| For a long time I've recommended focusing
your exporting efforts on identifying small or mid-sized companies that are not now
exporting. (There's more information on how to do this at http://www.spyglasspoint.com).
These companies are rich in potential as profit centers for your international trade
business. By using the small companies as your foothold into international trade, you can
expand either your product line or target countries or both while building your
experience, credibility and profits.
Working with small companies means you can usually deal
directly with company officers to gauge their commitment to exporting. It means you can
more easily gain access (usually!) to the numbers you need to determine if their product
will be competitive in the global marketplace.
What few exporters and especially new exporters know,
however, is that the big accounts may be just as easy and offer much greater returns than
the smaller ones. I know what you're thinking: "Don't the big companies already have
their own export departments? I mean, they must have looked into exporting by now."
And my answer: "You're right. With few exceptions, most big companies have either
export departments of their own or arrangements with outside exporting companies. But they
may need precisely the kind of expertise or contacts you have anyway!"
Let me explain what I mean. Let's say MegaWidgets, Inc.
which employs thousands of people and has satellite offices around the country, is
exporting to Europe, Canada and Mexico. They have arrangements with export management
companies that have experience and contacts in those countries. You may discover, however,
that they would also like to expand into Asia and Australia. Or you may find that they
have been unable to develop a network in Greece despite marketing in other European
countries.
If you have experience with or contacts in these countries
and/or a special familiarity with the products, you may be just what the doctor ordered. I
am aware of independent exporters that developed export relationships with Proctor and
Gamble and a big coffee company. Of course these companies had export departments, but
they needed the special expertise of independent exporters in particular parts of the
world.
Is there a downside? Sure. They may try to hire you,
particularly after you're successful. (Of course, this isn't a downside if you WANT to be
hired.) Or they may bump you out of the way after you've established a network for them.
As always, it's important to "add value" to the transaction by assisting with
service, translations or by expanding their market in some other way.
If you are concerned about being left out of the loop after
doing all the work, you could also hire yourself out as a consultant (I discuss this more
in my trade information products). The point is, you won't know unless you ask.
The Opportunity . . . The Tactics
Yes, it's a dog-eat-dog world out there but there are lots
of opportunities for small exporters like yourself. You hear it all the time. The big
corporations want to be "leaner and meaner" (just once I'd like to hear a
company say they want to be "fatter and friendlier," wouldn't you?). They know
that to get "leaner," they have to focus on what they do best. And exporting
their product to Liberia may not be something they have the resources or time to focus on.
Still, they'd like the business.
This is where you come in. The big companies are trying to
cut costs by letting smaller firms do work which can be performed more easily and cheaply
by outsiders. If you have a specialty which can add something to their bottom line, you
will look attractive to them. The trick is to make sure they understand that.
I've said it before. Focus on what the company wants from
you and not on what you want to provide to the company. Also be aware that what the
company wants may be quite different from what you think they want. Stay aware of clues
both subtle and not-so-subtle.
Your job is not to give the company what it needs but to
give it what it wants. If you can do that, you will make money and the powers that be in
the company will appreciate your cooperative attitude. In a big company in particular,
what you think they want, may not be what they want at all. Be prepared for the unexpected
and stay flexible.
Here are a few other tips when dealing with the big
company. While you as an independent entrepreneur can make decisions quickly, don't expect
the company officials to go along as quickly. They will be wary of allowing you, an
outsider, to make decisions even though that's what they hired you to do! Your job is to
show them how their fears are unfounded.
Make sure you understand all the corporate people who may
be involved in your export decisions. To you, all these extra folks just muck up the works
but your supplier sees them as his safety net. Do not get frustrated. Learn how to work
with them and get them to work for you. Without even knowing it, it is likely you will
become part of a "team" that is focused on the particular exporting challenge
you are pursuing. Realize that you become one member of the team and, at least for the
moment, become a team player. This is often particularly hard for entrepreneurs but the
payoff can be big.
Copyright 2004 by Dennis Hessler |