I attended Your Future in Global Markets – 2017 International Business Conference in October at the beautiful Hilton Lac-Leamy, in Canada’s National Capital Region. When it came to preparing for the future of international business, this event definitely delivered!

The conference covered current and future challenges for trade, the complexities of global business, industry trends, and future impacts of international business on operational functions within organizations.

The lineup of speakers included a mix of world-renowned subject matter experts, small and large business leaders, and certified international trade professionals. The topics discussed assisted with my professional development goals to learn about new tools, emerging trends and best practices. The panel format of several sessions allowed for opposing views to be expressed and a rich conversation to develop, which was also dynamic – just like the field of international trade.

For me, the biggest take-away was the advice and sharing from those who had been there, done that, and shared their international trade experiences. The highlight was the keynote address by OMX Founder and Dragon on Next Gen Den, Nicole Verkindt, who talked about her first foray into the world of international trade and some of the complexities she had to overcome.

I thoroughly enjoyed the anecdotes and candid recounting of knowledge gaps and lessons learned.  After all, there are always lessons to be learned.

My favourite anecdote was that of a young Ms. Verkindt arriving in the Dominican Republic, with little knowledge of local business practices and wondering why the goods that her company had frantically produced in the country were not leaving the dock. It was only after a private meeting with the Minister of Customs for the Dominican Republic that the shipment left the dock. On an interesting side note, I understand that this anecdote became material for the keynote presentation the following day “A View from both sides: Why corruption happens and real strategies to protect your people and business”.

The conference reassured me that the advice I share in both private industry and as a FITTskills instructor is on point. One central conviction that particularly stood out for me is that international trade research, including a thorough understanding of the risks involved and the preparation of a plan to mitigate those risks, is a fundamental component of a successful international business strategy.

Preparing for the challenges and opportunities of tomorrow

In addition to the key messaging, here are the top three resounding themes that recurred throughout the conference:

1. We must embrace the digital economy

If we don’t embrace the digital economy, we will be left behind. We must learn about disruptive innovations  in international trade and adopt new ideas or trends early.

When we talk about digital marketing, for example, we are not simply referring to Search Engine Optimization (SEO). We are referring to fully leveraging the power of the IoT and big data to provide an exceptional customer experience and enhance inbound marketing efforts.

We’re talking using machine learning algorithms to make sense of overwhelming amounts of data and deliver customized content in order to create a better customer experience, whether your customer is in your local market or around the globe.

Assembling your A-team of talented professionals in a wide variety of areas may make this early adoption easier.

2. A focused approach is paramount for SMEs

I had a colleague that liked to use this analogy: small business tackling global market expansion is akin to boiling an ocean in contrast to boiling a few pots.

Rather than trying to take on every possibility at once, you need to do your research, learn what you need to know, narrow down your markets and focus on one or two target markets at a time.

3. The future looks bright in Canada and elsewhere

Nicole Verkindt mentioned “It’s Canada’s time!”

Peter Hall, EDC Vice President and Chief Economist, backed up that sentiment with his concise analysis of global issues for Canadian exporters. In many economic circles, experts believe that the ideal time to expand internationally is now. Throw your lifejacket on (prepare) and jump on that ship before it sails without you.

I was truly proud and inspired to be among such a fine network of international trade professionals. The breadth and wealth of knowledge that was shared both formally and informally was very impressive.

And one more thing was made abundantly clear – in international trade, the future is bright!

One of the administration’s decisions, announced in early June 2017, is the United States’ withdrawal from the Paris Climate Agreement. At first glance, this decision appeared to be catastrophic. The many great strides that had been made by the previous administration to fight climate change seemed to be erased in one fell swoop of the pen.

Nevertheless, one of the most interesting reactions to this decision is the strengthened resolve of many corporations, as well as U.S. municipal and state jurisdictions, to stay the course, and in certain cases to set even more aggressive carbon reduction targets. In fact, it appears as though the resolve of multiple jurisdictions around the globe has intensified and the transition to a clean tech economy is well on its way.

Where there is change, there is also opportunity

Canada’s clean technology and services sector is now in a position to capitalize on the global shift toward a clean economy. With or without the Trump administration, this transition is happening. The global market for clean technologies is growing exponentially and Canadian exporters can position themselves as champions of clean technologies, taking a large share of this rapidly growing market.

