Going global, generally considered the domain of large corporations, offers great potential for businesses of all sizes and types. 230,736 small and medium sized firms exported successfully from the United States in 2001, accounting for 97 percent of all exporting firms. Very small companies – those with fewer than 20 employees – made up 69 percent of all exporting firms in the same year. Small businesses can export their products and services directly and expand into new markets. Additionally, small businesses can also export indirectly, by being suppliers to exporting companies, and furnishing exporters with parts, raw materials, and services. While there may be risks and challenges, the potential benefit can be significant for the small business that is ready to tap foreign markets. In addition, there are many resources available that provide export assistance, including individual counseling and export financing.

Assessing Your Company’s Export Readiness

Is your company ready for exporting? A company’s managers must consider this question carefully. Entering foreign markets requires commitment from management and a clear export strategy. Managers must seriously consider the following questions as they consider if their company is prepared to pursue opportunities internationally:

• Is your company doing business successfully domestically? The companies that are the most successful at exporting are already selling successfully in the United States.
• What does your company want to gain from exporting? Some companies consider foreign markets to increase profits when the domestic market slumps or to continue company growth when the domestic market has been maximized. Some companies are seeking to diversify their current customer base. Managers should be able to articulate their goals for pursuing exporting.
• Is exporting consistent with other company goals? Managers need to consider whether exporting will cause difficulties or distract from other parts of the business plan.
• What demands will exporting place on the company’s key resources, management and personnel, production capacity, and finance? How will these demands be met? Is your company able to devote a person to developing export markets?
• Is management committed to the long-range goal of exporting? Or is exporting considered a quick fix for lagging domestic sales? What are management goals for the export effort? Company managers should have a realistic view of exporting and the opportunities and challenges that it provides.
• Are the expected benefits worth the cost or would company resources be better used for developing new domestic business?

The U.S. Department of Commerce, in cooperation with other federal government agencies, has a number of resources that can help you address these questions and assist you as you determine whether your company is ready to export. You can take the export readiness test, reference the Basic Guide to Exporting, or view the Export Basics Web Seminar, to study your options and learn more about the process of exporting. Each of these tools can be accessed through the federal government’s comprehensive website, www.export.gov.

Additionally, one-on-one counseling can be obtained from the Trade Information Center – a toll-free hotline that serves as the information hub of the trade assistance programs for 19 federal agencies (1-800-USA-TRADE), or from your local Export Assistance Center (locations can be found at export.gov/commercialservice). Most state governments also have international trade offices, which provide counseling and export promotion services. State trade offices can be located through the Trade Information Center’s National Export Directory. Finally, the Global Diversity Initiative works to increase the export of goods and services from women and minority business owners by integrating export service delivery, education, advocacy, and workforce development. GDI can be reached at 202-482-4792 or at global_diversity@N0SPAM.ita.doc.gov .