Entrepreneurship and Export Trainee Guide

ENTREPENEURSHIP 101 AND EXPORT 101 TRAINEE GUIDE

PRESENTED BY 2020 DEVELOPMENT COMPANY LLC

CONTENTS
INTRODUCTION
After completing this course, the participants will be able to:

• Analyze current business practices
• List the skills necessary to be a successful entrepreneur and export manager
• Identify solutions to business strains caused by entering the export business
• Identify corporate strengths and competitive advantages
• Identify the niche for their product in the local and global market
• Define risk and determine their acceptable level of risk acceptance
• Debate the qualities of various customer relationships
• Develop a company and product profile document
• List the benefits of using Incoterms
• Understand payment term options and terminology
• Understand basic price strategies
• Understand basic tradeshow strategy and ways to achieve success through
tradeshows

How to use this guide
This Trainee Guide has been provided to you to fulfill two purposes. First, you will use the
Guide during training to take notes, complete exercises, and follow along with the trainer.
Second, after training is completed, this Guide will serve as a reference for you to use when
applying the principles taught in this course.

Global Shea Association Entrepreneurship and Export Trainee Guide 1

Because of this dual purpose, it is very important that you write in your Trainee Guide when
you take notes or complete an exercise. Some of the graphics have been adapted for the
PowerPoint presentation so the figures in your book may not perfectly match the
presentation. You might want to take notes on the graphics to remind you of key points.
This is your reference document, and you will want to be able to recall your thoughts and
ideas when you return to the job.

Special instructions: During this course, you will be exposed to a variety of skills and
behaviors related to export management. This introductory course should be used as a
starting point to understanding the operations of international trade. When you have
questions that are beyond the scope of this course, or you need clarification, please seek out
assistance from the organization or individual who can best answer your questions. The
author of this course can be reached at admin@2020DC.com to help clarify questions you
may have. He will attempt to answer you as quickly as possible.

MODULE #1 – ENTREPRENEURSHIP 101 WORKSHOP

Lesson 1 –What is an Entrepreneur and what skills do they possess?

Objective: After discussing the keys to successful entrepreneurship, the participants will
evaluate their individual and company’s internal strengths and weaknesses affecting their
ability to succeed in business and specifically in the export business. The participant must
identify adjustments needed to succeed as an exporter.

Enabling Objectives: Prior to completing the lesson objective, you will be able to:

• Identify the principles entrepreneurship
• Assess your skills using tools provided
• Understand the 10 keys to success
• Determine “what business” they should be in

MODULE #2 – EXPORT 101
Lesson 2 –Export 101

Objective: After discussing the keys to successful exporting, the participants will evaluate
their company’s internal strengths and weaknesses affecting their ability to export. The
participant must identify adjustments needed to succeed as an exporter.

Enabling Objectives: Prior to completing the lesson objective, you will be able to:

Global Shea Association Entrepreneurship and Export Trainee Guide

• Identify the principles of international trade
• Assess your personnel
• Select the “right” products for export
• Analyze your products to identify the niche for their export efforts
• Analyze your risk and determine their acceptance level
• Understand various trade relationship options for the export market

End of Course Assignments
MARKETS document
Complete the attached MARKETS document
Appendix 1 of this Handbook is the 2020DC MARKETS document which is a review of
your company this document provides you and the supporting agencies with a clear picture
of your organization, its strengths, challenges and opportunities. It also provides a blueprint
for action to enter the export markets.

Complete a company and product profile for your
company
Utilize the skills taught in this course coupled with the MARKETS document to produce a
company and product profile that can be utilized to market your company and its products.

MODULE #1 – ENTREPRENEURSHIP 101 WORKSHOP

Discussion #1: What is an Entrepreneur?

A person who organizes, operates, and assumes the risk for a business venture.

Naturally a risk taker and visionary

Entrepreneurs play a key role in any economy. These are the people who have the
skills and initiative necessary to take good new ideas to market and make the right
decisions to make the idea profitable. The reward for the risks taken is the potential
economic profits the entrepreneur could earn. (Investopedia.com)

An Entrepreneur is the individual most likely to survivor in a developing economy.


Discussion #2: Examples and discussion on local Entrepreneurs

In the space below please provide notes on local entrepreneurs from your own experience
and the discussion of the group.

Discussion #3: limitations and hurdles for local entrepreneurs to overcome
In the space below place your notes from the discussion of the local environment for
entrepreneur success.

