AIM A ccessing I nternational M arkets

AIMAccessing International Markets "The journey of a thousand miles begins with one step." Lao- Tzu, Ancient Chinese Philosopher Elizabeth Morgan-Brown AIM Program Manager Updated June 2007

AIM helps Virginia companies turn their international leads into sales by encouraging an active, systematic approach to the export process AIM is: a one yearinternational sales expansion program best for companies in early stages of exporting focused on pursuing leads in one new market structured quarterlyto respond to current leads open to 5 qualified applicants per quarter limited to 20 qualified companies each year competitive, participants are selected based on their commitment to pursuing international sales AIM Overview

To qualify for AIM applicants must: Have significant operations in Virginia Be in business at least 2 years Employ at least 10 employees Earn over $1million in revenues annually Qualified companies must submit applications and: Work with VEDP to verify target market potentialbefore acceptance into the program Document prior export sales experienceor receipt of 5 international leads in the last year Attend all AIM quarterly seminars Commit to travel to target market while in AIM AIM Applicant Requirements

AIM Participant’s Benefit From threeAIM Resources: AIM Capital Resources: $5,000 to fund AIM export efforts 2. AIM Team Resources: Focused research & counseling 3. AIM Professional Service Provider Resources: three hours pro-bono from seven professionals AIM Resources

AIM Participant’s Benefit From AIM Capital Resources: While they are in the AIM program… AIM participants receive $5,000 to help fund their export efforts. Funds are available in two ways : Refunds for qualifying third party export expenses incurred $2,000 max per outside invoice Refunds for VEDP expenses incurred $500 max refund per VEDP invoice Note: travel and entertainment fees do not qualify for AIM refunds AIM Resources

AIM Participant’s Benefit From AIM Team Resources: While they are in the AIM program… AIM participants receive focused research & counseling AIM Team services include: Strategic Export Counseling to develop and implement MAP Market Verification Research- Market Access Plan (MAP) section 1 Market Entry Research- Market Access Plan (MAP) section 2 Market Access Research-Market Access Plan (MAP) section 3 In-country research, matchmaking and appointment setting Quarterly Seminars covering the ten steps of export AIM Resources

AIM Participant’s Benefit From Professional Service Provider Resources: During their orientation to the AIM program… AIM clients receive free consultations from all seven AIM Service Providers: TNB Language: Translation, Interpretation & Cultural Allegheny Brokerage: Customs & Compliance LeClair Ryan-Blacksburg: Legal Technology International: Product Certification Active Media: Web Marketing CV International: Freight Forwarding Sun Trust Bank: International banking While they are in the program… If they choose to hire an AIM Service provider, they will also receive three hours (or the like) pro-bono plus additional AIM client discounts Note: Service Provider fees qualify for AIM refunds (max. $2000) AIM Resources

Accessing International Markets Program Partners as of March 2007 Website Marketing Freight & Logistics Customs & Compliance CV International International Law Regulatory Compliance Technology International International Banking Translation

AIM Export Training • Two e- Guidebooks Serve as AIM Textbooks. • “A Basic Guide to Exporting” • US Department of Commerce & Unz & Company • www.unzco.com/basicguide/ • 16 chapters on everything you need to know about exporting. • “Breaking into the Trade Game” • The U.S. Small Business Administration: • www.sba.gov/idc/groups/public/documents/sba_program_office/oit_bitg3rd_full.pdf • 8 chapters on how to start exporting. • Note: Each guide is organized slightly differently but each explores the key aspects of exporting

