Many picture internationally successful businesses as giant corporations, yet three-quarters of UK exporters have fewer than ten employees.
Of all the companies exporting goods and services, the Office for National Statistics found that 94% are small companies - many using size to their advantage to compete against global giants.
While larger businesses often have larger budgets, smaller firms can capitalise on their flexibility, niche know-how and even their personality to score sales.
Sarah Watkinson-Yull says that size works to her company’s advantage, as buyers of her footwear are all able to engage with her directly.
Yull was founded in 2011 and had only been trading two months when it received its first international orders. By the end of her first year, the fledgling company had 17 stockists worldwide, and now has customers in Taiwan, the US, Belgium, France, Italy, Austria, Netherlands and Australia.
As the face of the business, Watkinson-Yull has been able to build relationships with both suppliers and customers.
It’s a rare opportunity for companies to deal with the person in charge, and they can find her at trade shows or on social media. She’s even the person on the end of the phone to all of her customers, making the Yull service very bespoke and very personal.
This has allowed Watkinson-Yull to negotiate terms with her Chinese manufacturer which were well ahead of industry norms, to earn distribution deals with specialist boutiques who often prefer to buy from other small businesses, and to score help and support from bloggers.
Watkinson-Yull says that while the concept of export can seem daunting to a smaller company, it’s just another facet of doing business. “Don’t get caught up with the technicalities like shipping rates, exchange risk, duties and so on. It’s a learning curve and after the first one it becomes quite easy.”
Scott Szwast, marketing director at UPS, argues that many statistics show there is plenty of opportunity overseas for small businesses looking to export, and that there is a wealth of help and assistance available to companies looking to take the first step. He says: “International borders have never been more permeable to trade than they are today.
“The fact is, the borders that most companies face in going international aren’t borders on a map, they’re the ones they establish for themselves: doubt that there is international opportunity available; uncertainty about how to reach customers in foreign markets; and fear that conducting international business is inherently risky.”
“As one of the world’s largest customs brokers, we do understand that international trade can appear complicated which is why we created the UPS Export Toolkit to help first-time exporters navigate the sometimes complex international landscape.”
Reaching customers
For some companies with very niche products, opening up to a global market is the only way to survive.
Diamond Dispersions, a team of 21 based in Sheffield, exports 90% of its products and holds the Queen’s Award for Enterprise for International Trade.
“We take raw pigments and mix them with chemicals and purified water and mill them down to the nanometric scale. Ink makers then buy this dispersed colour and formulate it into digital inks that can be used in a variety of printers and applications,” explains director Sue Wright.
Size does have its drawbacks for the firm. For example, Wright says, larger firms have the resources to develop products over a year or more. Smaller firms have to cover costs month-to-month.
But on the other hand, Diamond Dispersions can react much faster when new projects come on stream.
The company is also able to dedicate more time to servicing individual customers. As well as offering specialist advice tailored to particular needs, customers can also trust that their dispersions will remain consistent from batch to batch - one of the most important factors in the trade.
Wright believes international success is there for those willing to take the next step.
“Look at the world market and identify hotspots in your field. Find a trade show that covers your sector and go,” she says.
“Walk the show and get an idea of who is doing what and work out how you could fit in. Talk to as many booths and stands as you can that you think could be potential customers, and look for potential distributors too.”
PromoVeritas proves that it’s not just goods that can be exported, but also specialist services.
The 15-man operation from North London helps customers run competitions, covering everything from sorting the terms and conditions to marketing the campaigns, judging winners and contacting them.
Originally operating solely in the UK, the company expanded its services across the globe when an existing client asked for help on a Europe-wide project. So far this year, PromoVeritas has worked on promotions in 54 countries, from Azerbaijan to Australia.
Managing director Jeremy Stern is in no doubt that his company’s small size and niche expertise helps the company win contracts that would otherwise be snapped up by globally-recognised law firms.
Stern says: “Our point of difference against our legal rivals tends to be that we are faster, offer better values, have a deeper understanding of the subject and we also offer a broader range of skills.”
Stern says that while larger firms may have more offices and more staff, that often makes them more cumbersome and costly.
His company, on the other hand, is more fleet of foot, and its specialist focus allows the team to find workable solutions, whereas larger businesses understand the law but aren’t geared toward finding alternative methods.
Stern doesn’t believe smaller firms should worry too much about larger rivals. “Make sure that your website is at least one step ahead of the reality of your business,” he says. “If you only work in the UK, make sure your website talks about your European capability. If you work in Europe, make sure your website talks about your global capability.”
And as for the perceived risk of exporting?
“Numerous studies have shown that it’s actually far more risky to stay confined to the domestic market,” says Szwast. “Our recent study, European SME Exporting Insights, found that the UK has the highest proportion (61%) of SME exporters reporting higher revenues over the past three years. Companies that export have exponentially more growth opportunities available to them than those that don’t, and they are nearly 8.5% less likely to go out of business. Knowing those numbers, why wouldn’t you export?”
Content on this page is paid for and produced to a brief agreed with UPS, sponsor of the Exporting to New Markets hub on the Small Business Network.
