Shizuoka Business

Archive for the ‘International Business Guide’ Category

Adapting your business to a foreign country’s culture, is not an easy process the first time you try. You will not be able to anticipate the stumbling blocks that would not happen ‘back hone’. More importantly you will not know what you need to do to adapt yourself to the new challenges and tasks at hand. You will need to develop a Small Business Action Plan for your first effort with International Business Development.

Are you a small business and want to develop your international business?

Do you have a limited budget to develop your international sales?

Do you already have domestic clients but are just starting to reach out to international clients?

There are numerous strategies that exist to get you more international clients. A lot depends on your business and your commitment.

Here is an action plan to start your first international business development strategy:

1. Internationalize your website

It is important to make sure your website is not pushing your international visitors away from you. Bad or non-existent cross cultural communication can easily do this.

You can create a website specifically targeting an international audience, in your language. This is a business decision and will depend on the nature of your business and your clients. Companies in non-English speaking countries will often create an English language website specifically to target their international markets.

You may decide to keep your main website targeted to your domestic clients. There are still ways to tweak your website, with very small touches, to give a better experience for your international readers. Have a translation tool on your website. The online translation tools are far from perfect but they do bring your clients that one extra step closer.

2. Research your international markets

International business development is all about you learning to adapt. Adapt your business, your products, your communication, and your sales pitches, to each country you market to.

How do you start if you do not have any contact with your foreign markets? Use everything you have available to you and slowly build up your foreign market research. The beginning usually requires the most effort. It does not take as long as you expect.

If you are just starting out check out all of the associations, official groups for all international data you can find. Use the phone extensively. Do some online research. The goal is to simply become familiar, and feel comfortable, with your market. This is the time to eliminate all culturally inappropriate businesses.

The research that you do at the same time as you are marketing to your audience gives you the best results, but don’t get stuck spending too much time here.

3. Track visitors and results; adjust your communication

This step is very important. The better your analysis is, the stronger your international business potential will be.

Tracking and testing are key marketing tools. Your international communication is a process of testing, adjusting, inciting feedback and learning more about your audience. You have to be sure that you establish measurable goals before you begin testing. You must have a tracking system in place for your goals. And you must also track the responses your communication is having on your international readers. Remember, you can’t manage what you can’t measure.

International business development is all about your capacity to adjust your business to the needs of people in another country. In order to make these adjustments and improvement you must know where you start and how to interpret results. You need precise things to measure.

4. Create a newsletter in English targeted for your international clients and distribute by email and on your website.

Internet marketing today is all about creating an online presence through content. Internet readers actively search for content. Your international readers are the same. One major benefit of publishing a newsletter is it provides a platform for consistency.

A newsletter helps you to stimulate market feedback, with links back to your website and other content provided through different media. Links to audio and video files, quizzes, surveys, free reports and other feedback generating tools published or advertised in your newsletter create reader interaction.

A regular newsletter targeted to a broad international audience will not be as powerful as content marketing targeted to one specific culture. But it is an easy and inexpensive way to start if you have no real idea where you want to market to.

5. Include tools to stimulate feedback

There are tools you can use to stimulate feedback. Quizzes, surveys, polls, questions, homework assignments, and contests are some tools you can use to stimulate feedback.

The key is to find out what your target readers want and need the most. As you learn more about your international prospects you will adjust your feedback tools and enticements.

You can grab hold of your readers by offering free or discounting items that are not information products, discounts available only to your readers. You will have a better response rate if you can identify what your readers really want.

You can encourage readers to participate with you feedback generating tools by offering them free white papers, case studies, reports, guides and other information useful to your readers. If your feedback enticements are information products, you have another platform to use in your internet marketing strategy.

A wise use of different media touches linked to your feedback stimulation tools strengthens your internet marketing. These tools will take some planning and strategy to put in place.

6. Track results and adjust your communication

This is a repetition of step 3. Tracking your results and analyzing your international responses is an ongoing process. International marketing is all about taking things one step and a time and making adjustments along the way.

The two processes of internet marketing and international marketing can be combined right here in the tracking and adjustment. This is also how you can learn about your foreign markets even if you live thousands of miles away and you don’t speak the language. This combination can be powerful at very first phase of your international business development.

Internet marketing is all about adjusting your message real time. It is about being present online in real time. If your communication is outdated no one will listen to you. You need to adapt to your foreign markets. When you start out, you do not know much about them. You must continually check and adjust your communication.

