How to Expand Your Market Video

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How to Expand Your Market

Susan Wilson Solovic: Are you looking for more customers? Have you ever thought about expanding outside the United States? Well the US Department of Commerce has all kinds of free resources to help small businesses just like yours expand their businesses beyond the US borders. Now recently I had the opportunity to speak with Rochelle Lipsitz. She is the Deputy Director General of the US Department of Commerce and oversees the foreign commercial services agency and here’s what she had to say. Rochelle as we were chatting you were telling me many of the resources that you're department offers for small businesses who want to do business in other countries. Can you just highlight some of the resources that you provide? Rochelle Lipsitz: Sure, first of all the US and Foreign Commercial Service has a 109 locations domestically. So we have USEAC, the US Export Assistant Centers throughout in the United States in 109 cities and we are located in foreign embassies in 126 posts overseas in 77 countries. Susan Wilson Solovic: Well that’s a lot. Now what does that mean for small business, what can they look to you to help them with? Rochelle Lipsitz: We help small and medium-size businesses our bread and butter. Our mandate is to broaden and deepen the depth and breadth of US companies at export and we help them through every step of the export process. So the first step is information gathering and our US offices here in United States can help them with that. And the second is to identify the market they want to go to and then we walk them through every step helping them find joint venture partners, helping them find distributors and agents, people who will buy their products. Susan Wilson Solovic: Getting them through all that red tape that they have to deal with. Rochelle Lipsitz: Correct. Susan Wilson Solovic: So I think a lot of small businesses though they think “oh I'm just too small, I can't afford to do this” but you actually because of your resources and then going to trade shows and things you really do nurture them. It’s almost like an in conveyor process. Rochelle Lipsitz: Exactly and I like to say that as tax payers they’ve already hired us, go ahead and use us. So we do, we help companies at trade shows, we bring foreign buyers, groups of delegates to United States to look at US products. We host companies in USA pavilions overseas. There are many ways that they can get information and get exposure. Susan Wilson Solovic: Now a lot of people think about small businesses and they think about the mom and pop shop on the street, but with today’s technology, really any business anywhere could be doing business all over the world. Rochelle Lipsitz: Susan Wilson Solovic there are 27 million companies that operate in United States 95% of them are small and medium-size companies. Only 1% of that 27 million companies export right now. There is huge opportunities out there and when you think about the fact that 97% of the consumers are in the world are located outside of the United States the market is just enormous. Susan Wilson Solovic: We’re really missing a big opportunity for not taking advantage of that. Now you said like 1% of small businesses are doing business internationally. Rochelle Lipsitz: 1% of all businesses large and small so that’s a little bit more than a quarter of 250,000 companies are exporting right now. Many of those companies are small and medium-size companies and they are only exporting to one market. Primarily from Missouri the company first goes to Canada and Mexico. Actually from the United States that’s the easiest for them to understand and comprehend. And what we want to do is help companies grow to export to more than one market. Susan Wilson Solovic: So if they want to get started what would be the first step? You have a website where they can start doing some researching, look for information, where should they go? Rochelle Lipsitz: We do have a website its www.export.gov or they can call our trade information center, which is located in Washington DC. It is operated 24 hours a day and that they can call by dialing 1800 USA trade. Susan Wilson Solovic: And you talk about these offices around the country. I know it’s an acronym. It’s a government there has to be an acronym. They could also find one of these local offices and go meet with someone face to face. Rochelle Lipsitz: Correct on www.export.gov there’s a list of all of our local offices. They are called US export assistant centers and they are usually located in downtown areas in major cities and their phone numbers are right there on the website. Susan Wilson Solovic: That’s great. You mention that a lot of small businesses start by going to Canada first obviously because there's an easier language barrier or Mexico because it’s so close. What about the other countries where there is this huge language barrier, can you help small businesses get around that? Rochelle Lipsitz: Certainly like as I said we have offices in a 126 foreign locations. From Missouri again since this is where we are right now, most companies will first export to Canada and Mexico then to South Korea, to Japan, China and Germany. Those are the top markets for exporters from this area of the world. Susan Wilson Solovic: Are there risk that small businesses should think about in doing businesses internationally? Rochelle Lipsitz: There is always risk. The risk in doing business domestically to just information gathering, do your homework and we are there to help you do your homework. Susan Wilson Solovic: Are there any products that particularly lean themselves to going overseas? Rochelle Lipsitz: Well manufacture products. The US government tracks the trade in goods and services but manufactured products alone attribute to about 6 million US jobs in 2006. Most of the products exported from Missouri again are in manufactured products in transportation equipment, chemicals, and manufacturing systems. Susan Wilson Solovic: So in today’s economic climate is looking to overseas markets, is that a way for small business to possibly beau their business? Rochelle Lipsitz: Yes and it’s also a way to diversify their business. The economies in East Asia albeit have dropped off significantly. They are still projected to grow at around 2% annual growth rates. They are still buying product. There are still opportunities and with the strength of the US dollar compared to the European euro there are significant opportunities for US companies to gain market share overseas. Susan Wilson Solovic: Great! Well I sure appreciate you taking time to visit with us and it is just a fabulous resource. I think you are probably one of the best top secrets out there. Rochelle Lipsitz: Thank you, thank you for helping us get the word out. Susan Wilson Solovic: Sure thank you.

