Growing Your International Business with a Local Presence

While attending a recent social event, I spoke to the guest of honor who has spent 42 years of his career in international commerce. He successfully promoted and exported fine chemicals and plastics.

During the course of our conversation, I asked him to give me pointers on major techniques that he attributed to the growth of his overseas sales.

"Good reps and distributors," he said. "I found good ones and paid attention to maintaining an ongoing relationship."

"Local presence is a major key to growing any business," he added, "especially in the international arena. In addition to generating orders, our reps are our eyes and ears in their respective markets."

I asked him how he found good reps and how he keeps them performing as part of his business. "Trial and error," he replied, "but you don't have to do it this way. There is an easier way to do this that will most likely produce faster and better results."

The Formula for Success

First, you must understand the importance and impact of a presence. Then you need to implement a step-by-step approach that defines, finds, evaluates, appoints, trains and motivates your local rep or distributor.

Each of these steps is an important part of the process. If any one of these steps is missing, then the quality of your reps will depend more on luck than skill. Let's look at each step in detail:

Step 1—Define Success

Define what a successful rep must be and do to grow your business in their country. Listing both necessary and preferred attributes is helpful. This becomes a de facto job description that enables you to compare potentials reps when you enter a new overseas market.

Step 2—Search Broadly for Potential Reps

Find several potential reps that meet your definition of a successful rep. Your search may include referrals from trade organizations, information from the U.S. Department of Commerce Partner Service, and advertisements in journals, newspapers and trade shows. A favorite technique this businessman used is to ask customers who they might recommend as an ideal rep for you.

Step 3—Carefully Evaluate Potential Reps

Evaluate potential reps carefully. Obtain good references from their current customers as well as your own potential customers, if possible. Carefully weigh the attributes of the potential reps and review how their strengths and weaknesses fit in your organization.

Step 4—Welcome New Reps with Open Arms

Appoint your rep of choice in a professional and positive manner. Draft your own agreement and be positive in your cover letter. Remember, you are the principal. Be sure to clearly state your expectations in the letter and welcome the rep to your family. Let your rep know that you anticipate that both of you will grow and prosper by working together.

Step 5—Train

Train your rep. Empower your rep's staff with knowledge of your company philosophy, your products, and a good understanding of how your customers use your product.

Step 6—Motivate

Motivate your rep. Keep her informed. Provide your rep with a generous supply of literature and sales aids to help her do her job for you.

Your success in international commerce depends on having good representation of your company and products in your target countries. By following the above six techniques in locating good reps and distributors, you have the potential of increasing your overseas markets and growing your company.

This article was first published in February 2002 and has been updated to include current information, links and formatting.