Business owners tempted to start exporting while the pound is weak must do their research before taking the plunge, the British Chambers of Commerce (BCC) has warned.
According to the BCC, there has been a rise in the number of small firms that want to start exporting, both because the recession has hit domestic sales and the value of the pound has fallen.
“A weak pound does traditionally open the door to export opportunity,” said BCC managing director, John Dunsmore. “We are hearing from businesses that falling global demand has impacted international orders, but the opportunity is still very significant.
“However, businesses turning to export while times are tough at home should tread carefully,” he added. “While there are opportunities abroad, businesses that do not prepare could run into difficulties with local customs, language barriers, bogus companies and high import tariffs.
“Every opportunity must be properly assessed, looking at everything from shipping costs to local regulations, to ensure that a profit can be made and to identify any longer-term potential,” said Dunsmore. “Our advice is to do your homework and be prepared for whichever market you are entering.”
The BCC’s top tips for exporting include:
• Understand the market – find out how your product or service might need to be adapted for export and what regulations must be complied with.
• Research the costs.
• Get exchange rate advice.
• Assess the competition.
• Communicate effectively in your target market.
Small firms can access a range of services to help them plan their export strategy through the BCC’s Chamber Certification Services website.
• To access the BCC’s Chamber Certification Services, visit www.chambercertification.co.uk
BHP Information Solutions 2009