7. Identify a country to target specifically

You will get better results from your international communication if it is targeted to very specific markets.

This means you need to identify a country as a target to market specifically to; and there is no real way to choose which country you should start with other than saying the country with the best potential for real sales. There is no magical formula for choosing the first international target market that works across all industries. Find a country where you can reasonably expect a good client base.

There are obvious cultural obstacles for certain types of businesses. So check with all of the appropriate domestic authorities. They will have good insights into what goes on in other countries. Check with your countries embassy in the country concerned.

You can also base your decision solely on data: export data, industry revenue. You can also base your decision on where your competition is located or not located or if they are considering entering into a market.

International business is all about changing your mindset. Choose a country and get started. The first learning curve is the hardest. So don’t be afraid, jump in and focus on the learning experience of getting to know your market in one foreign c
ountry.

8. Create either a blog or a country specific newsletter for that target country depending on your foreign market.

Now, once you have identified a specific country you want to target, you will need communication targeted to that culture. Custom content for one particular country, not old content repackaged.

A blog may be the easiest tool to get to know your target country. You can also do this with a newsletter published for one cultural audience. The important thing is to have customized content written for one cultural market.

There may be translation costs involved. A blog will probably cost you more than a simple monthly newsletter. But a newsletter can be repurposed into several different forms of customized content such as articles, emails.

If your communication is directly targeting one specific culture, you will get better results than with you broad international targeting. Having custom content in either a blog or a newsletter reaching out to one foreign country is your first real presence in a foreign market. And you do not have to have offices there.

9. Track results and adjust your communication.

OK. So now you have a real presence in your target country. Guess what you next step is?

Stimulate and entice feedback. Track results. Adjust your communication to what you learn from your readers. Give them what they want to know. Test and start over again. You need to adjust your communication to the culture and market you want to create a business relationship with.

This is a learning process. It is critical to your international success.

Your Action Plan Continues

Identifying which products and services you want to sell to your foreign markets is yet another action plan. Use good internet marketing practices based on providing information in the above plan. This gives you the possibility of creating other information products as front end sales for your foreign market.

Once you can recognize the international expertise you have acquired through this process, you are well on your way to developing your business internationally. Use this action plan to continue to expand into other countries.

After you have adapted your business to one country’s culture, the process usually gets easier. You will be able to anticipate stumbling blocks more easily. But more importantly you will know how to adapt yourself much faster than the first time around.

Are you committed to speeding up your international sales cycles?

Learn how to combine cross-cultural marketing tools and international sales strategies for faster sales.

Join us on the International Sales Road Map

Would you like to develop your international business?

Are you a beginner at international sales and marketing?

Read the Beginners Guide Discover Your International Business

Firstly – where do I go and how do I get there?

By far the best place to start is with the Canton Fair in Guangzhou – www.cantonfair.org.cn which runs in April and October. The best way to get there is by flying into Hong Kong either direct or indirect (a short stop over in Dubai is usually cheapest) an economy ticket should set you back around £395. Once in Hong Kong there are a variety of ways of making it up to Guangzhou but I find that the easiest and cheapest way is by train, all trains run from Hung Hom station in Kowloon and arrive at Guangzhou East station in Guangzhou, tickets are around $190HK one way.

What paper work do I need?

You will first and foremost need a Chinese Visa which you obtain through a Chinese embassy here in the UK -http://www.chinese-embassy.org.uk/eng/lsyw/chivisa/. You will need a Letter of invitation from a company or institution in China or Visa Notification Form issued by an authorized unit in China (Visa notification refers to the form of visa notification issued by the Chinese government departments, companies and social organizations authorized by the Chinese Foreign Ministry. For detailed information, you can consult the foreign affairs office of the province, autonomous region or municipality directly under the Central Government where your host is located ie Guangzhou. You can also apply via the Canton Fair website. You will also need to register for the fair, again can be done through the website.

What to expect at the show

The show is HUGE and covers just about every sector of product that you can think of. The show is made up of booths each representing a factory, trading company or agent. It is impossible to gauge the size of the company just by their booth, don’t judge a book by its cover, some of the smallest booths are inhabited by the largest companies. A few years ago we stopped at a very small booth just showing a handful of products, we now spend around $1.5 million a year with them!!

