Exporting

Selling your goods and service abroad can massively increase your customer base - and your profits. But successful exporting relies on understanding where good sales opportunities lie and how best to take advantage of them.

Your export marketing strategy

Exporting takes commitment. It means expanding your operation and developing relationships in overseas markets. If your resources are already stretched dealing with your UK market, you should focus on that for now. Exporting isn't a quick fix for a shortfall in domestic turnover or a squeeze on profit margins.

Successful exporting starts with a strategy that spells out how you can use your strengths to give you an edge and how you can overcome your lack of international experience. You'll need to decide how much time and money to invest in getting your overseas sales off the ground and set yourself measurable targets. Exporting typically kicks off with a trial in one market, so you can refine your approach before committing resources to breaking into other markets.

Export market research

With a whole world to choose from, you might find it difficult to pin down the best exporting opportunity. Smaller businesses often operate reactively, by responding to opportunities that come their way. You might have a family connection with a particular export market, for example, or follow up on an enquiry from overseas.

But you can actively seek out opportunities. Your trade association, the local Chamber of Commerce and UK Trade & Investment can all help you spot promising export markets for your offer. They can also help with export market information and trade missions.

It's vital to do proper research before taking the plunge. This needs to cover more than just understanding local customer requirements and the competitive environment. Different languages, cultures, laws and distribution systems are just some of the obstacles you will need to overcome to sell overseas successfully.

Export planning

Market research will help you tailor what you offer to suit your export market. Bear in mind, however, that local competitors will have an inbuilt cost advantage; unless you can offer something special, you'll find your margins under severe pressure.

You'll also need to decide how to distribute your products or services. Unless your offer suits direct sales (for example, selling online) then work with a local agent or distributor - you will benefit from their local knowledge while you build your market capability. Whichever route you choose, you'll also need to work out how to promote your products to customers and intermediaries.

Getting your goods into the export market is yet another challenge. Some distributors will handle this for you, but you may have to deal with customs clearance and local taxes yourself. You'll also need to negotiate payment terms and protect yourself against the risk that customers fail to pay or that exchange rates move against you.