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it looks like we're just after one so let me get our presentation started here give me just a moment and we will get going i am sharon adams with idaho department of commerce my counterpart sarah's going to go down and start introducing folks here shortly hi everyone so my name is sarah mata and i'm with the idaho state department of agriculture um so let's go ahead and just go down the list um let's start off with tina and just if you just want to say uh your name and who you're with hey everybody i'm tina salisbury i'm with idaho department of commerce um kind of hanging out in the background here today and um helping sharon and sarah um with the chat box and q a so um i can get them any information you guys need to get to them so glad everybody could join us great hi andrea velasquez-san with idaho department of commerce hey chelsea um hi i'm chelsea conlon i am a trade specialist with the idaho state department of agriculture debbie hi i'm um a senior business consultant with the small business development center at boise state university awesome elizabeth maybe she's not quite honored elizabeth are you there do you wanna do an introduction all right let's come back to that one ernesto hello hi uh ernesto pinard with export optimizers i'm a consulting a firm here in local in idaho to help customers to enhance and increase their reach in international markets hey gary hi i'm gary zoig i'm the export compliance coordinator for aviation specialties unlimited awesome jake hi everybody um my name is jake reynolds i'm the business development operations administrator here at the auto department of commerce happy to be on here that was an awesome video that the team just did i thought that was pretty cool and happy to learn a little bit more about exporting today awesome james hi i'm james barner with the idaho department of commerce jay good afternoon everyone jay park from the u.s commercial service in boise idaho um pleasure to see you all again i look forward to assisting you with your export needs together with the stake thank you good afternoon still struggling with my mute button after months of covid um jennifer verton i'm with the idaho department of commerce international team all right kristen hello i'm uh kristen call mcqueston i work with banner bank in the trade finance team awesome laura i'm laura johnson with the idaho state department of agriculture and sarah hi my name is sarah massey and i run smashc consulting for assisting companies with export compliance and training and basically following the rules for exporting education great talia hopefully i said that right hi i'm talia chase and i am the owner and president of two triple boys llc a clothing manufacturing business great todd hi my name is todd english i am with reverence provisions we are a trout and steelhead producer in the magic valley near twin falls awesome trisha trish sorry oh thanks hi i'm trish mccarthy i'm with impello global we are export credit insurance brokers so we work with exporters using account receivable insurance and i'm in boise nice to see everyone great and bill yeah uh i'm william meadows uh owner of mountain states oil seeds i'm a guest speaker i guess here so uh i've been through the program and uh there's a lot that uh to learn but uh your department has it under control and people will get learned right um if there's anybody else who's joined who didn't get an introduction um feel free to jump in i think uh irvina is next yes yes sarah this is tina i'm having actually some trouble i'm not sure with um if it was the way they logged in but um actually i just moved irvina up and she should be able to speak but um we've got irene gonzalez down in the attendee list and then another call-in user from 208 390 something that unfortunately i'm not able to move them up to be able to speak for whatever reason i might suggest to those two people you might try logging back out and back in um so that you can be part of the conversation but i can't say that irene gonzalez is with the small business administration okay great um irvina are you able to do an introduction she's still on mute for just a second sorry so i wasn't sure if i was going to be a panelist on this but yes so my name is arvina i'm the rural specialist for southern idaho economic development down in the magic valley area so i cover a lot of our rural communities and counties down here all right great great thank you everyone for joining let me get our presentation going here and if you have camera capability feel free to turn that on we're just going to have you stay muted um for the time being until we get to some quest question and answer sections let's get everyone sharing all right you see the screen now i don't yet nope hold it there we go no all right everyone good now yeah i see it okay perfect all right so let me start off by saying just how excited we are to have so many businesses that are interested in exploring the opportunities of exporting if you attended session one then welcome back if you're new again i'm sarah model with the idaho state department of agriculture i'm on the international team as a trade specialist and again if you haven't met me yet my name is sharon adams with the idaho department of commerce on the international team both our teams work with small to medium-sized companies that are new to exporting or are trying to expand their export business so our goal in this session is to help you identify target markets determine if licensing is required for your product help you find buyers and distributors and share some sources of export assistance so first we'll dive into identifying your target markets and if you have it go ahead and grab the worksheets that were sent out yesterday because these will be helpful and we'll go over a couple of the topics on this one so this is one of the first steps that you'll begin to take in the export process because after all you have to decide where you will export to and this sheet here has room for you to list three countries that you are currently interested in and from there you can score each section and don't mind the fact that the top section is scored a little bit different sometimes that's a little confusing it has the score of five as favorable one the other one is three that's because the top areas are primary and are weighted a little bit more heavy but you can adjust this to kind of fit your company there's going to be certain things that are going to be more important to you and you'll want to give them a higher higher rating the primary evaluation criteria covers four main topics competent competition and differentiators so in other words why would the customer buy your product versus other competitors in that market the market demand and growth trends this is the potential market size and growth for your product in that market pricing margins and costs uh what will each of these be for your product in this market and then current opportunities do you have current inquiries already or business relationships or maybe even current customers in that market the lower section under other evaluation criteria covers the business climate so what is the gdp per capita how is the political climate are there any trade barriers or tariffs that are going to specifically affect your products legal incompliance what is the legal risks in the market and will you have