preferred, EDC-FITT #internationaltrade training courses can provide members of your team with the skills necessary for #export success. https://t.co/fF2s2KAUZW #TradeElite https://t.co/U7d2aKFepS

— Jeffrey Shepherd (@JeffMShepherd) October 18, 2018

A10. You need someone who really understands your biz & is great at the domestic market, then they need to know / work w// hire someone / a firm who really knows the target market & global business. More training or 3rd party are going to be needed. #TradeElite

— audrey ross (@tresAudrey) October 18, 2018

A10 1/2 #TradeElite Ability to read financial statements at a basic level, understand cash flow, building costing and pricing estimates are certainly strengths. At some time, yes you will need an expert – accountant, banker, trade finance specialist https://t.co/2QBI1EQSBU

— Scott C. Ferris (@ScottCFerrisPEI) October 18, 2018

A10 2/2 #TradeElite SMEs need to focus on their core competencies and be generalists in other areas where experts can step in, saddle up and take on specific areas and bring expertise that’s needed. https://t.co/2QBI1EQSBU

— Scott C. Ferris (@ScottCFerrisPEI) October 18, 2018

Recent evidence suggests that financial support to small biz is most successful when offered in combination with consulting services, business advice or financial education – what are your thoughts?

Q11 #TradeElite I’d agree with this as someone who benefitted from financial support & paid project management help and now as someone who provides that support. Throwing money at a company without the knowledge or skills to properly ensure it used is a waste. https://t.co/JODmij6VaD

— Scott C. Ferris (@ScottCFerrisPEI) October 18, 2018

A11. Absolutely agree. There is no way you / your team can think of every thing. Use your resources & set up a great foundation with experts, then as you learn more you can work independently. #TradeElite

— audrey ross (@tresAudrey) October 18, 2018

Read the rest of the chat and join future discussions by following the #TradeElite hashtag. And stay tuned for the next #TradeElite chat, coming up on November 15th at 2:30-3:30PM ET, and if you haven’t yet, join us on Twitter at @FITTNews.

The post How SME’s can get financially prepared to access new global markets appeared first on Trade Ready.