SBA Tooting Going Global Bell Loud and Clear

In SBA's January Solutions Newsletter

Here's a sample question posed in the newsletter:

"How can the Internet help my business get into exporting?"

Answer

Watch for future postings on this same subject. Also, be sure to check out our Top Ten list (right side panel) of great global business resources featuring SBA's International Office of Trade as No. 6.

If Craig can do it, you can too: Go Global

In E-Commerce News

A motor scooter in Manchester, an apartment in Amsterdam, a poster in Paris. All are obtainable via Craigslist, an online bulletin board -- available only in English for now -- that presents a new challenge to the established players in the estimated US $100 billion global marketing for classified advertising.

Find out what Craigslist is doing on the international front here: "Craigslist's Global Expansion Could Threaten Big Players"

Weak Dollar, Strong Sales

In The Wall Street Journal, 1/20/05 (subscription only but available through ContraCostaTimes.com 1/21/05)

There was a great article in the WSJ yesterday, "Weak Dollar, Strong Sales," and it covered how declining currency allows small U.S. manufacturers to reap profits from exports. Look out world! Small businesses, if they haven't already, will soon be knocking at your doors for business.

Here are a couple of highlights from the article:

• Given the weak dollar compared to the euro, having parts made in USA is a bargain compared to what it costs in Europe.

• A company based in Cleveland claimed, "Without currency shifts, our international business would have grown, but not like this." The small company -- U.S. $8.7 million in sales -- indicates they do business in half-dozen different countries, including Mexico, the United Kingdom, Australia, and Canada and soon will be looking at opportunities in Asia.

• Currency fluctuations also expand business for the larger companies that buy parts from smaller companies. Yeah!

• There are no stats out right now to measure the volume of exports from small businesses since the dollar tumbled but the article indicates that small businesses are moving swiftly to capitalize on the opportunity.

• Although what is seemingly an ancient stat, the article claims between 1987 and 1997, exports by smaller U.S. producers grew by 169% from $74 billion to $198 billion. It gives you a good indication of the power behind small businesses when they set their minds on going global!

• The last part of the article, which offers excellent advice, finishes up with this: "Foreign business is important to our future," says Mr. Mottinger, but he adds that it isn't a quick sell. Superior worked on expanding its Mexican business for five years, but sold almost nothing in that country. It finally broke into the market in 2002 and last year had over $47,000 in sales in Mexico, making it Superior's third largest market after the U.S. and Canada.

While he says the lower dollar has opened new markets -- and he hopes it stays at favorable rates -- he doesn't count on currency changes to carry his business into the future. "It's dangerous to bet on the dollar," he says. "You need to be low-cost and very efficient, no matter where the dollar is, and that's what we're doing."

Well said.

Forecast for 2005: Lots of Exports From America

In USAToday.com

Economists from Merrill Lynch and Global Insight offer their predictions on what to expect in 2005 but instead of saving the best for last (as the author did in the article), I'll give it to you first:

"In general, I'm very optimistic about this year," Lekach says. "The euro (has been) very strong, so America can export a lot."

"Stop Working" -- Create a Global Business!

In ArriveNet.com

I got the biggest kick out of the press release featured below. It announces the title of a new book, "Stop Working!" which claims to tell you everything you need to know on how to create a global business and leave the rate race. Sounds enticing, eh?

It gets even better. Here's the lead to the release:

"For the average working American, globalization represents layoffs and the loss of security. But for business owners, particularly new ones, globalization is an enormous opportunity. As author and veteran business consultant Rohan Hall writes in his new book, "Stop Working!," it is now possible for small and mid-size businesses to compete successfully and win against global corporations -- and "Stop Working!" tells exactly how."

Want to see how it's done? Go here:
"Stop Working!"

Abridged Borderbuster 1/5/05

If you are not a subscriber to Borderbuster, here's a glimpse of what you missed this month:

CONTENTS

1. Welcome From The Publisher
2. Feedback From Our Readers
3. Little Global Giants*
4. Business Cultural Tips: Have Some Fun!*
5. Global Allies Better Watch Out For China
6. How I Went Global: Ongoing Series // Globalize Your Web Site*
7. A Reader Asks: Q&A*
8. Everybody Loves a Freebie -- repeat: FREE OFFER*
9. The IBM/Lenovo Deal: Victory for China?*
10. New Research on Canada’s Small Business Export Markets
11. International Council on Small Business*
12. Blogs Are Catching On!*
13. Watch for Laurel’s New e-Book: “Godzilla Global Marketing”*
14. Take A Walk On The Wild Side (TAWOTWS)*
15. Wind Behind Your Sail*
16. Miscellany*

*Indicates exclusive to Borderbuster subscribers only.

