Thinking About Exporting Internationally? Consider These Strategies For Success

We can all agree that there’s a lot of excitement that comes with growing a business. You will have watched it evolve from a startup into a successful brand, which is rewarding in itself. Plus, growth really shows that hard work pays off. It’s even more exciting when you’re finally ready to take things to a whole new level by breaking into an international market.

Growing your business means big things for your brand, especially if you try your hand at branching out from your home turf and exporting further afield. Exporting helps you to reach new markets, create new revenue streams and increase brand awareness on a global scale. After all, do you really need to limit yourself to the UK? If there are customers abroad that are interested in what you have to offer, doesn’t it make sense to target them too? If your current market fails – and let’s face it, there’s always a chance of that happening – exporting means having another to fall back on. There’s no knowing when market demands will shift, but exporting is a way of having a ‘plan b’, another revenue stream to keep you ticking over.

Exporting, however, is a business operation that needs careful planning and research. It’s definitely not something you can jump straight into, hoping that ‘winging it’ will work out. In fact, that’s unlikely to bring you any success, let alone cracking an entirely new market. Exporting is definitely not something you should tackle without a good understanding of what’s required from you as a business owner.

We have taken a look at the different types of exporting, the key steps involved and how to overcome common challenges.

Do You Know the Different Types of Exporting?

The term ‘exporting’ is a bit of an umbrella term, in that it’s often used to describe a whole host of different types of exporting. This means a lot of people hold the view that ‘exporting’ is a term that always means the same thing, which isn’t the case at all. The first thing you need to do before starting to export is to understand how one type of export differs from another.

• Direct Exporting – When you are directly exporting, you are selling your products or services directly to customers in international markets. This is usually done through ecommerce platforms, such as your own website, or international marketplaces.

• Indirect Exporting – Indirect exporting is slightly different, as it relies on the services of a ‘middle man’ in another market. When you indirectly export products, you do so via an agent, a management company or a trading company. They handle the ins and outs of selling your products abroad, allowing you to benefit from their expertise, whilst also focusing on other things.

• Licensing and Franchising – If you want to hand everything over to someone else, licensing and franchising could be the right option for you. With licensing and franchising, you give an international business the rights to use your intellectual property, such as trademarks or patents, and they compensate you for the privilege.

• Joint Ventures and Partnerships – If you want to team up with another business, consider exporting via a joint venture or partnership. Collaborating with local businesses can provide access to local expertise, distribution channels and resources in foreign markets.

Steps Involved in International Exporting

• Market Research – Before you do anything, make sure to research the international market that you want to crack. Conducting thorough market research to identify potential export markets, assess demand for your products or services, and analyse competitors. You don’t want to start your exporting journey, only to then find there isn’t a demand for what you have to offer.

• Product Positioning – There are many businesses out there, so you need to ensure that your product or service has something unique to offer. You need to develop products or services in a way that makes them stand out, whilst also offering something different to the market. Tailor your offerings to meet specific needs and preferences of local customers

• Financing – You won’t get very far exporting if you can’t finance your efforts. Before you get started, assess your financing needs and explore options such as export financing, grants or loans to support your business.

• Compliance and Regulations – There are likely to be different regulations and laws in an international market, and you need to familiarise yourself with them. Understand and adhere to the requirements of both your home country and the target market, especially when it comes to customs.

Finding Your Target Exporting Market Abroad

Finding the right target market is a key part of successful exporting, and this can be done using market research. You need to carry out proper market research to understand consumer behaviour, preferences and purchasing power in your target market. Take the time to learn what potential barriers and cultural differences could affect your strategy and be prepared to overcome them. Also, assess the competitive landscape in the new market. Understand strengths and weaknesses of your competitors and find opportunities where you can be different.

Distribution Networks

If you want to pursue business expansion by exporting, you will need an efficient distribution system. Take the time to find the right distribution channels for your business, focusing on those that are most suitable for your goods or services. Think about your product type, market size and consumer preference, and determine which networks could work best. If possible, find a distributor with a good idea of the local market and an existing relationship with its customers.

Challenges for Exporting

There are a lot of benefits that come with exporting products and services, but you need to be prepared to overcome challenges and hurdles along the way. After all, breaking into a new market isn’t easy, even if you’ve done it before and have some experience to fall back on. Don’t expect it to be plain sailing, but that doesn’t mean success is out of reach.

One of the biggest problems that you’re likely to come across when exporting is related to regulatory compliance. Compliance with many markets’ different regulations and trade barriers can be a daunting task. Regulations and barriers abroad often differ from those in the UK. So, you need to be sure that your business complies with export and import legislation, as well as regulations of your home country and the target market.

Another challenge in exporting is knowing how to deal with different cultures and nuances. There are bound to be cultural differences, regardless of which international market you choose, some of which can impact consumer behaviour and business interactions. Be culturally sensitive and adapt your marketing and communication strategies accordingly.

Whilst there is no denying that expanding your business through exporting can be a worthwhile venture, it does call for careful planning and a good understanding of the dynamics of your chosen target market. Simply, if you are ready to put in the time and effort required for planning your exporting – and more importantly, solving many of the problems before they actually occur – then you are likely to find your export journey to be a successful one.

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