1. EXPORT WASHINGTON ASSSISTANCE
Helping Small to Medium Sized Companies
Achieve Global Export Success in Washington State

2. Have you considered exporting your Goods and or Services into Foreign Markets?
Washington State SBDC has Certified Global Business Professionals and Certified Business Advisors that will assist you in export business planning, market research, market entry and financing initiatives.

3. Today’s Topics Why Export? Export Assistance
Exporting Road Map & Export Readiness
Export Plan Basics
Market Research & Market Selection
Common Market Entry Methods
Export Financing & Logistics

4. 1. Why Export?

5. Benefits of Exporting Increase Sales in Foreign Markets
Find sales growth opportunities in foreign markets with more customers than U.S. Markets
Capture better profit margins when higher price points are available in foreign markets
Higher sales volumes can provide improved economies of scale leading to improved profits
Decrease Impact from Domestic Conditions
Avoid dependence on a limited domestic customer base
Foreign markets may provide outlet for unsold, excess or outdated inventory in slow or depressed domestic markets

6. Lots of customers out there
96% of the world’s consumers live outside the US
66% of the world’s purchasing power is outside the US
91% of Washington small businesses do not export
Population
Purchasing Power
Washington

7. Washington’s Major Export Markets
Foreign Markets
2013 EXPORT REVENUE TOTALS
China
16.7 Billion
Canada
8.9 Billion
Japan
7.0 Billion
United Arab Emirates
4.0 Billion
Mexico
3.2 Billion
Data Source: U. S. Census

8. Washington Key Industry Sectors with Export Opportunities
Manufacturing Technology
Aerospace
Value-Added Agriculture
Health Sciences
Industrial Controls
Bio-Medical
Green Technologies
Professional Services

9. National Export Initiative
Federal program created to increase amount of American products and services sold outside the U. S.
This Program Seeks To:
Improve advocacy for U.S. exporters
Remove trade barriers 
Enforce trade rules
Promote sound economic policies
Increase access to trade financing

10. Washington State Exporting
In 2010, 9% of WA State Businesses Exported
(The National Average is 4 %)
5 Year Goal is to GROW EXPORTING TO 18% 9%
18%
WA STATE
WA STATE 9%
18%

11. Common Fears About Exporting
It’s too Risky
I’m too small
I can’t afford it
Export Myths
It’s too
complicated
I can’t compete

12. 2. Export Assistance

13. Export Readiness Center
Created in 2011 as result of the National Export Initiative
Part of the Washington SBDC
The SBDC provides services designed to help companies grow their business, achieve higher profits and improve operations.
Cooperative effort of Washington State University, other educational institutions, economic development organizations and the U.S. Small Business Administration.

14. Our Goal: Help clients conduct successful business in foreign markets
Domestic Markets
Foreign Markets

15. How We Do It Export Advising Foreign Market Research
Export Readiness Center assists Washington based small and mid-sized businesses that are new to exporting or looking to expand into new markets.
Export Advising
Foreign Market Research
Export Readiness Training
Service Provider Referrals

16. International Trade Specialist provide In-Depth, Confidential, No-Cost
Export Advising
International Trade Specialist provide
In-Depth, Confidential, No-Cost
Export Readiness Assessment
Foreign Market Research
Market Selection
Export Plan Development
Market Entry Strategies
Trade Finance
Export Compliance
Professional Resource Referrals

17. Our Research and Training Foreign Market Research:
Performed by staff of university interns
Custom and targeted to client’s needs
No-cost
Training:
Export workshops – Ready, Set, Export!
Low-cost
Includes Expert Advise from: Trade Specialists, Attorneys, Shippers, EXIM Bank, and Export Finance Assistance Center of Washington

18. Professional Service Provider Referrals

20. Collaborative Advising Approach to Exporting
International Trade Specialist
Certified Business Advisor
State & Federal Export Resources
Research Interns
Professional Service Providers
EXPORT CLIENT

21. Network Collaboration
Two Export Readiness Centers - Seattle and in Spokane.
International Trade Specialists collaborate and co-advise with SBDC Certified Business Advisors across the state.

