For Occasional Exporters With An Eye on Expanding Into More Markets
Many U.S. companies are occasional or reactive exporters, with international sales based largely on responding to incoming sales inquiries from abroad. Some firms may also be actively exporting to one or two markets, or struggling in the export process. This questionnaire provides an initial assessment of your exporting needs and capabilities, and identifies key considerations when looking to expand into new markets. Many of the links will guide you to our export.gov homepage with more information and resources on exporting. The end of this document points to our series of market destinations videos; export markets that may hold potential for your company.
Management commitment is the number one determining factor for export success, and an essential part of any export plan. View The Export Process Overview and My Export Plan.
- Is your company's management committed to developing export markets and willing and able to dedicate staff, time and resources to the process?
Many companies begin export activities haphazardly, without carefully screening markets or options for market entry. Without an export plan, better export opportunities are often overlooked. Start by formulating a well-thought-out export strategy. View My Export Plan, Research the Global Market Place, and Select Initial Markets.
- Does your company have or is it preparing an export business plan with defined goals and strategies?
59 percent of all U.S. exporters sell to only one market, resulting in missed opportunities. A good strategy for expanding into new markets is to look at the 20 U.S. free trade agreement countries. For example, if you are selling to Mexico, consider selling to the 10 U.S. free trade agreement countries in Latin America such as Chile, Colombia, Peru, and the CAFTA-DR countries of Costa Rica, Honduras, Nicaragua, El Salvador, and Dominican Republic. View introduction to free trade agreements.
- Has your firm considered pursuing U.S. free trade agreement countries as part of an export strategy to focus on regions with greater market access for U.S. products?
Can your company meet the increased demand it is creating? More space and equipment might be required to manufacture for the specific countries (which often have their own product standards and regulations) you are selling to. Financing might be needed to include any product modification costs. View Preparing Your Product for Export.
- Does your company have sufficient production capacity that can be committed to the export market? Will financing be required for any expansion?
A big hurdle for many companies is market development, as it requires funds for activities such as international travel, trade missions, trade show participation, market research, and business training. However, federal government export financing programs can assist. View Export Financing and links to the Trade Finance Guide.
- Does your company have the financial resources to actively support product sales in targeted overseas markets?
U.S. businesses should know that protecting your intellectual property domestically does not extend your protection internationally, so companies should do their research first before exporting. View Protecting Your IP Abroad.
- Do you have both U.S. and foreign Intellectual Property Protection for your product?
Selecting and preparing your product for export requires both knowledge of the product and the unique characteristics of each target market. However, before the sale can occur, your product(s) may need to be modified to satisfy buyer tastes, or regulatory requirements in foreign countries. View the Plan Your Market Entry Strategy video set.
- Does your company have capabilities to modify ingredients and product packaging to meet foreign import regulations, cultural preferences, and survive competition?
When shipping a product overseas, be aware of packing, labeling, documentation and insurance requirements. Also, be familiar with methods of shipping, import rules and regulations of foreign countries, and export regulations of the U.S. government. View Shipping Basics and Export Documentation.
- Does your company have appropriate knowledge in shipping its product overseas, such as identifying and selecting international freight forwarders and freight costs to ensure customs clearance overseas?
Experienced exporters have extensive knowledge of export payment mechanisms, extend credit cautiously, and monitor older accounts. A U.S. Commercial Service International Company Profile (ICP) provides key information for credit checks. View Methods of Payment and Get Export Counseling which highlights the International Company Profile.
- Does your company have knowledge and experience of export payment methods such as evaluating international credit worthiness and negotiating letters of credit?
Check to see if your product might require an export license, particularly if your product has military or dual military/civilian use. There are several U.S. government agencies that oversee licensing requirements for distinct categories of products. View U.S. Export Regulations.
- Does your company have knowledge and understanding of U.S. export controls and trade compliance?
The U.S. Department of Commerce supports thousands of U.S. businesses at numerous domestic and foreign trade shows annually, and organizes and certifies trade missions and events. The shows and missions are excellent avenues for networking and meeting prospective foreign buyer face-to-face. View Find Foreign Buyers video set.
- Has your company considered participating in a trade show or trade mission as a first step to exploring the international demand for your product?
Most export sales depend on leveraging a variety of export resources. Along with federal export assistance, key export resources are available at various levels within each state. This expertise can include financing, grants, and business councils to name a few. Your local U.S. Commercial Service can assist in identifying these resources. View Get export Counseling to learn more. Market Destination Videos The U.S. Commercial Service has launched a series of short video profiling dynamic market destinations. Current occasional or reactive exporters looking to expand into new markets might consider Chile, UAE and Peru, among others. Common attributes include growing economies, favorable business conditions, and a strong affinity for U.S. products and services. View the landing page for the Market Destination Videos.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Trade Development and Promotion
- Has your company contacted your local international trade specialist at the U.S. Commercial Service office to discuss federal, state, county and local export resources?