Six Pitfalls to Avoid by Laurel Delaney

Laurel Delaney is an international entrepreneur, author, speaker, and educator.

Going global takes guts. You have to confront the unknown, do what it takes to land the deal, and make your customers happy. Learning from your mistakes-and learning what mistakes not to make-are even more important in foreign trade.

For example, I worked with a company in 1997 that wanted to export a shipment of cookies to Japan. About 25% of the cookies contained a colorant that was banned in Japan at that time. The entire shipment was returned to the sender because the shipper made some assumptions that turned out to be wrong.

Here are some other myths-and truths-to keep in mind when going global:
(1) Overseas buyers are already interested, so we don't have to do any more research.
Not true. Doing market research can help you explore and identify the fastest-growing, most penetrable, and profitable market for your product.

(2) It's OK to have only certain employees dedicated to the company's global business.
To ensure coherence, every employee should be a critical member of your international team-from the executive suite to customer service.

(3) My product is really low in price-so it's guaranteed to do well in an international market. Customers typically pay attention to packaging first, quality next, and price last. It's very difficult for a small business to compete on price alone, but quality leaves no room for negotiation.

(4) My product sells well here, so I'm not going to make any changes to it for exporting. To be successful in export markets, you must tailor your product to meet the needs and expectations of the local customer.

(5) Let's be all things to all people and do business with the world. The truth is, you can't be all things to all people or you'll disappoint everyone. Instead, pick a product or service to take overseas. Then, stick with it. Ease your way into the market.

(6) I know that my product sells well in the United States, so I'm certain that it will sell overseas. Just because your product is in demand on the home front doesn't mean that it will be well received in a foreign country. You may need to consider modifying your strategy.