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Susan Wilson Solovic: Are you looking for more customers? Have you ever thought about expanding outside the United States? Well the US Department of Commerce has all kinds of free resources to help small businesses just like yours expand their businesses beyond the US borders.

Now recently I had the opportunity to speak with Rochelle Lipsitz. She is the Deputy Director General of the US Department of Commerce and oversees the foreign commercial services agency and here’s what she had to say.

Rochelle as we were chatting you were telling me many of the resources that you're department offers for small businesses who want to do business in other countries. Can you just highlight some of the resources that you provide?

Rochelle Lipsitz: Sure, first of all the US and Foreign Commercial Service has a 109 locations domestically. So we have USEAC, the US Export Assistant Centers throughout in the United States in 109 cities and we are located in foreign embassies in 126 posts overseas in 77 countries.

Susan Wilson Solovic: Well that’s a lot. Now what does that mean for small business, what can they look to you to help them with?

Rochelle Lipsitz: We help small and medium-size businesses our bread and butter. Our mandate is to broaden and deepen the depth and breadth of US companies at export and we help them through every step of the export process. So the first step is information gathering and our US offices here in United States can help them with that. And the second is to identify the market they want to go to and then we walk them through every step helping them find joint venture partners, helping them find distributors and agents, people who will buy their products.

Susan Wilson Solovic: Getting them through all that red tape that they have to deal with.

Rochelle Lipsitz: Correct.

Susan Wilson Solovic: So I think a lot of small businesses though they think “oh I'm just too small, I can't afford to do this” but you actually because of your resources and then going to trade shows and things you really do nurture them. It’s almost like an in conveyor process.

Rochelle Lipsitz: Exactly and I like to say that as tax payers they’ve already hired us, go ahead and use us. So we do, we help companies at trade shows, we bring foreign buyers, groups of delegates to United States to look at US products. We host companies in USA pavilions overseas. There are many ways that they can get information and get exposure.

Susan Wilson Solovic: Now a lot of people think about small businesses and they think about the mom and pop shop on the street, but with today’s technology, really any business anywhere could be doing business all over the world.

Rochelle Lipsitz: Susan Wilson Solovic there are 27 million companies that operate in United States 95% of them are small and medium-size companies. Only 1% of that 27 million companies export right now. There is huge opportunities out there and when you think about the fact that 97% of the consumers are in the world are located outside of the United States the market is just enormous.

Susan Wilson Solovic: We’re really missing a big opportunity for not taking advantage of that. Now you said like 1% of small businesses are doing business internationally.

Rochelle Lipsitz: 1% of all businesses large and small so that’s a little bit more than a quarter of 250,000 companies are exporting right now. Many of those companies are small and medium-size companies and they are only exporting to one market. Primarily from Missouri the company first goes to Canada and Mexico. Actually from the United States that’s the easiest for them to understand and comprehend.

And what we want to do is help companies grow to export to more than one market.

Susan Wilson Solovic: So if they want to get started what would be the first step? You have a website where they can start doing some researching, look for information, where should they go?

Rochelle Lipsitz: We do have a website its www.export.gov or they can call our trade information center, which is located in Washington DC. It is operated 24 hours a day and that they can call by dialing 1800 USA trade.

Susan Wilson Solovic: And you talk about these offices around the country. I know it’s an acronym. It’s a government there has to be an acronym. They could also find one of these local offices and go meet with someone face to face.

Rochelle Lipsitz: Correct on www.export.gov there’s a list of all of our local offices. They are called US export assistant centers and they are usually located in downtown areas in major cities and their phone numbers are right there on the website.

Susan Wilson Solovic: That’s great. You mention that a lot of small businesses start by going to Canada first obviously because there's an easier language barrier or Mexico because it’s so close. What about the other countries where there is this huge language barrier, can you help small businesses get around that?

Rochelle Lipsitz: Certainly like as I said we have offices in a 126 foreign locations. From Missouri again since this is where we are right now, most companies will first export to Canada and Mexico then to South Korea, to Japan, China and Germany. Those are the top markets for exporters from this area of the world.

Susan Wilson Solovic: Are there risk that small businesses should think about in doing businesses internationally?

Rochelle Lipsitz: There is always risk. The risk in doing business domestically to just information gathering, do your homework and we are there to help you do your homework.

Susan Wilson Solovic: Are there any products that particularly lean themselves to going overseas?

Rochelle Lipsitz: Well manufacture products. The US government tracks the trade in goods and services but manufactured products alone attribute to about 6 million US jobs in 2006. Most of the products exported from Missouri again are in manufactured products in transportation equipment, chemicals, and manufacturing systems.

Susan Wilson Solovic: So in today’s economic climate is looking to overseas markets, is that a way for small business to possibly beau their business?

Rochelle Lipsitz: Yes and it’s also a way to diversify their business. The economies in East Asia albeit have dropped off significantly. They are still projected to grow at around 2% annual growth rates. They are still buying product. There are still opportunities and with the strength of the US dollar compared to the European euro there are significant opportunities for US companies to gain market share overseas.

Susan Wilson Solovic: Great! Well I sure appreciate you taking time to visit with us and it is just a fabulous resource. I think you are probably one of the best top secrets out there.

Rochelle Lipsitz: Thank you, thank you for helping us get the word out.

Susan Wilson Solovic: Sure thank you.

Transcription by: Scribe4you Transcription Services