Discussion # 4: Key words used to define Entrepreneur
In the space below write your own list and the group list of key words that describe an
entrepreneur:

What characteristics does an entrepreneur possess?

1. Examine needs, wants, and problems to determine what they can do to can improve
the way these needs and wants are met and problems overcome.

2. Narrows the possible opportunities to the one offering the greatest potential for
returns for their efforts and investment taking into consideration their resources and
skills.

3. Timing is critical to the execution of the idea and meeting the needs of a changing
market. First to market has the highest risk but also with success the highest returns.

4. Research the opportunity and how the needs, wants and problems are being met
currently and what is on the horizon.


5. Enlist sources of advice and assistance including the support of your family and
employees.

Also looks to government programs or other forms of assistance to capitalize on
available support programs.

6. Plan the ventures and consider various scenarios of success and problems.

7. Rates and understands the risks and the probability of possible rewards. Know what
could go wrong before it happens and takes action to minimize the impact of
problems.

8. Evaluate the various scenarios of possible risk and possible rewards and develop a
strategy to act or not to act based upon adequate knowledge of the options.

9. Never hang on to an idea beyond its usefulness. Be flexible to market conditions
and improvements in knowledge.

10. Employ the adequate resources for the venture to succeed.

11. Understand their business and the commitment it will take in order to achieve
success.

12. Reaches their goals and continually adjust them to achieve higher plateaus and levels
of success as they define it.

Survival Mode
In many economies individuals are forced to become “Entrepreneurs” due to lack of
employment outside of their own efforts. Everyone who owns a store, sells something on
the streets or provides a service to others is in their own way an entrepreneur.
When in “Survival Mode” most individuals become entrepreneurs out of necessity. They
depend upon their own skills to survive; they take calculated risks and naturally gravitate to
what they can do to survive.

To survive in business people need tools to survive. The balance of this course will provide
some of these tools.

Identify the principles of Marketing and Success
Here are the top 10 most important things you should know to be successful in marketing:
1. Communication is key – You must respond to a customer’s inquiry immediately.
Even if you don’t know the answer to their question, or you don’t think they will like the
answer, you need to respond in a timely manner. It is better to communicate too much


than not enough. Tell the customer more than you think they need to know. The
customer should select the information they want, rather than wish they had more.

2. Honesty is essential – Like every situation in life, honesty is a key to success. For
instance, if you are going to be late on a shipment, or deliver an inferior quality product
in comparison with your last shipment, tell your customer honestly. Give them all of the
details and let them make the decisions. It is best you alert your customer about bad
news rather than wait for them to find out later when the shipment arrives.

3. A consistent quality is key – Your product and product grade/description must be
consistent. If you are manufacturing a product, each unit should be identical to the last,
each shipment identical to the last. If you are selling an agricultural product or other raw
material, your description should be constant. If you grade a product, every time you
ship that product under that grade it should be identical in characteristics to the last time
you shipped that product under that grade. If there are no official standards, develop
your own, provide them to your customer, and grade your product consistently.

4. Risk assessment – Know your ability to accept risk and stay within your bounds.
Understand how much risk you are willing to accept and no matter how much you want
the sale, do not go beyond your ability to absorb a loss. Know how to protect yourself
from excess risk.

5. Know your Markets – Become a student of your markets. Know the customers, the
customs, the culture, the duties, and the competition. Know what the customer does
with your product, how it is used, how it is sold, and why it is bought.

6. Details, Details, Details – Pay attention to the details. Without attention to detail your
business will ultimately fail. You must keep track of the details!

7. Product Advantages – Be ready to answer the question “why should I buy your
product?” The customer has dozens, or even hundreds, of alternatives to buying your
product. Be prepared to explain why a customer should buy your product rather than
any other.

8. Customer relationships – Consider your customers as your partners. They really are
your most valuable allies. They must make a profit to continue working with your
products. Help them make a profit by providing them what they want, when they want
it. By doing this, your customer will continue to work with you even when times are
difficult.

9. Networking – Network at all levels of the trade cycle. Build relationships on a business
and personal level with customers, suppliers, bankers, forwarders, freight companies, and


everyone in between. You never know, someone you may consider of no importance
today may end up as your most important ally tomorrow.

10. Excellent product visibility – If the customer doesn’t know you have the product or
doesn’t see the quality first hand, they will not buy your product. Therefore, be prepared
to send out samples...lots of samples. This is a major expense for which you need to
plan. Unseen products remain unsold.