intellectual property protection another thing is to consider the culture of the climate and the geography so what is the culture and the climate like in that country and will those help or hinder your product for example you know many muslim countries pork is not a very good export to there or you might not do really well trying to sell skis into the middle east so it's just important to know exactly what the climate is like and the geography of that area and then finally showstoppers so will any of these above issues prevent you from being successful in this market and if so you just put an x out of that country and don't score it also keep in mind that there may be other barriers to entering a market such as product restrictions so for example we can't export fresh potatoes into china because they're prohibited so this is where your market research will really help you it's typically easiest to start your target market research by focusing on individual countries trade.gov has a country commercial guide that gives extensive information broken down by each market the guide covers several areas and factors of each market such as market opportunities challenges customs regulations and even political and economic environments when you go to the trade.gov link from the previous slide to search for a country commercial guide it looks like this from here you can choose a drop down menu select the country that you're interested in for that region once you've selected that country of interest you're going to have several several topics to go through with it the first one is going to be doing business in where the information is broken down into four topics market overview market challenges market opportunities market entry strategy the second one is political and economic environment this is links to the state's department website for background on the country's political environment typically the third option is going to be selling u.s products and services this will look at the distribution network for that country help you understand how reliable the distribution centers are and ports and how the product goes from the time you export it to the time it enters that country and then into its final destination the next one is the leading sectors for u.s exports and investment this is the best prospect industry sector for this country and includes a market overview and trade data custom regulations and standards this includes information on the average tariff rates and what types of tariffs you should be aware of investment climate statement is derived from the state's department office of investment affairs and investment climate statements for each country trade and project financing this will show you the most common methods of payment such as open accounts letters of credit cash in advance it'll include credit readings and collection agencies it also lists primary credit and charge cards that are used in that particular country finally business travel includes information on the business customs travel advisories visa requirements and other aspects of the international travel another additional valuable resource for agriculture companies in particular are gain reports gain reports are compiled by the fas's global market intelligence foreign service officials and locally engaged staff and over 90 overseas offices worldwide they provide on-the-ground intelligence insight and analysis in nearly 200 countries driving information on foreign agriculture markets crop conditions and agro-political dynamics that are of interest to u.s agriculture these reports are free and each report contains assessments on commodities and trade issues and there's really helpful for agriculture companies so now that we've covered how to identify potential target markets um what potential countries you have narrowed down you should look at the risk in those countries so we have another worksheet that we provided the risk assessment questionnaire this will help you with some of your questions in the market assessment worksheet that we already went over so there are some similar questions in both so you kind of want to do them simultaneously but it does help to narrow down what you want to look for before you start going down the whole risk factors so i will go through this worksheet and elaborate on some of the topics security how safe is a physical environment are the countries you're considering exporting to often exposed to extreme weather conditions or hazards how does that impact your export strategy the political stability how stable are political institutions you need to consider new elections sanctions even civil unrest they can rapidly change a political situation how likely is that political landscape to change in the markets you're considering government effectiveness does political culture foster a strong business environment in idaho we pride ourselves on a very stable and transparent government that supports business growth and sustainability but how effective are the governments in the markets that you're researching for legal and regulatory will the legal system safeguard investment macroeconom macro economic risk is the economy stable and predictable foreign trade and payments how easy is it to get money in or out it can be tough enough to ensure on time and full payments domestically but what are the laws and the trade agreements in regards to the markets you're selecting final risks how healthy is the local financial system you'll want to talk to your bankers insurance brokers to assess the financial structures and abilities in those countries that you're researching tax policies are tax laws predictable and transparent what have been the trends in that country and what new potential tax laws may be coming down the pipeline that could impact your export business in the countries you're assessing labor market could labor factors disrupt operations think about if the countries you're researching are prone to strikes or high unemployment or labor shortages local infrastructure will infrastructure deficiencies negatively affect operations for perishable goods for example is the cold chain well enough developed in that country can you get your products to the consumer or buyer in time or will the quality of your product be diminished deep be diminished due to the lack of infrastructure so that's a big one for ag products that you need to make sure that they can get where they need to go in time without perishing oh sorry one too many um the last one is the local infrastructure will oh no wait i did that one but yeah um when you are doing your risk assessments if you do come across that you have a high risk market that you just happen to really want to go into for whatever reason that might be it just might be one that you pick there is a paid service through the eiu or the economist intelligent unit which provides country and industry risk analysis across 200 countries so we've included the link there for that so just in case you pick one and you've decided it really does have some high risk you can still take one more step before you decide if that's not the country that you want to go into awesome thank you sharon so i want to just take a minute now and open it up to bill meadows from mountain state oil seeds and he's going to share just kind of briefly his experience and target market you know finding his target markets and what's been successful for