Entering the International Markets

The global markets offer tremendous business opportunity, and a growing number of small businesses are taking advantage of them. About 97 percent of the exporters in the United States are small companies, based on statistics from the U.S. Small Business Administration (SBA).
 
Exporting may be a good idea for your business, but before you decide to take the plunge it’s a good idea to do some homework, according to the Virginia Society of CPAs. Here’s some advice on how to get started.

Understand the basics

International exports can be a complicated undertaking, so it’s important to understand how to prepare your company to jump in. A publication from the SBA, "Breaking into the Trade Game: A Small Business Guide to Exporting, " provides a good introduction. It includes an international marketing plan workbook that walks business owners through the steps to take and the decisions to make before entering overseas markets. It also covers issues such as using e-commerce in your marketing, identifying the right markets, market entry and financing. This information can be found in the SBA Programs section of the SBA website at www.sba.gov.

Find the right resources

The SBA booklet is one source for determining whether exporting is a good idea for your company. If you decide to export, consider taking www.export.gov, which provides information and advice. In addition, the Commerce Department’s U.S. Commercial Service offers market research, trade events where you can promote your products, introductions to potential customers using their overseas contacts and counseling for business owners. Learn more about this organization at http://trade.gov/cs. Another source is the U.S. Trade Representative, which provides resources for small business on its website at www.ustr.gov.

Decide if it’s right for you

After doing some research, international export may sound like a sound idea for your business. However, before you commit to it, you should ask yourself some questions about how you will make your export efforts work. For example, will you need additional financing to get your efforts off the ground? Do you have the staff to support your effort? Will those staff members be willing and able to increase their travel if it’s required? Will it be necessary to modify your packaging or promotional materials for another language and culture, or to suit regulations in another country? What sort of export licenses will be required in the countries in which you hope to sell? Will your trademarks and intellectual property rights be protected in the countries where you sell?

Get advice from a CPA

Exporting may not be right for every business, and some companies may need more time to position themselves for success in international markets. Your local CPA can help you analyze your options and decide what’s best for your company. Turn to your CPA with your questions on international business and on any other financial issue facing your company.

The Virginia Society of Certified Public Accountants (VSCPA) is the leading professional association dedicated to enhancing the success of CPAs. Founded in 1909, the VSCPA has approximately 8,300 members who work in public accounting, industry, government and education. For more information, please visit the Press Room on the VSCPA Web site at www.vscpa.com, e-mail vscpa@vscpa.com or call (800) 733-8272. For more information on financial literacy topics like money management, or to search for a CPA in your geographic region, visit www.FinancialFitness.org.

© 2008 American Institute of Certified Public Accountants