Thinking of trading internationally?


As of the end of January 2017, exports of goods and services from the UK sat at just under £48.5bn. With Brexit now a reality, there has never, in our view, been a better time to consider the business benefits of trading internationally. However, many SMEs shy away from export and


international trade, citing it as a risky activity. And while we don’t want to appear flippant, there is a simple response to this and that is that pretty much anything you haven’t done before is likely to be considered risky. However the more you know, the better equipped you are as business people to make a decision on any aspect of business - including whether export and international trade is for you and your business. Let’s look at some statistics. In a report for Barclays,


Kingston University London interviewed 1,500 SMEs, of which 1,000 were exporters. They found that the benefits of exporting were better than anyone had anticipated: 15% of owner-managers said that the experience was much better than expected and 39% better than expected. Given the hesitation around exporting and international


trade, these figures give us all hope. The next set of figures gives us even more: 80% of exporters said that exporting had enabled their business to grow and while the speed of impact on businesses can vary, two-thirds said they felt the impact in the first year. Almost half of exporters reported increased sales in the


previous two years compared to 24% of non-exporters. We believe the risk is more than worth it. So what do


you need to know if you’re thinking of trading internationally? Our two biggest pieces of advice are to take it step by step and to do your research. Let’s start with research. Your research will show you


where the opportunities are and what you will need to consider. Here are the five areas we urge all exporters - whether new to exporting or experienced exporters - to consider each time they look at the subject:


30 business network June 2017 Researching your new market thoroughly can help simplify the export process


1. Research to understand the new market you are considering going into. Who is going to buy from you? What is their business culture? How do they do business and what will you need to change/adapt in order to operate there?


2. Research the factors that may impact your price. What duties does the country you are looking at impose? What are the local taxes you need to be aware of and comply with? How many days will your customers expect to have to pay in? What method of payment do they use and is there a cost associated to it? What currencies will they use and how can you mitigate any risks involved in selling with this currency? Are there any other currency costs to consider?


‘80% of exporters said that exporting had enabled their business to grow’


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