It has been suggested that the opportunity for Canadian exporters may actually increase as the U.S. backs away from its carbon reduction commitments. Federal program support for American companies looking to export their clean tech solutions to global markets is likely to be significantly reduced. This will create more opportunities for Canadian exporters.

This opportunity is probably best summed up by Tom Rand, clean-technology venture capitalist and lead clean tech advisor at MaRS. In his closing remarks at the annual acclaimed Cleantech Forum held in San Francisco in January 2017, he concluded that:

If the U.S. wants to walk away from climate action, then Canada will be more than happy to eat its cleantech lunch.

This opportunity has not been lost on the Canadian government, which has identified clean technology as a priority sector for exporting around the globe. This priority sector includes products and services in renewable generation such as solar and wind, energy storage, and energy efficiency, to name a few. Export programs are available which provide support and assistance to Canadian enterprises offering these advanced technologies in overseas markets.

Turning green into gold with sustainability programs

With this transition to a green economy, there exists a second area of opportunity for Canadian enterprises in creating the business case for sustainability. Corporations are looking for ways to reduce their carbon footprint. In doing so, they are eliminating waste and increasing efficiency, which can lead to a global competitive advantage. Many corporations, large and small, have created the business case for sustainability and have seen profits increase.

As an example, Canadian Manufacturers and Exporters (CME) is administering the SMART Green program, which assists Ontario small and medium sized manufacturers with reducing their greenhouse gas (GHG) emissions. The program is funded by the Government of Ontario Green Investment Fund, which supports investments in clean technology and process improvements to improve energy efficiency and reduce GHG emissions. Programs of this sort aim to improve the competitiveness of manufacturers and, at the same time, contribute to GHG reduction targets.

With or without program support, corporations on both sides of the Canada-U.S. border are turning green to gold.

Many enterprises are greening their entire global supply chain and have made it a priority to take a sustainable approach to doing business. In order to be a global supplier, there must be a focus on sustainability and corporate social responsibility (CSR). Not only is it the right decision to protect the environment, it makes good business sense for companies looking to enter and succeed in global markets.

It’s time for Canadian exporters to build their competitive advantage

As many countries around the globe endeavour to shift away from fossil fuels and reduce their carbon footprint, this transition to a green economy promises to be challenging and rewarding.  Canadian exporters of innovative technologies are poised to take advantage of this building momentum at home and abroad.

With Canada’s largest and most accessible trading partner appearing disinterested in promoting jobs and investments in clean technologies at the federal level, this may be a tremendous opportunity for Canada to use this sector as an engine for growth. If embraced and done properly, this will become a big competitive advantage for Canadian exporters doing business around the world.

This year the show had quite a lot of buzz. I would suspect it had something to do with Prime Minister Justin Trudeau delivering the keynote address.

The Prime Minister attended to open the GLOBE 2016 Leadership Summit and Innovation Expo and hold a First Ministers meeting on climate policy with all of the provincial and territorial premiers.

It may also have had something to do with 31 Canadian Trade Commissioners  and multiple international delegations looking to witness the emerging innovative clean technologies that are ready to be commercialized internationally.

Aside from the buzz, I am a strong advocate of the value of targeted trade shows in accelerating your global market expansion goals.

A company can really increase its visibility in industry circles, and where else can a company meet a multitude of targeted contacts under one roof?

There is also the opportunity to gain competitive intelligence and, as in my case, begin a new position with a Canadian clean tech start-up. For me it was a 3-day total immersion training session.

So, what are the lessons learned? Because there are always lessons to be learned.

1. Your existing network is a major asset

When planning your participation in key trade shows and events, tap into your international trade network. They are your family.

Our company was very fortunate to register early enough to claim a spot under the Ontario pavilion. Exhibiting under a provincial banner provides a cost-effective, turn-key solution for showing off your technologies in the market.

It also offers an opportunity to capitalize on the co-marketing of your product/service by the provincial government.

2. Make sure others can easily find out who you are

Before you go, complete your profile. It may seem like a very simple step but it’s often overlooked.

Personally, I have tried to look up potential partners on the exhibitor listings and many company profiles are incomplete at best. This is your opportunity to spread the word prior to showing up on the exhibition floor.

We were fortunate that our company was chosen as one of the VIP booths for both press and high level officials. We were found and selected by show organizers based our online company profile.

3. No swag, no problem

Skip the swag. Being at a sustainability event and realizing that everyone must do their part to reduce their carbon footprint, we did not distribute any swag, not even a brochure.