Take your time and wander around for the first day and identify the useful looking booths and make a note of them to come back to. There is no point spending hours at the first interesting company you come across only to find the same thing 50 meters away but 20% cheaper.

Once you have identified the companies you wish to talk to then go back on day two and establish the following information …..

1. Are they a factory, broker or agent?

2. What port do they ship from? (if you are buying lots of products try to group them in the same area, it is then easier to consolidate)

3. How long have they been in business?

4. What are their MOQ’s like?

5. What are their prices like?

Once you have found someone you are happy with you can either try and do a deal there and then but to be honest it is very difficult as there are hundreds of people around and not everyone has our standard of British manners. People will interrupt you all the time and butt in, it really pees me off and many a time I have shouted at rude people!! It is better to take their contact details and do the negotiations by email once you are home. I can’t guarantee that all companies at the show are legit, you will need to research them carefully but to be honest the Canton Fair is VERY expensive to exhibit at and this tends to discourage most if not all scammers.

For people who are starting out I would suggest going through an agent to begin with, you will have to pay them 5% but they take all the hassle out of doing the transaction. They sort all the paperwork, arrange freight to the shipment port, consolidate with other peoples goods if you are buying in less than container loads. This is especially useful if you are buying a large spread of products. They can also be used to inspect and audit goods before they leave China just to check that there are no ‘surprises’.

Your other option (if you have time) is to arrange with sellers at the show to visit their showrooms after the show, depending on where they are, remember China is huge. Sitting in a nice air conditioned office is a much better way to conduct business.

As a guide here are the main production cities – Shenzhen, Shantou, Ningbo (mainly wooden items), Shanghai, Xiamen and Fujian.

The next step

Once you have established a supplier or group of suppliers you need to go through the red tape……

1. How do I get the goods to my door? – Use a freight forwarder, someone like Cedar Forwarding to handle all your paperwork – shipping costs, freight transport, import duty etc. They will organise everything for you. My advise would be to use sea freight as it is much cheaper than air freight.

2. Does the item conform to EU directives and will it need testing? – this is a real minefield. I only really know about my area of trade – toys but most products will have some kind of regulations attached to it. If you are in any doubt get in touch with a test house who will be able to guide you better. The Northern Test House in Leicester are very good - http://nthleicester.com/

3. Make sure the agent/factory know how to label your goods. It is LAW that all imported goods into the UK carry the importers details – company name and postcode so that if there is ever a problem with the item then it can be traced back to you. If you do not do this you are breaking the law ? also check to see if it require a CE mark or any other safety warning.

4. If the item is electrical then you must sign up and pay for WEEE membership, again if you don’t then expect fines and a huge head ache! - http://www.environment-agency.gov.uk…ste/32084.aspx

5. If the item contains chemicals then it must conform to REACH regulations - http://www.hse.gov.uk/reach/

6. What duty will I have to pay? – Use a calculator like this one - http://www.dutycalculator.com/

Be aware some items like candles and plastic bags now come under new Anti Dumping Regulations and the duty rates are huge!!! - http://customs.hmrc.gov.uk/channelsP…yType=document

Once you have done all this then you should be ready to go ahead and arrange to pay for your goods

How should I pay?

Most suppliers will quote for ‘FOB Shanghai’ in other words they will pay for all transport up until the port of shipping – Shanghai. You can go down the CIF route (cost,insurance & freight) but expect to pay a premium for it.

In most cases, especially if it is an initial purchase, China suppliers will rarely offer “net terms”, for example, “net 30″ (the buyer pays 100 percent of the value 30 days after receiving the goods).

Keep in mind that for the Chinese factory, net 30 terms really mean 120 days of project finance — 30 days to buy the material, 30 days to process and produce, 30 days to ship (to North America or Europe) and 30 more days to wait for payment. It is certainly possible to achieve net terms for payment to China, but it will probably be easier for you to move to better terms with your supplier after both sides have established a working relationship and mutual trust. Be prepared not to have net terms during the initial phases of the relationship.

Don’t be surprised if a supplier asks for 100 percent payment in advance. But also realize this is negotiable, just as you wouldn’t necessarily accept the first offer of price without a negotiation. I have found that “30-40-30″ terms are often an acceptable middle ground on payment terms, fair to both parties.

