In today’s globally connected world, the expansion opportunities for American businesses are arguably unlimited. Yet surprisingly, only 1.5% of small businesses in the US export their products or services internationally. Tapping into the benefits of exporting represents a significant growth avenue for entrepreneurs willing to navigate the international trade landscape. And there are countless resources to help you get started.
In this episode of The Global Marketing Show, Andy Karellas, Executive Director of the St...
In today’s globally connected world, the expansion opportunities for American businesses are arguably unlimited. Yet surprisingly, only 1.5% of small businesses in the US export their products or services internationally. Tapping into the benefits of exporting represents a significant growth avenue for entrepreneurs willing to navigate the international trade landscape. And there are countless resources to help you get started.
In this episode of The Global Marketing Show, Andy Karellas, Executive Director of the State International Development Organization (SIDO) and Director of International Affairs at the Council of State Government, shares his best advice for businesses considering international expansion, from “why to export” to “how to export” to “who can help you export.” And he explains how at the core of any successful expansion effort is thoughtful attention to the language and culture of the target market.
The Export Advantage
American products and services command respect – and often premium prices – in international markets. This advantage, combined with data showing that over 50% of consumers will pay more for information in their native language, creates a compelling business case for localization and international expansion.
The benefits of exporting extend far beyond simply increasing your customer base. Businesses that export:
Grow 5-7% faster than non-exporting companies
Pay 18-20% higher wages, on average
More easily weather economic downturns
Andy explains that the last point is particularly compelling. In the previous US recession, companies that did not export saw revenues decline by 7% while exporting companies grew by 18%. The numbers are proof that expanding internationally effectively provides a hedge against domestic economic fluctuations.
Resources at the Ready
Small businesses don't have to navigate international markets alone, he adds. Extensive support systems exist at both state and federal levels.
"Jump right in," Andy advises. "Don't be afraid to ask any and all questions – there's no wrong or dumb question. It's mapping it through and just kind of getting a good understanding of each [resource]. And that's all that’s needed for an export strategy, which the states and all partners, especially the Commerce Department, SBDCs, our trade offices, can guide you through."
He suggests starting with these resources:
- State Trade Offices: Each state has dedicated resources to help businesses export. You can find your state's office through the SIDO directory at sidoamerica.org.
- US Department of Commerce: The Commercial Service has specialists to guide businesses through market selection, pricing strategies, buyer identification, and shipping logistics.
- US Department of Agriculture: Offers specialized programs for agricultural exports.
- Small Business Development Centers (SBDCs): Partnerships between universities, the Small Business Administration, and states that provide localized assistance.
And networking through these organizations:
- District Export Councils (DECs): Comprised of approximately 108 groups across the US, these councils facilitate small business mentorship programs led by professionals with real-world experience.
- SIDO STEP Coalition: Businesses share opportunities and success stories created by the State Trade Expansion Program.
- Industry Associations: Look for specialized industry groups like the National Association of Manufacturers, which can be especially useful for building international focus groups.
- International Executive Resource Group (IERG): A global organization of business leaders with international experience.
- Soft Land Partners: Helps companies establish international operations and navigate foreign markets.
These networks provide opportunities to learn from experienced exporters, share best practices, and find potential partners for international ventures.
Financial Support Through STEP Grants
The State Trade Expansion Program (STEP) offers grants to small businesses to offset the costs of international expansion. These grants can fund:
- Marketing reports and studies
- Translation services
- Ecommerce platform development
- Trade show participation (including registration fees and travel expenses)
- Compliance documentation
Each state administers STEP grants differently, so businesses should contact their state trade office to learn specific eligibility requirements and timelines.
Understanding the Export Process
Andy believes navigating international trade is less daunting if you simply break it down into manageable steps. "There are many layers involved in that whole process, which I find extremely fascinating," says Andy. He adds that the export process isn't typically covered in depth during undergraduate business education, which is why connecting with experienced partners is so valuable.
Here are the key steps in taking your business global:
- Market Research: Identify initial target markets using data resources from the Commerce Department, Department of Agriculture, and state offices. Evaluate market potential, geopolitical risks, and trade agreements. Most importantly, research your target market’s customs and business culture down to the region, soliciting from local, in-country partners.
- Product/Service Preparation: Adapt offerings for international markets. This includes professional translation by native-speaking humans for marketing materials, product descriptions, and websites; anything meaningful to the buyer’s journey that needs to be translated into a local language requires high-quality translation. It also means ensuring that your ecommerce platform can handle international orders and display appropriate currencies and shipping options.
- Compliance and Logistics: Navigate export restrictions, country-specific import regulations, and shipping requirements. Learn about International Commercial Terms (Incoterms) to clarify responsibilities for shipping costs, insurance, and transportation risks.
- Buyer Identification: Connect with potential partners through trade shows and targeted trade missions. "That's where everybody starts relationships," Andy explains, noting that these events allow buyers to see and sample your products directly.
- Follow-up and Relationship Building: Maintain communication with potential buyers. International business often moves at a pace different from domestic transactions, requiring patience and consistent follow-up. "You might not secure a sale for six months or a year. It might take multiple trips before you finally succeed," Andy shares.
State and federal resources designed specifically to help businesses navigate the complexities of international trade can support each step in this process. The key is connecting with these resources early to develop a comprehensive export strategy tailored to your business's specific goals and capabilities.
The Path Forward
Andy's advice for businesses ready to explore international opportunities is straightforward: start by contacting your state’s trade office. They can help assess export readiness, identify target markets, and connect with necessary resources.
With proper preparation and the right partnerships, small businesses can confidently step onto the global stage, accessing new customers, diversifying revenue streams, and building resilience against domestic market fluctuations.
The resources are available, and the opportunities are abundant. For small businesses seeking growth, it's time to consider the world beyond our borders.
State International Development Organizations (SIDO) Links:
www.sidoamerica.org
https://www.linkedin.com/company/state-international-development-organizations-sido/
Connect with Wendy - https://www.linkedin.com/in/wendypease/
Connect with Andy - https://www.linkedin.com/in/andreaskarellas/
Music: Fiddle-De-Dee by Shane Ivers - https://www.silvermansound.com