22. Export Readiness Center Locations
Washington SBDC and
Export Readiness Center Locations
WSBDC Export Center
WSBDC Export Center

23. Export Assistance Organizations
US Dept. of Commerce
USEAC
Bureau of Industry and Security
EXIM BANK
Federal Export Assistance
State Export Assistance
WA State Dept. of Commerce
WA State Export Finance Assistance Center
Local Export Assistance
WSBDC Export Readiness Center
Int’l Trade Specialist – Spokane/Seattle
export.wsbdc.org
World Trade Center Tacoma
General Business Assistance
WSBDC Certified Business Advisors
INNOVATE WASHINGTON
innovatewashington.org
SBA

24. 3. Exporting Road Map & Export Readiness

25. The Path to Export Success
Grow
Exports
Enter Export Markets
Manage Export Compliance
Develop an Export Plan
Evaluate Export Markets
Achieve Export Readiness

26. “Must Have” to Export
Upper management commitment and buy-in to exporting
In-depth experience with the product or service
Adequate cash flow or financing capability
Production capacity and supply-chain capability to provide targeted export products or services

27. “Nice-to-Have” Exporting or international expertise
Foreign language ability
Cultural awareness and sensitivity
Travel to foreign markets

28. Road Map to Successful Exporting
Our Road Map approach is designed to help clients
become successful and sustainable exporters
EVALUATE EXPORT READINESS
PRODUCT KNOWLEDGE
MARKET OPPORTUNITY
OPERATIONS COMMITMENT
FINANCE CAPABILITY
DEVELOP EXPORT PLAN
CUSTOMIZED EXPORT PLAN
MARKET FIT ANALYSIS
MARKET ENTRY STRATEGY
EXPORT PERFORMANCE METRICS
EXPORT COMPLIANCE
IMPLEMENT EXPORT PLAN
EXECUTE EXPORT PLAN & Review Performance
IDENTIFY Under-Performing Export Processes
ESTABLISH CLEAR Performance Metrics
IMPLEMENT Best Practices
For Exporting
STRENGTHEN MARKET POSITION
BUILD Stronger Links with End Users
INCREASE Channel Loyalty & Distribution
Enhance Terms of Payment
Expand Market Enter New Markets
NEW TO
EXPORT
MARKET
EXPORT READY

29. Are You Export Ready?
How do you know if your business is ready to handle the Costs, Risks and Effort required to successfully export into Foreign Markets?

30. Export Readiness Starts Here
Clients need to become Export Ready in all FOUR critical Business Areas
EVALUATE EXPORT READINESS
PRODUCT Knowledge
MARKET Opportunity
OPERATIONS Commitment
FINANCE Capability
Have you successfully produced, marketed and sold products and/or services in the U.S.? Are you aware of demand in foreign markets?
Have you received purchase inquiries from foreign buyers or identified international demand for your products and/or services?
Do you have top management’s commitment to provide direction, financial support and critical resources to enter foreign markets?
Do you have an Export Business Plan with secured financial resources that will fund your market entry and export activities?

31. Evaluating Export Readiness
Go to our website and do the online Export Readiness Assessment:
R The Export Readiness Assessment is a tool designed to help you better
understand your ability to begin or expand your exporting activities. The assessment
covers the FOUR most critical areas of: Market, Product, Operations and Finance. 
Trade Specialists may request that you take the Assessment prior to scheduling an
initial advising session with them. This assessment is designed to give you and the
Trade Specialist helpful information at the beginning of your advising relationship
which can make a substantial difference in jump-starting the advisor's ability to add
value from the first visit and moving forward.

32. 4. Your Export Plan

33. Next Step to Export Readiness
DEVELOP YOUR EXPORT PLAN
CUSTOMIZED EXPORT PLAN
MARKET FIT ANALYSIS
MARKET ENTRY STRATEGY
EXPORT PERFORMANCE METRICS
EXPORT COMPLIANCE
Do you have an Export Business Plan that defines your market opportunity, return on investment and your capacity to deliver?
Do you have research or data that confirms real foreign market demand with end-user pricing that will return acceptable profits?
Have you selected reliable market entry methods that will minimize risks and support distribution and market growth opportunities?
Have you established realistic and relevant performance metrics that helps evaluate your export business initiatives?
Are you aware of current U.S. export requirements and do you have resources to establish a compliance program and procedures?

34. Your Export Plan is Critical
An Export Plan is not merely a document. It’s a TOOL to properly evaluate all the factors that would affect your company's ability to go international.
It should define:
Your Company’s commitment to international trade
Reason for exporting
Potential export markets and customers
Methods of foreign market entry
Export pricing strategy
Exporting costs and projected revenues
Export financing alternatives
Legal requirements
Transportation methods
Overseas partnership or foreign investment capabilities

35. Example Export Plan Outline
Company Profile
II. Current Export Status
III. Product Focus for Export Opportunity
IV. Current Export Resources, Functions & Requirements
V Target Market Research & Country Profile
VI. Market Entry Strategy
VII. Market Development Action Plan (milestones/dates)
VIII. First Year Export Budget and Financing Sources

36. 5. Market Research and Market Selection

37. Market Selection Involves Research
Even if your business has international inquiries or has made recent sales of its product or services into foreign markets…
Avoid “Reactive Market Selection” and Do Market Research to Analyze Market Fit and Minimize Risks