C - Communications
H - Honesty
A - A consistent quality
R - Risk
M - Markets

D- Details
A - Advantages
N - Network
C - Customer relations
E - Excellent visibility

Exercise 1.1 – Analyze Current Business Practices
Directions: Consider numbers 1-10 above and assess your current business practices to
determine if you are ready to do business internationally. Rank your performance in each
area on a scale of 1-10 (one is best). For the bottom four finishers, identify how your
business could improve performance in those areas.

Table 1.1 – Current Business Practices
Rank Current Practices Identify Areas For Improvement
1. Communications
2. Honesty
3. Consistent Quality
4. Product Visibility
5. Market Knowledge
6. Product Knowledge
7. Risk Assessment
8. Customer Relationships
9. Networking
10. Attention to Detail

Exercise – Internal Strengths and Weaknesses

Directions: Now that you have reviewed your organization’s personnel and resources it is
time to put them into a “T” chart to graphically illustrate these competencies. To do this,
take a piece of paper and draw a big “T” starting at the top of the page. On one side of the
“T” write “Strengths” and on the other side write “Weaknesses”. Next begin to list issues,
items, and people by writing them into the appropriate column. Table 1.2c shows an
example of a “T” chart.

Table 1.2c – “T” Chart
Strengths Weaknesses
Products – consistent quality, strong Experience
demand
Domestic market – shared resources
Domestic market – profitable sales
Grading needs to be established
Individual with key skills
Time away from office
International travel experience
Need to strengthen staff
Good relationship with government
agencies Need to improve relationship with bank

Desire and willingness to learn Need to improve product visibility

Take your completed “T” chart back to work and review it with the appropriate individuals
in your organization. Organize discussions with them about how you can build upon your
strengths and down play your weaknesses. For each weakness, write a statement about how
you will keep the weakness from hindering your success as an exporter.

Post the “T” chart some place where you will see it regularly, like on your bathroom mirror,
by your copy machine, or by your door. You want to remind yourself and other appropriate
individuals to review it on a regular basis. By understanding these weaknesses you will be
forced to address them and find solutions to them. This will help to ensure your business
succeeds.

This is an important exercise which may seem like an extra effort. However, if you do it
before you begin to export; it will help you avoid surprises once you are in the middle of
your export program. If you consider your organization’s weaknesses you are in a better
position to build your export business than if you simply concentrate on your strengths.

Use the chart below as a starting place for your own “T” chart for yourself, your
organization and your products.


What business am I in?

Objective: Through the thought process of this section the student will understand the
importance of reviewing their business from a different perspective. Often time’s businesses
get tied up with the concept of what they do rather than what they can do more profitably.
Companies must learn to produce what they can sell rather than sell what they produce.

Consider production option
If you are a painter, are you better served by producing one picture which takes a year to
produce, or by producing cheaper pictures every day? Where do you maximize your profits?

An artist can paint a landscape which sells for $30,000; however, it takes him 52 weeks to
produce. He has an opportunity to paint houses, and though painting houses does not take
advantage of his greatest talents, it would net $1000 per week, or $52,000 per year! Under
this scenario, he is financially better off painting houses than painting landscapes. However,
if he could sell his landscapes for $60,000 each, or produce them in half the time, he would
be better off painting landscapes.

Consider opportunity cost. Opportunity cost is defined as the most favorable forgone
alternative. To analyze opportunity cost, you need to look at what you are producing and
compare it to some other product you could produce with the same resources. Which is
more profitable?


For example, your company currently uses its resources to produce faucets generating a 3%
yearly return. However, these same resources can produce doorknobs generating an 8%
return. The 8 % forgone profit would be your opportunity costs or alternative costs. In
order to provide you with the greatest returns on your resources you need to know what
other opportunities for returns exist.

Financial returns are not the only “returns” to be considered in either the marginal cost or
opportunity cost analysis. You should also consider non-cash benefits and costs associated
with a decision. For example, if the artist were able to paint the landscape from his home
studio and spend time with his family, he might choose to make less money than he would
painting houses away from his family. This will depend upon what “value” he places on
spending time with his family or other non-cash benefits or costs. Only individuals can
determine non-cash values for themselves, therefore, this analysis needs to be done internally
rather than someone on the outside telling you how to run your business and your life.