him okay thank you can you hear me okay i can okay there so i was supposed to give a three to five minute uh opinion on how to select targets uh markets and first of all your business needs the same knowledge concerning uh your product whether you want to sell it internationally or domestic and i believe that a business that uses a combination of domestic and export for sales of your product looking at the international sector though 95 of the world's population lives outside of the united states there i started from ground zero i did learn though a very important lesson in college uh your degree opens doors for opportunity but your education never stops i'm uh in a couple of weeks i'll be 73 years old and i'm still learning and it's exciting the first step you guys are already into and uh let's see i haven't got the video on but in 2017 i took uh an export enhancement uh course and that's what uh you guys are starting on right now so i'm not going to spend very much time on that because one of the more important things is that develop a good elevator pitch there that's what sells your your product and selling in the export market's actually a three-step uh situation your first step is to take courses and learn how to do it before you practical experience uh teaches you how uh the second step is define your competition who did they sell to how much and and when do they sell uh you can get that information with some trade associations ata for instance uh my company sells mustard around the world and my main competition is canada well i went to uh trade association and got their import for their export data from all of canada from 2016 to the present every country that they sell to how much they sold and at what price they sold data is available and it's very important to determine what your level of competition is going to be their government export and import data is another thing it's uh widely distributed on the in the internet and uh it it tells what you need to know about your competition and how much they export also it's very important then once you know what they do then determine where your advantages are and where your disadvantages are and concentrate on will the disadvantages take me out of the market if they don't then look at the advantages so that's step two define your competition step three is we have to decide how the best chance is to get your product to the market or select your target market and there's a number of ways you can do it you can find telephone numbers and emails and email those targets directly although it's been my experience you don't get too much feedback on it if you're talking to america you need to set up a meeting in person with that customer uh you can also uh contact the idaho state department of ag and the idaho department of commerce they have educational resources that we're doing now they have trade missions with the governor that opens doors that you could not otherwise do and they also have trade specialist meetings where uh people from a country idaho engages with them and pays them to help idaho business leaders trade their products in their country and that is a very good resource because it knocks down a lot of things that may stand in your road initially to decide on a company become active in trade associations for your sales items sign up for the western united states ag trade association trade meetings there and spend lots of time on the internet with market research your best bets are to stick with the idaho department of agriculture and the department of commerce and their trade missions every trade mission that i've been on with them i come back with customers in kind of closing i would just like to say that compared to other states idaho's programs are light years above other states their programs for mountain state soil seeds has been the difference between profit and loss and i'll end it with that thank you very much i hope that helped somewhat awesome thank you bill that was that was actually very helpful um and regarding the trade missions and trade uh offices that bill mentioned we're going to touch on that again later um toward the end of great information thanks bill so now um sharon is going to go ahead and start talking about licensing okay perfect yeah thank you bill that was really great great information awesome uh so now that we have an idea of your market and what product might be best suited for that market how to analyze the risk and how to analyze the risk you need to know if your product will need a license an export license grants permission to conduct a specific export transaction including the exporting of technology licensing laws and regulations determine whether or not you can sell your products in an international buyer what countries you can export it to and which buyers you can export it to keep in mind only a very small percentage of all us export transactions require license so knowing that only a small percentage of products require licensing we're only going to touch on that a little bit today we're just going to give you some quick tips and some resources and contacts in the event that your product really does require one when it comes to time to determine that go ahead and follow this flowchart determine what you're exporting where is it going who is receiving it and what is the end use the bureau of industry and security or bis is a great free resource to help you and your licensing questions you can also request an official product classification from bis which if you end up finding out that your product needs a license you're going to understand all of the terminology that we're not going to dive into today but they can help determine that it's a free service if you if your product does need a license so in addition to the resources available through bis and their website here you can also reach out to one of our trade specialists mitch he here is at the department of commerce he can help with questions on controlled exports like arms and ammo safety and security defense products we have his email listed here too but again you can also reach out to me or sarah or anyone at department of ag or department of commerce and we can point you in the right direction all right so now that you know what markets might be a good fit and whether or not you my new license we'll start to look at how you will get your products into the market so go ahead and grab this worksheet if you have it handy and we'll start with the first page so your company may have already found foreign customers through your website or trade shows or other avenues however there might be additional far-reaching sales channels that are ideally suited to your product or service and when you want to proactively expand your international business you want to consider whether you will want to sell directly indirectly or a combination to foreign markets some companies may shift their strategies to be more directly involved as they gain more experience in sales in direct selling the us producer handles every aspect of the exporting process and deals directly with the potential buyer to fulfill the sale it requires a significant commitment for management and time and attention to achieve good results however this approach may also be the best way to achieve maximum profits and long-term growth indirect selling can take many different forms you can sell into with an agent a representative a