VALET Program A Confirmed Success

by Leslie Parpart, VALET Program Manager (lparpart@yesvirginia.org); if you are interested in learning more about the program, please contact Leslie. Article orginally appeared in Virginia's Spring 2009 Commerce Quarterly.

What if your company could increase its international sales by 44% during a two-year period and then grow by another 44% in the years that followed? On average, companies who graduate from the Virginia Leaders in Export Trade (VALET) program experience this level of growth in their international business.

In 2001, it was just an idea. Virginia companies with firmly established domestic operations interested in accelerating their international business were recruited to join a newly designed program that was a true public-private partnership. The intended goal was to provide companies with the tools and resources to increase their international sales over the course of two years. On February 26, 2002, under the leadership of Paul Grossman and Kim Weir, the first VALET class gathered and launched the VALET Program.

The Program assists exporters who are committed to exporting as an expansion strategy. Companies interested in VALET participation are required to undergo an application process, which occurs twice each year, and must meet minimum requirements. Each company selected to participate in VALET’s two-year export acceleration program has access to the following:

• Reimbursement of up to $10,000 for export-related expenses;
• Pro bono professional services from VALET Program Partners, which form an extensive network of service providers who can assist with a variety of issues that exporters encounter when doing business internationally;
• Networking and educational events; and
• Strategic planning guidance and resource coordination.

Companies begin the program in either January or July. Since 2002, over 100 companies have been accepted into the program. In 2008, the VALET Program commissioned its first external review. Data was collected through a combination of database review, staff interviews, and a survey of the 65 program graduates. The goals of this study included quantifying post-program international sales and developing an understanding of what graduates thought were the key elements of the program as well as identifying areas for improvement. The response to the survey was an outstanding 66%.

The most critical question the survey set out to answer was whether program graduates continued growing their international business post graduation. The study found that companies increased their international sales by an additional 44% following their participation in the program. The companies also provided feedback regarding what type of impact the VALET program had on their international business in the years after their participation. The changes reported most frequently by respondents included:

• Expanding into new international markets (93%);
• Increasing the number of international sales annually (88%);
• Implementing new international marketing strategies (84%);
• Investing in new technology (74%);
• Experiencing growth in the number of employees in Virginia facilities (72%); and
• Establishing new partnerships with international companies (70%).

“There are tremendous benefits to selling internationally…for a company, for its employees and for Virginia,” said Paul H. Grossman, Jr., Director of International Trade and Investment. “In an era where organic business growth is part of successful economic development strategies, broadening a company’s client base by selling worldwide is totally organized and totally positive.”

The external review also identified the aspects of the program that graduates valued most. These included access to $10,000 via reimbursement to offset the costs of international marketing, research provided by VEDP staff and in-country consultants, the opportunity to network with other Virginia companies, and the support of private sector experts.

The survey asked the graduates whether or not they would consider participating in the VALET Program again and 88% of the respondents indicated that they were very likely or somewhat likely to participate again. Respondents were also asked to elaborate on the following question “If you were describing your company’s overall experience with the VALET program to a peer, how would you describe it?” The responses to this question were almost unanimously positive, with 38 of 39 companies replying noting that the program was “positive and rewarding.”

In addition, to the positive results highlighted in this report, the VALET Program, the first of its kind in the country, has also been recognized as a national model by the National Council for Public-Private Partnerships (in 2004) and as a program of excellence by NASBITE International in 2008.

The VALET Program is currently recruiting companies for its July 2009 Class. To be eligible for the program, companies in the Commonwealth of Virginia must have strong domestic operations and have the resources to commit to participation. VALET program participants are required to go through a competitive application process and must meet the following minimum requirements:

• Employ at least 20 individuals;
• Be established for 3 years;
• $2 million in annual sales;
• $20,000 commitment toward export trade;
• Commit to traveling to target market; and
• Have completed international market research.

Commerce Quarterly is a quarterly publication of the Virginia Economic Development Partnership. To download archived issues and/or to subscribe, visit http://www.yesvirginia.org/About_Us/News.aspx