Under 30-40-30 terms, the initial 30 percent of the PO value is paid up front as a deposit. This allows the supplier to buy materials and lock in the price, which can be especially important if you have a long lead time or deal in materials that face great price fluctuations, such as metals. The second payment, the 40 percent, occurs at shipping upon confirmation of quality. The final 30 percent is paid upon receipt and inspection at the final destination. Let’s look at this 30-40-30 from both the seller’s and buyer’s perspectives to find why it is an acceptable middle ground.

Sell
ers worry the buyer will default on payment, so getting 70 percent (30+40) before the goods leave port limits their exposure. Since the average factory in China makes between 10 and 30 percent mark-up, the 70 percent covers at least the majority of the supplier’s internal costs, meaning even if the buyer defaults it won’t leave the supplier out of pocket.

Buyers’ biggest concern is that the goods will have quality issues or not arrive at all. By holding out on the final 30 percent until delivery, the buyer retains some leverage if quality problems require re-work or replacement parts. It is also important to remember that the 40 percent is not paid until after the goods are inspected in China, so quality confirmation must be a key part of the payment process. This is where an agent can be useful. Ask for pictures or samples of the goods before they are shipped.

Once the goods arrive expect a short delay at customs while they inspect the goods and check that everything is in order.

And thats it!!

You can’t learn to ride a bike without… well, a bike. Can you?

International business involves cross cultural communication. It is the inherent nature of the business.

To develop good cross cultural communication skills you need foreign communication exposure. With people. Live.

Cultural skills are fairly easy to develop. But you can’t pick them up reading books. You need hands on practice. Most people only need the desire to communicate with other cultures and some practice to put them on the right track.

But good cross cultural communication skills are not easy to develop if you are an online business without much direct contact with your foreign clients.

If all the cross cultural communication you are getting is through emails or order requests, this is how you are going to pick up the skills. There is simply not enough cultural interaction to actually learn with.

But what can you do if you want to get more international sales? Is there anything you can do to help your online business communicate better with your international prospects and clients?

Well you still need to learn from exposure. But you can laser focus your efforts and make progress.

First, you need to identify the three basic components of cultural communication:

International Communication

International Communication can include all aspects of international communication.

But online, it all begins with adapting your own communication for international audiences.

Make the effort to adapt your all of your communication to speak to all international visitors as well as your domestic market.

Simply make a concentrated effort not to cut out your international visitors by ignoring them.

International communication at this level is more about awareness and being universally polite in written communication. It is is the small details.

Multicultural Communication

Multicultural Communication is when your communication speaks effectively across a wide scope of cultures.

For example you can use International English to target the international English-speaking world.

Multicultural Communication may not be the best solution for your domestic market. Your domestic market might have a very strong sales message that would be weakened by communication aimed at multicultural markets.

You may or may not decide on creating two specific communication strategies: one for your domestic market and one for a wide international market.

This is often obvious to implement in non-English speaking countries. Their local communication in their native language, and their international communication in English for wide multicultural audiences.

It can be an interesting option for American companies, for example, to use International English for a wide international marketing campaign.

This could be an initial option. But this needs to be evaluated carefully. Most international marketing is aimed at specific cultures and countries once the markets are identified.

Cross Cultural Communication

Cross Cultural Communication is about targeting your communication to one particular culture.

This step in international communication requires more specific market knowledge. Your message is totally adapted to one specific cultural environment.

It can be used for effective target marketing in a specific country or ethnic group for example.

The bad news for online businesses is that you really do need some cultural exposure to get it right.

The good news?

Online businesses have the advantage of being able to test, track and analyze statistics. This will help in tweaking cross cultural communication.

If you have identified a country with a large enough market, creating cross cultural communication and working extensively with the statistics will probably be worth the time and effort.

Build On International Exposure

By focusing on each of the three types of cultural communication, you will be able to identify what you are currently doing. You will see where you need to improve international communication.

Use any contact with your international prospects and clients to see what you can do to improve the area you are weakest at.

The more exposure you get with your international markets, the more you will see how you need to adapt your communication. And practice is all it takes.

Your cultural communication skills will improve with time. And before you know it your skills will become as automatic as knowing how to ride a bike.

Are you committed to speeding up your international sales cycles?

Learn how to combine cross-cultural marketing tools and international sales strategies for faster sales.

Join us on the International Sales Road Map

Would you like to develop your international business?

Are you a beginner at international sales and marketing?

Read the Beginners Guide Discover Your International Business