Our first foray into exporting came three years ago. We manufacture pressure-care products (such as specialist mattresses and cushions) for the healthcare market. By working with providers to create solutions that help prevent pressure wounds, such as bed sores – an issue that costs the NHS up to £2 billion every year – our company was growing in the UK. It became clear that exporting would be crucial to sustainable growth.
Our first step was to invest in a new website, and that’s how our first international partner, an Israeli clinical practice seeking a partner for an Israeli government tender, found us. It was exciting to be presented with such a big opportunity but it was important not to make any hasty decisions. While we could provide the Israelis with the products, they in return needed to offer us solid technical salespeople who could represent our brand and sell.
One of the first things we learned was not to accept the first international partnership offer on the table. Try to temper any excitement and look closely at the potential commercial gain. Businesses buying products from exporters to sell on will want to maximise their margins, so will invariably request the products they are confident will sell. But you need to benefit equally from an exporting partnership. We experienced this ourselves, when our Israeli partner started our first meeting wanting to buy one type of wheelchair cushion from us but left having ordered a much broader range.
Having said that, good opportunities don’t come along every day so don’t let fear hold you back. It’s perfectly normal for shareholders or the board to feel nervous about entering a new market, particularly when the costs involved can often be underestimated. Another tip I’d share with aspiring exporters is the importance of leading from the front. I personally oversee all of our activity in new markets because I believe that the most senior person in the business should be at the forefront of developing export opportunities.
Something else I have learned is that there is no substitute for face-to-face interaction. I learned from our first partnership that getting in front of a target customer is critical, no matter where they are in the world. “People buy people” may be a cliché but it’s true.
Another tip is to never underestimate the sheer amount of change your business may need to undergo in order to successfully enter a new market. In the case of our product, pressure-care mattresses for hospital beds, something as simple as changing the electrical plug connection for a different country involved a huge amount of administration and internal adaptation. Beyond the regulatory approval process, which varies for every country, we had to change our internal manufacturing processes significantly. The lesson? Don’t assume that because your product works for the domestic market that it will translate to an international one.
Finally, hire the best people you can afford. By appointing experienced people at local level you can reap the dividends of their knowledge and contacts. They will also be able to advise on any political or socio-economic factors to consider. This strategy has opened up the Asia-Pacific and South American markets far faster than we had imagined possible, so I highly recommend devoting sufficient time to your recruitment processes.
For SMEs, exporting is challenging and exciting in equal measure. In certain sectors such as manufacturing I would argue it is an essential step in a commercial growth strategy. When you’re manufacturing a product that solves a global problem, it makes sense to not limit your potential to the domestic market. With good strategic planning exporting can deliver significant rewards, but it’s important to do the groundwork, to invest in research and to spend plenty of time on the ground before making the leap.
Graham Ewart is the managing director of Direct Healthcare Services, which exports to 19 countries including Ireland, France, Mexico and Chile.
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