In the clean tech space where our company conducts business, we were quite comfortable asking for a business card and offering to send a soft copy of any literature individuals were asking for.

This initiative fits with our business vision and visitors seemed to welcome the low carbon approach.

4. Make every second count

To quote Yogi Berra, “It ain’t over ’til it’s over”. Opportunities are abound to make contacts and start establishing relationships.

Sometimes, those contacts are not made in the exhibition hall; they’re made outside of show hours at a reception, in line for your favourite coffee, or, in my case, on the plane flying back to Toronto. You just never know who you may meet. Hence the importance of always being engaged.

Perhaps it was serendipitous, but I happened to sit beside one of our company’s supporters and investors.

This conversation affirmed that the long days on our feet that my colleagues and I had endured, all of the handshaking and follow ups to come were all worth it.

So, the next time you’re contemplating taking part in a targeted trade show, embrace the opportunity, put your best foot forward and weave your own story of lessons learned.

What valuable tricks and tips have you learned from attending trade shows?

Well, the unexpected happened.

I was right on pace at the halfway mark of the race, feeling great. Then all of a sudden, at exactly 21 kilometres, my calf muscle pulled. What??? How did that happen?? I had no inclination up until that morning that there was even a problem.

When I conducted a post-mortem of my first Did Not Finish (DNF), I saw the signs. Small little red flags that maybe I wasn’t recovering enough, running too fast in workouts and not seeking professional help to sort out any underlying issues I may not have been aware of.

There are a few parallels between my DNF and a failed market entry strategy.

Inexperienced exporters, or sometimes even experienced exporters, make mistakes because, frankly, they don’t know what they don’t know.

Even with experienced exporters, sometimes the status quo, even if it’s worked in the past, may lead to some of the pitfalls of international trade instead of continued export success.

Equip yourself properly by paying attention to the fine print on your contracts

Take, for instance, the case of recycling a contract for different markets. You can compare that to using everyday shoes to run a marathon.

I have seen companies ‘cut and paste’ contracts for different markets, with small tweaking to reflect the new relationship, but not necessarily the local nuances.

Contracts that do not reflect local requirements can be very costly to fix and lead to litigation down the road when something goes wrong with the agreement, or the company needs to terminate the contract.

In Colombia, for example, an agent receives a severance payment when an agency agreement is terminated, regardless of the reason or cause.

An exporter should pay close attention to the contracts they are signing and make sure they understand all aspects of the agreement, especially those clauses that ‘don’t really mean anything’.

Stay in the global business race with a strong trade compliance strategy

Trade compliance is another area that keeps some companies up at night, or in some cases, should keep companies up at night. This is like running off course and being flagged by officials.

I have seen companies use untrained employees for the preparation of customs and shipping documentation, which can result in discrepancies and errors.

With small manufacturers, for example, the employee in the company completing the customs documentation may underestimate the importance of accurately classifying the products according to the HS Code and/or Country of Origin.

When a company has multiple products that they export and numerous components that make up the product, it can be very complex to determine correct tariff classifications.

Even when a third party has recommended conducting a structured review of the tariff classifications or requesting a customs ruling for a particular product, I have seen decision makers hesitate to spend the money.

This is often due to budgetary constraints and the mentality that, “If the shipments haven’t been flagged in the past, they must be doing things correctly.”

Customs compliance should not be taken lightly, as the costs to address compliance issues can be very high.

Prepare for each situation by adapting to local preferences

Failing to adapt your product offering to reflect local market characteristics and preferences can also set off red flags. This is akin to a runner not accounting for local climate conditions and weather warnings.

I remember when Home Depot entered the Chilean market in the 1990’s.  It set up stores in Chile using the same format that worked in the United States and Canada.

Unfortunately, what Home Depot failed to realize was that it was women in Chile who made the purchasing decisions for home products, and the male-centric environment that worked in North America was not very welcoming for women.

This was one of the major reasons why the company failed to garner much interest in their stores, which led to Home Depot selling off its share of all of its stores in the market.

A company must adjust its marketing strategy to reflect local characteristics.

Otherwise, it may not achieve long-term success.

In order to achieve international trade success, while not getting sidelined by injury, companies must do their research, create a strong plan, stick with the plan, upgrade their international trade skills, and hire professionals that can coach them.

Remember, the race is not always to the swift, but to those who prepare for the unexpected and keep running toward their goals.

