The Export-Import Bank of the United States and the U.S. & Foreign Commercial Service are out with their basic guide to exporting book, a fantastic tool for Oklahoma exporters or those businesses interested in developing international markets.
Check it out here: https://tinyurl.com/GtExpt
Oklahoma firms, are you considering an expansion internationally?
Velocity Global has a few tips on what you need to consider before you do.
According to Velocity Global, if you’ve decided to pursue business opportunities abroad, “there are a few key pointers to remember when thinking about taking your business overseas. All of these tips will help you avoid wasted costs, achieve growth quickly and efficiently, and diminish risks.”
Take your next step by learning what to look for and where to invest your time and money via this guide from Velocity Global.
The below interview originally ran in the January 2017 edition of The New Pioneer magazine. It is reproduced here with the express written permission of the Oklahoma Department of Commerce.
Chuck Mills
Q&A with Charles D. Mills, President of Mills Machine Company, on his company’s use of the State Trade Expansion Grant Program offered through the Oklahoma Department of Commerce.
What initially made you decided to apply for the STEP grant?
“Since the grant was written for international marketing programs and I had always wanted to translate my website into several other languages, it was a perfect fit for my company. We chose Spanish to be the first language for translation because we were expanding our export market in Mexico, Central and South America.”
How has having your website translated into Spanish helped to increase opportunities/actual sales results?
“Our distributors have commented on how helpful the translated site is for them and their customers in trying to explain our product line and the advantages of our custom designed products.”
How did STEP funds help you save money in the long term?
“The STEP grant funds supplemented our investment for the translation costs which saved us several thousand dollars.
“As a relatively small company I probably would not have been able to come up with the money to translate my site, that is why I had not done it sooner.”
Describe the application process for the STEP grant.
“The application process was pretty involved but the questions were simple and straight forward. It requires you to define and update your international business plan which is always a good exercise for any business to do on a regular basis.”
What recommendations would you give other companies looking to apply?
“The STEP grant that I was awarded was $5,000 (the current cap is $2,000) and the cost of the translation plus the software and labor required to put that on our website cost us a little over $8,000. So, the new cap of $2,000 would still help but we obviously would have a lot more investment from our side. You could possibly at least translate your home page. The first thing that you need to do is contact your webmaster and see what is required to embed the software into your website and then shop around for a translation company that has good references in translating your industry’s terminology. Be aware of the different dialects and try to find some middle ground where people from different regions can understand your information. Use any local contacts that you have to provide guidance and translate your industries terminology into their language.”
What are some key takeaways from your experience?
“Do your homework, have a plan of what type of marketing that you want to apply for. You could translate your website or a brochure, attend ExporTech, exhibit at a trade show or whatever type of marketing that would grow your company.”
What is the primary reason peer companies should consider this grant other than the export portion?
“Take advantage of your tax dollars to supplement your marketing efforts to grow your company globally. Ninety-five percent of the world lives outside of the United States so take advantage of the opportunity and let’s grow the economy!”
For more information visit: okcommerce.gov/stepfund.
Read more about Chuck Mills and his century-old Oklahoma business in this profile from The Oklahoman.
(Top photo credit: Photo by Jim Stafford, For The Oklahoman.)
Pulling from our friends at the Federation of International Trade Associations, there are opportunities for Oklahoma businesses to boost their bottom line by trading with partners in Chile.
According to U.S. Census data, trade between the United States and Chile totaled $24.1 billion in 2015, with the U.S. exporting a total value of $15.4 billion and importing $8.7 billion worth of goods.
The main goods exported by the United States include mineral fuels, aircraft and machinery as well as vehicles. The main goods imported from Chile include copper, agricultural products and wood products.
Check out the Chileyello business directory to find potential partners and sectors.
For the full country report from Chile by the Federation of International Trade Associations, click here.
One obstacle Oklahoma firms with little experience of exporting may run into is the challenge of knowing just where to begin. While U.S. and Oklahoma-state agencies are there to help, another tactic may be to use a tool available at the click of a mouse.
Google’s Global Market Finder tool is free and simple to use. It provides an easy step for those Oklahoma manufacturers interested in learning about what niches and markets lie outside the U.S.
According to Google, the global market finder has access to more than 1.9 billion customers around the globe, including connecting to what geographic locations where their products are in demand, estimating costs and providing translations for non-English speaking partners.
For those interested in learning more about export opportunities, real, live trade professionals are also available to help at the local level. Those interested in speaking with Oklahoma-based trade professionals should contact Jennifer Springer at the Oklahoma Department of Commerce or Marcus Verner at the U.S. Department of Trade.
(Top photo: The Oklahoma Department of Commerce – by Bo Apitz).
The Oklahoma Department of Commerce announces the Oklahoma STEP Forward Enhancement Fund, part of the State Trade Expansion Program, an export promotion initiative that makes matching-fund grants for states to assist small businesses. This grant is funded, in part, through a cooperative agreement with the U.S. Small Business Administration.
“The intent of this program is to increase the number of small businesses that are exporting, and to increase the value of exports for those small businesses that are currently exporting,” said Jennifer Springer, Director of Global Recruitment and Trade Services, at the Oklahoma Department of Commerce.
Download the STEP Fund Flyer here.
