Taking Your Business International
Q: I'm interested in doing business internationally. I have done
some reading on the subject, but there is an awful lot to
digest. Have you had any experience in this matter and can you
suggest the best way to get started? -- P. Granger. A: Great
question, Mr. Granger, though not one I'm personally qualified
to answer since I have not had direct experience with
international sales. So like any good columnist without a clue I
can either make up something and hope it sounds semi-intelligent
or I can consult someone who really is an expert on
international sales and let him answer your question. Since my
agreement with The Times prevents me from fabricating anything
other than my true age (I'm 29), let's go with the latter.
I called on Jose Rodriguez, President of RISMED Oncology
Systems, a Huntsville company that provides high medical
technology to radiotherapy professionals around the globe, to
get his input on the subject. Jose is an old friend and client
and if anyone can give pointers on doing business
internationally, Jose is the man.
Jose believes that the decision to do business beyond your own
backyard should be based on your success as a local, domestic
business first. "Unless the business is intended to be one that
sells to international customers only, one should not jump into
international business until they have devoted the time to
develop a good local and domestic business first," Jose
recommends.
Here are a few other points Jose recommends that you keep in
mind when considering an entry into the international business
arena.
Instill Confidence In Your Customer Regardless of the type of
product or service you sell internationally, you must be ready
to provide your international customer with an even higher level
of service that you offer your domestic customers. To instill
confidence in your international customers you might have to
offer such things as around the clock telephone support,
extended warranties, and other services that help the customer
have confidence in doing business with you.
Know The Rules You must understand all of the rules and
regulations that govern international business practices in this
country as well as those in your customer's country.
Understanding the rules will allow you to provide service beyond
the expectation of the buyer and operate within the boundaries
of the law.
Understand The International Shipping Process If goods are being
shipped internationally you must have a thorough understanding
of shipping modes and regulations. Any difficulties with
shipping will always be viewed by the buyer as the seller's
responsibility, right or wrong. Understanding the entire
shipping process and having policies in place will help avoid
shipping problems and keep the customer happy.
Work With Experienced Companies Always look for experienced
companies to work with, especially when if comes to shipping,
insurance, freight forwarders, etc. Such companies are great
allies and will help keep everything in order and will also help
in solving problems related to their end of the process.
Signed and Sealed Never conduct business under verbal orders.
Always put everything in writing with the required signatures.
Doing international business is different than domestic
business. Outside the United States signatures and seals are
required to seal the deal. Don't worry about offending your
customer as this is just part of doing business internationally.
Include A Packing List If shipping goods, always do a packing
list and always number the packages (if 5 packages are being
sent, label them 1/5 [1 of 5], 2/5, etc.). If anything is lost,
they will know which package is missing and you will have sent a
packing list detailing what was in every package, making it easy
for the customer, the shipper and the insurance company to solve
the problem. Also, always insure your goods for at least 110% of
their value.
Have A Damage Policy Always have a note in your paperwork
requiring damage or losses to be reported within 24 hours.
Damage reports should be made to the customer's local delivery
company as well as to the shipping company on your end.
Signing Off If you are selling services abroad, always have the
required paperwork so that as the work is finished or as
deliveries are made, the customer signs off in agreement with
what was delivered.
Ensure Payment Depending on the amount of the sale, always
require payment in advance in U.S. currency or payment through a
letter of credit to be paid out in U.S. currency. You might also
require that the letter of credit be irrevocable and
transferable, that it allow for payments of partial shipments,
etc. The more flexible the letter of credit, the better, and
usually such clauses are yours just for the asking.
There are many other considerations you should investigate
before starting your international business, but that's a great
list to get you started.
Thanks for the great advice, Jose. I couldn't have said it
better myself.
Here's to your success!