Where are your Competitive Advantages?
Objective: Given factors to consider when choosing an export product, the participants will
rate their product and market knowledge to determine areas for improvement.

Determine which product your company has a core competency producing
Now that you understand your business’s strengths, weaknesses, and ability to accept risk,
you can take a closer look at your products and determine what market niche you want to
capture as your primary market. It is important to identify and pursue a niche because no
company has the resources to pursue an untargeted market. To know what market to go
after you must first identify which of your products is going to have the greatest potential for
success.

Identify your products. This starts with an internal review of the products you could export.
This review would include an analysis of your production to ensure that you have a sufficient
surplus of product available for export. One of the most discouraging things for a sales-
focused organization is to have more sales than product available to sell. Therefore, if you
are going to develop a market you want to make sure that you have a reasonable ability to
supply that market with product. It is always best if the product has both a domestic and
international market, as situations change and you want to keep your avenues open by
having a product with multiple opportunities to sell. You will want to strike a balance
between your domestic and international sales. Will you have sufficient capacity, personnel,
raw materials, and capital to handle a larger volume?

You may wish to consider that the highest profit products are those with a limited supply
and high demand. Therefore, selling a product which is difficult to produce yet has a


significant demand can be more profitable than selling a product which is easy to produce
with even a strong demand. Figure X.X shows an example of this.

Consider your marketing abilities. Determine if your organization is going to have the
greatest advantage by marketing a lot of a product with high supply and high demand or a
little volume with limited supply and limited demand, but with a higher profit margin.
Companies have succeeded with both scenarios, and you must determine which is best for
your organization.

Determine if there is international demand for your product
Now that you have completed an internal review of your organization you are ready to look
beyond your company and country to determine if there is an export market for the product
which you are most capable of producing and marketing profitably.

Determining if there is international demand for your product will require research into the
marketplace. The more time you spend researching the more you will learn about the
market. Research should not only be conducted before you begin exporting, but rather on a
regular basis. There are a number of e-newsletters and trading centers for which you can
register and receive regular updates. You should find an industry association in your target
markets and join or simply get their membership list. These members will be some of your
target customers.
What you are looking to learn by conducting research and interviews is what the market
demands and what is currently being supplied. Spend some time learning what your
competitors are doing, however, do not make this your obsession. Do what you do best and
your competitors will end up worrying about what you are doing, not the other way around!

Determine if you can be competitive in the export market
There are three basic assets applied to the production of any product – land, labor, and
capital. (Land can be defined as any material input or raw material.)

In which of these areas do you have a comparative advantage? Are your raw materials
cheaper than your competitors? Is your labor rate lower or more productive than your
competitors? Do you have access to capital? What is the cost of your funds versus your
competitors? “Cost of funds” includes the opportunity costs of using your own funds from
your domestic or other operations.


MODULE #2 – EXPORT 101

Discuss your current business practices

Assess your personnel
In smaller organizations individuals need to wear many hats. One employee is expected to
perform a variety of duties and responsibilities. However, even if you are your only
employee, knowing the skills necessary to succeed in the export market will help you identify
where you need to strengthen your business or seek outside assistance. Later in the course
we will discuss where and how you can strengthen your company’s personnel through the
use of local and international agencies including local NGOs (Non-Governmental
Organizations).

Profile of a Successful Export Manager
Directions: In small groups of three to five people, list questions you should ask yourself
when selecting an export manager. What characteristics would you look for? What kind of
person should s/he be? What kind of experience should s/he have?

Table 1.2a – Profile of a Successful Export Manager
1. Does this person have international work experience?
2. Do they have sufficient product knowledge?
3.
4.
5.
6.
7.

Identify adverse business effects of entering the export market
The export business is going to require significant time and resources to build. You must
fully consider the effects of entering the export business and how it impacts your other
business activities.

What Could Go Wrong?
Directions: Consider everything involved in entering the export business. What resources
would be strained? What relationships would become vital? In small groups, you will have
five minutes to list every factor that might affect your success as an exporter. Record your
answers in Table 1.2b. Then each group will share their answers with the class and receive
one point for each unique answer that no other group considered.


Get Ready to Export!

Select your product
Learn the basics of market research for selection of the “right” product for market.

What Should You Export?
Given factors to consider when choosing an export product, the participants will rate their
product and market knowledge to determine areas for improvement.