Funding for this year will help eligible companies to offset the cost to participate at designated international trade shows and allow them to promote their Oklahoma-made products on a global scale. In addition, other services such as website translations and marketing design; compliance testing; and shipping of sample products into international markets can be used toward the grant as well.
“The STEP grant, in partnership between the U.S. and Oklahoma Department of Commerce, is an incredible opportunity for Oklahoma exporters to receive marketing assistance to promote their products or services worldwide,” said Chuck Mills, President of Mills Machine and previous STEP grant recipient. “The program enabled us to translate our website into another language which made it easier for our customers to understand our product line!”
To be considered for the Oklahoma STEP Fund, all applicants are required to submit an application and supporting documentation. The Oklahoma Department of Commerce will begin taking applications from Oklahoma small businesses starting November 1, 2016.
A full application, guidelines and requirements can be found online at www.okcommerce.gov/stepfund. For more information, contact the Global Recruitment and Trade Division at the Oklahoma Department of Commerce at (800) 879-6552, or 405-815-5136 or Jesse.Garcia@okcommerce.gov.
One concern that many Oklahoma exporters have about doing business overseas is worrying about a lack of payment once services are rendered or a product is delivered. Tools offered by the Export-Import Bank of the United States such as Export Credit Insurance, which amongst several benefits, can insure against nonpayment by international buyers.
However, there are occasions where private firms specializing in collecting payment from overseas are necessary. Altus Global Trade Solutions is one such firm with a presence in 116 countries worldwide. They are a fully bonded company licensed in all states and countries that require it. In addition, Altus offers its own credit reporting system to inform agencies such as Experian, Dun & Bradstreet and Equifax of your debtor’s credit.
Altus offers negotiable rates for its services, which include financial investigations of debtors bank accounts, assets and liabilities. They also claim that less that due to the thoroughness of their investigations, less than 1 percent of their accounts ever reach litigation. If they do, Altus is a member of the Commercial Law League of America.
To learn more about Altus Global Solutions, visit their website here or contact Andrea Nicole Lawrence.
While Oklahoma businesses may have difficulty picturing how to best secure stable and reliable customers outside of the U.S., there are incentives, especially for small businesses, to explore broadening their customer base to international markets. According to the latest white paper from the Export-Import Bank of the United States, small businesses that export products are 17 percent more profitable than those that do not.
If you’re an Oklahoma small or medium sized business ready to explore these options, check out the EXIM publication that helps firms determine who they’re doing business with and how they can ensure full and timely payment.
Check out “Export Evaluation: 7 Things Every Foreign Buyer Credit Report Must Have and Why.”
If you’ve still got questions as an Oklahoma business owner interested in learning more about exporting abroad, reach out to us at info@okgit.com and we’ll point you in the right direction.
Shipping product or payments abroad can be a daunting proposition for first time Oklahoma exporters. Even established business relationships can face challenges when doing business from a distance should an international partner file for bankruptcy, run low on cash or fail to pay an invoice. Concerns about resolving these issues keep many Oklahoma exporters from exploring options outside the U.S., but there are resources to ensure that risks businesses take are covered should the worst happen.
Below are three options for insurance that help protect the investment that Oklahoma exporters make when doing business abroad.*
Meridian Finance Group – Over the past 20 years Meridian Finance Group has helped hundreds of companies increase their sales using accounts receivable insurance. All policies brokered by Meridian are backed by top-rated credit insurance companies. We offer policies from every underwriter, enabling us to quote the most competitive terms and premium rates in the market. More significant than Meridian’s ability to place coverage is the comprehensive support we provide to our customers.
Euler Hermes – Boasting itself as the world’s leading provider of trade credit insurance, Euler Hermes provides the insight and resources you need to manage, maximize and protect your receivables. When you initiate a business credit insurance policy, their experts analyze your customers’ creditworthiness and financial stability. We then assign them specific credit limits; these are the amounts we will indemnify if those insured customers fail to pay. Our underwriters are industry specialists who will work closely with you to deliver in-depth credit analysis and ongoing account monitoring to provide early warning of potential credit risks before they become a loss.
The Export-Import Bank of the United States – If you’re a tax payer, you’re already invested! The EXIM Bank’s Export Credit Insurance empowers American exporters to safely offer competitive open account terms to international customers, while protecting against nonpayment. They offer policies featuring free credit analysis of foreign buyers, streamlined processing and no up-front costs: no advance premium, no first-loss deductible—nothing owed pre-shipment. You pay only for what you ship, after you ship it.
* The Oklahoma Governor’s International Team does not endorse the services of the above organizations.
(Photo credit to Stan Shebs.
Shared from our friends over at GlobalTrade.net, Oklahoma-based companies have an opportunity to expand their business interests with trade partners in the eastern Mediterranean and Middle East. According to the latest country report from GlobalTrade.net, trade between the U.S. and Israel has expanded eightfold since the signing of the countries’ free trade agreement.
As noted in the report, “while technical barriers persist for agricultural goods, Israel has been removed from the watch list of countries not adequately protecting intellectual property rights, opening the way for new business opportunities.”
Navigating those technical barriers might be a concern, but for Oklahoma companies there are partners available right here at home that may help facilitate a smooth transition. Current OKGIT chair Susan Robertson, head of the Oklahoma Israel Exchange (OKIE), is just one of the partners available for Oklahoma firms interested in establishing ties with Israeli commercial and trade partners.