Debunking the five myths of global expansion: it can be daunting for a small business to consider opening up markets overseas. But with the growth of the internet, almost anyone can be an international company.

A local store that sells and trades baseball cards creates a website that accepts and fulfills orders online from customers. Instantly, it's a global business.

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If only global expansion were truly so easy. Certainly, this example is technically "global," but not in the sense most business people would use it, where suppliers and commercial buyers are involved. Indeed, many small businesses are virtually paralyzed by the thought of going global. Some believe it's too risky or complicated because of different languages, cultures and business practices.

Yet those barriers are dissolving with every passing year. As Thomas L. Friedman, the columnist for The New York Times, notes in his book, The World Is Flat: A Brief History of the Twenty-First Century, the economic playing field around the world is being leveled, making the world flat.

Friedman examines the changes brought on by improvements in communication and technology and how those changes are opening up the world of commerce to players of all sizes. In the book, he lists 10 "flatteners" that are enabling companies worldwide--regardless of size or location--to compete anywhere. One of his "flatteners" is the rise of the Internet.

Practically speaking, expansion doesn't mean a company has to build a plant in another country or open a store in a foreign city. Expansion merely means companies need to do business with customers in new locations, and the rise of technology helps make this possible.

Nevertheless, expansion can be daunting, especially for those who believe any of the following five myths about going global:

MYTH 1: "I Don't Have the Money to Fund the Expansion." Many small businesses believe they can't go global because they don't have access to the necessary funds and resources. It's true that most small businesses must look around for support, but if a small business has the capital to support its domestic business, it likely has the means--or access to the means--to go international.

Moreover, "going global" doesn't mean doing it alone. There are a number of financing options available, including the Export-Import Bank of the United States (Ex-Im Bank), U.S. Small Business Administration (SBA) and the U.S. Department of Agriculture's (USDA) Business & Industry loan program.

Organizations like the SBA offer export information and development assistance to help U.S.-based small businesses take advantage of export markets, including trade counseling, training, legal assistance and publications. The SBA's Office of International Trade works in cooperation with other federal agencies and public- and private-sector groups to encourage small business exports and to assist smaller entities seeking to export. The office actively markets the SBA's loan programs, which reduce the risk that banks face when they lend to a small business exporter.

Additionally, the SBA is a strong advocate for women entrepreneurs and offers many programs and services to help them succeed.

The Ex-Im Bank, as its name implies, is all about facilitating international trade. The Ex-Im Bank facilitates loans to U.S.-based businesses purchasing raw materials and parts from overseas suppliers, and provides loans to overseas companies that purchase products from U.S.-based businesses. That's global trade. On average, 85 percent of the Ex-Im Bank's transactions directly benefit U.S. small businesses.

MYTH 2: "It's Too Risky and Complicated." Many businesses have the perception that conducting business with trading partners overseas can be risky. How do I know if I will get paid? How do I know if my overseas buyer has good credit? How does global trade financing work? It can be complicated and daunting, to be sure, but it's quite simply doable.

For instance, credit insurance can help mitigate these risks by protecting the value of your receivables, guaranteeing your invoices to foreign buyers will be paid even if the buyers themselves don't pay. By guarding the bottom line against non-payment, or even slow payment, you can breathe easier about your decision to conduct cross-border trade.

Credit insurance can be used on a case-by-case basis. For example, it can be used initially with new customers (for which you have no data on their payment histories) and then removed once more solid relationships are established.

In addition, some businesses offer an international payment collection service that provides a fast, secure, simple payment alternative for letters of credit and other, more traditional financial tools.

Consider the edifying yarn of Rogan LLC, a small-but-flourishing New York-based fashion label that specializes in one-of-a-kind distressed jeans, leather jackets, Turkish sweaters and washed-silk dresses. Established two years ago, Rogan attracted celebrity and media attention from the start. But after a feature in Vogue last June, its phones began ringing off the hook.

