We strongly urge businesses planning to grow this year to look at exporting as the best place to start. Why? Let’s look at the facts.

Goldman Sachs market analysis predicts the U.S. will emerge a strong exporter this year that will share in the growth of the emerging powerful Bric countries (Brazil, Russia, India and China).  Are you ready to take advantage of this trend?

The Export-Import Bank is also bullish. They say U.S. exports rose 16.6 percent in 2010 and are on track to double by 2015 in line with the objectives of the National Export Initiative.

These predictions are based on the surprisingly quick recovery of the global economy and the ability of the U.S. to avoid deflation through decisive policymaking, its underlying productivity, and a favorable demographic dynamic.  And, lack of personal saving – one of the U.S.’s greatest weaknesses – appears to be resolving itself; it’s up from close to zero to currently 5 to 6 percent.

As you evaluate if exporting is a good move for you, consider the following:

1.   Your product has done well in the US. What overseas markets will be able to use it? Are there local competitors? Will your product easily adapt overseas? How can you assess demand for your product in other countries?

2.   How will you sell your product overseas? Will you set up a local office, obtain a local agent/distributor or depend on internet sales? Will you need any special licenses to ship overseas? Will you be able to visit you overseas customers in person?

3.   How will you ship your product overseas? Have you identified international freight forwarders and freight costing?

4.   Does your company have the capacity to support additional production? Are you prepared to accommodate changes in labeling that might be required to conform to overseas markets? Have you identified translators who can help you with documents, labeling and even cultural issues that might arise? Can your current employees help with that or will you hire people on site to be your eyes and ears and provide market intelligence?

5.   How will you finance this growth in your business? What are the special financing tools required for international trade, such as letters of credit? Have you identified financing expert who can help you with these issues? How will you collect your invoices from overseas sales and protect yourself from bad debts?

For more information about how to navigate exporting your products, check our Bibby International Trade Finance reference guide to international trade finance.

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