Sample section:

4. BUSINESS CULTURAL TIPS -- HAVE SOME FUN!
*Subscriber Exclusive*

Enjoy. And remember, there is no such thing as a universal attitude. These are just guidelines so when in doubt, ask while visiting a foreign country.

• General Mills had two problems with one product. When it introduced instant cake mixes in the United States and England, it had the problem of overcoming the homemaker’s guilt feelings. When General Mills introduced instant cake mixes in Japan, the problem changed; cakes were not commonly eaten in Japan. There was no guilt feeling but the homemaker was concerned about failing. She wanted the cake mix as complete as possible. In testing TV commercials promoting the notion that making cake is as easy as making rice, General Mills learned it was offending the Japanese homemaker who believes the preparation of rice requires great skill.

• Existing perceptions based on tradition and heritage are often hard to overcome for the Chinese. For example, marketing researchers in Hong Kong found that cheese is associated with Yeung-Yen (foreigners) and rejected by some Chinese. The concept of cooling and heating the body is important in Chinese thinking; malted milk is considered heating while fresh milk is cooling; brandy is sustaining, whiskey harmful.

• Procter & Gamble’s initial advertisement for Pampers brand diapers failed because of cultural differences between the United States and Japan. A U.S. commercial that showed an animated stork delivering Pampers diapers to homes was dubbed into Japanese and the U.S. package was replaced by the Japanese package and put on the air. To P&G’s dismay the advertisement failed to build the market. Some belated consumer research revealed the consumers were confused about why this bird was delivering disposable diapers. According to Japanese folklore, giant peaches that float on the river bring babies to deserving parents, not storks.

Source: “International Marketing” (tenth edition) by Philip R. Cateora and John L. Graham.

To subscribe to Borderbuster, visit:
Sign Up For Borderbuster Here

The Public Forum Institute's (Inter)National Dialogue On Entrepreneurship

Every once in a while I stumble upon something I already know but refresh myself on just how valuable the information is. Such is the case with the Public Forum Institute's National Dialogue On Entrepreneurship (NDOE). Here you will find all sorts of things pertaining to entrepreneurship, including economic development and education, understanding and helping entrepreneurs, statistics, reports and my favorite: "Global Review."

Under "Global Review," you will see overseas news, regional efforts, data and statistics and global resources.

For example, two sites I visit frequently are featured in the Regional section:

Small Business Service (SBS) U.K. Championing the interests of small businesses and Enterprise Ireland -- with one of the first things I notice is a seminar put on by Ernst & Young on "Doing Business in the U.S.!"

For those of you who don't know a thing about the NDOE, this site is worth visiting. The United States is still considered the leading expert on kindling the "global entrepreneurial spirit" but many other nations around the world are also encouraging a climate of risk taking, innovation and new enterprise.

Visit: The Public Forum Institute's National Dialogue On Entrepreneurship -- Global Review

A Conversation About Going Global: Listen To Archive For FREE!

