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When you take the plunge into exporting, no decision is more important than who you select to represent your company in another country. "The agent or distributor you contract with in a foreign country becomes your presence there. If they don't have a good reputation, you won't either," says Frank G. Long, an attorney with Gust Rosenfeld PLC in Phoenix.
Knowing the person before you get involved is key to hiring a good agent. Start by getting referrals and talking to some of the agent's other clients, particularly international ones. Also find out what kind of business entity you're dealing with. If it's a corporation or a partnership, who are the other members? What other lines of business do they represent? Where do they do business? This can affect which laws apply to your relationship. It's also important to make sure your contact has the authority to make binding agreements. "Sometimes the person you're meeting with may not be the person who's calling the shots," says Long.
To be extra safe, consider hiring a private investigator. "You're not trying to dig up dirt," says Long. "You just want to know who you're dealing with." Be sure to inform the agent you're doing an investigation; if he or she hears it from the investigator first, says Long, "that could abort a potentially useful relationship."
Investigating an agent doesn't have to be expensive. Start by contacting the U.S. Department of Commerce; according to Long, that's a good place to start to get general information. Then move on to a private investigator for more detailed data. When selecting a distributor, it's always better to be safe than sorry. Says Long, "Not doing any investigation is just flying blind."
Site Seeing
You don't have to read every book and newspaper article everpublished on exporting to do it yourself. Check out the followingWeb sites; they just may be the quickest way to get started.
- For a listing of foreign trade organizations and chamber ofcommerce offices in the United States, visit http://www.yahoo.com/economy/organizations/international_tradeThis list will hook you up with everyone from the Estonian Chamberof Commerce to the British-American Business Council.
- Manufacturers need to keep abreast of international standardsfor the products they make. To stay in the know, look at http://www.ansi.org//home.htmlwhich lists information on all 12,500 U.S. standards and detailsinternational certification requirements.
- Want to have your company's trade profile matched withtrade lead sources? Then subscribe to IBM's Global BusinessForum at http://www. pragmatix.com/gbf Asubscription isn't cheap ($2,000 per year), but it may be worthit for your business. Trade leads come from 500 internationalbanks, the U.S. Department of Commerce and the United Nations. Ifyou subscribe, trade leads will be e-mailed to you daily.
Pay Days
Selling to other countries is especially rewarding when youactually get paid. However, depending on where you're exportingto, how quickly you receive payment can vary wildly. If you ship apallet of cookies to Italy, don't hold your breath waiting fora check. Send the same to Finland, and you can usually expectpayment in less than a month.
Curious to know how long it will take to get paid? According tothe annual European Business Survey by Chicago-basedconsulting firms Grant Thornton International and BusinessStrategies Ltd., you can guesstimate based on the followingchart:
Average number of days it takes to get paid:
Finland: 24
Denmark: 35
Sweden: 37
Germany: 38
Austria: 43
Netherlands: 46
Switzerland: 50
United Kingdom: 50
Belgium: 52
Luxembourg: 56
Ireland: 59
Portugal :61
France: 64
Spain: 73
Malta: 76
Greece: 77
Italy: 84