Which signs do you need to pay most attention to in order to avoid a DNF on your market entry strategy?

As annoying and comical these analogies became, I do appreciate the value of finding similarities between two diverse industries.

As an avid runner, I see a lot of opportunities to equate global market expansion to running a marathon.

Here are five lessons I’ve learned from my experiences in marathon running and managing the global business expansion of various entities.

Lesson #1 – Do your Research

You would never jump into a marathon without fully understanding the scope of your endeavour.

What’s involved?

How long will it take?

What are the conditions like in the location where you’ve chosen to run?

Perhaps the race destination has not been chosen; therefore you must weigh your options.

Similarly, you must do your market research in order to determine not only your target market(s), but the existing potential for global expansion in those markets.

Perhaps you’ve had a few export sales to a specific country and you’d like to determine the viability of the market for your products/services.

What other regions offer specific market opportunities for your products? Perhaps this is the time to attend some events focused on global market expansion.

There are a multitude of entities that conduct seminars to educate local businesses about the export opportunities in certain regions of the world.

This is the time to tap into organizations such as the three levels of government, export financing institutions such as EDC, trade associations, manufacturing and exporter associations, local Boards of Trade and Chambers of Commerce, etc.

Key Take Away  – Understand the scope of your endeavour and start your research.

Lesson #2 – Hire a Coach

Not all runners require a coach, but the elite ones do.  Coaching allows a runner to achieve his or her goals and avoid some of the pitfalls the self-coached runner encounters.

A newbie marathon runner must navigate all of the complexities of marathon training on their own; nutrition, injury prevention, equipment, etc.  A coach with vast experience can help a runner efficiently navigate through these complexities and stay focused.

As a business, perhaps you have identified the need to expand globally in order to mitigate losses from decreased domestic demand, but do not have the time to dedicate to international business development. Or maybe you are afraid that the time and resources required will take away from the core competencies of the business.

This may be the stage where you consider hiring a coach, a Certified International Trade Professional (CITP/ FIBP) who is well versed in the intricacies of international trade, and a great asset to the company.

An international trade professional has the core competencies required to not only execute the fundamental research, but also to navigate through all of the complexities of global expansion, while keeping the business on track with their goals.

Key Take Away – Hire a coach whose focus is to get you to your destination in the most efficient manner.

Lesson #3 – Have a Plan

Fortunately for runners, there is an endless supply of training plans to get you to your target race.  It is true that you may have to tweak some of these to fit your schedule, requirements, and current level of fitness, but a general outline is available to help you achieve your goals.

Conversely, there are very few detailed guides available to businesses to lead them into the global trade arena.

An international business plan is a key factor contributing to a successful market entry strategy.  This should clearly outline the human resources required to carry out the plan.

It should include relevant details about the target markets such as the political and economic outlook, legal/regulatory issues, labelling requirements, business customs and practices.

It should also include the market entry and marketing strategy, outline operations, global supply chain, order processing and terms of payment, shipping, packaging, documentation required, and, last but not least, the financial and risk management strategy.

It is worthwhile to note that unforeseen circumstances do arise, such as an injury which would require a change to a runner’s training plan.

In the same way, the international business plan should be modified to reflect changes in the organization/operations of a business or conditions in the target market(s).

Without a plan, I have seen companies lose their focus just as I have seen runners lose their focus before race day.  They may be attracted by the low hanging fruit in an emerging market.

The effort is lost when a company jumps from one target market to another and abandons the plan prematurely.  Entering new markets can take a lot of time, resources and an abundance of patience.

Key Take Away – Plan, plan, plan, tweaking if necessary, but maintain your focus.

Lesson #4 – Do Your Training; Execute Your Plan

In the same way you can’t jump into a marathon without any preparation, why would companies think they can springboard into global markets without having done their homework?  Training specifically for a marathon can take anywhere from 16-20 weeks.

The “training” phase for global market expansion can take several months, if not years. This is the phase where you follow your international business plan and try to establish the desired win-win relationships in the target market(s).

In this phase you can apply for funding to government entities to help support your market expansion goals. This might include submitting funding applications to attend a relevant trade show in your target market, creating market-specific marketing collateral, or hiring a consultant to assist with the arrangement of B2B meetings.

“Training” could also include participating in incoming buyers missions from your target region, or outgoing trade events to your target market.  In this phase you want to reach out to all the resources available to you in order to identify potential strategic partners in the new market.

