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The Opportunity in Exporting

One of the least appreciated opportunities for entrepreneurs is in the international markeplace. Here you can learn why.
Did you know exports are increasing three and four times faster than the Gross Domestic Product? It's true.

Look at it this way. Some 95 per cent of the world's 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 world's 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 companies 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 market and profits. * Fear. They are worried about language problems, tariff difficulties, shipping, insurance, currency, etc. etc. * Resources. They don't have the time or manpower to pursue international trade.

By starting your own export management company, you can 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 doesn't have to expend any resources. The intermediary brings another benefit to the

international trade transaction. He usually specializes in a particular product line, country or area of the world.

New export intermediaries make no capital investment. They locate buyers and sellers through the Internet and do most of their work at a time convenient to them. It's tailor-made for the entrepreneur who wants 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. That's why the U.S. government and governments everywhere are seeking to increase trade.

The small exporter can make a good 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 consider trash can be exported!

About the Author

Dennis Hessler is an international trade consultant and publisher. Since 1992 he's been working with new entrepreneurs who want to start their own exporting company. You can learn more about Dennis' trade information products at his website.


 
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Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest / trade in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading.

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