Why the U.S. Government CAN'T Help New Exporters

                                                                                         

The first time I walked into the U.S. Department of Commerce district office (they're now called Export Assistance Centers) in the Federal Building in New York City I learned two things almost immediately. The first thing I learned is that these people were not interested in helping an export intermediary. The second thing I learned is that these people COULDN'T help me.

That's right. They not only didn't want to show me everything involved in exporting. They were unable to show me. They didn't have the perspective. They didn't have the expertise.

Don't get me wrong. They were nice people and over time I learned that, in fact, they could be very valuable. The problem is I didn't understand what they could do and how they could help me. Once I understood what services they provided and learned what their rules were, things went a lot better.

As you might expect, of course, New York City is not exactly like the rest of the U.S. The district office there was inundated with requests for help and assistance. In some other parts of the country, they are far more willing to help a neophyte exporter. The point I'm making is you shouldn't expect it.

To understand the problem you need to recall the old adage about bankers: they only want to lend money to people who don't need money. If you can prove you don't really need it, then you're a safe bet as a borrower. It's kind of like that.

All too often, the government wants to help the big exporters who have bankers and other resources already. They're not much interested in the little guy. Think about it from their perspective. It makes sense.

The big guy is looking to export maybe millions of dollars in product at a time to many different markets. And once they learn how to export, they'll keep doing it. They have professional specialists available who understand finance and shipping. More importantly, the big company is the exporter. There is no intermediary to muck up the works. This is the way they like it. The government gets a big return on its investment of time and resources.

Now you walk in. You're a new exporter. You ask to speak with a trade specialist and you say something like "I'm trying to learn how to export." "Are you a manufacturer?" they ask. "No," you say. "Have you ever exported before?" "No." "Do you have a contract with a supplier who wants to export?" "No," you say, "but I could use some help in finding suppliers . . . and what's a letter of credit?" And the new exporter is amazed and a little angry when the trade specialist's face drops.

Look, the U.S. Commerce Department is not going to help you get started as an exporter. They don't have the time, they don't have the interest and, frankly, they don't have the expertise. If you want to learn how to export, you need to get smart on the process through reading or experience with someone who IS exporting.

The government (and this applies to non-U.S. traders as well) has lots of resources and is a wonderful tool if and when you know how to use them but they're not always the sharpest business people. And frequently, they don't understand entrepreneurs like you who want to "add value" to the export transaction and make a nice profit in the process. That's just the way it is.

About the author:
Dennis Hessler is the publisher of The Computer User's Guide to Running Your Own Exporting Company and numerous other books, video tapes, software packages and The International Trade Connection newsletter which is designed to show entrepreneurs new to exporting how to get involved in the booming global market.

Learn more about international trade at his website, http://www.spyglasspoint.com. You can also download a free sample copy of The International Trade Connection at the site. If you have questions about any of his products or international trade in general, e-mail Dennis at Dennis@spyglasspoint.com. Spyglass Point Productions, P.O. Box 13141, Pensacola, FL 32591 U.S.A.


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