Exporting out of the US - Presentation for potential Exporters

International Business Development & Project Support

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Turwitt, Nielen & Associates, P.A. is a leading international business development and global market penetration consulting firm specialized in assisting small and medium-sized enterprises (SMEs), as well as larger manufacturers and corporations to create sustainable growth through successful expansion into international markets. We assist companies in the United States and clients located abroad in entering or expanding into markets throughout North America, Asia Pacific, Latin America and the Caribbean, Europe, Africa and the Middle East. We offer a range of global business solutions to help our clients to succeed in international markets, including turn-key market entry programs, market-specific product launch and positioning, business development, market research, feasibility studies, market analysis, niche market selection, market entry strategy execution, international lead generation and partner search, international brand development, overseas marketing and promotion, public relations, trade show assistance, and economic development services incl. global manufacturing project support.

Export & Intl. Market DevelopmentTN&A has developed an impressive collection

of global business services that are uniquely designed to meet the needs of equipment manufacturers, export traders, distributors and other organizations seeking to expand internationally. We provide clients with practical support, the right tools, resources and information to help them compete in today's global economy.

Whether you are new to export or well-established in certain regions with the desire to expand into other foreign markets, TN&A helps you achieve your plans for growing your business internationally.

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Why Export & International Business is important

Exporting and actively participating in global markets is one way of increasing your sales potential; it expands the "pie" that you earn money from, otherwise you are stuck trying to generate profits only out of your local home market. While the local market may represent enough sales potential for very small firms, for medium and larger corporations, especially companies with unique specialty products, the local market is often too small and the only way to expand sales is to export. Export presents many advantages. Increasing sales and profits is the main reason. Entering new markets also reduces the risk of home market fluctuations and diminishes unit cost by increasing production output.Why you should consider to explore new foreign Markets, to start exporting, or to expand your Business internationally

The first question most business owners ask is why should we export?This is particularly true for those whose domestic sales are strong. It is a valid question given the costs, time and commitment required to be successful internationally. But the benefits of exporting can be substantial. The first of course is the prospect of increasing sales and revenue. There are many rapidly growing economies in the world ready to buy your goods and services, and that's an effective way of expanding your market. The second question is that exporting can increase your ability to compete domestically. The experience you will gain of

working in different markets, such as an increased awareness of other products and services and exposure of new ways to market, will enhance your business. It will also allow you to diversify your markets so you are no longer dependent on any one market for your success. By using your domestic sales to cover the fixed costs of exporting you can also increase your profitability. For example, if you have excess capacity domestically, international markets can use that capacity, to lower your per unit costs; therefore helping your bottom line. Whether you realize it or not, today you are already competing internationally. Foreign firms are likely to have already entered your domestic market causing fragmentation and increased competition. By entering the home markets of those foreign competitors, you will be able to understand them and their business models much better, and it helps you to become more competitive at home. The benefits of exporting can far outweigh the costs, but being successful requires a commitment of resources, both people and financial, solid market research and clear headed thinking.


The most important Reasons why Export and international Business is good for most CompaniesIncreasing Sales and Profit

The overriding reason to go global, of course, is to improve your potential for expansion and growth. There are too many international opportunities for us to catalog them all here on this page. You will find many fast-growing, less-competitive markets around the world. Just spin the globe and you can find an opportunity to sell your products somewhere. Unearthing just the right opportunity for you involves more work, of course, but it will pay off. TN&A is available to assist to get you started on that work and to increase your sales and profits.

Clearly, you are not likely to enter the export market in order to make a loss. Companies generally strive to make profits and the bigger the profits, the better. In many instances, exports can contribute to increased profits because the average orders from international customers are often larger than they are from domestic buyers. Some products - especially those that are unique or very innovative in nature may also command greater profit margins abroad than in the local market. Having said this, it is indeed highly likely that you may obtain higher profit margins from your export sales compared with the local market.

Reducing Risk and balancing GrowthIt is risky being bound to the domestic market alone. Export sales to a variety of diverse foreign markets can help reduce the risk that the company may be exposed to because of fluctuations in local (and foreign) business cycles. By selling your products in several countries, the risk of low growth in one or more of these countries will be offset by increased growth in the others, thus resulting in a balanced portfolio of growth overall.

Lower Unit CostsExports help to put idle production capacity to work. This is generally achieved by the more efficient utilization of the existing factory, machines and staff. Further, because you are now selling more products without increasing total costs to the same extent, this has the effect of lowering your unit costs which represents a more productive overall operation. Lower unit costs make a product more competitive in the local marketplace as well as in foreign markets, and will contribute to the companies' overall profitability.

Economies of ScaleExporting is an excellent way to enjoy pure economies of scale with products that are more "global" in scope and have a wider range of acceptance around the world (in other words, they can be used in other parts of the world without much adaptation). This is in contrast to products that must be adapted for each market, which can be expensive and time consuming, depend-

ing on the target market. With increased export production and sales, you can achieve economies of scale and spread costs over a larger volume of revenue. You reduce average unit costs and increase overall profitability and competitiveness. Long-term exports may enable a company to expand its production facilities in order to achieve an economic level of production. (This should not be confused with increased throughput on existing capacity, as discussed above.)

Minimizing the Effect of seasonal Fluctuations in SalesBeing in the Northern Hemisphere, the U.S. has seasons that are opposite to those in the Southern Hemisphere. For companies that sell seasonal goods such as certain food products, or products that are dependent on seasonal cycles and needs, being able to sell these goods in the Southern Hemisphere when our season ends, helps achieve a longer and more stable sales pattern. This increases the sales potential for these goods and also helps reduce risk.

