Volume 1, Issue 5
Table of Contents

Cover Story:
The World is Flat
When it comes to Global business, the view looks good

RBD Round-Up:
RBD is On the Air!
WRCR teams up with RBD Co-publisher for weekly show
RBD Business Survey
Take part in RBD's 1st On-line Business Survey

DEPARTMENTS:

Economics Round-Up
• The Local Economy
Construction industry confidence rebounds, managers predict greater optimism
• The Smart Investor
Investing From Within: The key to becoming a smart investor
• Economic Viewpoint
It All Adds Up: The Fed takes delight in the economic numbers

Business Round-Up
• The Work-Life Minute™
Small business owners need innovation to battle burnout
• Marketing By Design
There Ought'a Be a Law: Marketing is nothing more than long-distance selling

Ask The Experts
• Business Start-ups
Negotiating a lease - from the tenant's view
• Expensing & Depreciation
Tax incentives for small business

Retail Round-Up
• Who's Hiring?
Summer employment program offers benefits to all
• New In Town

Invest in Your Community
• Provident Bank Charitable Foundation
Works to support help from People to People
• Red Cross Celebrates March
Partners with local business people for the good of all

Odds & Ends
• From The Publishers
• Letters to the Editor
• Rockland Newsmakers

Dedicated Section:
Rockland Business Association:

The President’s Desk
The State of the RBA

RBA/United Way Golf Outing
The Rockland Open: Monday, May 21st

RBA Happenings
• Committee and Council Info
• Calendar of Events
• New Members

Used to be you started a small business and hoped you would find customers right down the street or maybe across town. Today, it’s more than likely you’ll find your customers in New Delhi, or Paris, or Cambodia. These Foreign markets are expanding all the time, offering lots of opportunities for Rockland businesses and others throughout the United States.

In fact, it might be said, the world is once again flat – meaning that there are no boundaries for companies that want to manufacture in Asia, sell in Europe, and invoice from Montebello.

One local business, a small manufacturing concern that wishes to remain anonymous, just started outsourcing some of its back office operations to India, which is smart business for them. “We’ll save literally tens of thousands of dollars,” says the company president. “And we plan to plough that money back into our expansion.” India is the world's fastest-growing free-market democracy and the U.S. is its largest trade and investment partner, which present U.S. companies with very lucrative opportunities. According to the U.S. Department of Commerce, in 2005 U.S.-India trade reached an all-time high of $26 billion, with about $8 billion in U.S. exports.



Many large U.S. corporations are already working in India, outsourcing back office jobs in telecommunications and customer service, but what about a small business? Is there room in this global marketplace for a sole proprietor, small or mid-sized businesses like those in Rockland?

According to Peter Gordy of the Rockland SCORE office, there’s no reason why any small business shouldn’t be able to compete. Gordy, who has yards of expertise in foreign operations, international trade (Europe and Asia) and international trade financing, says that small businesses should do due diligence in researching their target markets, including their customs, their laws and banking systems.

“Very often, you need help, so it’s important to find someone to establish a relationship with in the country where you intend to do business,” says Gordy. “That person will try to sell your product. American exporters are going to find it difficult unless they have a local representative overseas.”

Business in one nation can be worlds apart from its next-door neighbor. The formula becomes all the more muddy depending on logistics. Still, there are a number of salient issues that apply to most all overseas ventures, no matter the country or the business.

Arlene Ferich, who owns and runs New City’s Ferric atelier, spent 25 years designing, building and developing brands in the apparel industry, where she traveled to Paris, London, Tokyo, Hong Kong, Shanghai to work on projects for retailers such as Bloomingdales, Lord & Taylor, LLBean, Chico’s and Target. She used that experience to launch Ferric atelier, which works worldwide with photographers to showcase their art.

The hardest part of doing business internationally, says Ferich, is understanding the cultures you are dealing with. “When dealing with artists you need to be very sensitive, and especially those whose native tongue is not English. Much of the communication is via email - so "appropriate " and clear messages becomes key to success. I wish I was able to travel more to speak face to face—but until the gallery can support that budget, email and phone must do the job.”

