Expanding into international trade can be a game-changer for businesses, offering new opportunities for growth, diversification, and increased revenue. For many small business owners, the idea of taking their products beyond U.S. borders brings a mix of opportunities and challenges.
[Related: 5 Fears that Stop RI Manufacturers From Expanding into International Trade]
In this blog, we explore the experiences of two Rhode Island entrepreneurs who have successfully navigated the international trade waters. They share their stores, challenges, and advice for others considering taking their business global.
Kassumay LLC: Navigating International Trade with Organic and Sustainable Products
About Kassumay LLC
Kassumay LLC is a small, minority-owned business with a big mission: to offer delicious, nutritious, and eco-friendly snacks supporting health-conscious consumers and the local economy. Founded by Bacary Diatta, Kassumay specializes in organic and sustainable plant-based products, including jams, sparkling drinks, botanical juices, and nectar juices.
Expanding into International Trade
Kassumay’s journey into international trade began with a unique opportunity– a trade mission to the Dominican Republic organized by the Governor of Rhode Island, John McKee, and supported by the RI Commerce and the STEP Program of The John H. Chafee Center for International Business at Bryant University. Despite some unexpected hurdles, including inclement weather preventing in-person meetings, the mission was a success.
“It was a turning point for Kassumay.”
Lessons Learned
Diatta’s experience taught him some valuable lessons about international trade. He noted how knowing about local regulations and cultural differences would have been helpful before expanding into the market. He also emphasized the importance of staying on top of export regulations, tariffs, and customs procedures.
“It’s not just about getting your products out there,” Diatta said. “You have to ensure that everything complies with local laws and that your products meet the expectations of international consumers.”
Advice for Small Business Owners Looking to Expand
For entrepreneurs considering expanding into international trade, Diatta recommends conducting thorough market research, building strong local partnerships, and adapting marketing and sales strategies to align with local consumer preferences.
He also emphasized the importance of ensuring legal and regulatory compliance and starting with a focused approach in one or a few markets before scaling operations further.
Hideaway Solutions, LLC: Innovative Designs for Global Homes
About Hideaway Solutions, LLC
Hideaway Solutions, LLC, founded by Dana Pinnock, designs and manufactures space-saving functional furniture. Their flagship product, the STEP 180, is an integrated cabinet step stool that blends seamlessly into any kitchen. They also offer a wall-mounted desk that can be used as a sit-down or stand-up workspace–perfect for the work-from-home era.
Journey into International Trade
Hideaway Solutions first dipped its toes into the international market by selling in Canada. Encouraged by their success, they soon expanded globally, accepting orders from various countries and shipping their products directly to global customers.
Challenges and Insights
Expanding globally wasn’t without challenges, including communication barriers related to duties and taxes, currency exchange issues, and language differences. These factors made gaining traction with their products difficult despite an apparent demand for them.
“Raising awareness takes time, but we’re learning and adapting as we go,” Pinnock said.
“It’s all part of the journey.”
Advice for Small Business Owners
Like Diatta, Pinnock advises small business owners to conduct thorough research to identify the markets where their products or services will be best suited. She recommends starting in markets with a large population and a strong economy, ensuring the price point is competitive and feasible.
“Every market is different,” Pinnock said. “You have to be willing to tweak your products, your pricing, and your marketing to fit the local culture and needs.”
How Your Rhode Island Small Businesses
Can Expand into International Trade
The journeys of Kassumay, LLC and Hideaway Solutions, LLC, offer a glimpse into the rewards and challenges of expanding into international trade. Both Diatta and Pinnock have leveraged local resources, such as trade missions and government programs, to help navigate the complexities of global trade. Their experiences underscore the importance of preparation, research, and adaptability when entering new markets.
These success stories offer valuable insights and inspiration for Rhode Island small business owners considering international expansion. You don’t need to be a large corporation with over 1,000 employees to expand into the global market. By understanding the intricacies of global trade, building strong local partnerships, and adapting strategies to meet the needs of international consumers, any small business can find success selling internationally.
Remember, the RISBDC supports you at every stage of your journey, offering resources, guidance, and expertise to help your business thrive in the international marketplace. Reach out today or stop by our office for expert advice on building and growing your small business.
The Rhode Island Small Business Development Center at the University of Rhode Island employs a dedicated, experienced, and knowledgeable staff of business counselors and administrators who can assist you in growing your business. Register now for free, confidential business advice from our advisors here—call (401) 874-7232 to schedule a counseling appointment or attend our free webinars.
