Many small business owners never consider the export market. It’s often considered something only large enterprises can afford – and have the capacity – to get involved in. Going international, though, could bring benefits way beyond just an increase in sales and profits.
Post-Brexit, with uncertainty surrounding future UK-EU trade relations, it is understandable that many SMEs fear that treading into the export market is a risky business. Others are jumping in feet first, making the most of Sterling since the referendum, and counting on the fact that although it may become more complicated, the door to trade with EU countries will never be locked and barred. Many are finding highly lucrative opportunities with markets beyond the EU.
Along with increased sales of your product or service, exporting brings benefits like expanding your knowledge base, lower production costs when you are supplying in bulk, spreading your business risk, and extending the life of a product that has begun to pall at home.
There’s no doubt that tapping into the international market is a sure way to grow your business, but isn’t it extraordinarily difficult to achieve? Where do you start even contemplating such a move?
Like everything in business, the key is being well prepared, which means researching everything about your target market thoroughly.
Even identifying your target market, pinning down a suitable destination country for your exports, needs extremely careful consideration. With the UK Government really keen on encouraging export, there is plenty of online help available when it comes to deciding if, and where, there will be a demand for your product abroad. For example, take a look at this webinar offered by www.opentoexport.com which guides you in the selection of your target markets.
The most obvious consideration is to research where in the world there is, or could be, a demand for your product.
It’s also very important to determine if you have UK competitors who are already exporting to your planned new market, and whether you can finance the capital cost of developing a market abroad, which will probably mean increasing production and upping staff levels.
When it comes to finance, SMEs can get help with trade finance and insurance for exporting from the Government organisation, UK Export Finance.
No-one can suggest to you that exporting is risk-free, whether it be from a financial or operational point of view, but by doing your homework you can make the risk minimal and the actual process safe and painless.
You will, for example, need to make sure your product is compliant with regulations in the country you are exporting them to; obtain all the necessary licences and permissions for your product in your overseas market; guard against fluctuations in currency rates; and take out insurance for things like covering your goods in transit, or protecting yourself against late or non-payment of invoices.
Once your export deal is in place you will need to consider basics like ensuring all your packaging and marketing material is in the required language and is appropriate to the culture and tone of your export market.
This blog has just touched the tip of the iceberg in respect of what’s involved in becoming an exporter. The success stories about small British companies who have taken their goods abroad are legion. So if you have a product or service that’s achieving well at home (and that’s a must before you consider exporting) why not become part of the movement to take the Best of British to the rest of the world?