Exercise – Rate Your Readiness!
Table 4.1 – Rate Your Readiness
If you wish to increase your production to
serve the export market, will you have: You have interviewed:
Sufficient capacity? Banks
Personnel? Steamship lines
Raw materials? Airlines
Capital? Embassies and consulates
Considering the export market, your product: Government agencies
Is properly packaged You have competitive:
Has consistently acceptable quality Cost of funds
Can be competitively priced Labor prices
You have done market research by: Raw materials cost
Reviewing export statistics
Reviewing import statistics
Using the internet
Visiting foreign markets
Visiting tradeshows in your target market

Identify a niche for your product

Niche - A position particularly well suited to the person/product who occupies it;
“Ethiopian white honey found a good niche in the premium honey market of Asia"

In the space below brainstorm about ideas to provide your product a special niche in the
market:

Why in the world would the buyer buy from you over everyone else?

What factors determine if a buyer purchases a product at the importer level?

What about the distributor level?


What determines if an end consumer purchases your product?

Risk analysis

Accept risks associated with export business start-up
Before you enter any business activity you should understand the risks associated with that
activity and your limits on accepting this risk. Exporting need not be expensive. It is possible
to operate an export business on a limited budget. We will learn ways to do this during the
Export 102 section of this course. It is important to set clear, attainable, measurable, and
executable objectives before diving into the business. A key to success is making sure that
you establish a realistic budget to achieve your exporting objectives, and continually monitor
and adjust the budget and goals to reflect current events and developments.

How will you finance your export business?
First, build a budget for your export promotion activities. Figure out how much you can
afford to invest and your expected timeline for cost recovery. In many situations the export
markets are similar to the search for El Dorado, the legendary City of Gold. In order to
search for El Dorado you need to have income, or available resources, to pay for the search.

In most companies it is domestic profits that are used to build the export business. You
either need domestic profits to cover the investment in the export business, or you need a
reserve of cash from which you can draw upon as you “invest” in the export business.
Therefore, before you begin pursuing the export business, spend time determining how
much money you can draw off of your domestic business or where the additional capital is
going to come from. Do not wait until you have committed other resources to the export
business before you determine where the funds are going to come from.

What is the worst-case scenario?
You must consider the worst possible scenario when assessing your risk. This is the way
that the banks look at your business. If you can think like a bank, without emotional ties to
the business, and limit your risk, you will succeed in having a long term business.

Figure X illustrates that there are risks and costs associated with every venture. Even if the
cost is just your time, it is a cost to your business because of your distracted focus and
efforts.

The Importance of Customer Relationships

After establishing a customer relationship, the participants will list the benefits of using
Incoterms in customer agreements.


Choose a customer relationship
There are several manners in which you can deal with your customer. It is important that
you and your customer understand the relationship at the very beginning so that you don’t
get yourself into a bind later.

Open Market Customer – This is a customer with whom you work on a non-exclusive
basis. In this situation you would sell to this customer and any other customer in the market
with whom you are able to meet agreeable terms of a sale. This is often the best way to
handle sales of commodities, where price is the primary factor in making the sale. Under this
scenario you and your customer have the right to buy from, and sell to, whomever you want
at any time. The disadvantage is that there are few loyalties with this type of relationship. If
your competitor has a lower price then you next time, they will get the sale.

Market Development Customer – This is a customer with whom you are working to
develop a specific market. Unlike the Open Market Customer, you are in a more long-term
relationship with this customer. Market development relationships are, by definition, long-
term, mutually beneficial, and cooperative. Together with this customer you will work to
achieve mutual success; however you have not given up all other customers or opportunities
to work with them. This type of relationship could progress to an exclusive relationship
over time.

Market or Product Exclusive Relationship – This is a customer who will be your
“exclusive” representative for their market. A Market or Product Exclusive Relationship
(MPER) gives the customer limited rights to market your products. These limitations can be
geographic, niche, brand, or time oriented.

Often times this agreement begins as no more than a handshake or e-mail communication
and understanding. As it moves to more formal terms it is best to have an attorney familiar
with both markets and laws to draft a relationship agreement. It is helpful when entering
this form of relationship that you clearly state to your customer what your intentions are and
that they understand what you are trying to accomplish. This can be done in a letter and
need not involve an attorney.

By giving a customer a MPER right to a specific geographic area you are free to work in
other areas where other customers may be better positioned. By limiting the MPER
representative to a niche you are allowing them to market to their specific target niche and
therefore take advantage of their core competencies.

