PROJECT SUMMARY
In 2003, Virginia's exports were over $15 billion. Generally, Virginia companies interested in exporting face the following challenges to begin exporting: where to go for professional and technical assistance; export planning; startup costs and market research. The Virginia Economic Development Partnership's (VEDP), Division of International Trade goal is to increase the number of firms that export and the dollar value of Virginia's exports. The VEDP's export promotion process is three pronged: 1) an aggressive calendar of international trade missions around the world; 2) in-house staff, resources, programs and services; 3) focused small groups, with intensive applied resources from the VEDP and private sector professional firms, known as the VALET Program. These resources are described in full at the web site www.exportvirginia.org. Essentially, the VALET Program is a staff augmentation and cost sharing partnership between the VEDP and the private sector professional service firms.

Just like any state authority, the VEDP is constrained by budget, available human resources and geographic coverage limits. Launched in January 2002, the program assists exporters in the Commonwealth that have firmly established domestic operations and are committed to international exporting as an expansion strategy. VALET provides capital, expert guidance and concrete solutions for businesses committed to expanding into international markets. The VALET Program incorporates services from VALET Program Partners, a team of experienced international professional service providers who assist the VALET companies with their international goals. Services providers such as attorneys, web designers, bankers, translators and freight-forwarders contribute essential skills for expansion into international markets. The following 23 companies are VALET Program Partners: ActiveMedia; Allegheny Brokerage Company; BB&T; Bank of America; China Channel Limited; Concepts Direct/ECDIMAIL; CV International; GlobalFon, Inc.; DallaVilla Design; Global Law Group; The Language Group; Lasa Monroig & Veve; LeClair Ryan; Marsh USA; People Going Global, LLC; SunTrust Bank; TNB Language Services; Trade Show Training, Inc.; TRADOS, Inc.; Transition Success Consulting; UTi; Virtual Strategies, Inc.; Williams Mullen.

The three point network links the VEDP, private sector professional service firms and the Virginia companies together to accelerate their export strategies. The VEDP contributes $10,000 in expense reimbursements for export related expenditures to each participating company. Each private sector professional service firm is contracted to provide up to $10,000 worth of pro bono services to the VALET companies. The specific services are fully described in the contract and utilization is tracked by the VEDP. Virginia companies must meet minimum thresholds for years in business, annual sales, employees and commit to a $20,000 export budget. To date, 45 Virginia companies have been accepted into the VALET Program for intensive export assistance.

"Over the past two years, we have benefited from the VALET Program," said Giovanni Donatelli of The Language Group, a current VALET private sector professional service firm. "Being affiliated with VEDP has allowed us to participate in numerous events throughout the state, covering topics from international trade logistics to finance, which in turn allows us to better assist our clients. Our company has seen significant growth in the past two years, and if we track the total contacts that we have made since the initiation of the VALET Program, a significant portion are a result of an introduction through VEDP."

Virginia benefits from the VALET Programs in the following:

• economic development funds are multiplied by the private sector professional service firms;
• exports are accelerated through the application of intensive resources; and
• private sector professional service firms have new business opportunities that showcase their skills instead of advertising messages.

Originality
The Virginia Leaders in Export Trade (VALET) Program is a new partnering concept never before used in a state agency for export promotion. All other U.S. states provide export promotion services through in-house resources, lists of private sector service providers or not at all. By combining pro bono private sector services with VEDP expense reimbursement, Virginia companies have accelerated their export sales. Fifteen companies per year are accepted into this competitive application program. Over the course of the two year VALET Program, each company gets planning help, market research and services from the 23 private sector firms. Additionally, $10,000 in start-up export expense reimbursements is available from the VEDP per company.

In 2004, 13 companies have "graduated" from the program collectively attaining more than $19 million in export sales.

Quality and Implementation
The VALET Program uses a competitive application for Virginia companies. The criterion to apply includes minimums for years in business, annual sales, employees and commitment of a $20,000 export budget. The VEDP assigns one full time program manager and staff researcher. The profile of the average VALET company is $24.8 million in annual sales, 113 Virginia based employees and 30 years in business.

The VEDP's executive leadership briefed the Governor Warner's Secretary of Commerce & Trade in early 2001. A cabinet official has attended every "freshman" or graduation meeting since program inception. The VALET Program idea took 12 months to plan and implement. Since inception, 45 companies have been accepted into the program.

Economics
Within the VALET Program, every $1 in state funds is matched by $3 in private sector funds. Export promotion services are delivered by this innovative approach through agency staff augmented by private sector professional service firms. Virginia's citizens are reaping the benefits of economic development using private sector funds as a multiplier.

Public-Private Partnership
The VEDP contracts with each of the 23 private sector professional firms in the VALET Program in this new partnering concept. Additionally, each private professional sector firm agrees to provide up to $10,000 worth of specific services at no charge or greatly reduced fee to the participating public companies. Each professional firm provides the service at its own risk. The contract describes exactly the types of services to be provided.

The 13 Virginia (private sector) companies that have completed the two year VALET Program have received the following types of services from the 23 private professional service firms: legal contracts, web site optimization, freight forwarding, customs broker, language translation and letters of credit. Services received from the VEDP are trade shows, market research, trade missions and a written plan of action. The VEDP's risk is limited to the services that it provides.

Both the VEDP and the private sector professional firms benefit in this approach to export promotion. The VEDP gets to extend the services available to Virginia's private sector companies at a low cost. The private sector professional firms get qualified new business opportunities at no advertising cost. Regular communication in the quarterly meetings, press releases and media articles has elevated all three parties (VEDP, professional firms and the private sector companies) awareness of exports.