We asked five small business owners trading abroad what they had to come up against when exporting, and how they overcame these barriers
Adam Unsworth is the sales director at Plastic Card Services Ltd
An agent can help: Finding the right exporting agent can alleviate a lot of concerns regarding language, local business etiquette or laws. It also helps increase customer confidence and provide reassurance they have a contact close by, which in turn can assist with day-to-day communications.
Think about currency and exchange rates: Fluctuating exchange rates can also be an issue: any business trading internationally is at risk of reduced profits if it does not pre-plan for possible swings in exchange rates. Changes in currency can price you out of the local market. The most sensible method of reducing risk is to forward fix the value of the order with the bank for an agreed period.
Be aware of having to wait for payments: The number of debtor days that can be expected from exporting with a new country should always form part of the new market assessment. We've previously discounted countries because of major disparities between our requirements for efficient payments, and the expectations of the local economy.
Geraldine Abrahams is the director of TWM Productions, which launched its first infant development product, Tummy With Mummy, just over a year ago and now sells it around the world
Shop around: We discovered quickly that it's difficult to get low transportation rates that larger companies can negotiate because we can't promise the same volumes and frequency that they can. The cost of transporting goods can vary widely, and it makes sense to shop around for the cheapest freight deals.
Misunderstandings can happen: We discovered that business transactions can be thwarted by misunderstandings about different types of shipment. Our first shipment to the Middle East was accidentally logged as ex-works (instead of free on board) by the buyer, so we had to pay for the products to get to the ship.
Think carefully about quality control checks: In one situation, we initially had trusted the internal quality control check at the overseas factory where we were sending a shipment, but on advice, we had an independent check carried out which failed. We would almost definitely have lost a valued customer if that shipment had been exported.
Janan Leo is the founder of Cocorose London
You might have to chase clients for payments: Minimising risk when exporting can prove expensive as clients are more difficult to chase up. Will your new clients be willing to pay a deposit?
Will there be extra costs involved? You may have to consider import duty and taxes your client will face and the extent to which that makes you competitive. We've found that in the USA, stores would rather draw on stock from local warehouses than deal with the red tape of importing. To overcome this we offer delivered duty paid prices.
Find good partners: The key to trading in new markets is research and identifying the most appropriate partners. We look for sales agents and distributors we can work with, who understand the brand, our values and are passionate about helping us develop.
David Williams is the chief executive of Taylor Bins
You need to consider more than just the product itself: A business may have a fantastic product but if it doesn't have the processes in place from a financial, logistical and compliance perspective, then it's unlikely to succeed. Similarly, businesses can be so close to their products that they fail to take an objective view when it comes to how suitable their product is for the target market. You should constantly be questioning your product's relevance in these markets.
It's better to have in-depth knowledge of fewer markets: Don't try to take on too much at the beginning. Rather than adopting a far and wide approach, limit the number of markets to maximize your available resource. This will enable you to gain a greater understanding of a few markets as opposed to learning a little about a lot.
Matt Roberts is the co-founder of Bean2Bed
We had to adapt: Due to the size and weight of our products (we use a high-end foam filling in our mattresses as opposed to polystyrene balls), finding the right courier partner was important. Price was important to us as we didn't want it to be a barrier for our customers abroad. In order to export our beanbags, we had to create a new box size and ensure that our products were vacuum packed efficiently.
Modern technology can help you communicate: Communicating with customers can also be a challenge, but using modern technology such as Skype and translating software we're able to get around this.
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