ForumsStarting a Business

When do you know if it's right for your business to expand into other countries? What advantages are there?

Do small neighborhood businesses like restaurants, barbershops, local retailers, etc. need to be aware of globalization? How does international trade affect those kinds of businesses, and how can an awareness of global issues make them more successful?

When shipping product globally is there a better shipping agent versus another? What kind of extra fees does a company incur when shipping globally? What about customs? Are there basic requirements when shipping global?

With going global and only speaking english, do you find there are language barriers?

How do you find experienced sales representatives over seas to help you meet and greet customers? Or do you have to plan for extended time overseas to make going global a go?

Sure, your best bet is to hire a global freight forwarder (or even UPS can assist on matters such as this) which serve as all-round transport agents for moving cargo, typically from a factory door to your customer’s warehouse. Their service saves you a lot of time, effort, and anxiety for a very reasonable fee (generally U.S. $150-175 per shipment) – an expense you’ll include in your price quotation to your customer and recoup when you collect payment.

Freight forwarders can be found by conducting a Google search with the key words “freight forwarder, Chicago,” for example, that is, if you are searching for one located in that city. Or try “transportation expert, freight forwarder” that might do the trick as well.

A good freight forwarder helps you make the sale and deliver the goods in a safe, timely and cost-effective manner.

If you have enough goods to fill a straight container (usually average 20 to 48 cubic feet), it’s an advantage. Your product will be loaded into the container all by itself, rather than being consolidated with other companies’ products to fill the container, and a seal will be put on the door. This means that nobody else will have access to those goods when they arrive at the port of destination, except your customer or their designated agent. This safety measure guards against potential theft, pilferage, and product tampering.

If you do not have enough goods to fill one container, as in your case, than you want to ship breakbulk (a freight forwarder can assist in this area too). Better known as less-than-containerload, or LTL, shipment, a breakbulk shipment is the most likely option to be used by new exporters, since your first orders are typically small. This is because your customer wants to test your product in his or her market before committing to a large quantity, such as a full containerload or more.

To control the expense of a small-quantity shipment, find a transport company who specializes in breakbulk. Naturally, when you are shipping a small trial order and hoping for repeat business, it will be to your advantage to control your customer's costs by getting the best rate possible. Also, when shipping LTL, you'll need to take extra care in packing and marking your cartons. Breakbulk shipments are commonly packed using pallets, slipsheets or crates.

The first step is to track the merchant (you didn’t say what country you were traveling in) and contact them directly. I am assuming you purchased a couple of the products that you found innovative and the labeling is still intact to determine who distributes or manufactures the product.

Do a search online to match up your findings to the label and then attempt to communicate directly with the company to find out whether they are interested in working with you as an importer on the product line to the United States (consider exclusive distributor or non-exclusive – whatever is most advantageous to both parties). Find out if they have experience selling their products worldwide. If not, that could be a red flag (due to communication barriers, legal issues, quotas, etc.). Find out why they are not selling overseas. You’ve got nothing to lose.

As a second step, you might contact the U.S. Embassy (www.usembassy.gov/#) of the country where you wish to import from to learn if there are has been any bad press on the company you are about to business with or any hidden restrictions (word gets around fast … but you must ask the right questions to find out things) to doing business with them, period. You want to get a sense of their reputation in the marketplace in a most neutral, objective manner. In addition, U.S. Embassy will assist you with legal or tax-related issues relating to your product line (since you didn’t say what it is … food, computer software, jewelry or clothing, for example). It’s better to learn well in advance any potential barriers to import on a product BEFORE you place an order, pay for it and find out later during the transit process that the product is prohibited for entry into the United States.

You might also double-check with a few global e-commerce sites to see if the company is listed or if there are other companies who produce a similar product but cheaper and with better quality. Among places to review are:

Alibaba (www.alibaba.com)
Global Sources (www.globalsources.com)
Tradekey (www.tradekey.com)

As a third step, contact your own international lawyer and accountant (I am counting on you to have these experts already in place) to find out about key considerations for importing the product line, like trademark and patent issues, methods of importing to ensure tax savings, exclusivity contracts, etc.

Lastly, the best sign of a green light to import successfully is to find out the manufacturer does business all over the world but not yet in your country or city! This indicates they have the international experience and can help you get started quickly and efficiently. Ask for references to their other exclusive importers around the world so you can get a feel of what it’s like to work with the company. You are seeking a long history of positive experience and impressive sales results. Good luck!