For example, if you are offering fresh fish to a market you may find that one importer does
an excellent business with restaurants, while another sells to grocery stores, while yet another
sells to processors. With an MPER you play to the customer’s strengths. An MPER is one of


the best ways of keeping your avenues open, while benefiting from the advantages of an
exclusive relationship.

Exclusive Agent – This is a customer that you have given all rights to market your product
or brand in a specific market. It differs from an MPER, in that it is a legally binding
agreement which should include performance clauses for both you and your customer. It
may be limited by the factors listed in Figure X.X. This is the most restrictive type of
relationship for both you and your customer, however, if it is the right relationship it can be
the most rewarding. In an exclusive agent agreement you truly need to consider your
customer as your partner. An exclusive agent is going to be more willing to invest resources
into promoting your brand, and by so doing, will promote both parties’ future. They will
invest in promoting the brand and/or your company, knowing that in so doing they are
promoting their future as well.

One way to work with an exclusive agreement, while keeping your doors open for other
opportunities, is to give your customer “exclusive rights” to one brand. Then, if you find
another customer in the market, you can simply develop another brand. It is important that
both customers understand each other’s rights and objectives. If you have two agents in the
same market they must each know their role, rights and responsibilities.

“As long as you buy everything I produce, you have an exclusive.” This is a simple
philosophy which works well for many agricultural and natural products. If your target sales
in give a market are 20 units a month, and a customer is willing and able to purchase that
amount on the condition that they have an exclusive, then you have nothing to lose by
providing them with exclusive rights. If a customer can achieve your goals and expectations
in a market, there is no need to look for another customer.

Care must be taken to make sure that both sides fully understand what is expected from
them in exchange for this agreement. An exclusive agreement should not be entered into
without the consultation of an attorney in the country where the product is to be marketed.
It is recommended that you not utilize the same attorney as your customer, to get an outside
opinion on the rights, responsibilities, and enforcement of the agreement. Customers almost
always prefer to work as Excusive Agents. The agreements should always include a
performance clause which allows you to move on if things do not reach your objectives.

Lay the foundation for a long-lasting customer relationship
The internal review is done, the product is defined, and the research into the markets is
complete. Now we can work on identifying and securing a customer.

There are several layers and potential methods for working with a customer. In all of the
methods the 8th rule of international trade, maintaining customer relationships, is pivotal.
Consider your customers as your partner. Your customer is your partner even if it is just for


a single transaction; you must treat them as a partner. In a good partnership, like in a good
marriage, both parties benefit from the relationship. The father of modern capitalism and
economics, Adam Smith, presented the concept that a seller sells the product because he can
get more value for his goods than it is worth to him, while a buyer purchases the product
because its value to him is greater than he is paying for it. In this manner both parties win!
This rule holds as true today as it did in 1775 when it was made popular by Adam Smith in
Wealth of a Nation. If you treat your customer as your partner, and create win-win
transactions, then they will end up your friends. And as much as you can influence each
other’s success, the friendship and business will grow together.

In order for this relationship to work it must be a two-way street. Your customer must also
treat you as a partner. This is best achieved through developing trust and a full
understanding of each other’s’ business. International trade is like a card game with you and
your customer playing on the same team. To make the best hand between you, both of you
must lay your cards on the table in full view of each other in order to build the best hand.
You can take the first step towards building a successful business relationship by putting
your cards on the table.

Develop a company and product profile document

Unseen is unsold! If the customer doesn’t know what you have for sale they can’t buy it.
Therefore you need to promote your product and the development of a company and
product profile.

Utilize the MARKETS document in the appendix of this document as a starting point for
gathering the information necessary to produce a company and product profile document.
Standardize the documents for each product so that the customers can clearly compare the
different products, grades or packages.

It is important that the customer have confidence in the company producing the product the
fact sheet helps them gain this confidence. It is important to provide an outline of the
company’s technical abilities and resources. It is important to provide background
information on the company owners.

The product specification sheet should contain a minimum of the following:

Contact Information
Common and Scientific Names
Ingredients
Packaging Specifications
Special Certifications
Shipping conditions


International Chamber of Commerce Terms (INCOTERMS)

Define international commercial terminology
In international trade it is important that you “speak the same language as your customer”.
This does not require that you speak their native tongue, but rather that you utilize the same
terminology for the sale and know its correct definition.

To avoid errors in execution you need to make sure that you fully understand the
international terms you are using and use them correctly. Mistakes can be very costly.