Its hallmark $200 jeans--individually distressed by abrasion, paint splatters, dyes and even blowtorches--had become a big draw for models, musicians and denim connoisseurs. Calls flooded in from specialty shops in France, Italy, Canada, Denmark, Spain, New Zealand, Australia, Turkey, Germany and Japan.

From the company's modest showroom, Rogan President Scott Hahn knew that shipping directly to boutiques abroad would be challenging. "You need to know your customers and trust them," Hahn says. He leaned on UPS Capital and its UPS Exchange Collect solution, which allowed Rogan to deal with individual customers, speed up delivery, improve efficiency and reduce financial risk.

The payment alternative begins with a simple handshake: the exporter and importer agree to sale terms and specify UPS Exchange Collect as the financial settlement tool. The exporter ships the goods via UPS, which notifies the importer electronically that the shipment is in transit and payment must be made before delivery. The importer then wire-transfers payment from its bank to a UPS bank account. After UPS receives payment, the shipment is delivered to the importer. Then, upon delivery verification, UPS remits funds to the exporter.

Bottom line: "We have confidence in our shipments arriving on time and an assurance that we'll get paid," Rogan says.

MYTH 3: "It's Too Expensive to Move Goods Across Borders." Before small businesses sell abroad, they first need to determine how to get their goods from Point A to Point B. Today, shipping companies have become more creative, resourceful and valuable by offering shipping software applications for customers with high-volume shipping needs. This allows businesses to accelerate, streamline and enhance their shipping processes, as well as their financial and customer service processes.

In addition, shipping companies offer freight consolidation; air, ocean and ground transportation; customs clearance; and direct delivery to multiple addresses within the destination country, all through a single source.

It's important for businesses to take the time to research and understand the different shipping methods. The shipping process involves knowing the costs associated with how long the goods take to deliver, proper packaging, what international trade regulations apply and what bottlenecks might impede timely delivery. It is important that every package is insured, and customers should know that in addition to shipping costs, they may face import duties or brokerage fees.

Single-source providers of all these services are the way to go for businesses looking to expand easily into international markets.

MYTH 4: "Shouldn't I Start Local and Then Grow Globally?" This is no longer true. The Internet has become one of the greatest communication tools in history, and the growth in the international Internet population means boundless potential business for U.S. companies, particularly from consumers eager to buy products they can't obtain in their countries.

However, there are some things to consider: Can potential customers read your website? (It may need to be translated.) Does your shipping table calculate international shipments? You may offer products that cannot be easily obtained in various parts of the world, so even if the shipping rates seem exorbitant to you, they may be acceptable to your customers.

MYTH 5: "I'm Too Small for Anyone to Care About Me." In 2003, there were approximately 5.6 million businesses with 500 employees or less in the U.S., according to the U.S. Small Business Administration's Office of Advocacy estimates. According to the SBA, small firms generate 60 percent to 80 percent of net new jobs annually, and account for 97 percent of all U.S. exporters.

Small businesses, indeed, are the engine of the U.S. economy, and increasingly, large businesses are catering to small and medium-sized organizations. Competition in all industries is heating up, and the largest companies all realize that their best growth prospects lie in serving smaller companies.

Going global doesn't have to involve confronting frightening, undiscovered territory. By banishing these five myths, your organization can realize the full potential of globalization and capture dramatic revenue growth. And that's the flat truth.

Michael Tobin is Senior Vice President of Sales, Marketing and Operations for UPS Capital, the financial services arm of UPS. He can be reached at 800.637.0620.

RELATED ARTICLE: takeaways

* Many small businesses are unduly worried about the challenges they perceive they face in attempting to sell their wares abroad.

* Technology has been a particularly important force in the recent years of global expansion. In effect, an Internet site can be a global business.

* U.S. companies have a range of resources to choose from in expansion, including the Export-Import Bank and financial settlement providers.

* Companies should examine five basic myths about going global--several related to cost and risk--and consider banishing them.