If certifications are required in your objective market, now is the time to focus on obtaining these approvals. This is also the phase where you determine packaging and labelling requirements and other regulatory compliance issues.

Explore your channels of distribution and go-to-market strategy, and determine how you are going to market your products in each of the new regions. Analyse the financial risks and determine a risk mitigation strategy to guard against them.

There are so many factors to consider.  A coach can certainly be a valuable guide to help you navigate through this phase.

Key Take Away – Do your homework; your coach can be a big asset in helping you prepare.

Lesson # 5 – Run the Race and Evaluate the Outcome

Congratulations, you’ve crossed the finish line and completed your marathon!  In most cases, the goal is not just to finish, but to execute the race according to your plan.  Did you hit your target?  Are you happy with your results?

In the global business world, you never really cross that finish line.

You’ve done your training, executed your plan, and achieved some success but the finish line keeps getting extended.

Take a moment to congratulate yourself for the milestones you’ve achieved. Then get right back to work because now is the time to re-evaluate your goals, and learn from the mistakes you’ve made.

You have new relationships to forge, new markets to explore, new distribution channels to establish.  Whether you are endeavoring to run a marathon or break into a new market – it’s always a journey.

Key Take Away – Embrace that journey and remember the race is not always to the swift but to those that keep on running….

Which stage is your business in with its efforts to expand into new global markets? How can you apply these lessons to improve your approach?

My road to becoming a Certified International Trade Professional (CITP) began with a single FITTskills course I took back in 1999 at the International Trade Centre Toronto. At the time I was working as an assistant trade commissioner for ProChile Toronto and the trade commissioner and I decided to take the course together in order to equip ourselves with international trade tools that might be beneficial in fostering trade ties between Canada and Chile.

Foray into international trade training

The course was a great overview of the industry, and it highlighted some of the key issues Chilean exporters were facing while trying to enter the Canadian market; issues I was dealing with on a daily basis.  I was able to assist the exporters in navigating through some of the complexities of choosing the right market entry option, logistics and distribution strategy and, in general, risk mitigation.

With fluency in Spanish and a degree in commerce and economics, I continued working in the field of export promotion for 10 years. I then made the decision to leave my field and work in a family business for a couple of years. Two years turned to six years, and the desire to get back to what I was passionate about became overwhelming.

Getting back in the game

Unfortunately, a six year hiatus from my profession had left my confidence shaken. Was I up to date on international trade issues? Was my skillset where it needed to be to re-enter the global business field? Although I had the international trade experience, I was in essence starting over and I needed to carve out a niche as an international trade practitioner. I needed to upgrade my skills, not only to enhance my chances of finding an international business position but also for my own professional development.

I decided to finish the remaining seven FITTskills courses online through eConcordia.

With two kids in competitive sports, work commitments and a busy lifestyle in general, the online courses gave me convenience and flexibility to complete the course work on my own time.

Although I missed the in-class social interaction with other professionals, the course discussion boards did provide a certain level of interaction between fellow students and the instructor.

I felt that the curriculum provided a new level of competency in multiple aspects of international trade.  Some courses were a refresher for me, while others courses delved deeper into areas that I had only touched upon in my previous work experience.

The payoff

In 2011, I obtained my CITP designation and I was proud to be receiving it along with other highly skilled international trade professionals. Shortly thereafter, I accepted the position of export manager at Intellimeter Canada Inc., a manufacturer based in Pickering, Ontario.

The company was looking to take a strategic approach to global market expansion, so I used what I learned via the FITT curriculum to leverage my experience as an international business development specialist and hit the floor running.

I started up and headed the international business development division of the company. One of my first tasks was the creation of an international business plan with a focus on risk mitigation; which was not as monumental a task thanks to the FITTskills courses I had completed.

Due to my knowledge of and belief in FITTskills development, I created an internship position for a FITTskills grad from the International Business Management Graduate Certificate Program at Durham College. I had the pleasure of mentoring this student, who is now a full-time employee at Intellimeter Canada Inc. and is working towards the required hours for his own CITP designation.

What it means to be a CITP

In a nutshell, I believe the CITP designation stands as a symbol of competency and credibility in global business. It displays a thorough grasp of international trade processes, as well as a dedication to ethical business practices and ongoing professional development. And it is reassuring to know that many of my colleagues in global business share the same competencies and values.