Intercom 2010 are internationally accepted commercial terms defining the respective roles of
the buyer and seller in the arrangement of transportation and other responsibilities. They
also clarify when the transfer of merchandise ownership occurs. Incoterms are incorporated
into sales agreements or other methods of sales transactions. Listed below are some of the
most important Incoterms. If you run into a term which you do not understand, please take
the time to contact your bank, an NGO, or others who would be able to explain the
definitions of Incoterms. Risk of utilizing the wrong terminology can cost you your business,
therefore, be sure to fully understand the Incoterms before you use them.

• EXW - Ex Works -- Title and risk pass to buyer including payment of all
transportation and insurance cost from the seller's door. Used for any mode of
transportation.

• FCA - Free Carrier -- Title and risk pass to buyer including transportation and
insurance cost when the seller delivers goods cleared for export to the carrier. Seller
is obligated to load the goods on the Buyer's collecting vehicle; it is the Buyer's
obligation to receive the Seller's arriving vehicle unloaded.

• FAS - Free Alongside Ship --Title and risk pass to buyer including payment of all
transportation and insurance cost once delivered alongside ship by the seller. Used
for sea or inland waterway transportation. The export clearance obligation rests with
the seller.

• FOB - Free On Board -- Risk passes to buyer including payment of all transportation
and insurance cost once delivered on board the ship by the seller. Used for sea or
inland waterway transportation.


• CFR - Cost and Freight -- Title, risk and insurance cost pass to buyer when delivered
on board the ship by seller who pays the transportation cost to the destination port.
Used for sea or inland waterway transportation.

• CIF - Cost, Insurance, and Freight -- Title and risk pass to buyer when delivered on
board the ship by seller who pays transportation and insurance cost to destination
port. Used for sea or inland waterway transportation.

• DDU - Delivered Duty Unpaid -- Title, risk and responsibility of import clearance
pass to buyer when seller delivers goods to named destination point. Used for any
mode of transportation. Buyer is obligated for import clearance.

• DDP - Delivered Duty Paid -- Title and risk pass to buyer when seller delivers goods
to named destination point cleared for import. Used for any mode of transportation.

After establishing a customer relationship, the participants will list the benefits of using
Incoterms in customer agreements.

Benefits of “Speaking the Same Language”
List the benefits of using Incoterms.

Table 5.2 – Benefits of Incoterms
1.
2.
3.
4.
5.


Target your customer base
In marketing, you can use several different methods to “target” a customer.

Broad Marketing is like a fisherman throwing out a net in the barren sea and hoping to catch
a fish or two. It can work, however it is often very expensive and time consuming. To
market using this strategy you would advertise to the public by placing ads in magazines and
trade journals before you have a distributor or customer. This method is often used by large
companies. However, this strategy is typically more effective for building brand recognition
than for attracting key customers.

Target Marketing combines knowledge collected through market research and interviews to
efficiently steer your business into the most profitable market. The more specific you are in
targeting your customer the more economical your marketing efforts are going to be in
terms of time and resources. This method assumes that you have made the right conclusions
based on thorough market research. You will already have a “target” customer in mind, if
you have taken the necessary steps prior to target marketing:

a) reviewing your business
b) reviewing your products
c) researching the markets
d) understanding the rules of international trade

Before you begin target marketing, you should know the answers to the following questions:

• Who are the end users?
• Where are the end users getting my product?
• Who are the distributors?
• Who is supplying the distributors with product? In other words, who are my
competitors?

The more you know about the market, the better you will be at serving your customers’
needs.


2020 Development Company
LLC
13811 217th PL NE
Woodinville, WA. 98077
U.S.A

“Tomorrow’s results start today through actions with 2020DC” ™

Wednesday, March 06, 2013

Market Access Research Keys for
Export Trade Support
This document is designed to provide 2020DC and our affiliates with the information
necessary for our clients to succeed in expanding their business with specific focus on
assisting in marketing efforts. The more complete this information is the easier it is for us
to help you develop customers and achieve your sales objectives.

This information will be utilized to 1) help us identify your needs and design a program
to help you meet your sales objectives and 2) develop a profile for your company for
presentation to potential customers, partners and others critical to your business. This
some of this information will be utilized for presentations outside of 2020DC and
therefore if you want to keep this information confidential beyond our relationship please
indicate accordingly as instructed below.