AIM Export Training • Quarterly Seminars Explore AIM “Ten Steps of Export” • Get Started: January Quarterly • 1) Strategic Export Planning & US Export Law Compliance • 2) Market verification Research: Identify & Verify a Target Market • Market Entry: April Quarterly • 3) Define 4p’s – Product Localization, Price/competition, Promotion,Placement/distribution • 4) Find Buyers: Identify in country multipliers, partners, end-users • 5) Prepare to Market Abroad: Culture, Translations, Price quotes • 6) Visit Market: Meet with Clients, In-country Due-diligence • Market Access:July Quarterly • 7) International Legal issues: IPR, Contracts, Incoterms/Liability, Foreign Standards • Regulations Compliance • 8) International Shipping Issues: Incoterms/Insurance/Freight, Export Documentation, • Tariffs/Customs Issues, Bonded Warehouses/Free Trade Zones, Trade Agreements • Get Paid: October Quarterly • 9) International Finance & Risk Management: EXIM Bank, Working Capital loans for • Exporters, Country/Buyer Risk Insurance, Payment Instruments-Letters of Credit • 10) EXPORT- Buyer/End-user/Bank Due Diligence, Customer Service, Record Keeping • Note: These steps are covered in various chapters in the guidebooks.

AIM Export Training

March One Year Program At – A Glance • AIM Participant Requirements: • The March AIM class of five companies (much like school) starts March 1 and runs for one year. • Four Meetings at your facility: March, June, September, February. • The AIM Researcher and I will come to your facility for a one hour welcome meeting in early March • The AIM Researcher will return to your facility for review after final MAP is delivered in mid June • The AIM Manager will meet with you at your facility in mid September for mid-way update • The AIM Manager will meet with you at your facility in mid February for an exit interview. • Four Mandatory Quarterly Seminars in Richmond: April, July, October,January • The April orientation event is a full day. After that you only attend ½ day afternoon seminars • April 3, 2008 Richmond with networking dinner • July 25, 2008 Richmond with graduation luncheon • October 3, 2008 Richmond with networking dinner • January 24, 2008 Richmond with graduation luncheon • Business Trip to AIM Target Market • You will also be required to schedule a business trip to the AIM target market for business before March 1, 2009. • Graduation ceremony for March 2008 class will take place in Richmond in July 2009

June One Year Program At – A Glance • AIM Participant Requirements: • The June AIM class of five companies (much like school) starts June 1 and runs for one year. • Four Meetings at your facility: June, September, December, May • The AIM Researcher and I will come to your facility for a one hour welcome meeting in early June • The AIM Researcher will return to your facility for review after final MAP is delivered in mid September • The AIM Manager will meet with you at your facility in mid December for mid-way update • The AIM Manager will meet with you at your facility in mid May for an exit interview • Four Mandatory Quarterly Seminars In Richmond: January, April, July, October • The July orientation event is a full day in Richmond. After that you only attend ½ day afternoon seminars • July 25, 2008 Richmond with graduation luncheon • October 3, 2008 Richmond with networking dinner • January 24, 2009 Richmond with graduation luncheon • April, 2009 Richmond with networking dinner • Business Trip to AIM Target Market • You will also be required to schedule a business trip to the AIM target market for business before June 1, 2009. • Graduation ceremony for June 2008 class will take place in Richmond in July 2009

September One Year Program At – A Glance • AIM Participant Requirements: • The September AIM class of five companies ( like school) starts September 1 and runs for one year. • Four Meetings at your facility: September, December, March and August • The AIM Researcher and I will come to your facility for a one hour welcome meeting in early September • The AIM Researcher will return to your facility for review after final MAP is delivered in mid December • The AIM Manager will meet with you at your facility in mid March for mid-way update • The AIM Manager will meet with you at your facility in mid August for an exit interview. • Four Mandatory Quarterly Seminars around Virginia: September, January, April, July • The September orientation event is a full day event. After that you only attend ½ day afternoon seminars • September 25, 2007 Charlottesville with networking dinner • January 24, 2008 Richmond with graduation luncheon • April 3, 2008 Richmond with networking dinner • July 25, 2008 Richmond with graduation luncheon • Business Trip to AIM Target Market • You will also be required to schedule a business trip to the AIM target market for business before September 1, 2008. • Graduation ceremony for September 2007 class will take place in Richmond in January 2009

