As a home-based business, the last thing likely on your mind is “going global” with your product or service. Why should you think about international when your business is very small and it’s so much easier to deal with local suppliers and customers? But this is a mistake. Today we live in a global economy and there are many international business opportunities for even the smallest home business. As one example, my wife Andrea, who is a textile artist, makes designer neckpieces, called “boas”, in her home studio that she sells to high-end boutiques. The materials that she uses are imported from Italy, the United Kingdom, Japan and China and some of her customers and potential customers are also international.
I am another example of a home-based business that has “gone international”. I provide legal and consulting services to clients all over the world from my home office. Dean van Dijk, the web master for my website, www.creskofftrade.com, is yet another example. He works on my website design and content from his home in Sydney, Australia and we consult using Skype and email.
Now that you are convinced that you should check out the international possibilities for your home-based business, the first step is to evaluate your product or service’s suitability for the global market. Does it compete mainly based upon price or is it truly unique? If it is unique there may be unlimited potential in foreign markets. On the other hand, if it competes based primarily upon price the international opportunities may be less because the U.S. tends to be a high price market.
You can evaluate potential foreign markets for your goods and services through Internet research and by using the resources of your state and federal government export promotion agencies. If you have the time and money, meeting potential foreign customs and suppliers at industry trade shows is frequently very productive. This has worked well for me and for my wife’s business. However, perhaps the most cost-effective approach for a home-based business is to use the Internet to leverage your product or services in international markets.
For goods, cross-border e commerce provides a great opportunity for even the smallest of businesses. You can have your products included on websites such as Amazon, Alibaba or eBay and have the website handle all payment and logistics arrangements, or you can maintain your own website and arrange logistics using an express courier company (FedEx, DHL, UPS) or the postal service and payment using an Internet payment system such as PayPal. Internet platforms work well for both business to consumer (B2C) and business to business (B2B) transactions.
If you plan to import consumer goods, a recent change in U.S. customs law permits consumer goods valued at up to $800 to be imported duty and tax-free. So if your home based business involves importing watches from Switzerland or premium coffee from Honduras or any other product, you can use an express courier firm to handle all details of B2C transactions of individual shipments up to $800 in value.
For services, creating and maintaining a website for your business is an excellent way to attract international customers. However, your website should specifically market to international clients by promoting foreign language capability (“we speak Spanish”) and include specific information to attract foreign business (“foreign travelers welcome!”). As an example, suppose you are a home-based seamstress/tailor who speaks English, Russian, French and Vietnamese and lives in New York City. Your website could advertise to international travelers to New York who speak those languages and who need immediate assistance with their garments and they would find you using an Internet search function.
Global supply chains maintained by major multinational enterprises have become increasing complex, opening up opportunities even for the smallest businesses to participate. There are challenges for home-based businesses to fulfill the various standards and other requirements imposed to become a recognized supplier of a multinational firm, but many multinationals are actively looking for small business suppliers and will assist home-based business to qualify.
I wrote my just published book, What You Need to Know to Go Global, to give detailed guidance to small businesses, including home-based businesses, participating in international trade. The book answers six key questions: how to source international customers or clients; how to make sure you are paid once you have the business; how to protect your intellectual property; how to arrange logistics; how to navigate government regulations; and how to incorporate business social responsibility into your product or service. I also included many illustrative stories from my experience as an international trade lawyer, businessman and consultant. What You Need to Know to Go Global can be ordered online from Amazon and Barnes & Noble.