2020DC TRACKING INFORMATION
Interviewer’s name:
Phone number:
e-mail:
Interview date:
Consultant: Jorge Machado


Product(s) to be marketed:

Where are the products currently marketed?
General Company Information
Company receiving assistance:
Year established:
Legal structure of company: Corporation LLC Government entity
NGO Sole Proprietor
Partnership
Other
Primary Shareholders:

Shareholder background:

Website:
Webmaster:

Company Work Force
Number of People Allocated
abbreviation Area or Department
According to Functions

PD Product Development
PM Product Management
S Sales
Mkt Marketing
Fin Financial
Plan Planning
Acc Accounting
PE Production Engineering
Prod Production
Sup Supply


Marketing department contacts
Marketing personnel contact:
Email address: Phone:
Export contact: Phone
e-mail address

Marketing Materials
Does the company have a brochure?
If yes attach a copy. Is it available digitally?
Brief history of company:

Please describe the company’s general strengths
and capacity, especially related to exporting:

Please describe the company’s general
weaknesses especially related to exporting:

Export experience history:

List export customers and concentration:


Has the company had an export agent or customer in the past? Yes No
If yes, please describe experience, countries of activity and current status:

Percentage of the business expected to be export in the next 12 months:

Has the company attended the following export courses: Export 101 Export 102
Export 103 Tradeshow 101 Other, courses describe:

Tag line or mission statement for the company:
Company and product certifications:
HACCP FSC MSC ISO 14001 SA8000 FairTrade ISO 9000
Other
If “Other”, please specify:

Does the company have one or more brands? If yes, please list them. If not do you
have plans to develop one or more brands

What market segment does your company fulfill with greater efficiency? Wholesalers,
distributors, small Does the company market via its own shops, franchises, catalogues, internet,
famous brands and etc.

Company Information – Financial
Who is the company’s bank:
Primary contact at bank:
Banker contact information e-mail
phone:
Does the company have immediate financial
needs which could impact their marketing
opportunities and ability to grow sales?


What forms of payment are acceptable for their Letter of credit Documents against
export sales? payment Open terms Wire transfer

Partial or full payment in advance

Does the company have export sales financing
available?

Does the company have a complete Business Does the company have a one, five and ten
Plan? years goals and plans? If yes please describe
them

Company related product information
Product(s) to be marketed:
Does the company have a product specification
document? (Attach copy)…is it available
digitally?
Is company prepared to distribute product samples? Yes No
If “no” please explain when they will:

Do target customers exist: Yes No
If “yes” please detail:
What countries does the processor believe are target markets? Why?

Is company prepared to visit target markets in the next 12 months? Yes No
If “no” please explain why:

Is company prepared to participate in a tradeshow in the next 12 months? Yes No

Please describe company strengths and capacity regarding this particular product (i.e. access to
raw materials, machinery and technology, patents/trademarks, brand names, etc):


Please describe the production process for this product:
(attach chart – digitally if possible)

What percentage of plant or production line capacity is the company running?

Please describe the company’s limitations and challenges regarding the production/marketing of
this particular product:

Does the company have methods to analyze its Does the companies prepares a technical form
products costs in relation to its productions describing all data/costs to produce a product
levels? More products less costs?

Please list all your machinery and equipment: Modeling and cutting how are they done?


Requested Services Information

Has a scope of work been prepared for this market development effort? Please attach if so.

Please indicate tasks to be addressed and level of effort expected.

Assist in product development
Assist in package design and development
Assist in securing raw materials
Source equipment
Perform market research
Prepare company profile sheet
Prepare product specification sheet
Visit the plant and review objectives and production
Assistance in finding, suggesting and performing training
Partnerships and cooperation with technical schools
Participate in tradeshow
Market the product
Bring buyers to production facilities
Bring sellers to buyers
Represent manufacturer in markets
Find investors for business

Strategy of the project and Commitments of the Client
Strategy of intervention of the project with the client:

Commitments of the project and their relation to the priority problems
(Rank the three principal commitments)

a)

b)

c)

Commitments of the Client in relation to the action of the Project

a)

b)

c)


Timetable of sales and investments (minimum for 1 year)

Concept Most Projected Sales and Investment (S/.)
Recent Trimester 1 Trimester 2 Trimester 3 Trimester 4 Total
Trimester
(indicate
months)
Sales
Investment

________________________ _________________________
Signature of Project facilitator Signature of Client
Name Name
Title Title
Date Date


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