distributor to find buyers and sellers in your products in those foreign markets you can also sell through a wholesaler or work through an export intermediary such as an export management company or an export trading company and if you have a website that processes credit cards you can also explore exporting directly through that the use of web and social media and cross-border e-commerce to find international buyers just continues to grow and there's two main kinds of cross fire cross border e-commerce uh business to business and business to consumer and many american business owners are now using a successful mix of both of these channels now this slide has a couple of um statistics on e-commerce i'll just kind of touch on a couple of them real quick that experts predict that retail e-commerce sales will reach 4.13 trillion in 2020. b2b e-commerce sales will hit 6.6 trillion in 2020. so you might ask yourself why e-commerce because today more than ever people are shopping online in 2021 over 2.14 billion people worldwide are expected to purchase goods and services online and that is nearly doubling since 2016. and purchasing goods and services online has become a common practice among many people around the world and now especially during covet 19 as more cities begin to go under lockdown and non-essential businesses are being ordered to close limiting shopping to all the necessary essentials has become the new normal and companies are having to adapt and be flexible works can be a great way to mitigate these challenges we recently conducted a webinar on e-commerce in china and that recording should be available soon so if you're interested in that we'll send that out to you and it should also end up being on the so this is a short informative video about e-commerce from the us commercial service so let's take a look [Music] there are numerous sales channels available for promoting and selling products online currently the main ecommerce sales channels for you to consider are your us-based website with the capability of accepting payments a website in the local market managed by you or your distributors and an in-country or cross-border online marketplace if you sell or simply just promote your products on your own website remember that international buyers will want a lot of online information about your business and your product so make sure you tell a good store and have lots of product photos and even product videos and you should register on foreign search engines such as google spain or baidu in china if you decide to use international distributors select them based in part on their e-commerce capabilities and then actively support and help them to provide a great online customer experience around your product alternatively you can explore selling direct to customers from your online site and limit your in-country distributors to only selling offline if you use international e-commerce or country-specific marketplaces do some research like typing your product description in the marketplace's search engine you can use translation software to search for similar products with words in that language much more information about choosing the right channel is available from the e-commerce experts at the u.s commercial service visit them at the ecommerce export resource center at export.gov forward slash brought to you by the u.s commercial service part of the us department of commerce international trade administration all right so now we'll take a look at page two of the sales channel worksheet and this one is going to cover using a representative and a distributor so as we know now from hearing that last video and prior foreign buyers is to hire someone who can use his or her contacts to sell your products to other countries this can be a local sales agent a representative distributor with expertise in your industry they also need to be skilled in identifying opportunities and familiar with the local regulations logistics and even after sales service when you're ready to choose a foreign representative or distributor you can use this checklist to assist if this is going to be a good match you can tailor it to your company's needs because key factors will vary significantly with the products in the countries that are involved but we'll go through just a couple of these factors in choosing a representative distributor the first one would be the size of the sales force so would they need to expand accommodate your account properly how many failed sales people do willing to expand if they need to what is their sales records what is the average sales volume per outside sales person does the sales growth be is the sales growth consistent what are the sales objectives for the next year and how will they be determined you want to look at the territorial analysis what sales territories do they cover now do they have offices there and if um if not are they able to expand and open additional offices in those territories what is the product mix like what products do they currently have are there any conflicts how many product lines do they represent would there be minimum sales volume needed to justify it handling your lines facilities and equipment do they have adequate warehouse facilities what is the method of stock control if your product requires servicing are they equipped and willing to do so their marketing policies how do they monitor their sales performance is the staff compensated do they train their sales staff for your product what is their customer profile who are their key accounts and are their interests compatible with your product line their principles represented represented who would be its primary supplier would you be its primary supplier if not what percentage of the total business would you represent and finally promotional thrust how much of their budget is allocated to advertising can they translate your copy your advertising copy if you need it and will you be expected to contribute funds for promotional purposes and how will that amount be determined there are a few other things that you'll want to think about when you're considering using a distributor for example it's very common in some countries to request exclusivity it's not something we would recommend you should also if possible try out your representative before you sign a contract with them to make sure it's a good fit for you here are some great links to help choosing the representative this is the one we just went over the other one is negotiate an agreement we are going to cover that today we'll cover that in our next session next month but those are great links to go ahead and take a look at do some of the research on yourself before you enter any agreement you're going to want to speak with an attorney with experience in that particular country so i think i saw herod with emerson sign on a little bit ago um and maybe he could give us some examples of how he's worked with the representative or distributor hater can you hear me we can hard how are you good how are you thank you for coming on yeah sorry i'm traveling believe it or not i'm selling idaho products [Laughter] this time in florida but they're all intended for sale in latin america so uh thank you for having me i can uh give a quick overview um so what is it about 14 years ago i started with a small um a small company with a big dream in boise idaho the company was named pacsens and uh we make an