Are you ready to start exporting?

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26/06/2017

Exporting is one of the best ways to grow your business. Not only can you see an increase in profits, but you’re getting your brand out there in the global marketplace and you’re increasing your potential customer base. If your business is doing well on a domestic level, that’s a great indicator that you’re ready to go global. But before you do, we’ve got a few tips on how to assess your business for the demands of exporting. .

Assess your business’s exporting potential

You might already have some idea of how your products will fare as exports, such as selling them online. That’s a positive indicator, but there are other important key things you should do first, such as:

• Prove demand – check there is sufficient demand for your products. That there is a large enough pool of potential customers who would both need and want to buy your product. Research, customer surveys, and piloting costs money, but it’s better to invest in understanding the feasibility now to avoid developing export goods that you are unable to sell.
• Arrange finance – make sure you’re aware of the total cost of exporting, including transport, warehousing, delivery and possible capital outlays for additional equipment to meet larger volumes that the export market often demands. Complete an export cash-flow to identify the impact on your business.
• Understand the logistics – exporting has its own characteristics to know such as different transport costs, export insurance, duties and levies, the treatment of VAT, and receiving and making foreign exchange payments.
• Check for regulatory constraints – these include legal and compliance issues both with UK customs and customs in your destination country. Even labelling and packaging may have regulations to meet.
• Know your market – understand the differences between your export market and the local market; the way they do business, local customs and language.
• Make sure your competitive advantage is relevant – clearly state why someone will choose you over a local business. It’s how you’ll get people to switch from your competition to you.
• Find an effective marketing channel– you know the best way to distribute your product or service; an online store, via wholesalers, retainers, direct to market, a joint venture or local strategic partnership.

If you’ve got these basics down and you’re confident of your ability to attract customers in a foreign market, then your business is in a great position to start exporting. If you have a target market in mind, visit the country to learn about the culture and customs of doing business, and talk to potential customers to gauge demand.

Advice and resources

• Our online export road map will help you get started in the international marketplace.
• Five things you should know before exporting.