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UPS and World Trade 100 magazine want to recognize one U.S.-based small- to medium-sized business (SMB) that is using exporting as a competitive advantage. Through the Growth through Global Trade award, we are searching for an innovative company that has grown its global presence and connected with customers around the world.

The winning company will receive a feature story in World Trade 100 magazine and a custom-made plaque. Anyone can submit a nomination by completing the online form and writing a 200-word essay about the company’s global growth.

With the President’s National Export Initiative – which aims to double exports over the next five years – more small businesses should consider reaching out to new markets. Currently, less than 1% of the nation’s 30 million businesses export, despite the fact that 95% of the world’s consumers live beyond U.S. borders. What’s more, with a sluggish economy at home, exporting is even more important.

That’s because many countries around the world are emerging from the recession more rapidly than the United States, and now is the time for SMBs to take advantage of this trend.

For instance, many Asian markets are on the rise. Singapore’s GDP grew by nearly 20% in the second quarter of this year and China overtook Japan as the world’s second largest economy. Canada is another major market that has experienced growth. In the first quarter of 2010, Canada expanded at its fastest pace in a decade.

We hope that by sharing the winning company’s exporting success story, we can inspire more companies to pursue opportunities overseas. Here are some of my favorite examples of small businesses growing beyond U.S. borders:

Smartphone Experts was founded in 2002 in Diana Broesler’s backyard. While most people store gardening equipment in their backyard sheds, Diana was storing cell phone covers, chargers and other accessories. Eventually the Florida-based company budded from a backyard business into a global growth engine. Today Smartphone Experts sells its products in countries all over the world, including France, Australia and the UK.

Mercedes Electric Supply, a Florida-based distributor of electrical equipment, was founded by Mercedes and Vic LaPorta in 1979. The couple grew the business across the state, and eventually across the U.S., Caribbean and Latin America. New contracts with Burger King and the U.S. government will guarantee further global growth to Canada and the Middle East.

I’m looking forward to hearing new stories about entrepreneurs braving new markets. Submit a nomination for the Growth through Global Trade award or view more details online.

Small businesses trying to read the tea leaves about the strength of the economic recovery might want to consider asking themselves not when, but where is the rebound?  That’s because many countries around the world are emerging from the recession more rapidly than the United States, and now is the time for small businesses to take advantage of the trend.

For instance, India, which is home to 15% of the world’s population, is expected to sustain 8-10% growth over the next several years. What’s more, with an expanding middle class, Indian consumers are beginning to play a larger role in the worldwide economy. Some companies have already caught on as U.S. exports to India have grown by 208% in the past five years. This trend is expected to continue as more businesses realize the enormous opportunity in India.

Other Asian markets are also on the rise. Singapore grew more than 15% in the first quarter, and China’s GDP expanded by nearly 12%. Meanwhile, the U.S. GDP was trudging along at approximately 3% growth.

Canada is another major market that has experienced growth. In the first quarter of 2010, Canada expanded at its fastest pace in a decade. The Canadian dollar continues to strengthen and is at near parity with the U.S. dollar, making the market even more ripe for trade. With a strong and growing economy, high demand for U.S. goods and an established free trade agreement, Canada is an ideal first export market for U.S. small businesses.

Smartphone Experts, an e-tailer of smartphone accessories, took its first step into Canada in 2004. From 2004 to 2009, the company’s Canadian orders increased ten-fold, to about 250 orders a week. Now Smartphone Experts is doing business in markets all over the world, including Germany, France and Australia.

Companies with the foresight to consider global markets today will reap the benefits tomorrow. And it’s easier to do than many may think. The U.S. Commercial Service and UPS provide a variety of resources to help small businesses grow global. For instance, UPS offers guides for doing business in growing markets, including Brazil, Canada, China, India, Poland and Vietnam.

UPS also sponsors numerous events to educate small- and medium-sized businesses about global trade.  For instance, UPS sponsored an export forum during National Small Business Week in May and will host exporting seminars throughout the summer.  These events are designed to help provide the resources and know-how to start or expand a global business.

Knowledge is the best tool for breaking down trade barriers. With a little research, small businesses can achieve big growth.

As the world’s 11th largest economy and the largest trading partner of the U.S., Canada offers a new world of opportunity to U.S. small businesses. Approximately US$1.6 billion in trade crosses the Canada-U.S. border daily. What’s more, with a strong infrastructure, close proximity to the United States and a free trade agreement, Canada is an ideal market for U.S. exporters.

I had the opportunity to ask Janice Corbett, acting minister counselor for commercial affairs at the U.S. Commercial Service (USCS) in Canada, what U.S. companies should know about the Canadian market. Janice has worked with the U.S. embassy for four years and held the position of acting counselor for about six months.

