We can help your business GO GLOBAL
The Kansas Small Business Development Center is your starting point for exporting your products (and many services – the U.S. has a trade SURPLUS in services!). A total of 3,341 firms exported $10.2 billion in goods from Kansas in 2018. Of these, 2,770, or 82.9%, were small firms. (Source: ITA)
Exporting enables you to:
- Retain and hone your competitive edge
- Extend the life span of products
- Locate ideal markets worldwide and increase revenues
- Mitigate seasonal or local economic risk
The Kansas SBDC is proud to partner with NASBITE for their Trade Passport international trade training series. Participants may sign up for free and have complimentary access to 20 of the video seminars. If more in-depth training is desired, Trade Passport offers complete access to a growing catalogue of 60 training modules for a nominal fee.
Work with a Certified Global Business Professional (CGBP) for international trade advising:
- International trade readiness assessment – much of the focus on exporting is toward the countries and markets of entry. However, just as important is looking internally; how ready is your company INTERNALLY to explore international markets? Please take this Assessment as published by the Harvard Business Review and then one of our export specialists will be in touch.
- International market research – choosing a country or market using current, quantitative data – and our assistance! And then, determining a market entry method: agents, distributors, partners, or perhaps your own office overseas?
- International Trade Finance – assistance with obtaining international expansion, export working capital loans, foreign buyer credit and receivables guarantees
- Gateway to international trade resources in KC – watch this webinar hosted by the Kansas Department of Commerce to learn more.
- An international expansion requires a great plan! Watch this presentation by the Greater Topeka Partnership’s Dr. Laurie Pieper and Kansas SBDC’s John Addessi on building a robust international business plan. A handout, Elements-of-an-International-Business-Plan-3, with an outline of the slides, off-slide notes and the many resources addressed is also available.
International trade training at JCCC’s Kansas SBDC:
- The Kansas SBDC at JCCC is partnering with NASBITE (National Association of Small Business international Trade Educators) to offer Trade Passport – where you can watch up to 20 video modules on international trade for free – or choose to access the entire library for a nominal fee
- “Riddle of the Exporter” training – an 8 step international launch plan in one seminar (face-to-face online or in-person, depending upon COVID restrictions)
- International Market Research for Exports – an online class to learn the process of market research at your own pace.
Want to work with an SBDC advisor? Please complete our short client intake form and an export advisor will contact you.
CASE STUDY
Your Kansas SBDC Advisor works with you.
Executive Summary: A professional services and products company has exported to a handful of countries, but international trade has not been a major focus.
Challenges: Company is an “accidental exporter,” in that they are reactive to overseas orders but they have done little to solicit them. Company has no export compliance process and is at risk. In addition, company is not utilizing tools and resources that could help them be more competitive, manage payment risk and more.
The KSBDC and client reviewed the Schedule B search engine to determine an appropriate commodity code for sample products in the company’s offerings. The company is outsourcing compliance and export documentation to another firm, their freight forwarder. We discussed how the company is the “exporter of record” and thus is ultimately responsible for any errors, intentional or unintentional. The company was cautioned against overseas customers processing the export documentation, as they may choose a Schedule B number that results in a lower tariff – and the company would be responsible – or even face fines or their import rights for that country being terminated.
The KSBDC and client reviewed a number of databases, including the ITC Trade Map, which shows imports of a commodity in tonnage and dollars, as well as tariff information. We also demonstrated Michigan State University’s Global Edge products, such as their Country Comparator and the Market Potential Index (MPI).
Once we had determined a potential market (an example market only – more work remains to be done with additional databases and analysis), the U.S. Commercial Service’s Gold Key program was discussed, in which the Service provides searches and introductions to vetted agents, distributors and companies overseas and facilitates meetings. We discussed utilizing State Trade Expansion Program (STEP) grants to fund the already nominal cost of these programs.
The KSBDC and client discussed 2020 Incoterms. Client is using EXW, or Ex Works, which means that the buyer is responsible for picking up the goods at the company’s factory. We discussed how “C” terms are more common in international trade and would give the company far more control over how goods were packed, loaded, insured and handled, as well as ensuring that the company remained competitive. Recommended that client work with their freight forwarder to determine costs of utilizing “C” Incoterms, in order to quote accurately.
The KSBDC and client discussed trade finance topics. For example, the company can utilize SBA or EXIM Bank working capital loans to provide funding for large international orders. SBA Export Express products can help fund an international expansion, whether that would be in the form of travel, trade shows, overseas websites and marketing, or even a physical plant expansion to enable enhanced capacity.
The KSBDC and client discussed utilizing EXIM Bank foreign receivables insurance to cover up to 95% of overseas orders on open account. Currently, the company is asking for as much as 90% payment in the form of cash in advance, but this is usually not the preferred payment method of many overseas buyers, most of whom are accustomed to open accounts with their vendors. EXIM Bank guaranties allow for flexibility and confidence. Recomended that client work with their bank (if it has an international desk) for assistance with letters of credit and receivables guaranties, in concert with EXIM Bank.
Want to work with an SBDC advisor on your international opportunities? Please complete our short client intake form and an export advisor will contact you.