For many Gulf small and medium-sized enterprises (SMEs), selling successfully in the international markets is achievable and a viable option when the local market is saturated or slowing, writes David Pender, director, business development, Intevents. The company is organising the 1st Gulf SME Forum to be held for two days from October 23 at the Crowne Plaza Hotel in Muscat.

If one is thinking about expanding the business internationally, some questions and issues should be considered, says Pender. "There is no single reason why companies become exporters. Some sit down and devise a strategy to sell in international markets. But just as frequently, international business develops from an approach by a foreign customer or from a chance meeting in an airport departure lounge. For many growing Gulf SMEs, international markets are a fantastic way to stretch the life of a product and service. After all, if you've saturated the local market, then why not have a crack at the international scene?"

One question an SME should ask itself is whether it needs to go international in the first place. "If it's because you are in trouble in your domestic market, then you shouldn't be exporting," he advises. "Never try to export yourself out of trouble. You should only do so when things are going well. On the other hand, exporting can provide a real alternative when the domestic market is bad." Founding CEOs or general managers who also operate as the chief salesman, company strategist and market man should ask themselves if the firm can run without them. Warns Pender: "If you don't have a proper internal organisation, don't export.

Don't go 2,000 miles away from where important business decisions can only be taken by you. You must ask - if I am away for a week, will this business function without me? If the answer is no, don't export - you will have to catch up when you return from your travel and won't be able to devote your full attention to the new business you might have won on your international trip."

Then there's the vital question of whether the SME's products are suitable for international markets

"Your product may have considerable appeal in the domestic market but how does it relate, for example, to Italians or Australians? Think about this," asks Pender.

And will the enterprise make money? Pender offers this counsel: "Make certain that you can make your product at a price that allows you to sell at the market price in your chosen export markets - and still turn a profit. You have to build foreign exchange fluctuations into this as well as the other costs of selling internationally. "Some SMEs suffer from the fact that their owners don't entirely understand profits and losses - in which case they won't understand export profit and loss. For example, you'll have to add five per cent to your price just to cover the cost of exporting. In addition, allow for a 10 per cent change in the exchange rate. If your prices aren't competitive after adding these extra costs, then don't export because you won't succeed."

Another matter to be considered is whether staff exists to meet extra orders.

"If you don't have the right financial, managerial resources or commitment and your staff aren't experienced enough, wait. Limit your business to fulfilling the occasional international order," advises Pender.

"Indeed, before embarking on a full-bloodied international campaign you have to set a strategic plan and address key issues. These would certainly include: Should distribution be done directly or indirectly through an agent or distributor? Who are the competition and what are their terms and conditions? What price do you have to set to keep in line with the market?"

Pender observes that international business certainly involves a cultural change for the company and its executives and while there is no reason to jettison all the rules that worked well in the local market, one would do well to keep an open mind and try not to get bogged down.

"The important thing to remember is that an export order takes 10 times more effort and time to achieve.

Be ready for this but don't forget, once established, it can provide great repeat business.

"If loneliness bothers you and you lack perseverance, forget about expanding your markets internationally."