And given that, I want to provide an insight into the world of global business, to share what I have learnt along the way on how to make an export success out of the company particularly as we approach Brexit.
The single biggest issue which businesses and individuals alike have been focused on over the past few months is Brexit. A strong feeling of uncertainty still hangs over the country, and many business leaders have been unwilling to make crucial decisions as a result.
While the impact that Brexit will have in the longer-term is unknown, there are still plenty of opportunities for international trade that companies can take advantage of.
It is hope that the doubling of the budget for the UK Export Finance Department announced in the Autumn Statement will ensure that exporting companies do not fail due to a lack of export finance or insurance issues. With this in mind, here are some steps that businesses can take in order to be a successful exporter following Brexit.
(1) Reduce risks
Because uncertainty is still a major concern for many companies, business leaders may be dissuaded away from making investments for international expansion, which could prevent export’success. Volatility in currency markets adds another layer of uncertainty which some may well be keen to avoid.
Yet businesses can avoid this by hedging against currency movements by trading in the futures market. At Canagan, we always buy our foreign currencies one year ahead. This means that any currency movements can be planned for in advance and this helps to reduce uncertainty.
Another issue that concerns business at the moment is the risk of a “hard Brexit”, which could see the UK leaving the European Single Market. If this were to happen, some goods that are sold to the EU could be subjected to tariffs and their prices could rise by more than ten per cent.
Business leaders particularly worried about such an outcome should consider creating plans to set up parts of their business inside the EU. By doing this, companies can guarantee they can continue to trade freely within the EU and avoid these tariffs, effectively de-risking against this potential outcome.
Businesses still have over two?years to come up with these plans, and while a hard Brexit is perhaps the least likely outcome, having plans for a worst case scenario is always good business.
(2) Take advantage of the depreciated pound
Since the EU referendum, the pound has lost 20 per cent of its trade-weighted value, the effects of which have been far from universally positive for the country. Many firms have seen their input costs rise, and higher inflation forecasts will mean a rise in the cost of living for consumers.
Yet the devaluation of the pound has given a much-needed boost to UK exports, with demand from overseas rising as British goods are more affordable for foreign consumers. This represents a golden opportunity which business leaders must look to take advantage of.
While many fear a slowdown in domestic consumption, UK exports are expected to increase by two per cent in 2017, and companies should start to take a global outlook to increase their profits.
There are fantastic opportunities for British companies in both emerging economies and developed economies, and the devaluation of the pound means businesses are in a great position to export across the world. In order to fully exploit this opportunity however, businesses must be prepared to make investments to increase the production of exportable goods and services.
On the next page, read on for more export success details which includes fast responses, even when it’s the middle of the night.
(3) Always respond fast
There is nothing more frustrating as a business leader than having to wait for a response to an urgent question. Regardless of the hour, at Canagan we always try to respond to all our international customers within hours of them emailing us.
If I wake up in the middle of the night I will check to see if our Asian customers have emailed us, which I will always respond to. Having to be on alert during your free time might sound like the last thing you want to do, but it will allow your customers to act quicker and they will appreciate your commitment to them.
(4)” Network, network, network
This is absolutely essential for any business that is trying to begin exporting its products. At Canagan, we began by attending trade shows abroad and meeting with prospective customers. Going to one lone event is unlikely to have much of an impact often it won’t be until the third or fourth time that you meet an interested party that you actually sign a deal.
Having a presence at lots of global trade shows helps to build confidence in your brand and convinces people that you are a key player in the market. It may take time, but being persistent is absolutely vital.
Quite a lot of business is done outside of formal meetings and in social settings to achieve export success. Regardless of how good your product or service is, you should be prepared to show a fun side in order to really cement your business relationships with customers and build rapport.
International networking has an export success snowball effect to begin with, nobody knows who you are, or has much interest in getting to know you. However, as your trading relationships strengthen so does interest in your business. It is likely that your customers will start talking to other prospective customers, and so on and so forth.
For instance, our Scandinavian customer who has been distributing our products for four?or five years is friends with our now French distributor. They were at a birthday party in Helsinki, spoke about Canagan, the next week we were introduced via email, and two weeks later we visited and now our product range is launching in 180 garden centres in France.
(5) Be flexible when it comes to your customers
Finally, don’t have set rules and procedures which you are unwilling to break. Remember that each customer is different and will have specific needs and preferences which you must be sensitive to.
When the going gets tough, a customer is far more likely to help you out if you are prepared to return the favour for them. If you are not prepared to be flexible, don’t expect them to be.
James Milbourne is director of pet food provider Canagan, which is?part of pet products business?Symply Group.
Image: Shutterstock?