38. Reactive Market Selection Mistakes
Making sales based on unsolicited foreign purchase inquiries
Following a competitor by making “copy-cat” sales to compete in new foreign market
Unwittingly agreeing to a sale through middleman when your company can sale directly into a foreign market
Committing money and resources to unqualified foreign distributors or agents
Committing money and resources to poorly aligned foreign Partnerships

39. The Benefits of Market Research
Good market research improves your market entry by assisting you to:
Develop target list of foreign markets to be screened
Rank target market opportunities by multiple variables
Select & prioritize markets by screened rankings
Estimate market entry resources & associated costs
Select viable market entry methods
Estimate realistic timelines for ROI

40. Available Research Sources
In addition to U.S. Government data bases and internet research sources, the WSBDC Export Readiness Center is provided access to private international data bases through the SBDC and their Universities to seek out the information on behalf of the company.

41. 6. Common Market
Entry Methods

42. Which Market Entry Method?
Indirect Exporting
> Export Management Companies (EMC)
> Trading Companies
2. Direct Exporting
> Direct Sales in Country Through
Representatives or Distributors
3. Contractual Market Agreements
> Licensing
> Franchising
4. Foreign Production (Equity Strategy)
> Strategic Alliance
> Joint Ventures (JV)
> Wholly Owned Foreign Entity (WOFE)

43. Risk versus Reward Market Entry Modes
INDIRECT
Exporting
DIRECT
LICENSING
INVESTMENT
JOINT VENTURE
FRANCHISE
High Investment
Higher Risk Higher Control
Low Investment
Lower Risk
Lower Control
Amount of Investment, Risk, Control & Profit Potential

44. Foreign Market Entry Resources
To improve Market Entry strategy:
Download and read export.gov Country Commercial Guides for your target market.
Attend product relevant trade shows in U.S. or abroad.
Involve an experienced bank with international services that meet your needs.
Use Int’l Attorneys or Accountants - finalize distributor or licensing agreements.
Establish reliable and agreed upon payment terms with foreign buyers.
Attend export business and export compliance training programs (BIS).

45. Foreign Market Entry Resources
Use resources to find and qualify potential buyers, distributors and/or partners:
KOMPASS Database - search for existing Representatives or Distributors
Foreign Commercial Services - find & screen potential players
Vendor Questionnaire & Profile Assessment tools - evaluate players

46. 7. Export Financing and Logistics

47. Resources for Small Business Exporters
Export-Finance Counseling
Export Finance Assistance Center of Washington
Government Export Finance Programs
Small Business Administration (SBA)
Ex-Im Bank of the U.S.

48. Export Finance Counseling
Export Finance Assistance Center of WA (EFACW)
Provides export-finance counseling to current and prospective exporters based in Washington State.
Export-finance matchmaking by referring SME companies to banks, other lenders, and insurance brokers to support their foreign transactions.
Helps clients identify prospective overseas buyers and assess their creditworthiness.

49. Government Export Finance Programs
U.S. Small Business Administration (SBA)
Export Express Loan Program
International Trade Loan Program
Export Working Capital Program

50. Government Export Finance Programs
Ex-Im Bank of the U.S. - Products Support
Pre-Export Financing
Working Capital Guarantees
Post-Export Financing
CREDIT INSURANCE
Guarantees
Direct Loans

51. Payment Methods Cash in Advance Letter of Credit
Documentary Collections
Open account

52. Sliding Scale of Payment Risk

53. Basics of Shipping overseas
International Logistics:
To ship a product overseas, exporters have at least four options. Many exporters rely on international freight forwarders  to perform these services.
Some companies utilize the services of shippers’ associations. Other companies use express delivery or mail services.

54. International Freight Forwarder
A Freight Forwarder is a shipping agent for moving cargo to an overseas destination by air or cargo ships.
Also provide services such as:
Advising on exporting costs
Preparing and filing required export documentation
Advising on the most appropriate mode of cargo transport and making arrangements to pack and load the cargo
Reserving the necessary cargo space on a vessel, aircraft, train, or truck
Making arrangements with overseas customs brokers

55. Wrap-up

56. Criteria for Successful Exporting
Capacity to meet target market product sales
Functional Export Business Plan
Viable market entry and growth strategies
Reliable export performance metrics
Ability to meet export compliance requirements
Export management commitment & capability

57. WSBDC Export Readiness Centers
SEATTLE EXPORT READINESS CENTER
Serving Western Washington
Sharon Sappington  (206)
SPOKANE EXPORT READINESS CENTER
Serving Eastern Washington
Vern Jenkins (509)

58. QUESTIONS?