idaho-based technology that monitors temperature during a transportation so if you eat anything perishable from from walmart or from albersons that has been monitored by a boise based technology and so we're obviously very proud of that and we're also very proud of a track record that we have with selling this product overseas and so we started exporting about 14 years ago we had about four or five people we took some of the steps that you mentioned a little bit earlier but what really has worked well for us over the years was uh although we we believed that you know we were better than sliced bread the world needed to know um you know we struggled a little bit in the beginning to get the right audience into the right market so we leverage quite a bit of of the teams locally so since we do an agri so we do a technology piece but for the agriculture markets we've actually been working both with the idaho agriculture department and also with the idaho commerce department so what have we done we've done uh for example worked with their international representatives so mexico is our biggest international market so in the beginning we work very closely around the events and also reaching out to some some either distributors or otherwise key retailers in mexico through the idaho state office representative in mexico that worked really well for us because they kind of laid a little bit of a foundation and also gave us valuable market insights and provide us with some guidance for the mexico market so it was very valuable we've done the same thing in china uh with the resource there as well as in in taiwan and then when the time came when the governor started heading in that direction and this was all recovered obviously we have participated in the governor's trade mission so uh one of the first ones that we participated was quite a few years ago with the governor otter and we went to mexico and just to give a little bit of an example on how these trade missions did change our perspective of the market is so we provided the teams commerce and egg with some some target vertical markets and potential clients and one of the best customer meetings we had was with walmart walmart mexico is the second biggest division of walmart international just uh second only after the united states and at that meeting since the governor accompanied some other companies there we walked straight into the boardroom so we met with the vp of quality and procurement so we didn't have to go to a long long process and many trips there by meeting with some of the junior buyers and get you know approval of a soon-year buyer we walked straight into the boardroom so it was up to us to close the business over over the course of it by 12 months but it truly provided a lot of value yes there was a price tag to this trip but yet at the same time we brought ou know the power and the clout of of the governor with us in these meetings that were truly and felt supported by by the state of idaho we've done this in other regions as well too i've been on two trade missions to asia as well too over the years with the most recent one about four years ago to asia with the focus very heavy focus in china besides idaho commerce and ioag what have we done as well too is we went uh and worked with the u.s commerce department and sometimes we've done that in conjunction so around these trade missions u.s commerce is typically involved as well too the benefit of that is again you know for for a small fee we were able to pre-qualify some distributors for example so we went on a uh on a gold key service to peru so instead of me going uh trying in broken spanish find some potential meetings they pre-scheduled all those meetings so what i had to do was show up uh for a pre-interview uh provide them a targeted list of ideal candidates or how they would look like what kind of business they would have and so when i visited peru we did a short inventory of interviews with potential distributors and we selected one and started growing the business again that makes it a lot easier and trying to do everything remote and also trying to find a sol business partner because some companies might present themselves as you know big fish in their country come to find out that you're really spending a lot of resources and a lot of time on those with no results so that is another service we did the other thing we've done is we participate in some of these usa or uh or idaho pavilions so one of our biggest trade shows that we go to is in germany it's called fruit logistica and you know as a small company we're very excited hey 70 000 people you know a lot of companies exhibiting there but the biggest challenge for us there after we walked the show first was getting in front of the target audience so the u.s or in some cases idaho has a draw to them based on what kind of event you're at so we participated in those pavilions so although we were a relatively small exporting company you know these pavilions draw people from all over the world so we kind of got a front front line ticket to the world stage well as a small company and you try to enter those shows on your own you know you end up in in a corner right or somewhere where there's almost no traffic so you go to all these expenses yet you don't get really the traffic or the audience uh you have unless you know you really either spend more money or in some of these other events uh you really have to go there several times uh in a row to be able to get some seniority and a better boot location so those events that work typically really well for us um as a result we continued to grow we diversified before the financial crisis in 2008 so that actually helped a uh our small little company through a pretty a pretty dire time of u.s sales so the diversification certainly helped us we've continued to invest in exports uh we are in currently over 80 countries and about four years ago actually our company got acquired by emerson so we are now a division of emerson uh called cargo solutions uh yet we've grown our team in boise we still manufacture electronics in idaho believe it or not and again you know we monitor food you know big and small we we have albertsons and walmart as part customers but so so do we monitor also great amount of food and other perishable items from all over the world so next time when you look at your blueberries if they come out of chili and eat them from from walmart or albersons again those have been monitored by our technology all the way uh from the supplier all the way into the distribution center so we we rely on export actually it's my job solely relies on export so i believe any company smaller big should always come up with a good export plan in the beginning keep it simple try one or two markets stay focused gain momentum and then make a good decision to determine hey this is the right market and we're going to go for it or maybe we should do something slightly different and adjust the plan where needed and uh yeah went with these times during covet actually it helped us actually go to different stages because some markets showed on early and when some other ones were started shutting down later some of the early ones already started coming back online so it definitely helped us out as well too with that with our business do we during a pretty challenging year uh yet also again diversifying our sales so we were not dependent on just one market