In its August 2007 Manufacturing ISM Report on Business, the Institute of Supply Management (ISM) reported a registered 52.9 index of business activity in August's manufacturing sector, from 53.8 in July. Readings above 50 indicate economic expansion, while those below 50 indicate contraction, meaning that growth in the manufacturing sector slowed last month.

"One bright spot for the U.S. economy, however, has been the manufacturing sector's exports, whose growth accelerated last month," The Associated Press reports of ISM's numbers.

Seeing as exports help the economy, it may pay for American businesses to increase exports.

According to How to Export on a Shoestring Budget at the United States government's export portal:

Making the decision to export requires careful assessment of the advantages and disadvantages of expanding into new markets, especially for small and medium-sized companies.

It takes planning, marketing and financing.

As with doing business in the U.S., finding customers and allies overseas requires networking. The U.S. government's export portal, Export.gov, is a good place to start finding contacts. The contacts there are grouped by 19 business categories for you to choose from.

In addition to this free service, you may ask your marketing staff or marketing consultants for help in exporting. There are global marketing firms and firms with affiliations, in which people can offer contacts and introductions. You can create interactive Web sites in other languages and ensure you have a staff person able to reply in the local language of the countries to which you wish to export. The global marketing firms and affiliated firms' overseas colleagues can assist in finding media outlets.

Also, to ensure people in foreign markets know about your Web site, use ads on trade sites, in magazines or buy the mailing lists of foreign publications to reach market members through postcards or letters. Trade shows and conferences also expose your Web site and expand your company's presence.

In a white paper (free w/ registration) available from ExportConsultancy.net, the export consultancy's owner Tony Moore offers the following five tips (paraphrased here):

1) Don't overlook small partners.
By working closely with them you can elicit great service without having to provide huge support incentives.

2) Beware of local costs.
These can include approvals from foreign country governmental agencies. The author recommends "get all the local knowledge you need before you do a deal." The author also raises the specter of local people expecting bribes. Keep in mind that recently a large well-known company based in Europe recently suffered a significant blow to its reputation for being involved with bribes. Reputation matters.

3) Visit the market.
This way you can build a partnership while avoiding the filtering that occurs through simply reading reports or listening to stories.

4) Ensure you understand legal agreements and the consequences of all actions, according to local laws.
Moore recommends, by way of example: "In countries like Belgium and France, it can be difficult and very expensive to terminate a relationship unless you have a rock solid agreement that gives you detailed exit clauses."

5) Pack your products well.
"Freight industry people seem to like to throw things," the consultant warns.

To this, you may want to consider what I call "business time warp." If you're accustomed to doing business only in North America, you're familiar with promoting, selling, closing deals, shipping and billing at a relatively fast pace. In some other parts of the world, however, all of this takes longer. So you will want to adjust your expectations to what is realistic before evaluating how successful or unsuccessful your overseas operations progress.

It can take longer to build relationships overseas. Approvals and paperwork can take longer, shipping will definitely take longer, and getting paid may be an altogether different experience. In some southeastern Asian countries, for example, bill collectors on motorcycles go to customer offices to ask for payment physically.

Resources

Manufacturing Sector Slowed in August
The Associated Press (via MSNBC), Sept. 4, 2007

Issue of the Month: How to Export on a Shoestring Budget
Export.gov, U.S. Dept. of Commerce, August 2007

5 Free Tips for Exporters
by Tony Moore
ExportConsultancy.net