Patience is a virtue
As CEO of Chase Marketing International, Marc Weinstein has made more than 20 trips to Asia, particularly China and Hong Kong, to visit his manufacturers. The process of understanding another culture's standards and protocol is integral to success, says Weinstein, and you should research and observe how business act—and react—in the global marketplace before you travel overseas. “One of the things you have to have in China is patience,” Weinstein says. “It’s important to learn that about their culture before you dive headlong into a business venture.”

Foreign markets are expanding all the time, offering lots of opportunity for Rockland businesses and others throughout the U.S. In fact, it might be said, the world is once again flat – meaning that there are no boundaries for companies that want to manufacture in Asia, sell in Europe, and invoice from Montebello.

Business in one nation can be worlds apart from its next-door neighbor. The formula becomes all the more muddy depending on logistics. Still, there are a number of salient issues that apply to most all overseas ventures, no matter the country or the business.

That was what Elizabeth Perlstein discovered when she established School Choice International six years ago. Perlstein’s mission, which was to help American parents find the right school for their children when transferred overseas—shows that dichotomy. The biggest obstacle is the perception that any other market outside the U.S. is a 'foreign' market, but it’s not really not much different from doing business in a different state. “You need to know what you’re doing, or you’re going to waste a lot of time and money.”

Think locally, act globally
But what if a small business like yours doesn’t have multiple sectors to collaborate with? There are some crucial steps to take, but you can expand globally. Here are six to get you started:

1. First, start off with the U.S. Department of Commerce. This should be stop your first stop, regardless of whether you're packing your suitcase or staying put. The department can provide a wealth of information, covering such topics as overseas agents and tax ramifications.

2. Find your potential markets: Obtain trade statistics that indicate which countries import your type(s) of products and then review all of the available market research reports in the countries and industries you are thinking about—you’ll need info on everything from market openness, to tariffs and taxes, distribution channels, and other important considerations.

3. Identify three to five large and fast-growing markets for your product. Check with the U.S. Export Assistance Center (see sidebar) for three to five markets for your product and then analyze them for market growth in good and bad times. Perhaps you need to find some smaller, but fast-emerging markets where there may be fewer competitors. Arlene Ferich represents artists in Croatia, for example, as well as from France and Italy. “I have been traveling my entire business career from Europe through Asia,” says Ferich. “I have watched the shifts in our world and see we are one world faced with problems but surrounded by so much beauty.”

“It’s important to find someone to establish a relationship with in the country where you intend to do business. That person will try to sell your product. American exporters are going to find it difficult unless they have a local representative overseas.”
Peter Gordy, Rockland SCORE

4. Research the particulars of the market — and the market for your product. A potential land mine for Americans looking to do business overseas is the mistaken assumption of novelty — that a product or service, by virtue of being "American," is somehow unique enough to sell itself no matter where or how. Investigate your market exhaustively to determine whether, in fact, you've got something someone there will take an interest in. And remember, this is no different than what you would do before going into business in Rockland. For instance, would you open a video store in Congers if there were another right down the street? Probably not. You’d research areas where a video store would have a good chance of success.

5. Spend some time determining just how "different" things will really be. One assumption that many domestic businesses are too quick to make about entry into international markets is that they're drastically different from the U.S. — those laws, commercial customs and the like are, by definition, exotic and bewildering. That certainly may be case in some places — laws and practices of certain
countries in Latin America, for example, have been described as such. But also make sure to find countries where the U.S. has a positive balance of payments.

6. Seek out local guidance. Every overseas market is not a mirror image of the United States, so you should absolutely seek out and work with competent advisers, from attorneys, bankers to service providers, make sure they are based in the areas where you want to be.

“Try asking people who've already done business there if they can suggest someone," says Peter Gordy, of Rockland SCORE. “Go to their embassies and speak to their commercial attaches and find out what you can do to sell your product.”

Remember, too, that many foreign companies call Rockland home. The list includes Weleda, the Swiss company that makes healthcare products, Novartis, Wyeth, Olympus, Clarins, Intercos, Valois, and Fujitsu. You might seek out some guidance from a marketing expert at those companies, for instance, to get a perspective on their local markets.