and it certainly helped our team uh to move to a pretty uh pretty challenging time moving forward so if you aren't exporting yet uh i highly recommend you do it there's never a better time than today to uh to at least start and think and draft some of those plans and uh and again what they managed earlier you know get the buy-in from management it's not always you know a quick fix to a big problem uh but yet at the same time if you don't build and you don't you know play stepping stones with building a plan and starting to reach out you will never get there so so i would highly encourage everybody to start thinking about exporting pick one or two markets and leverage local resources uh like some of those here on the phone already as well as the us commerce service because you can truly help any company build a solid export and uh export sales uh to to or to flow from uh in the end so that would be my experience with idaho commerce and with idaho ag as well as the us commercial service perfect thanks so much haird for sharing you always have great stories so so so you know as one of the results we also got the presidential e award which is the export achievement award for growing significant several years in a row so that's definitely a little uh you know special acknowledgement also by the us government for uh for our ongoing efforts so uh so i hope we have some candidates here in this audience as well too that at some point can display probably this flag in this award in their idaho office in the future oh perfect that's great that is very great i hope you can stick around maybe some for some questions and answers later on i know you're traveling though so if you can't until i understand but really appreciate your time today yeah you're welcome i'll stay on okay thanks sarah's gonna start us off with um some export assistance options um a lot of the heritage is covered so we'll let her talk again all right yeah thanks so much for that that was really uh helpful and he really did touch on a lot of these which is great it's a good introduction to it so now that we have explored your target markets your potential sales channels we'll cover some of the excellent state and federal resources that can help you excel at exporting and this section will cover the state of idaho's international trade offices trade shows trade missions the u.s commercial service the step grant program and some other sources of assistance so the state of idaho operates three full-time trade offices overseas in mexico taiwan and china our trade-offs managers are experts in their markets and they are a valuable resource for idle companies who are looking to export they work with both commerce and ag companies and they can help you with many aspects of entering new markets such as market research and insight company information sourcing and vetting trade inquiries typically our trade office managers visit idaho twice a year to connect with idaho companies and due to cova these visits have gone virtual and we are currently setting up 101 meetings with fabiola in november meetings with tara in december and eddie in january so if you're interested in getting a meeting with either of the trade office managers or even all three of them then um just make sure that you let sharon and myself know and we'll make sure we get you scheduled for those we highly recommend this as a first step to exporting because they can just give you so much good market insight so another thing that we do is trade shows and trade shows are another great way to build contacts in a new market the state of idaho participates in both international and domestic trade shows to help promote idaho companies for agriculture companies some trade shows are managed with wasada and so if you're looking here you'll see that gold food and food x have a small wasata logo next to them trade shows are also beneficial for conducting market research and checking out the competition they're an economical way to reach a wide audience for your products as many of the attendees are buying managers so listed here are a few of the shade shows that we have upcoming in this fiscal year but keep in mind that things are constantly changing in today's environment due to covid so just be sure to check our websites for updates on the current activities perfect sarah and trade missions are another um great activity that we offer that both the inherited touched on too um what they do is help companies connect with the potential buyers and increase their sales channels historically our trade missions are in person and our staff and the governor would travel with companies to the destination country the governor's trade mission we have coming up in april of 2021 in mexico is going to be virtual this year given the world's travel restrictions today we're very excited about that though because this mission being virtual is going to make it a little bit more feasible for some of the small companies to participate and the people who have never participated in one maybe give it a try this time around so if you would like to learn more about trade missions to mexico or the trade mission to mexico or any other ones that we might have coming up please reach out to myself or sarah or chelsea conlon um her email is on the flyer too or to sarah we can get you hooked up in the right direction and we'll be sending out more information in our newsletters on this over the next couple months the us commercial service that we've also touched on a few times it offers paid services that are very similar to all the ones like ours trade missions trade shows they have more than 70 international offices located at embassies and consulates worldwide so they do have some feed on the ground you can check out their website at trade.gov to get more information on their upcoming missions still one more program we have that um we've only touched on a little bit is our state trade expansion program or the step program this is a grant program that the state of idaho applies for to the sba and if awarded then we pass this on to idaho companies to try and help increase their export business or learn how to export for the first time participants must meet the sba eligibility requirements to participate in this funded program we will be having a new grant come out in december for our new idaho online global program it will cover website translation into foreign language search engine optimization localization services and e-commerce we're hosting a webinar on december 2nd at 10 am that will provide with the provider who has customized an idaho step grant program that offers these services so there's more more information on that coming this week or you can reach out to directly to tina who her email is linked on this slide as well or to anyone else at the department or ag or department of commerce we also have uh we'll have updates on our website on both our website so check those out regularly all right so there are many additional available resources to help you succeed in exporting lists here are just a few of those resources which one is linked to their website where you can find more information on the services that they offer we also recently conducted a webinar on export partner resources so a lot of these listed here actually were on the webinar and spoke about their services and what they offer you can find a link to the recording of that one on this slide right