Q1: Why should U.S. companies consider doing business in Canada?

Canada and the United States are each other’s largest and most important trade partners and two of the world’s most open and prosperous economies. The United States and Canada enjoy a great culture of innovation driven by a diverse and highly educated workforce and some of the G8’s lowest corporate tax rates.  Because of Canada’s geographic location, ease of market entry, similar language (except in Quebec which is officially a French-speaking province), high standard of living and extremely high receptivity of U.S. products, Canada is a key marketplace for American companies ready to export. The marginal cost to expand a company’s sales into Canada may be minimal. Canada is the logical first market for many new exporters.

Q2: How have the tough economic times affected the number of U.S. businesses seeking trade opportunities with Canada?

Tough economic times have caused a slowdown in demand in the domestic markets in the United States. This can be looked at as an opportunity to expand into new markets to remain solvent.  Exporting is the primary alternative to continue to grow business during tough economic times. More companies are seeking market opportunities in Canada. The Canadian economy is expected to grow 3.7% this year and the Canadian dollar is predicted to remain strong due to the strength of the Canadian economy and growth in the energy and mining sectors. The strength of the Canadian dollar will make U.S. products more price competitive. 

Q3: What is the biggest mistake you see U.S. businesses make when they go to Canada?

U.S. companies must realize that Canada is not an extension of the United States.  There are political, regional and cultural differences that exist between the two countries.  In addition, Canada is officially bilingual, uses the metric system, has different standards and regulations and uses a different tax system. U.S. companies must be aware of the differences with respect to:  labeling, marking and packaging, language, culture, procurement, consumer safety regulations and recalls and of course customs and clearance procedures at the border. Canada is a large market that spans five time zones. One distributor in Toronto may not be able to cover the entire Canadian market! Companies must investigate whether the distributor has facilities across the country.

The U.S. Commercial Service can help you learn about the Canadian market and trade requirements before your product gets to the border.

Q4: What are some of the shipping and logistics challenges small businesses encounter when they move products between the U.S. and Canada?

Some businesses may not be complying with the Canada Border and Services Agency’s (CBSA) minimum requirements when shipping a product to Canada, such as including a bill of lading, a manifest or cargo control document and a commercial invoice. Companies that sell their products directly to the consumer via the Internet may have unhappy customers when they see the prices of their products increase significantly due to customs clearance charges. Companies can avoid this by establishing a warehouse or distributor in Canada so that they can spread the customs clearance fees over a large number of products and reduce the cost to their consumers. If customers work with UPS and other shipping companies, they can get a good picture of landed costs.

Q5: Are there any specific customs challenges that are unique to Canada?

Yes. When shipping a package to Canada, the importer is responsible for the clearance unless prior other arrangements have been made. The shipping to a Canadian customer must be seamless. The U.S. exporter should register as a non-resident importer.  Information on the Canadian non-resident importer program can be found at: http://www.buyusa.gov/montana/145.html

Q6:  What is critical for U.S. companies to know before they go?

U.S. companies should determine the target market they want to explore. It is important to understand that there are fundamental differences including language, culture and market sensitivity to certain products. 

Q7: What are the top resources you recommend to U.S. companies?

Statistics Canada has incredible data on the Canadian market and import/export trends. The U.S. Chamber of Commerce is another strong resource. I also would recommend that companies read our Canada Commercial Guide, which provides information on everything from the political and economic climate to background on the top ten markets in the country. Businesses can search our website for market research or contact a USCS specialist in their sector to determine which markets are most appropriate for their product or service.

Q8: In your estimation, do most U.S. companies seem to grow organically within Canada? For example, do they just start receiving orders from customers there – or are they making a targeted effort to tap into the Canadian market?

We see it happen both ways. U.S. companies’ Canadian sales grow organically once they target one market sector.  For example, one industrial cleaning equipment company started in the oil and gas sector and expanded their sales into the mining and industrial chemical sectors.  The key is finding a good distributor or representative that has contacts in Canada and can help your company find new opportunities in new markets.

Since Canada is a geographically large market, U.S. companies often start exporting their products to a province that is across the border from their home state and expand their markets to other provinces.   

Q9: How has the rise of the Canadian dollar (compared to the U.S. dollar) affected Canada-U.S. trade?

Now is a great time for businesses to go to Canada because we’re very competitive with the strength of the dollar. As we reach currency parity, there is a window of opportunity for U.S. exporters to take advantage of their price advantage and introduce their products to a great number of Canadian organizations highly receptive to U.S. products and ideas.

Q10: Is there anything else you want to tell small businesses about going global?

We welcome U.S. companies to contact us. We’re happy to help them expand their sales in the Canadian market and we have the knowledge and resources to help make them successful. That’s what makes us go to work everyday. We feel great when we can help companies grow and expand their sales. That’s what makes us tick.

