Getting Started FAQ

Getting started is probably the most difficult task once a decision is made to go global. Organizations will normally have a much easier time because they are only attracting members from a wider geographical area. While their marketing and promotion will change slightly, most other things will remain the same. Companies, on the other hand, will have to completely modify their thinking and most of their internal procedures to accomplish this change.

Assuming that you are a "newbie" to global business, following are some very common questions which you might ask:

Question#1--- Why would a small company even consider going global?

Answer---Typically the most compelling reasons for going global would include the following:

Question#2---How do you actually get started?

Answer---Read. Read. Read.

Please read The A-D-D Solution. It will provide you with an outline of how to organize yourself. While this is the plan which we suggest, as a practical matter, most individuals or companies begin by gathering information. The Global Observer © has several articles and a special report which are very useful. You also will find numerous links to important WWW sites at Links to Other Sites and in other parts of this site. Also, the University of Kansas, School of Business, International Business Resource Center, has several excellent articles on topics which are very important to the "newbie". You can find these articles at http://www.ibrc.bschool.ukans.edu/resources/articles/articles.htm

Question#3---After the terms, what would be most important to know?

Answer---Besides the jargon, the most important thing would be the "players" as we call them or the international trade facilitators. The most important would be the following:

foreign freight forwarder---These are the folks who will help you get your products delivered to your foreign customer

customs' house broker---these folks will help you clear your imported goods through customs.

***note: It is not unusual for these two functions to be handled within one company. If you are shipping less than a full container or small shipments, you will probably want to contact a freight consolidator.

export management company or international trading company---This company could assist you with setting up a foreign distributor network and act as your company's export department. An import broker might serve the same function on the import side.

letter of credit examiner or document specialist---This person normally works for the international department of your bank and specializes in knowing how to properly complete and execute the various documents involved in an international transaction so that the seller can get paid.

***note---There are several others whom you will learn about as you become more familiar with what you're doing. However, for most small companies, these companies provide some very special services which will allow you to focus more on selling.

Question#4---Why must I pay these companies? Paper work is paper work. I have plenty of good clerks who can handle this stuff with a little training. Besides, can't I save money by eliminating these companies?

Answer--- The late Dr. William Biddle, former Chairman of the Multilingual Business and Government Studies Program, Temple University, (who was our mentor and personal adviser for many years) had noted that knowledgeable experts in commercial documentation and international trade have suggested that almost half of all commercial documents for international commerce are executed improperly. When one considers that an improperly executed document could result in an extreme delay or a total loss of payment, the importance of these experienced professionals can not be under estimated.

Question#5---Can I get assistance from the government with some of this stuff?

Answer---Yes and no. In order to be able to take full advantage of what the government has to offer, a company or individual has to be very savvy about what the government does. Yes, you can get assistance from a variety of local, state or provincial and national or federal government agencies as well as some private groups. However, you really have to understand what these agencies offer and how their offerings relate to your problem. In the beginning, government agencies can offer you a wide variety of general information sources. Later on you will be better informed and capable of getting more problem specific assistance.
***note---You will find ample links on this site to a variety of government resources from several countries.

Question#6---How will going global affect my employees?

Answer---Good question! Going global will affect almost every department within your company. Your telephone person is going to start to receive phone calls in foreign languages. Your personal assistant is going to receive postal mail in foreign languages as well. Everybody will be using electronic mail a.k.a. e-mail. Your shipping clerk is going to have to learn how to pack differently for international shipment and also will have to learn about some new and different forms which must be completed with 100% accuracy. And you are going to have to answer numerous inquiries, some of which will be silly. And somebody will have to be responsible for assembling collateral marketing materials and mailing packages out to prospective customers.

Question#7---I have analyzed my company, done my research and gathered a considerable amount of what seems like useless information and developed what appears to be a workable plan. Now what do I do?

Answer---Now you contact any reputable international business consultant. At some point, you're going to have to sit down with a professional who knows what is involved in global marketing and you will have to answer some difficult questions so that a proper analysis can be made about the appropriate course of action for your company, given its goals. You need to speak with somebody who can organize the enormous amount of information which has been gathered and help you to understand exactly what it means for your company given its particular goals.

Question#8---At this point, what would be my choices?

Answer---That depends upon your reason for going global. But it really is a question of whether you are going to hire an international trade specialist with a generalist educational and training background and some specific experience or you're going to retain the services of a trade facilitator; import broker, export management company or international trading company or an international business consultant. While they all do similar things, usually the international business consultant has a generalist education and a wide variety of practical hands on experience.

Question#9---What would you suggest?

Answer---Any answer given here will be biased, of course. However, our personal experience has been that a small company starting out in global business is better served if it hires its own international trade specialist and maintains a relationship with an outside consultant who can work creatively with the company's trade specialist. The reason for this is quite simple: an in house trade specialist is promoting the company's own products. International trading companies and export management companies work for several clients and often tend to promote themselves, occasionally at an individual client's expense. Trade intermediaries such as an export management company or global trading company do make the process of going global much simpler for you, but there is a trade off in loss of control of the products which sometimes is not so favorable for your company.

Question#10---As the CEO, how much do I need to know about international business? After all, I've got skilled people working for me.

Answer---As much as you can. We always advise all CEO's to take seminars, correspondence courses or night school to learn about the intricacies of international business. The better informed you are, the better chance you have of making appropriate decisions.

Question#11---How soon can I expect to see some positive results from my efforts? Is six months reasonable?

Answer---No, six months is not reasonable. Some experts believe that obtaining an initial order from a foreign client normally requires at least nine months and could take up to as long as 18 months. Establishing yourself in international markets is a very slow methodical process. This is one reason why many companies give up. They're just too impatient.

Question#12---Do I really have to get involved with the Internet?

Answer---Absolutely and yesterday would not be soon enough. It is crucial for small and medium sized businesses to be connected to the Internet and to begin developing some real expertise about how to use the Internet as a business tool.

Question#13---What do I need to know about the Internet?

Answer---When we first accessed the Internet through Delphi over ten years ago, one had to know about telnet, lynx, gopher, e-mail, ftp and on and on..... Today, you really only need two basic skills: 1)how to operate a WWW browser such as Netscape Communicator or Internet Explorer and 2) be able to send and receive electronic mail, a.k.a e-mail. With these skills alone, you can navigate the Internet and take full advantage of its tremendous resources.

Question#14---Can my small business really compete with the industry giants?

Answer---Yes, in some cases, especially in the area of new technology. We are in the age of innovation and many large companies are so crippled by their stifling bureaucracies that they are no longer able to innovate quickly. Unshackled by such bureaucracies, small companies can innovate and continually improve their products, keeping themselves ahead of their larger competitors.

Editorial Note: If you have a question which you feel should be included here, please send us mail JPG Consulting

Send mail to webmaster@going-global.com with questions or comments about this web site.
Copyright © 2004 JPG Consulting
Last modified: January 28, 2004