here so i want to um open it up for a minute again to bill meadows from mountain state oil seeds if he doesn't mind um to just kind of talk really quick um on maybe you could share your experience on a trade mission bill would you mind okay the trade missions that the department of commerce and idaho department of ag sponsor with the governor i think are probably the utmost importance number one uh political dignitaries open doors for you that regular business associates or business people can't open and uh that's been very good uh we've been on governor trade missions to mexico and to south america peru and ecuador and they are some of our best business customers that we've had since we started and uh the one thing that impresses me when you go on a trade mission uh especially with the governor uh he's right there next to you and uh their political uh influential people also come to the uh uh business and uh they talk about commerce and things happen when you congregate people like that and then usually at the end of the trade mission uh they'll have a a complimentary uh dinner where they uh you can invite uh some of your best customers and and it's kind of a chat and dying type thing and that's been real important uh and the customers that have got uh oh you might have to help me on this but uh you can give a little uh important gift out that identifies that customer as a very important customer to idaho uh at this uh uh event and that means an awful lot to the customers there and uh if there's if there's one thing that i've learned about international marketing and customers is uh they get up in the morning the same way as we do and they put one leg in at a time in their pants to get their clothes on and they appreciate being treated as a as an equal and as a business partner and the trade missions that are sponsored that we go on i get that feeling all the time that uh the in the business integrity is there so they're in my estimation as i mentioned mountain states oil seed started from ground zero we didn't know anything about exporting we had some custom some domestic customers and the bird trays first trade mission we went to mexico and i was on that trade mission and we met with businesses and that we never would able to be to get in the door the door would not open unless we were with the trade mission and we came back and we still sell to those companies and they still are very important uh customers of ours and so i would say anyone looking into the export trade situation the money is well spent you can qualify for step grants to help pay for uh some of your expensive your expenses and i just about guarantee you that uh you go on an idaho trade mission with the governor you'll come back with business thank you excellent thank you so much bill that was that was great so at this time we'll just open it up for any kind of questions i don't know if tina have you been following the box if there's any questions that we can address tina had to jump off okay um so we'll just open it up i saw herrera actually got on his video for just a second now he disappeared thank you i i want to extend actually the same feedback like like you know as a small company uh it is e it is it's easy to come up with a plan but to get into in front of the right people at the right time i i hardly believe i have some more experience with it with the governor's trade missions and the thing i always used to tell because especially when we're a small company right we're also using resources that are prepaid right so so dealing with the teams here in boise as well as with the international specialists overseas those are kind of prepaid resources already with your tax dollars so so leverage them right they might not have all the answers but at least they can get you in the right direction and then when you can join the governor in one of those trips yeah he opens doors and people you know will pay attention now it doesn't guarantee automatically a sale but at least you get in front of the right people a lot faster than you would typically have to deal with uh you know and i would share wholeheartedly that that was one of our best investments yes it's a little bit of money up front at the same time you get in in ront of key people a lot faster and the governor uh both the current one as the previous one were great at opening those doors but also be indeed right next to you so they were definitely there to support you they were not there you know with any political you know promises or anything else too they were there to sell and support idaho exporters wholeheartedly and both governor little as well as otter were champions uh in that so i truly would would support any of you thinking about uh about opportunities to uh to join at least one of those if it's in your regional target markets awesome yeah sharon can i say something else right quick this is bill meadows you bet okay i forgot uh just a little thing that happened uh in learning our export uh situation uh i went on uh trade missions uh trade specialists uh missions to mexico four times and each time it was very good but there was one customer that eluded me every time and that was mccormick mexico their division of mccormick spices usa but they acted on their own and though i decided something was wrong with me so i think my uh person uh that was i was training for international marketing who spoke uh spanish he went down on a trade mission with the governor and they stopped by mexic mexico mccormick and martine was his name and he speaks very good spanish he went in and a half an hour later he came back out with the governor and he had their business one thing i've learned is if you can speak their language you're uh going to make about a a 40 gain on your ability to capture some markets speaking the language makes one heck of a difference thank you thank you yeah thanks for that that was great all right so it doesn't look like we have any questions right none in the chat box so if anyone has any questions and they want to speak up now you sure are welcome to uh hi this is ernesto i don't have a specifically a question but i have some comments that i would like to add i think will be very beneficial for the audience and and the first one is i i think i i cannot agree more with the hurt and uh bill regarding the trade missions it's it's probably one of the best returns that you can have and i have had i have been lucky enough to participate in quite a few of those and i don't think as a company you can have a better return on the investment than the trade missions then on uh it does require some planning and i will definitely very strongly suggest the companies to take the time to plan for the trade missions because the more information that you feed to the uh receiving end in this case the u.s commercial services or the idaho trade uh idaho uh commercial office in mexico in china or in taiwan the better results you're gonna get so please please take the time to plan this and by that i mean you have to plan this at least three months in advance you have to understand and identify who is your target audience have discussions with the representatives at the embassy or at the commercial offices in mexico taiwan or china give them the time to digest that because then then your return is going to be way way better that's number one number two is uh the step programs is it's also one of the best uh tools that you