For more information about doing business in Canada, check out the Canada Snapshot for Small Businesses. The U.S. Commercial Service and UPS provide a variety of resources to help small businesses grow global, including guides for doing business in growing markets like Brazil, China, India, Poland and Vietnam.

Last week UPS sponsored an export forum during National Small Business Week, where experts and business leaders gathered to discuss how global trade can impact our nation’s small businesses.

Approximately two thirds of the world’s purchasing power and 96% of the world’s consumers are outside of the U.S. Companies that are willing to research and explore international markets can tap into tremendous growth opportunities.

According to Dan Nanigian, president of Nanmac Corporation, exports drove his business’s growth in 2009. While most companies were pulling back during the recession, Dan was seeking new opportunities in growing markets. As a result, his company nearly doubled its revenue from 2008 to 2009, and it expects to grow international sales by 142% in 2010.

Despite the vast opportunity in global markets, many small businesses are hesitant to export because they think the process will be too complicated and difficult.

I attended the SBA’s National Small Business Week Export Forum last week, and heard firsthand about the fears and challenges that prevent companies from exploring new markets.

When Luz Hopewell from the SBA took the podium at the forum, she asked how many small businesses in the room were currently exporting. In a room of more than 100 people, only three raised their hands. Surprisingly, the national statistic is even lower. According to the New York Times, less than 1% of the nation’s 27 million small businesses export.

In the video below, experts from UPS and the SBA comment on the top concerns of small businesses and offer compelling reasons for why more SMBs should consider international markets.

For most people, Mardi Gras means festive parades and celebrations. For David Haydel Jr., Mardi Gras means business.

As a third-generation general manager of Haydel’s Bakery based in Jefferson, Louisiana, David has a special connection with the king cake tradition. While the bakery specializes in birthday cakes and wedding cakes throughout the year, it’s most famous for its purple, green and gold king cakes.

I had the chance to speak with David and learn about his business and the overwhelming impact of Mardi Gras. I was completely blown away when I learned that he has to triple his staff in the weeks before the holiday to keep up with the explosive demand. In the two weeks before Fat Tuesday, his team will make 2,000 king cakes each day. On Monday, February 15, Haydel’s peak day of the year, the bakery will produce approximately 5,200 king cakes in a single day – that’s 11 cakes a minute!

What is the significance of the king cake?

King cakes represent a little piece of New Orleans. They are a sign of Mardi Gras. For people sending them out to customers and clients, it’s like sending them a piece of New Orleans.

After Hurricane Katrina, we had many customers calling us up and saying, “I’m up in Idaho and they’ve never heard of king cakes here, can you send me some?” The king cakes represented home for many of the people who had to move away.

Since your grandfather started Haydel’s, he must have pulled you in when you were young. When did you start helping with the business?

At age two. I starred in Haydel’s first commercial back in the 70s. I crawled across a table and flew into a cake. I’m still trying to get them to pay me for that! But that was just my debut, I’ve been involved in the business as long as I can remember.

Over the past two weeks, your team has been making 2,000 cakes a day, and today you expect to make 5,200 cakes. How do you keep up with that kind of volume?

We don’t sleep! In the last week before Mardi Gras we work almost 24 hours a day. Throughout the whole season, from the Epiphany through Fat Tuesday, we will sell 52,000 king cakes. And they go all over the world!

All over the world? Where all do you ship to?

We pretty much go everywhere you do. From Canada to London to Singapore, we’ll send king cakes from one end of the world to the other.

How does UPS help you manage this major peak in demand?

During king cake season, UPS leaves a truck at the bakery all day long. We fill it up throughout the day, and we may even swap it out for second one if needed. Then UPS takes it and delivers all the cakes overnight so they can arrive fresh. This is where we take all our hard work and leave it in UPS’s hands. Simply put, we rely on you guys to make us look good.

UPS has also equipped you with some technology solutions. What have we done to help make shipping easier for you and your business?

As UPS has integrated technology to speed up their process, they’ve kept us up with it. This technology eliminates steps and saves space, but it also saves headaches. I remember when we used to prepare our shipments manually, and you had to worry about filling out all the right labels and stickers for each box. Now it’s more automated.

One really big thing is the way customers can track packages directly from our Web site. This is a huge help because, otherwise, we would have people calling us every five minutes.

Can you describe a few of your “special edition” king cakes from this year?

We made a black and gold king cake in honor of the New Orleans Saints for the Superbowl. That one was really popular, and we ended up selling out. We love Saints fans!

We also did a heart-shaped king cake in pink, red and white for Valentine’s Day.

What is the significance of the plastic baby inside the king cake?

There are a lot of theories behind this one, but we like to say whoever finds the baby has to buy the next king cake.