One of the least appreciated opportunities for entrepreneurs is in the international markeplace. Here you might
learn why.
Did you understand
exports are increasing three and four times more quickly than the Gross Domestic Product? Its true.
Look at it this way. Some 95 per cent of the worlds population live outside the United States. And the majority of these people would dearly love to buy U.S.-made products. More than two- thirds of the worlds purchasing power is outside the United States.
And the U.S. Commerce Department estimates that only one-third of U.S. manufacturing companies export their manufactured goods. Most small and mid-sized U.S. companies are not exporting at all. It is this core of small and mid-sized businesses
that are your target for profits in the international marketplace. They are not exporting for many different reasons:
* Ignorance. They are unaware of the potential advertise and profits. * Fear. They are worried about language problems, tariff difficulties, shipping, insurance, currency, etc. etc. * Resources. They dont have the measure
or manpower to pursue international trade.
By starting your own export management business
, you may become an intermediary between the supplier in the U.S. and the buyer overseas. This independent or third-party exporter works with the supplier and shows him the profit potential in international trade.
The intermediary deals with concerns about language, shipping and insurance and works on commission so the small or mid-sized company doesnt have to expend any resources. The intermediary brings another benefit to the international trade transaction. He usually specializes in a particular merchandise
line, country or area of the world.
New export intermediaries build no capital investment. They locate buyers and sellers through the Internet and do most of their work at a time convenient to them. Its tailor-made for the entrepreneur who target
to keep his day job while charting his own course in business.
While nobody can say for certain what the future holds with regard to international commerce, one trend is clear: there is a continuing movement toward more open trading policies and fewer restrictions on trade. Look at NAFTA. Look at GATT. Despite all the commotion over lost jobs, the REAL insiders know that for every $1 billion of U.S. products sold overseas, 19,000 U.S. jobs are supported. Today 12 per cent of the GDP comes from exports. Thats why the U.S. government and governments everywhere are seeking to increase trade.
The small exporter can build a sizeably effective living exporting just about anything that will sell in the U.S. as long as similar needs and conditions exist in the target country. This morning I spoke with a man who is looking for suppliers of rags and waste paper. Last month, I spoke with a man who is searching for scrap metal to sell in Turkey and Greece. So you see, even products some people would ruminate on
trash might
be exported!