In Small Business CEO

A special thanks to Steve Rucinski (Small Business CEO), Anita Campbell (Small Business Trends) and Peter Thusat (SMB Trendwire) for allowing me the opportunity to talk about a subject I am so passionate about: going global. It is our gift (listen in below) to all of you and we hope it encourages you to make going global one of your new year resolutions! -- All the best, Laurel

~~~~~~~~~~
Note: This AudioCast is Free!

-- Do you need new markets to grow?
-- Do you have a perception that going global is a huge effort?
-- Do you have the Global IQ to get it done?
-- What are the best countries to export to?
-- What resources are there to help me?

These questions and more are answered by one of the best small business globalization experts available, Laurel Delaney on our SMB Trendwire AudioCast. Learn more about what we call WII-FM (What’s in it for me) in taking your small business global. Laurel answers several audience questions and talks about what a small business should do and not do to go global.

This call was held December 30th at 4 pm EST but you can listen to the archive for FREE by clicking here.

Or, go here to the page link that takes you to the broadcast.

Miracle on eBay Street: Starring ... Entrepreneurs!

In The Financial Times

More on how eBay helps set loose the international entrepreneurial spirit. Here are the last two paragraphs from this wonderful commentary:

• The third explanation is perhaps the strongest: eBay has helped to unleash the entrepreneurial force of millions of small business people, giving instant access to bigger regional, national, or even international markets. The tie-seller from Michigan, for instance, has sold an average of three items a week online this year. That may not by itself provide a living, but it is typical of the millions of people who can supplement incomes, or create full-time businesses, thanks to the online marketplace.

• The simple but powerful ideas that have combined to make eBay an internet powerhouse could one day end up having a far broader effect on global commerce. eBay itself points to a potential market for online auctions of $3,000bn, eventually spanning things such as industrial equipment, wholesale goods and specialised business services. Such grandiose claims smack of internet hubris, circa 1999. But after the advances of the last few years, they are not so easily dismissed.

To read the entire editorial, visit: A miracle not just for Christmas

Join Us for a Conversation on "Globalizations Impact on Small Business" December 30th at 4 p.m. EST

In SMB TrendWire

Please join us for a conversation on "Globalizations Impact on Small Business" where I will be sharing my knowledge on what it takes to expand your business internationally, including what factors to consider before going global and whether China should be a part of your strategy. I will also be answering your questions and talking about what a small business can do to go global.

This call will be December 30th at 4 pm EST, USA and will last for approximately 45 minutes.

To register for the event, click here -> SMB TrendWire "Globalization" registration page ... and then be sure to scroll down to the registration box at the bottom of the page.

See you Thursday!

Cheers,
Laurel

Melding Radically Different Corporate Cultures

In The Ledger.com

Small businesses can learn many lessons from this interesting article on Chinese computer make Lenovo Group who just bought IBM's PC unit.

Here's a question posed in the article:

American multinational companies outsource manufacturing to China. Why can't a Chinese company outsource management to the United States?

Find out the answer here: Chinese Buyer of PC Unit Is Moving to I.B.M.'s Hometown

Happy Birthday World Trade Organization (WTO)!

In Inc.

Find out how the WTO is opening the minds of small business exporters to possibilities that might not have been there before:

"WTO is an organization best known for sparking riots also deserves some credit for promoting the interests of American entrepreneurs."

Trade Mission Builds Chinese Ties For Small Businesses

In MSNBC

The following article link presents a good look at how small busineses located in Pennsylvania are making great strides in China with the help of supporting organizations, including SBA. Here are a couple of engaging snippets from the piece:

• "The cultural changes occurring in China right now are simply overwhelming," he said. "The openness to western product and western culture is shocking."

• Even as the growth of the Chinese economy causes concern over outsourcing issues due to its low labor costs, Mr. Kunkel sees a growing middle class in China with increasing disposable income and an appetite for western goods.

• "You cannot do business in China without having some face-to-face and having a physical presence there," he said. "It's not a believable offer to the Chinese if you're not physically there."

To read the entire article, visit:
Trade Mission Builds Chinese Ties For Small Businesses

New Research on Canada's Small Business Export Markets

In Western Economic Diversification Canada

The Honourable Stephen Owen, Minister of Western Economic Diversification and Minister of State (Sport) today released Western Canada's Small Business Markets: A Survey of Selling. The report presents new findings on domestic and international markets served by western Canadian small businesses in the technology, manufacturing and business services sectors.

"Small businesses are the engine of economic growth and employment in Western Canada," said Minister Owen. "This type of research enables governments to work with other partners to strengthen and expand this essential segment of the economy."

