If you own or run a small business, the world is your oyster. But if you want to make the most of the opportunities out there, the know-how of an expert on exporting can make all the difference.
The Department for Business and Trade (DBT) has international trade advisers (ITAs) who partner with businesses in England to help them explore opportunities to export. While DBT, previously the Department for International Trade, provides a wealth of information and support for all UK companies, these dedicated advisers bring an extra level of knowledge and have the expertise and experience to offer tailored advice. (For businesses in Northern Ireland, Scotland and Wales, the relevant DBT team and devolved administration provide export support.)
Estelle Dingley has been an ITA for nine years and works in DBT’s consumer team, specialising in digital strategy and e-commerce. Based in Brighton, Dingley previously set up and grew export departments for an educational-products manufacturer and a luxury-lighting company.
“Very often SMEs need an impartial person as a sounding board – because we’re not part of the business, we see it differently and can bounce questions off each other,” says Dingley.
Stephen Noblett, another experienced ITA, was recruited from industry 11 years ago. A food and drink sector specialist based in Yorkshire and the Humber, he uses his knowledge of having run his own specialty meats business to help advise clients.
“All ITAs have private-sector experience on the exporting side, which enables us to offer authentic, practical advice,” says Noblett. “Wherever you are in England, there’s an adviser to help you.”
We asked Noblett and Dingley to share some of the key questions they hear from businesses time and again – and how they respond:
Q: Is it worth looking into exporting?
Even if you’re comfortable with your business’s success in the UK, you could grow your business exponentially through exporting.
“British companies are selling to 68 million people in the UK – but there are billions more people worldwide,” says Noblett. “Small orders build up into repeat orders, then somebody else sees your product overseas and before you know it things have snowballed. I’ve seen SMEs gain £400,000 of extra sales through exports.”
Dingley adds: “It’s very common for service-based SMEs to think they need a physical product to export. I worked with a PR agency that thought they couldn’t export, so I brought in a market research consultant to work out exactly what they should be offering abroad, and we developed a clear path for them to follow. The US now makes up 25% of their revenue, which has doubled overall – so don’t ever assume you can’t export.”
Q: I don’t manufacture products – can I export services?
From media and finance to science and infotech, the UK has expertise across a wide range of services that are in demand internationally too.
“Service providers should make exporting an integral part of their overall business plan,” says Dingley. “There is a huge appetite overseas for what the UK knows how to deliver best.
“Think about your value proposition and have a clear message. How does your company name and brand translate into the target market’s language? When running social-media campaigns, think about the time difference. You may want to work with a local partner who knows the right tone of voice for a marketing campaign.” You could also adapt your existing business model to create an additional one suitable for the new market, adds Dingley.
Q: Is my product ready to export?
You may be expecting your product to fly off the shelves in foreign markets but, before you take the plunge, an ITA can help you navigate potential pitfalls.
“You might have to change your product, or look at some new packaging, but these things aren’t insurmountable,” says Noblett. “For example, if you’re exporting sweets to the Middle East, is your product completely free of gelatine and alcohol? What labelling regulations do you need to know about? And what health certificates are needed?
“These are the things we educate people about, and by working closely with DBT teams around the world, we ensure businesses know exactly what they’ve got to do before they export.”
Q: How can I ensure my product sells?
Exporting isn’t as simple as taking your existing product and sending it out into the world: it has to fit the market you’re pursuing. Before proceeding, find out where your competitors are based, how they’re pricing themselves, and where you fit into the market.
“I once had a product that was a bestseller in the UK that simply wouldn’t sell in Denmark,” says Dingley. “When I spoke to the distributor, he told me it was too cheap – customers assumed it wasn’t a quality product. So we repriced it accordingly, and it became a bestseller there too.
“Also, make sure you’re not competing with yourself. You could be selling via a distributor or retailer, then pricing differently online, but if you end up undercutting your distributor, you’re indirectly competing with yourself.”
And remember to price your product after factoring in costs such as import duties, customs and shipping – not before.
Q: Do I need to protect my trademark?
“Companies don’t always realise the importance of protecting their trademark,” says Dingley. “One client found a distributor, and against my advice failed to register his trademark. Two weeks later he called in a panic, saying: ‘The distributor’s trying to register our trademark, how do we stop it?’ And that’s not very easy once the process has started.”
Noblett adds: “If someone else registers your product in another country, you’re facing years of getting your branding back. You might even end up with your product having its reputation destroyed.”
Q: Which countries should I be targeting?
Wherever you feel your product or service fits, the key is to take things slowly – country by country or even region by region – rather than trying to export everywhere at once.
“You wouldn’t export to Europe, you’d export to France or Germany, and in the US you should be concentrating on one state at a time,” says Dingley. “Find out where the demand is coming from, and do your market research. Check where your competitors are, using tools such as Google Analytics, and research country-specific e-marketplaces, be it B2B, B2C or D2C.”
Attending face-to-face events such as trade shows can also help you identify the markets and buyers that are the best fit for your brand.
Noblett says: “We proactively put SMEs in front of people who want to look at the export market. One company came to us with the idea of exporting gluten-free flour, and we helped them to identify that there’s a huge market for their product in the Middle East and Nordic countries. Seven years on, they’ve built up a very healthy export business.”
Q: How do I work out what to do next?
A great place for all British companies to start is the UK Export Academy, which offers sector-specific workshops giving SMEs the know-how to sell to overseas customers. English firms can get in touch with an ITA through DBT’s local trade office finder.
“Our job is to find out what’s out there for you and to help you avoid the pitfalls,” says Noblett. “So use our knowledge and expertise.”
Wherever you are on your exporting journey, the Department for Business and Trade can help. Access a wide range of free support and find out how your business can sell to the world at great.gov.uk
