The Small Exporter’s Secret Weapon

Imagine a group of your wisest non-competing colleagues providing free advice on cross-border business strategy. It’s happening already. 

Breaking into a new market can be a daunting venture for an exporter. Not only do you need to know the key players and nuances of that market, you also need to consider the implications for your domestic operations.

Often, a CEO embarking on such a task might recruit a board of advisors to fine-tune the company's strategic approach. Unlike a board of directors, a board of advisors is a resource that can be used at the discretion of the CEO.

A recent trend has seen some tweaks to the advisory board model, however. Bruce Harbinson, chair of mentorship firm TEC Canada for the Toronto region, says a growing number of CEOs—especially those running small and medium-sized businesses—are participating in what he calls "peer advisory boards."

These groups, run by organizations such as TEC, are made up of no more than 15 CEOs who meet once a month to share advice and help each other work through business challenges. While a board of advisors benefits only the CEO who created it, a peer advisory group allows participants to both receive and offer advice.

"The learning quotient for a CEO is just unmatched," says Harbinson. "They get to learn at an accelerated pace by watching 15 other businesses in action every single month. They see what's working and what's not."

What's in it for the exporter?
If you're looking to expand your business across the border, a peer advisory board can help you ask the right questions and make important on-the-ground connections, says Harbinson.

He recalls how, as part of a peer advisory board, he was able to help a struggling industrial robotics company turn its fortunes around. The company's CEO had returned from Australia with a new industrial welding technology and was weighing whether he should sell into the U.S. market or stick to his home turf in Canada.

The peer advisory group came up with a list of things the company needed to do in order to accelerate its presence in the U.S. Within 60 days, sales were being made south of the border. "It probably would have taken him 18 to 24 months to get into the same position if he wasn't connected like that," says Harbinson.

Even if the other members in your peer group don't have experience in your target market, they can help you strategize by looking at your situation from the perspective of someone running a business, says Harbinson. "They get very good at that; forcing the CEO to take stock of all the different questions that have to be answered, be they ones at home or pertaining to export markets."

Advisors also can introduce you to people who can explain country-specific regulations, from customs and duties to the nuances of intellectual property law.

A couple years ago, psychological assessment firm MHS decided to start distributing one of its human resources products, a method for evaluating the emotional intelligence of leaders, in India. The country's large English-speaking market was a big draw for MHS, as it meant that the company could sell existing products rather than produce new ones.

MHS needed distribution partners for the new initiative, but didn't know any of the key players.

Company president Hazel Wheldon was able to connect with a consulting firm that has a vast network of connections in India through her peer advisory board. The consultants, in turn, introduced Wheldon to dozens of people in India who itemized relevant cultural issues such as local leadership styles and the challenges India-based companies face when recruiting and hiring executives.

"When I actually got to interview potential distribution partners, I had a lot more knowledge and better questions to ask," says Wheldon. "That ultimately led to two partners, which was the best outcome I could possibly have imagined."

Alexandra Posadzki