Is Exporting the Right Next Step for Your Business?
by Team Pinnacle
With the new year in full swing, the economic landscape remains challenging, and as our local businesses look to stay a step ahead, many will seek to enable growth by increasing export sales.
At Pinnacle Growth Group, we advise clients right across the UK and Ireland on how to trade successfully outside domestic markets and are aware that knowing how to successfully navigate the compliance and regulations in these markets can be a major stumbling block.
In this blog, our Business Consultant, Marcus Lynn, explains how to ascertain whether exporting is the right next step for your business and, if so, what you need to consider when entering a new market.
When considering whether exporting is the right next step for your business, you should begin by considering whether you have the resources to sell internationally. You may, for example, need to access financial support and may wish to explore some of the funding available to support projects directed at entering new overseas markets.
The first step to entering a new market is conducting market research into the specific market. Conducting detailed market research is imperative when trying to expand into a new market. By doing this, businesses can discover different opportunities and avoid costly expansion mistakes, thereby helping to reduce many of the risks associated with International Trade.
Following on from market research, businesses seeking to export should always ensure that they develop a marketing strategy that is customised to the new market. Understanding your target country is crucial while developing an export marketing strategy and you should note market size, exchange rate, population demographics, types of infrastructure, legal and tax systems, and the overall economy.
A key part of this strategy will consider export pricing. Ensuring that your pricing is right is vital when penetrating a new market and building market share. This should reflect both the varying amounts that customers in different markets will be willing to pay and the costs of supplying a market.
When exporting, it is also important to be aware of specific legal requirements in your target market. Legal implications vary substantially from market to market with failure to comply having serious adverse consequences for an exporting business.
Another area to consider when entering another market is any possible Cultural differences. Cultural variations distinguish one foreign market from another and failing to understand and amend your approach to reflect variations can have a serious adverse impact on the business.
When exporting, it also pays to consider the type of sales presence required. For example, do you need a direct sales operation, or would it be more beneficial to use an agent or distributor?
It is also important to be aware of any tax and customs implications when considering entering new markets. It is incredibly important to understand the customs requirements for both exporting from the UK and importing into the new country. In particular, businesses must ensure that the correct commodity codes and country of origin are being used. It is also vital that businesses have a strong understanding of International Commercial Terms.
There are many considerations when deciding whether exporting is the right next step for your business but with expert help, you can make an informed decision. If you feel you would benefit from help navigating this new journey, our experienced trade team at Pinnacle Growth Group can provide you with tailored and pragmatic advice on a range of international trade issues.
For more expert business advice, email us at: email@example.com