Looking to Export? Expert Advice is Plentiful

Southern Maryland companies looking to establish relationships with customers abroad can get a lot of help from government agencies and business organizations. Much of that help is absolutely free.

That good news highlighted the first St. Mary’s County Export Forum, sponsored by the St. Mary’s County Chamber of Commerce, The Patuxent Partnership, and St. Mary’s County Department of Economic Development.

The message from the forum’s speakers: Don’t assume you’re ready for international trade until you’ve checked with experts who can evaluate your capacity for risk, investigate the reputations of potential trading partners, and help you establish credit terms that will ensure payment for your goods while encouraging higher-volume orders.

Another key message: Don’t leave money on the table. Free and low-cost guidance for business owners eager to cultivate overseas markets is plentiful.

Paul Matino, senior international trade specialist at the US Commercial Service (a unit of the US Department of Commerce), explained that the Commercial Service exists expressly for trade promotion. Mr. Matino, based in Baltimore, helps Maryland businesses develop quality relationships with foreign vendors and investors.

St. Mary’s County Commissioner Tom Jarboe used the US Commercial Service’s Gold Key program for a project in Kiev, Ukraine. Modest fees scaled to company size and revenues enabled Mr. Jarboe to receive a thorough profile and background check of a potential Ukrainian trading partner, vetted with the help of the US Embassy. The Commercial Service also provides free assistance with foreign government procurement bids.

Currently, the US Commercial Service is recruiting companies for the US pavilion at the huge Hannover, Germany, industrial trade show in April, Mr. Matino said.

There are limits on types of trade with certain countries (North Korea, for example). Check the fine print at the Export-Import Bank website, to make sure your plans are legal. Restrictions can apply to some products even if trade is legal with the country in question.

The Maryland Small Business Development Center specializes in helping companies with the formation, retention, and expansion of an export business. Demand for advice is growing because “Small businesses account for 97 percent of current exporters nationally,” said Kathy MacAdams, SBDC business consultant.

All SBDC counseling is free; specialized training is available for a fee.

Ms. MacAdams recommends creating business and marketing plans specifically for exporting goods and services. A lot of preparation and documentation is involved – identifying target markets, distribution vs. direct sales, packaging and labeling requirements, and more. She and her team can help draft plans or review existing ones to make sure they pass muster with regulatory authorities here and abroad.

“We will help you define where you should be,” she said.

Bill Houck of the Small Business Administration’s Office of International trade also can help assess readiness to sell abroad, and can provide advice on securing financing to expand into exporting. He sends business owners here to complete a self-assessment that helps determine readiness for exporting and collects information commercial banks will be looking for in loan guarantee applications. Typically, companies moving into exporting need to finance equipment, real estate, and receivables. They are looking for credit and protection against non-payment. Mr. Houck advises on the best financing tools for mitigating risk and enhancing marketing, and he makes house calls.

“I’m free,” he said. “I can come to your office and whiteboard things with you.”

Jessica Reynolds of the State of Maryland’s Office of International Investment and Trade, also has free expertise to offer.

Her office provides up to 20 hours of assistance per company per year. There is a grant program permitting up to 40 hours of assistance and $10,000 in cost reimbursement for operations in Maryland and export-related projects.

For example, grants can be used for travel costs, the creation and translation of marketing materials, and trade show fees, including the Farnborough International Air Show in the UK in July and Africa Aerospace and Defense in South Africa in September.

A huge growth area for US exports is agricultural products, up 50 percent since 2009, said Theresa Brophy, director of agricultural marketing for the Maryland Department of Agriculture.

Specialty foods are big. Maryland exports soybeans, chicken legs, garlic spreads, sauces, wine, pasta sauce, and snack foods. Ms. Brophy’s agency facilitates trade show involvement and trade missions, including inbound trade missions. She also works with the Southern US Trade Association to support marketing, brand promotion, and networking of manufacturers of agricultural and food products. Maryland is the northernmost member of SUSTA, which also has a grant program to assist members in reaching their exporting goals.