Saturated domestic MarketsOne good reason to begin exporting is when the local market becomes saturated. For companies that produce heavy industrial machinery or that have invested in large factories, they need to be able to sell enough of their manufactured goods to justify the investment and to insure that the unit price of goods are kept acceptably low. In todays globalized environment usually it does not take long before many foreign competitors are selling their products in your home market, and consequently your key home market (e.g. the U.S.) becomes more crowded, saturated and offers limited additional opportunities for sales. Many larger manufacturers in the U.S. have had to turn to foreign markets to justify their existence.


The most important Reasons why Export and international Business is good for most Companies (cont.)Overcoming low Growth in the Home

MarketIt is not uncommon for a recession in the local market to act as a spur for companies to enter export markets that may offer greater opportunities for sales. While this may have the benefit of offering ongoing sales potential for the firm in question, the danger with this approach is that when the local home market improves, these companies abandon their export markets to focus on the now buoyant local market. Overseas importers become disillusioned with this type of exporter and often see companies from the U.S. being the same, only interested in temporary export until the home market is improving again. It is important to avoid those mistakes. Exporting is a serious issue, and foreign markets have to be treated with the same high priorities as your key home market.

Extending the Product Life-CycleAll products go through a product life-cycle. In the beginning they are novel and sales increase quite dramatically, then sales level off and they become what is referred to as mature products and eventually sales start to decrease and the product goes into decline. Now, a product that has entered its decline stage may have a life elsewhere in the world and by finding a market where this product could be sold anew, you are essentially extending the life-cycle of the product. This has the effect of making more efficient use of the existing factory infrastructure and other investment spent on producing the product. This extends sales, lowers the unit costs even further and may allow for higher margins to be generated. When you have a product that is nearing its life cycle, you should always strive to see if you can find a market for the product abroad.

Improving Efficiency and Product QualityThe global market is a highly competitive place and by participating in this marketplace, you need to become equally efficient and quality conscious. It is generally the case that successful exporters are also very successful in their home markets because of their heightened efficiency and focus on product quality.

Untapped MarketsA company may have a very unique product that is not yet available elsewhere in the world. In this instance, these untapped markets are likely to drive the firm's export activities.

Addressing Customer, Competitor and Cost FactorsThe more formal theory of internationalization discusses customer, competitor and cost factors that drive the internationalization process. The theory argues that in some cases companies may go global in response to their customers moving abroad. Alternatively, they may follow their competitors

abroad, or may decide to enter a particular foreign market in order to attack an overseas competitor that has entered the firm's domestic market, in the competitor's own home market. Finally, companies may go international to take advantage of lower labor costs, skilled workers or other cost factors that are much better in a particular foreign market. Status as an ExporterFor some companies, the status of being involved in international trade is very important to them. It elevates their status and also helps to be seen as a more serious corporation. Exporting elevates your image, making your company stand out over the competition, and it adds value to your enterprise.

More than 96% of the Worlds Customers live outside of the United StatesMore than 70% of the world’s purchasing power is in foreign countries outside the U.S. Why not look at opportunities for expansion and growth abroad? TN&A offers the expertise and resources to help you sell your products and services abroad.

96%


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What sets us apart and why we add significant ValueTurwitt, Nielen & Associates is a privately

held, U.S.-based P.A. (Professional Association) headquartered in St. Augustine, Florida, 25 miles South of Jacksonville, FL. With offices in the United States, Switzerland Europe, Chile South America, Hong Kong, as well as in Mainland China, and a network of associated partners in over 100 countries across the globe, TN&A is your gateway to doing business in international markets.

We apply hands-on strategic business development and innovative solutions to help our clients meet their international business objectives. Our team of multi-cultural professionals has over 50 years of collective knowledge and expertise that gives us a unique advantage in providing professional services to companies across a broad range of industries.

Entering a new market poses a series of challenges that may prove too time consuming or fraught with risk for a company to solve on its own. We provide the necessary support and expertise to enable your company to tackle those challenges effectively for a fraction of the cost of going alone. Our professionalism and dedication assure you of meeting your goals within a reasonable timeframe as well as getting the necessary understanding and position to move your business globally to the next level.

Our team members actually travelled frequently to more than 130 countries to develop and to conduct business. They not just briefly visited those markets. Actually they stayed there for extended periods of time and in most cases returned frequently to deepen their knowledge.

Genuine Global Know-How and de-facto Real-World Experience sets us apartWe help our clients make lasting improvements to their performance and realize their most important goals. Over many years, we’ve built skills and gathered know-how uniquely equipping us for this task.

Our professionals are known for their highly collaborative, team oriented approach, in order to achieve the mutually established goals. Together, we craft actionable programs that solve real problems and yield measurable results. And unlike other firms, we work with our clients to implement and execute those programs. Our real-world experience is what sets us apart from others, and why we are confident enough to guarantee our client's success. We believe strongly, above all, in one thing – something that’s unique to us – and that’s the power of TN&A. Theory is one thing, but real experience is invaluable. We have first-hand, real-world, boots-on-the-ground expertise, as well as scale and the resources to assist irrespective of the challenge. We also apply the speed, creativity and agility required.

4475 US Hwy 1 South, Suite 202 – Plaza SouthSt. Augustine, FL 32086 – USA

Tel. +1-904-217-0496 [email protected]

Michael TurwittManaging Partner

Ulrich NielenManaging Partner


Exporting out of the US - Presentation for potential Exporters

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