Just because you own a small business doesn't mean you should think small. In fact, experts say that the majority of small firms that eventually fail don't pay enough attention to expanding their markets. Ventures that succeed think expansively (albeit realistically), not only in terms of their products and services, but also in exploring the viability of foreign markets. One way to break into these normally difficult-to-access markets is through trade missions.

Donald L. Gallison, Jr., president of FCX Systems Inc. in Morgantown, West Virginia, claims that trade missions are an excellent vehicle for small companies to gain exposure to international markets. He also points out that small businesses need to remember the importance of exporting. "There was a time when small firms had a choice about whether or not to export," he notes. "Now, thanks to globalization of the economy, small businesses no longer have that choice. You've got to be competitive on every soil."

Usually sponsored by a government agency, a nonprofit organization or large company, a trade mission lends credibility to the participating small business that it otherwise might not have in a foreign country. Though the small firm will not be the featured component of the various entities involved, the trade mission allows for first-hand interaction with the foreign market and the opportunity to make contacts that can bring in new business. Traveling as part of a larger group, as opposed to going it alone, can also save your small venture a lot of money.

Certain developing nations that are growing at an extraordinary rate, known as big emerging markets (BEMs), have a great deal of export potential for American small companies. Trade missions are one way to penetrate these BEMs. However, while trade missions are an easy way to meet foreign firms open to developing a working relationship, be prepared for a different way of doing business.

"Millions of adolescents throughout America have heard the fatherly advice, 'Give 'em a good firm handshake and look 'em straight in the eye,'" notes Roger E. Axtell, author of The Do's and Taboo's of International Trade. But millions of people in other parts of the world have learned different values in terms of what to do when meeting someone for the first time. The Chinese, for example, often shake hands lightly and for as long as 10 seconds. Rather than look someone straight in the eye during a first encounter, Chinese look slightly downward to show respect. Saudi Arabians, however, follow another set of standards. Lavish verbal praise, touching, long hand holding and a quick kiss on the cheek-even between men-are all basic components of Saudi greetings.

These introductory gestures and courtesies only begin to touch on the complexities of conducting business overseas. Decision-making, business ethics, the role of women, meetings and business attire are all necessary considerations when entering into a foreign culture. A mistake committed in ignorance of local customs can kill a deal quickly, no matter how competitive your product or services.

With all this in mind, remember a few general principles when preparing to develop cross-cultural business relationships. For starters, be sure to do your homework. Talk with friends and colleagues who have traveled to-or have business or cultural ties with-areas where you might like to establish relationships. Pick up the latest books on international trade and learn from the experience of experts. After arriving at your international destination, whether Calgary or Dar es Salaam, assume the posture of a learner. Becoming a student of the culture in which you're operating is a vital part of developing healthy relationships with potential international business associates.

In the Middle East or Western Africa, for example, business takes place at a slower pace than most American entrepreneurs are accustomed to. "Be patient," advises Axtell. "Often times what Americans think will hurry the business process along actually causes it to break down entirely."

Finding a suitable trade mission for your company should not be too difficult, as there are many different organizations sponsoring them. Greg Hill, mayor of Redondo Beach, California, has been allocating time from his schedule to assist the American Business and Cultural Exchange Foundation (ABCEF), a nonprofit organization that creates trade and business relationships between American companies and foreign markets. ABCEF has developed strong relationships with South America and the Pacific Rim by having its members bring companies together.

Hill affirms that trade missions can provide a comfortable arena for small businesses to learn about a new market's standards and practices. "Making face-to-face contact is quite important," he advises. "It is very different to deal with a business after you have spoken with its representatives and have a sense of the environment in which they work."

In addition to nonprofit organizations, some larger firms set up trade missions in hopes of helping small businesses, while bringing in revenue at the same time. Tim Coleman from Massport, located in East Boston, Massachusetts, who is involved in shipping and exporting, also sets up trade missions. "We are like a dating service, but for companies," says Coleman. "We screen them and make sure they are getting into the right market." While organizations that set up trade missions for profit can offer the same services as a nonprofit equivalent, be sure to compare prices before choosing.

Trade missions can also include trips planned and organized by politicians or government agencies. They establish instant credibility for a small firm because many foreign business people view the sponsorship as evidence that the visiting companies have governmental support. These types of trips usually take a broad approach, meeting with a varied group of businesses and organizations. The politicians tend to take center stage, but many opportunities exist for participating entrepreneurs to build relationships. Such trips are good first-time trade missions and offer exposure to the culture and the processes involved in a trade mission.

Due to the emergence of new expanding markets abroad, federal, state and local agencies are working with renewed vigor to develop relationships and trade with countries around the world. Federal agencies do this by cultivating centers of commerce abroad and working with foreign governments. Two such agencies are the Department of Commerce and U.S. Chambers of Commerce, which regularly schedule journeys to new markets. Trade mission lists and information can also be found at a local district export council (DEC), at local chambers of commerce or state export assistance offices.

Take inventory of your business practices and decide if your venture is thinking too small. If you want to expand your operating arena and increase revenues, trade missions are certainly one viable way to gain exposure to new markets that could prove to be instrumental to your company's success.

Making a Splash In Adelanto, California, a small company is literally making waves across the world. Cabo Yachts recently earned the title of SBA's Exporter of the Year Award and for good reason. Cabo built 85 boats in 1998, ranging from 31 to 47 feet, which were exported to the Pacific Rim, Asia, and South and Central America. The company's export success is in great part due to the business savvy of its president, Henry A. Mohrschladt who-after becoming interested in exporting and expanding his markets-took part in a trade mission to Japan sponsored by the Department of Commerce (DOC). Designed specifically for recreational companies looking to create business in Japanese markets, the entire trip-from lodging to transportation, including a plane flight on a presidential plane-was taken care of by the DOC. Mohrschladt, representing Cabo Yachts, thoroughly enjoyed the experience. "The Japanese and DOC treated our delegation like royalty," recalls Mohrschladt, who was responsible for all his expenses except the flight, which constitutes the bulk of most trade mission costs. Mohrschladt did not go unprepared. He first talked to associates doing business in Japan and researched the culture. "Do a lot of advance homework," he advises. "Have everything completely set up before you go. And be sure the people you are seeing have been well screened to be good prospects."

Excerpted with permission from Small Business Success, Volume XII, produced by Pacific Bell Directory in partnership with the U.S. Small Business Administration.