have at your disposal to make this happen now the uh the step programs change from time to time because they are administrated by the sba and then they they feed the program to the uh idaho department of commerce or agriculture but make sure that you you get the information about that on time so you can plan accordingly because it can help you to sponsor a lot of your activities for a trade mission or a trade show from the state program and i'm happy to say that idaho is actually one of the top performers of the step programs and it has been for several years i had a conversation with the sba people in washington dc about that and idaho is at the top if not the very very top is at least in the in the in the top three states in the whole nation so we have done in idaho something very good about the step program it kudos to tina i suppose and i don't think she is right now in the session but anyway i wanted to to give her that compliment because he's well deserved and another couple of comments here that i believe are right in line when you are working on what your distribution strategy is going to be it's important to to take the time to really understand the market that you are trying to get into what are the conditions in that market and don't fall into the trap that well i'm not selling to anybody in taiwan and this joe doe came and contacted me and wants to be my reseller well since i don't have anybody i will just give him or her the rights to sell in taiwan you're going to be very careful with that because you could be mortgaging your future in that market so be very selective and again the u.s commercial services and the idaho trade offices will be very uh useful to do some kind of vetting as a minimum do you know these companies what kind of background they have and that it doesn't necessarily mean if it's small or be a company it's an assurance of anything because either case it could be a bad company so just take the time to do some vetting very very important and and then decide if you want to work with that company it's better not to sell anything in taiwan for a while until you get the right partner because you don't want to mortgage that then be very careful also between there is a distinctive difference between an exclusive distributor and assault distributor and make sure that you understand that word and you play the game with those words because exclusivity in some countries is like a marriage without divorce so be very very careful with that because you might get into some kind of uh let's say difficult water now when you are designing your distribution pricing also make sure that as a minimum you understand some of the of the items that are important for example there are some countries that have currency controls the the government the government authorities don't have really the bandwidth to be inspecting or checking if the purchase is legitimate according to their own rules so what they do is they impose the requirement to use a letter of credit and letter of credits are not as popular as they used to be many years ago because now we have the digital connectivity and all that however in some countries it might be the only way that you can sell and i have had customers that actually have the money in the bank they don't need any credit whatsoever but they still need to use a letter of credit because that is the tool that these governments use to to kind of verify the legitimacy legitimacy of that transaction that the dollars that they are approving are being used for articles that they consider essential so and and the letters of credits delay payment and on one hand and add cost to your bottom line so make sure that you understand if that's a case that you're going to be you you will have to deal with and if that's the case just incorporate those costs and that financing time that might be an issue because some letters of credits might not uh close or might require up to 90 days we might we might have to have you talk on our next session because we cover a lot of those topics on our next training session so i'm sorry i'm sorry i just think it's very very important because it's i have seen a lot of unfortunately a lot of companies falling into those uh and not not not incorporating those concepts and then at the end they realize oh my god my my bottom line is not as good as i thought or is unsustainable and the last and i promise this will be the last is when you are selling services or products that require an installation by a human being then be careful because some uh countries might require you to uh or might require the end user actually to apply retentions because they consider that labor related and those retentions could be very sticky sometimes because they could go as high as 20 percent and as i have seen cases as low as 10 percent so that's another thing to understand because at the time of negotiation negotiating with your distributor or your end user make sure that that part is clearly established and who is going to cover that and if you are going to cover that then you just have to raise your price i guess to incorporate that and if the end user is going to cover that then it has to be clearly understood because it could be an unhappy surprise and and and thank you i'm sorry i just wanted to add all these items because i believe are important but now i want to cover what you're going to cover in the next session you're great you might have to be one of our speakers next week i've been delighted to do that you know i if oh and by the way i'm part of the deck oh that's i almost forgot okay also uh the companies that are attending this session you know please feel comfortable to reach out to the idaho deck this is another resource that exists here in in boise and in in the state of idaho to help you to coach you with your exports so i'm a member of the idaho deck and by the way i'm also the representative for the pacific north for the national deck so idaho is part of that that block is northern california the state of oregon the state of washington the state of idaho montana and alaska all those are in the cluster pacific west and we have a representative in washington dc and i happen to be one of i mean one of the two representatives for the pacific waste and now i promise i'll thanks ernesto okay all right great uh great dialogue there so um that wraps up our presentation for today um so i just want to remind you though to um don't forget to register for session three um session three we will cover determining your product classification uh knowing what export documentation that you need what are your logistic options understanding inco terms which is an important one as well as tariffs and free trade agreements and then session four we're going to wrap things up with learning the benefits of export compliance program export financing and banking and navigating international laws and regulations [Music] perfect all right so again i just want to thank you all for uh that have joined us today sarah for taking on these trainings with me paired and bill for your candid comments ernesto for deep diving for our next session upcoming preview and uh all those that helped in the background so everyone have a great day and we'll see you in round three thank you everyone that's good thank you everybody thank you thank you everybody thanks everyone great job bye

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