If you are conducting business in Canada or if you are operating in the USA and are interested in learning more about the Canadian small business market, be sure to read the following press release which provides a link to the free-of-charge research report at the end:
Research on Small Business Export Markets

Small Business Targeted By eBay

In AZ Central.com (requires a quick, three-step free registration process)

The following article indicates that eBay is now marketing its services as the place for small businesses to set up shop, sell excess inventory and seek out equipment bargains. It is a far cry from doing business on a large scale internationally but for those who like the idea of saying they at least sold a customer in a place outside the United States, it's worth your effort.

Here's what the article states and it appears there is nothing new being reported beyond what Anita Campbell already covered at Small Business Trends:

• Two key trends: increasing numbers of Internet users and growing global e-commerce. Citing data from IDC, which provides information technology research, Toney said Internet users will grow to 1.1 billion in 2007, from 702 million in 2003. Global e-commerce is expected to grow to $7.1 trillion in 2007, from $1.6 trillion in 2003.

If there was a way that eBay could allow people to sell cases, pallets and containerloads of merchandise one transaction at a time, then I see eBay as a platform to a most remarkable e-commerce future for all of us. But until then, all eBay small-biz shops will just have to settle for selling one single Beanie Babie in Japan, one Pez dispenser in Ireland and one Marilyn Monroe doll in Argentina to make a claim that they are now operating as a global small business.

To read the article, visit: Small business targeted by eBay

A Field Guide to the Falling Dollar

In The New York Times

What I think is intriguing about this article is that it talks about the BIG guys, Volkswagen and Cadillac (a division of General Motors), on what the falling dollar means to our economy yet quotes one of my favorite SBA experts, Harvey D. Bronstein, a senior international economist at the Small Business Administration! Here's the clip on what he and a professor said about the falling dollar:

... said Maurice Obstfeld, a professor of economics at the University of California at Berkeley. "It takes time to reallocate resources to export industries so they can produce more," he said. "It also takes time for foreign demand to adjust, and switch to new sources of supply."

Long-term contracts can contribute to these delays, said Harvey D. Bronstein, a senior international economist at the Small Business Administration. "You have to build relationships and a trust level with purchasers in other countries. This takes much longer than the daily or monthly fluctuations in currency values."

To read the entire article, visit:
A Field Guide to the Falling Dollar

Abridged Borderbuster 12/6/04

If you are not a subscriber to Borderbuster, here's a glimpse of what you missed:

CONTENTS

1. Welcome From The Publisher
2. Feedback From Our Readers
3. Manifesto: Global Guru. Shaking Things Up. Making Things Happen
4. Business Cultural Tips: Have Some Fun!*
5. Wisconsin Entrepreneurs Need To Self-Promote Like Coastal Rivals
6. How I Went Global: Ongoing Series // Franchising In India*
7. A Reader Asks: Q&A*
8. Everybody Loves a Freebie -- repeat: FREE OFFER*
9. Number of Mainland Entrepreneurs On The Rise*
10. Baby Steps Led Mother To National Export Award
11. What, If Anything, Will Sink The Global Economy?*
12. Google CEO Proud of Dutch Auction IPO*
13. Watch for Laurel’s New e-Book: “Godzilla Global Marketing”*
14. Take A Walk On The Wild Side (TAWOTWS)*
15. Wind Behind Your Sail*
16. Miscellany*

Sample section:

11. WHAT, IF ANYTHING, WILL SINK THE GLOBAL ECONOMY?
*Subscriber Exclusive*

While the global economy has been growing at a healthy pace, the prospect of rising interest rates, a housing market crash, oil price shocks and instability in the Chinese economy could create setbacks in the future, according to speakers on a recent Wharton Finance Conference panel titled, "The Global Economy: Have Traction, Will Travel."

To read the entire article, visit:
What, If Anything, Will Sink The Global Economy?

To subscribe to Borderbuster, visit:
Sign Up For Borderbuster Here

Secrets to Conducting Business in China

China -- being one of the most powerful countries on the planet -- is the talk of the world for its phenomenal potential. For all of you who have considered doing business in China and are not sure how to get started, this article (along with a comprehensive listing of resources) is for you: 10 Best-Kept Secrets To Selling In China

Why The Dollar Is Giving Way

In BusinessWeek

Curious as to what's going on with the dollar? If you have time, read this comprehensive commentary:
Why The Dollar Is Giving Way

Baby Steps Led Mother To National "Entrepreneurial Export Award"

In BusinessEdge (Vancouver, B.C.)

Sandra Wilson is putting her best foot forward as she steps up to receive the 2004 Canadian Woman Entrepreneur of The Year Export Award.

The Burnaby-based maker of soft-soled leather baby shoes was honoured last week at a gala dinner in Toronto by BMO Financial Group. “This award means a little bit of recognition of the time, the effort and the energy that has gone into building this business,” says Wilson, owner of Robeez Footwear Ltd. “Most people think we are an overnight success story, but it has actually taken us 10 long years.”

To read Sandra's story about how she started her exporting business in her basement and grew it into a U.S. $15 million-dollar exporting business, visit: Baby Steps Led Mother To National Export Award