December One Year Program At – A Glance • AIM Participant Requirements: • The December AIM class of five companies (like school) starts December 1 and runs for one year. • Four Meetings at your facility: December, March , June and November • The AIM Researcher and I will come to your facility for a one hour welcome meeting in early December • The AIM Researcher will return to your facility for review after final MAP is delivered in mid March • The AIM Manager will meet with you at your facility in mid June for mid-way update • The AIM Manager will meet with you at your facility in mid November for an exit interview. • Four Mandatory Quarterly Seminars in Richmond: January, April, July, October • The January orientation is a full day event. After that you only attend ½ day afternoon seminars • January 24, 2008: Richmond with graduation luncheon • April 3, 2008: Richmond with networking dinner • July 25, 2008: Richmond with graduation luncheon • October 2, 2008: Richmond with networking dinner • Business Trip to AIM Target Market • You will also be required to schedule a business trip to the AIM target market for business before December 1, 2008. • Graduation ceremony for December 2007 class will take place in Richmond in January 2009

Each participant meets with AIM Team to develop a Market Access Plan (MAP) that incorporates their unique market goals and “The AIM Ten Steps of Export” MAP Research, completed by the AIM Team, is delivered in three parts Market Verification Research –within two weeks of application Market Entry Research- 2 months after entry Market Access Research-4 months after entry MAP Research serves as a guide for clients to actively pursue leads in their target markets. To support their market goals, participants can: Receive help in 25 markets via VEDP’s Global Research Network Visit one of VEDP’s 5overseas offices Join one of 20 annual VEDP Trade Missions AIM service providers provide crucial advice when MAP’s identify issues requiring “specialist” help. AIM Results

The MAPS encourage an active, systematic approach to the export process. They also serve as outlines to replicate in new markets after AIM graduation. Participants receive quarterly updates on their: AIM MAP/Market goals and actions they must take to accomplish them AIM Resources (AIM Team, AIM Funds, AIM Service Provider Resources) AIM MAP/target market progress and AIM milestones By following their MAP, each participant will : Identify and verify a target market Define a target market entry strategy Research leads in the target market Travel to target market and meet leads Close new sales or sign new reps in target market Replicate their success in other new target markets AIM Helps You Turn Your International Leads into Sales! AIM Results

AIM Graduate Quotes Class December 2005 AIM Results “AIM gave us the ability to verify the viability of our marketing efforts in both another culture and language. The results speak for themselves, a 27% growth in export sales. The exact tangibles are hard to quantify, but the program gives you the economic equivalent of both an export coach and trainer.” “The AIM program is a valuable resource especially to a company that is just starting, or trying to get into exporting.” “As far as the impact on our international strategy, the AIM program basically gave us one. From initial research to; drilling down to the final research; and finally visiting potential customers. Many new resources were gained and contacts made.” ” “The AIM program is a very good source for help in introducing a company to exporting. There was just enough incentive to make us want to give it a shot as well.”

AIM Graduates Class March 2006 AIM Results “I would highly recommend AIM to any small business that is serious about exploring a new export market or expanding their export sales. It is very helpful in simplifying the initial steps of the export process and it motivates you to stay focused on your export goals” “AIM is a must if you want to export but don’t know how to begin” “The AIM education, guidance and partners have given us a better understanding of what is involved in exporting. The program helped us to prepare to enter the China market for the first time and we expect to earn over $200,000 in sales from China in 2007.” “AIM forced us to think about the best way to approach the international markets…it paid off. We have received a new order for $100,000. “

As of June 2007

Next Steps • AIM Application: • Available on AIM section of the Programs tab of our • website at www.ExportVirginia.org • Due Quarterly: • Aug. 1, 2006 for Sept. 1, 2007-2008 class • Nov. 1, 2006 for Dec. 1, 2007-2008 class • Feb. 1, 2008 for March 1, 2008-2009 class • May 1, 2008 for June 1, 2008-2009 class • Aug. 1, 2007 for Sept. 1, 2008-2009 class • Nov. 1, 2007 for Dec. 1, 2008-2009 class • Questions: • Contact Local Trade Manager or • Elizabeth Morgan-Brown, AIM Manager • Email: EMBrown@YesVirginia.org • Telephone: 804.545.5768

AIM A ccessing I nternational M arkets