Export strength

By NATASHA MUKTARSINGH
Updated:

 

SELLING goods and services abroad may seem daunting to the inexperienced, but it could be the way to boost business and generate new cash.

null

Exporting can help a company achieve economies of scale, increase turnover and profit, and spread risk. Not all products may be right for overseas, but if a firm has an established, competitive market at home, there is little to stop it exporting.

A recent report from the Government's export support service, Trade Partners UK, found that exports increase productivity by nearly 3% in the first two years and can lift sales by more than 5%. And a survey by international transport company DHL shows that 92% of small and medium firms expect their exports to rise or at least stay stable in the next three months.

Jon Wilkinson, commercial director of DHL International, says: 'Smaller exporters have been resilient in the past decade, responding to exchange rate fluctuations and welcoming the euro. They are confident about the future, and a third plan to hire more staff in the next year.'

Ian Pearce, managing director of Brinsea Products, which makes incubators for exotic birds, took over the running of his parents' company in 1997. Brinsea already exported to western Europe, but he decided they needed a bigger push. Pearce, 36, says: 'It's a niche product and we had the UK market pretty much covered. We were carrying extra costs and needed to expand to lessen them.' The company, based in Sandford, Somerset, now generates 60% of sales through exports and has grown by 50% since 1998 to a turnover of £1.3m.

Pearce says: 'I employed someone with experience of exporting and other cultures to handle this. I considered doing it myself but the learning curve would have been steep.'

Nigel Canin, 33, set up 2simple Software in 2000. The company, in Hendon, north London, makes software that teaches computer skills to young children. It supplies 5,000 schools - 20% of the UK market. Canin says: 'We developed a Welsh version that was really popular, and so decided to look for distributors overseas.'

He believes it is important to become established in the UK before developing an export strategy. 'As long as you're willing to learn how different cultures do business and take a few risks, it can work out well,' he says.

Neil Blakeman, international trade director for Trade Partners UK in the South-West, says: 'A lack of knowledge about exporting, worries about being paid and language barriers put off a lot of firms, but the whole company can benefit.' The first step is to see if the business is ready or not. For example, does it have the right staff and the capacity to make more of its goods? Blakeman says: 'There is no substitute for preparation. Research the countries you're interested in and go there. Meet potential clients face to face and discover their expectations and how they behave.'

Potential exporters should also visit trade fairs abroad and look at the competition. It can be useful to find an agent in the relevant countries.

• For more information visit Trade Partners, or call 020 7215 5444.

Most watched Money videos