International Trade...2007/11/16 · International Trade Virginia Economic Development Partnership Presented By: Ellen Meinhart OPENING: Outside U.S. borders are markets that represent
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International Trade Virginia Economic Development Partnership Presented By: Ellen Meinhart
International TradeVirginia Economic Development Partnership
Presented By: Ellen Meinhart
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OPENING: Outside U.S. borders are markets that represent 73% of the world’s purchasing power, 87% of its economic growth, and 95% of its consumers. Yet, fewer than 2% of U.S. businesses export.. REPEAT Outside U.S. borders are markets that represent 73% of the world’s purchasing power, 87% of its economic growth, and 95% of its consumers. Yet, fewer than 2% of U.S. businesses export.. The global middle class is projected to grow by 200 million people each year for the next five years—that's the entire adult population of the United States being added, year after year. (exim presentation). They will be able to afford international travel, better education and consumers goods. The countries where they live are going to need smart highways, power plants, bridges, satellite communications and everything else that comes with a more sophisticated economy. The demand will be unprecedented. American companies produce world class innovative goods and services. Someone is going to sell to these people and why shouldn’t it be one of you? INTRO if needed My goal is to help you understand why selling internationally is critical piece of economic development and make sure you understand all the international business resources available to assist VA companies. Basically, I hope you will all leave knowing that PWC companies are NOT alone to figure out how to sell to Brazil or any other country. There is all sorts of support to help help them be successful selling internationally.
Benefits of Exporting
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Here are some benefits of exporting: EXPORTING BENEFITS YOUR BOTTOM LINE – Selling internationally can significantly increase your revenue and statistically, companies that export have a 17% higher profit margin than companies that only sell domestically. This will increase that value of your company should you choose to someday sell it. EX: Bode Technology, one the companies that I work with was acquired by LabCorp last year and a big reason that LabCorp was interested in them is because Bode is selling in 50 countries around the world. HIGHER DEMAND – since repetition is good for learning, I’ll say it again that outside U.S. borders are markets that represent 73% of the world’s purchasing power, 87% of its economic growth, and 95% of its consumers. IMPROVED PRODUCTIVITY – When US companies compete internationally, they have to have the best product in the world and they are exposed to ALL their competitors which helps them improve their product or service. Additionally, by selling internationally, companies can smooth their business cycles and combat seasonal fluctuations. They can also maximize their production capabilities. DIVERSIFICATION – Companies can reduce their risk by diversifying into other markets. Just like you want to have a diversified investment portfolio, by selling to other countries, you can withstand dips in the US economy. Because DoD spending has significantly decreased, a significant number of Defense contractors in this area are also focusing their attention on selling to foreign militaries to make up for their decrease in revenue. HIGHER-SALARIED OPPORTUNITIES – Again, statistically, workers at global companies earn 15% more than workers at domestic-only companies.
WHY DON’T MORE COMPANIES SELL INTERNATIONALLY?
OLD ASSUMPTION NEW ASSUMPTIONExporting is too risky We can help you identify and reduce perceived risk
Getting paid is cumbersome and I’ll lose my shirt Trade finance and global banking have evolved to the point where buying and selling things internationally is routine, safe and efficient.
Exporting is too complicated If you are running a business, you can export. You may need to learn some new rules of the game to compete but you can do it.
My domestic market is secure. I don’t need to export. Globalization is here to stay and you are competing with companies from all over the world. Your product and service will be much better by competing in the global marketplace.
I’m too small to go global. 30% of companies that sell overseas have less than 19 people
My product or service probably won’t sell outside the US
If you have a best in class product with a USP, I can pretty much guarantee that there will be foreign markets that would love to buy it.
I won’t be successful because I don’t speak another language and have never been abroad.
We are lucky that English is the business language of the world and there are also interpreters if you need them. Every one of you can quickly become culturally savvy in order to maneuver in local markets. With a tiny bit of effort, none of us have to be Ugly Americans
I have no idea where to turn for help Well – you will in a minute because I am going to tell you where to find help.
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Why don’t more companies sell internationally? RISK – Canada may seem less risky because Canadians for the most part speak English and their legal system is similar to ours. You may be fearful of selling to Thailand and Croatia. There are a lot of US companies that are successfully selling to these countries. With careful planning, a strong business plan, excellent customer service as well as taking advantage of VEDP services and other organizations that can help you identify the risks and mitigate them, you don’t have to be fearful. GETTING PAID IS CUMBERSOME AND I’LL LOSE MY SHIRT – Global banking is routine, safe and efficient. Reliable payment methods include letters of credit from banks, credit cards and online payments. You can even buy export credit insurance in case of non-payment. EXPORTING IS TOO COMPLICATED – I always tell the companies that I am working with that if they are running a successful business, they can sell internationally. They made need to learn some new rules of the game but they can do it. I’M TOO SMALL TO GO GLOBAL – 30% of US companies that sell overseas have less than 19 people. MY PRODUCT OR SERVICE PROBABLY WON’T SELL OUTSIDE THE US – If you have an innovative product or service with a unique selling proposition, most likely there is an international market for your product. You may have to modify it to the culture or regulatory environment. Selling internationally will make you more competitive. I WON’T BE SUCCESSFUL BECAUSE I DON’T SPEAK ANOTHER LANGUAGE – We are so lucky that English is the language of business worldwide. Worst case, you can always hire an interpreter. It doesn’t take much effort to become culturally savvy and avoid being the UGLY AMERICAN. I HAVE NO IDEA WHERE TO TURN TO FOR HELP – After this presentation, you will.