Get it in Writing:
One final tip could save you piles of both cash and time. No matter if you're selling a product overseas in abstentia or starting a new business by moving to a foreign country, make certain that any contracts you draw up contain a locally enforceable arbitration clause to settle any dispute that may crop up. RBD

Good News If You're Considering Going Global There’s promising news for U.S. companies doing business overseas. U.S. Commerce Secretary Carlos M. Gutierrez recently reported that the trade deficit had narrowed to $58.9 billion meaning that exports are stronger than ever. Trade numbers indicate exports have reached record levels totaling $123.6 billion in October. By the end of 2006, exports in goods to Korea increased 16 percent and expanded 34 percent to China, which is America's fastest growing export market.

“We are also seeing double digit export growth to Korea, Malaysia, Singapore, Mexico, India, Brazil and the largest economies of Western Europe,” said Gutierrez. "Korea and China are huge export markets for us, and there's plenty of room to grow.”

Goods exports increased 16.4 percent in the 12 month period ending October 2006, a sharp accelerated increase over the prior 12 month period. “When we pry open overseas markets,“ Gutierrez said, “American companies, consumers and workers benefit.”

What do you need to work globally?
• You must understand the the place you are doing business—
whether it’s as a customer or vendor.
• You must understand the culture
• You must understand the politics
• You must understand the currency

RESOURCES:
U.S. Department of Commerce, www.commerce.gov, 1-800-USA-TRADE
On this website, you’ll find links and information on everything from how to fill out at NAFTA certificate to find an overseas market for your product.

Small Business Administration (SBA), www.sba.gov
Their U.S. Export Assistance Centers are one-stop shops for small and medium-sized business that need local export assistance. Local contact: Marketing & Outreach, SBA New York District Office - 26 Federal Plaza, Suite 3100, New York, New York 10278; 212-264-7770

Rockland Score, www.rocklandscore.org; 845-426-1206
These local "Counselors to America's Small Business," provides free and confidential business counseling tailored to meet the needs of your small business and your personal objectives. Rockland County SCORE also offers a series of free workshops for both start-up entrepreneurs and in-business small business owners. “We have learned the hard way, by our own mistakes, so we counsel people not to make the same mistakes,” says SCORE volunteer Peter Gordy, who was an importer. “We try to help people become successful.”

World Trade Council, www.westchester.org; 914-948-6444
An arm of the Westchester County Association, the WTC works with businesses throughout the lower Hudson to promote and foster international trade within Westchester and the lower Hudson Valley.

U.S. Commercial Service: www.ita.doc.gov. 1-800-USA-TRAD(E)
The trade promotion unit of the International Trade Administration, their goal is to help U.S. companies export; in fiscal year 2006, the service helped more than 69,000 exporters achieve more than $63 billion in export sales. Services include market research, trade events, introductions to distributors.

Export.gov: www.export.gov
Export.gov is the U.S. Government's online entry point for U.S. exporters. The site organizes export-related programs, services and market research information from across 19 federal agencies and provides a sophisticated cross-agency search capability.

Export/Import Bank of the United States, www.exim.gov/smallbiz
The Export-Import Bank of the United States (Ex-Im Bank) is the official export credit agency of the United States, and helps U.S. companies, large and small, to turn export opportunities into real deals. It provides export-financing products - loan guarantees, export credit insurance, and direct loans - that fill gaps in standard commercial trade financing.

LINKS
• Global Business Web (www.globalbusinessweb.com)
• International Trade Exchange (www.bigex.com)
• The World Bank (www.worldbank.org)
• The World Trade Organization (www.wto.org)
• International Import-Export Institute (www.intlimport-export.com)
• Database of Country and Industry Reports (www.exporthotline.com)
• Library of International Trade Resources (www.litr.com)
• Information on Embassies Worldwide (www.embpage.org)
• International Business Practices (www.worldbiz.com)
• Promote Your Website Internationally (www.glreach.com)
• Europe Trade Leads and Links (www.eceurope.com)
• Translation of Basic Phrases (www.travlang.com)
• Foreign Currency Conversion (www.xe.net/ucc)
• European Yellow Web Pages (www.europages.com)
• In-depth coverage of key international issues (www.oneworld.net)
• The World Factbook (www.cia.gov/cia/publications/factbook)