While exporting goods or services can often prove transformational for small businesses, the idea can seem unrealistic at first, with many put off by a lack of experience or the cost. In fact, for businesses looking to explore new ways of diversifying and growing, exporting could very well be the next logical step. We met five SME owners with experience of export success, and asked them for their top pieces of advice …
Online marketplaces, buying behaviour, and a wealth of resources
Caroline Davis is director of Boxt Socks, a Yorkshire-based brand of novelty socks delivered in fun, quirky packaging. She says:
“My business partner, Natalie Prior, and I are both from a design background. Exporting wasn’t something we’d thought about until we spoke to a Department for International Trade adviser and realised how much potential there was. After all, socks are something most people wear! Now around 80% of our goods to independent retailers are sold abroad. We’ve learned plenty – our adviser told us about online marketplaces like Ankorstore, which is based in France and sells to retailers across Europe. They take a commission and handle things like VAT, import tax and shipping, so you don’t need to worry about it, as well as introducing you to retailers. Faire is another similar marketplace, selling to America. We did a lot of research into how different countries buy products, too. Once you start looking into it, there’s a huge amount of help available.”
Satellite offices, events, and the power of free
Eleanor Weaver is CEO of the artificial intelligence platform Luminance, which is used by law firms and organisations in 60 countries to read and analyse documents. She says:
“With a technology that is completely language-agnostic, we’ve been a global business from day one. That said, when you look to set up satellite offices, have someone who has spent a considerable amount of time with your team take charge of the work. They know your company’s culture, business model and products, so it’s the best way to have your way of working transplanted into a new region. At the same time, be adaptable – having confidence in your tried-and-tested business models is helpful, but each market can be very different. Hosting things like thought-leadership events, breakfasts and lunches are a fantastic way to get your name out there in an informal, yet targeted way. And almost every new market understands the power of ‘free’! A free trial period instils confidence in your business and helps you close new opportunities.”
Confidence, helpful advisers and lucrative markets
Shalom Lloyd is founder of Naturally Tribal Skincare, an ethically sourced skincare brand that pays homage to Lloyd’s African heritage. She says:
“Exporting wasn’t initially something I’d thought of – I figured it was only for large businesses with years of experience. But in 2017, we were selected as an ‘export champion’ by the Commonwealth Enterprise and Investment Council. It meant we were one of 100 outstanding British businesses selected for our potential, ethos and brand values. It gave us an enormous confidence boost – not to mention access to the tools to begin our export journey. More recently, via the Department for International Trade, we were assigned an international trade adviser, who helped us identify our target markets and rework our export action plan post-Brexit. Today, approximately 20% of our customers are from the US and North America, 10% from Africa and 10% from the EU, with the remaining 60% in the UK. Interestingly, we’ve noticed international customers have higher average order values compared to domestic ones.”
Approvals, labelling, and trade networking
Bob McDonald is co-owner of the Armagh company Burren Balsamics, manufacturer of whole fruit-infused balsamic vinegars and condiments. He says:
“As a food company in Northern Ireland, we sell to many countries in Europe as well as America. We’re also about to start selling in Dubai. Exporting accounts for around 40% of our present turnover – two years ago it was closer to 15%, so the growth has been quite decent. Each country has its own set of challenges. In the US for example, you need to be FDA-approved, and in the United Arab Emirates, it’s helpful to think about things like ensuring labelling is in Arabic, or being Halal-approved. Clear branding and labelling with simple grammar helps. For food businesses, I’d recommend speciality trade shows like the IFE [International Food and Drink Event] where you’ll meet buyers from around the world. Try to understand each country’s importing regulations ahead of approaching buyers.”
Regulatory issues, cultural nuances, and lots of patience
Sina Yamani is CEO of mobile ordering platform Yoello, designed to enable payments for the hospitality and retail sector. He says:
“We partner with acquiring banks and point of sale companies around the world and are currently in 10 different jurisdictions. We trade with the US, Canada, Australia, parts of Europe and Dubai. Exporting for us meant getting to grips with not only different cultures and ways of doing business, but regulatory, legal and compliance issues – every country has its own rules and in regulated environments like fintech, that can be really challenging. There’s also a cost element – not every company can pick up the phone and start dealing with international clients in different time-zones without having measures in place first. We purposely approached English-speaking countries first, but there are subtle nuances between even American English and British English, for example. My advice for other B2B companies like ours? Be patient. You could be a year into working on a deal and might not have signed anything yet – hang on in there!”
Find out more about how to start selling internationally or grow your company’s international markets by heading to great.gov.uk