What is VEDP- Intl Trade
Mission:– To increase international sales for Virginia Companies– To expand Virginia’s tax base and job base
“… an international marketing organization for Virginia exporters…”
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My organization’s goal is to help you sell internationally in order that you pay more taxes and hire more people and pay them better salaries.
Virginia companies exported 36.1 B in 2014 almost equally divided between goods and services.
Customized Research
• Who is importing my product or service?
• Are there any regulations I need to be aware of?
• What is the best way for me to sell my product or service internationally?
• How do I find a local partner?
20+ More Topics
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We can assist you in many ways. We can perform customized secondary or primary research for your company. My team of market researchers in Richmond can identify top international markets for you once we understand the drivers that are going to cause an individual or organization to purchase your product or service. For example, I work with a lot of companies in NoVA that provide law enforcement training. Drivers for them are countries with a lot of murders, human trafficking etc…we have done research and identified several Central and South American countries that are good targets for their training. Once we have determined that there are international markets for your product or service, often companies will want to get specific questions answered about that particular country. Virginia has contracts with consultants in 75 countries that provide primary customized research for VA companies. For example, you will be meeting Shaun Masavage who has developed a breathalyzer that attaches to cell phones. Ingram Micro wants to distribute his product in Germany and is telling him that he needs all this info on his packaging and product which he doesn’t think he needs. We are having our German consultants research what is actually required and it turns out that they do need all the information but for $500 he was able to confirm that it was required and knew that he wasn’t wasting his time. We can provide you with customized secondary and primary research for extremely subsidized prices.
I mentioned our German consultant but I want to make sure you know that we have Global Network Partners in these 75 countries. Basically, we have contracts with them to work on behalf of Virginia companies.
Trade Missions
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As soon as we determine that there is market for your product or service, we want to get you in country because we know that is going to accelerate the sales process. We offer a variety of ways for you to meet prospective partners and clients. You can participate in our trade missions, trade show and independent visits to any of the 75 countries where we have consultants. Here is our trade mission and trade show calendar for 2016/2017. I just returned Saturday from leading our Brazilian trade mission. Every company that participated had a week’s worth of qualified meetings plus an interpreter. Our Brazilian partners also organized all the drivers for each company as well as the hotel reservations. We also organized evening meals and a tour of Rio for any company that wanted to participate. The state of Virginia subsidizes these trade missions and it is an unbelievable opportunity for VA small businesses. If these dates aren’t convenient for you or you want to go to another country, our Global Network Partners can arrange 3-5 days of customized meetings for you at any time during the year. GOT TO EXPORTVIRGINIA – CLICK ON VIMEO – 4th page is video about trade missions
• 50 companies accelerate their global marketing efforts through this program each year
• 92% average increase in international sales during the two-year program
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Virginia Leaders in Export Trade (VALET) Program
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In addition to primary & secondary research, in-country customized meetings and trade show participation, our signature program is our invitation-only VALET program. This is our 2-year export accelerator program. At any time, 50 companies are participating and when they graduate, they have increased their international sales an average of 92%.
VALET Program
Program Benefits• $30,000 toward export related expenses• 25 program partners offering pro bono services• Executive training• International sales plan development• Educational events• Customized research (i.e. market analysis, technical
assistance, competitive intelligence)
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Our Export Accelerator is an unbelievable opportunity for Virginia companies and offers a myriad of benefits to your company if it is selected.
State Trade and Export Promotion (STEP) Grant Program
• $578,500 grant from U.S. Small Business Administration • Increases the number of small businesses that are exporting• Funds may be granted for:
– Travel to Market Programs– Website Translation, Search Engine Optimization and Localization– Utilization of U.S. Commercial Service Gold Key Services– Featured Ad in Relevant Trade Publication
Besides our research, customized meetings with qualified international partners or clients, export accelerator program, we have grant money to help specific types of businesses. For example, we currently have money to accelerate the international sales of small to medium size companies that are at least 1 year old and profitable. We also have funds to assist defense contractors expand into global markets.
Oct 4 &, 2016Sheraton Norfolk Waterside Hotelwww.VACWT.org
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I invite all of you to attend our Virginia Conference on World Trade on Nov 4 & 5. As an attendee, you will be able to schedule one-on-one meetings with our Global Network partner from China, Turkey, Canada, Mexico, and Brazil – learn the latest in trade trends, plus network with other Virginia exporters and service providers that specialize in international business.
Going Global Defense Initiative
• $1.8 million grant to help Virginia's defense companies diversify into new international markets.
• Eligible defense-related companies can receive assistance with, export compliance, matchmaking, digital localization, technical translation, and more.
• To determine eligibility, visit ExportVirginia.org/defense
Our website has all sorts of information to get you quickly up to speed about international business. We have short videos on Export Compliance and 1-page fast facts about doing business and opportunities in other countries. Here are some examples of our 1-pagers on the website.
WWW.EXPORTVIRGINIA.ORG I want to remind you one more time. Outside U.S. borders are markets that represent 73% of the world’s purchasing power, 87% of its economic growth, and 95% of its consumers. As a Virginia company, you have huge amounts of resources to help you go after these international opportunities. E-X-P-O-R-T Export/Export/Export VIRGINIA
