If you are want to safeguard your investments, you are probably going to diversify your portfolio. Having a variety of investments will not only help protect you when certain markets are down, but should also help you grow your investments. The same can be said about your business. There are a number of ways a business can diversify its portfolio: by size and number of clients; variety of revenue streams; and exporting your products, the subject of today’s column.
Exporting can be a great way to avoid having all of your eggs in one basket. When you diversify your markets, the result can be a more even business cycle. I can’t think of a business that wouldn’t mind avoiding the rollercoaster of activity that can come with a narrow business model. If you are new to exporting, there are some free and cost- effective resources to help you make the transition to international markets.
The Office of International Commerce (OIC) here at the New Hampshire Division of Economic Development has staff who work one-on-one with New Hampshire businesses interested in exporting their products. OIC regularly offers low-cost workshops on topics such as export documentation, environmental compliance, doing business in Russia and international traffic in arms regulation. OIC also offers free technical assistance in our office or at your place of business. More information on OIC’s programs and services can be found at www.exportnh.org. The staff will help research potential markets and guide you to other resources such as the U.S. Department of Commerce for more in-depth assistance.
I spoke with Justin Oslowski, the Director for the New Hampshire branch of the U.S. Commercial Service, a division of the Department of Commerce. Much like the OIC, the U.S. Commercial Service, www.export.gov/newhampshire, helps reduce the sometimes complicated and confusing processes that can come with exporting. Most of Justin’s clients export business-to-business and have some previous experience with exporting. His office also offers free general market research for businesses looking to export. A company must be selling a product that contains at least 51% American content to participate in their programs.
One of the great selling points for the U.S. Commercial Service is that their network is deep and wide with in-country representation in 80 countries around the world. Their staff can pick up the phone and obtain country-specific information and contacts. They offer a “Gold Key” service that for $700 connects a business with in-country representation, arranges 4-6 business matchmaking appointments, provides an in-country briefing and cam even assist with the travel arrangements. Justin said they don’t want to waste anyone’s time or money, so if a market doesn’t look feasible during the initial meeting, they don’t go forward. If the market does look like a good fit, the company can expect to have appointments set up in about 8-10 weeks from their start in the program.
Even with the free and low-cost export assistance available, a successful launch into exporting requires an investment of both time and money. Thanks to a U.S. SBA grant, New Hampshire was awarded nearly $300,000 in 2011 to assist with exporting. The State Trade Export Promotion (STEP) grant will be used over a three-year period to enhance OIC’s efforts to help small businesses in New Hampshire prepare for new markets, comply with regulations, access financing, and attend trade missions. Specialized programs will focus on foreign markets that have the highest growth potential and industries that have the greatest ability to compete successfully.
While we see a need to grow our presence internationally New Hampshire isn’t unknown outside of our borders. Our state exports in 2010 were 44% higher than those in 2009. We were the highest ranking state in New England and we were ranked in the top five for the country. While the number decreased in 2011, New Hampshire businesses continue to see the international market as a place to grow and diversify. Our products in a vast array of industries are sold to more than 160 different countries.
While some may think that it is tough to compete globally, American products are well received overseas as we have a reputation for high quality, innovative products. It may surprise some people to learn that our state’s number one country of export is Mexico, while China is ranked fifth. How about them apples?
Christine J. Davis works for the New Hampshire Division of Economic Development as a resource specialist serving businesses in Rockingham and Strafford counties. She connects businesses with the available resources so that they may remain viable and growing entities in the community. She can be reached at Christine.Davis@dred.state.nh.us.
Ms. Davis lives in Exeter with her two daughters. When not performing her work or parenting duties she can be found volunteering with her girls for the Chamber Children’s Fund, “hitting the gym,” or spending time with friends and family.
Tags: Christine Davis, Justin Oslowski, NH Office of International Trade, Tina Kasim, U.S. Department of Commerce