10 Reasons Why UK Businesses Should Export
Expert advice on why small and medium enterprises should consider trading overseas
1. Exporting allows you to access new sources of revenue
By keeping your trade in Britain, you are only allowing yourself to make money from British customers or clients. So, for every new market you introduce your business to, you could be doubling or trebling your revenue potential.
2. Exporting means you can spread risk across a wider range of markets
Businesses which are active in more than one market feel the impact of region-specific issues that affect trade less severely. If, for example, you operate in five different markets and the government increases the tax that you have to pay in one, you’ll feel it less than if all your trade was in that market.
3. Exports will benefit the UK economy
More than half of the British economy’s growth is driven by businesses that trade internationally (See Why Should I Export?) If you can contribute to that, you’ll be helping to improve life for the UK population as a whole.
4. Britain’s profile has been raised since the 2012 Olympics
The London Games not only brought about a sense of pride and togetherness in the country, but it also acted as a massive shop window for all things British. Hundreds of thousands of foreigners came to the capital to see the Games live and as a result, interest in British business has increased.
5. The ‘Made in Britain’ label is considered desirable
In many foreign markets, British products are associated with quality and luxury. Particularly in the fashion world, heritage brands such as Mulberry, Burberry and Barbour are hugely popular and part of that is their ‘Britishness’.
6. Be inspired to develop new and modified products to meet needs of international customers
Export can lead to the development of different products than those that would commonly do well in the UK. Research shows 48% of companies reported that foreign trade has increased their return on investment from new products and services1.
7. Increase your turnover and stability
Research shows that companies which export perform better financially. A survey commissioned by UKTI found that 44% of firms reported a link between exporting and increased turnover in 20112. Research also shows that businesses that export are viewed as more credible, and less likely to stay in business than companies that do not export3.
8. It allows you to more fully utilise your capacity
Research has shown that venturing overseas can help a company to improve efficiencies4. By making better use of your capacity, you can be much more profitable.
9. Attract better staff
UK businesses that export often develop a global presence, which is attractive when it comes to recruitment. Business owners may find themselves able to recruit staff with better qualifications and greater levels of ambition, who wish to help the company develop globally.
10. The government is able to support you
UK Trade & Investment (UKTI) can provide support via its international offices and funding. Visit the UKTI website for details of funding and programmes.
Export business advice article provided by Jennie Rich, Operations Manager at Open to Export.