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Export Opportunities for SMEs
There are now excellent export opportunities for SMEs following the Brexit referendum. The Brexit vote has resulted in the £ Sterling being down against the € Euro and the $ US Dollar so imports are more expensive. However:
This is GOOD for exports. And, even better for exporters, we’re still part of the EU until Spring 2019 at the earliest, so we’ve still got all the benefits of easy access to that massive market, but now WITH A PRICE ADVANTAGE[/vc_column_text][vc_column_text]
Why aren’t we exporting more?
We’ve all been hearing repeatedly about the benefits for exporters since the Brexit referendum, so why are so few companies actively pursuing their export opportunities? It almost feels that many businesses are actively avoiding exporting.
Feedback we’re getting includes:
- Concerns that a product sells well in the UK but “won’t work” in other countries
- Worries about working in foreign currencies
- Language barriers
- Logistics challenges
- Credit risk
In summary there’s a fear of the unknown.[/vc_column_text][vc_column_text]
Make exporting safer and easier
So why not make exporting safer and easier by bringing in professional assistance?
All of these “problems” can be managed by people who have the right skills and experience. Take away the fear with help from an organisation like Mistral Associates.
Product concerns
Can be addressed with market research; Good marketing can identify and expand sales opportunities
Foreign currencies
Are far less frightening than people think; All the main banks will be happy to open a € Euro or $ USD account reducing transaction costs. A range of useful products are available from all the banks
Hedging need not be complicated
It may be possible to create a natural hedge by broadly matching purchases and sales in a foreign currency. The secret is to remember that hedging is intended to avoid losses not make money
Language concerns?
Aside from the fact that English is pretty much the default international language now, there are plenty of English speaking countries, from nearby Ireland to distant New Zealand and many in between. Also the world is awash with bright young people speaking their own language and keen to work in the UK to improve their English and broaden their experience. Consider employing one on a short term contract.
Additional costs?
By definition export customers are further away so travelling to visit them will add cost but low cost airlines and budget hotels will help, not to mention free video calling.
Logistics
Getting your product to the customer will also cost more but a good, professional shipping company will take all the worry out of it – they’re doing it every day.
Credit risk
Can be managed by a variety of payment methods, letters of credit etc. or simply insured for.
So, in summary, have a go. Start small, think long term and above all enjoy it. You’ll travel to different places, meet interesting people and learn so much.
Contact Mistral Associates to find out how we can help you on a new journey. Ring 0114 3993985
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