With the UK in the midst of an economic slowdown, looking further afield for customers is an option for small businesses, particularly those with a strong web presence.
But while international opportunities exist for ambitious small firms, fully understanding the commercial realities and cultural differences is still a big challenge.
According to Heather Wilkinson, founder of Striding Out, the way business is done varies a great deal between countries and markets are not always what they seem on the surface.
"Often UK companies assume other English-speaking countries are the most sensible markets, but this can lead to a blinkered view and the USA in particular is a tough marketplace," she says.
"If you work with international partners, language barriers and cultural differences are much easier to overcome. So concentrate your research on identifying where your business' unique strengths will translate into sustainable success."
"Don't assume you can simply market the same product across the world, instead look for markets with strong potential and innovate for them," she adds.
Striding Out offers the following top tips for small businesses looking to win international customers:
Get local knowledge
An overseas operation involves many considerations including
local laws, customs and excise, working conditions, language and culture. It is
crucial to get local knowledge to assess whether your business has potential in
a particular country. UK Trade
& Investment can help with initial market research (see www.uktradeinvest.gov.uk) and other
small firms successfully trading in the area can be a good source of advice.
Become culturally
astute
You will need to
adapt to each new market's local characteristics, legislation, environment and
cultural system. You and your people must learn how to develop the skills,
sensitivity and cultural awareness needed to establish and sustain effective
business across cultural borders. Educate yourself in local laws,
customs, religion, culture and etiquette or work with an expert in
cross-cultural communication.
Pay a visit
Overseas events such as trade fairs or missions are a very
effective way for you to test markets, attract customers, appoint agents or
distributors and make sales. In this way you can begin to form an overseas
distribution network.
Find a partner
Franchising, licensing arrangements and concessions are
usually the quickest way of expanding abroad. If you find suitable partners in
different territories you will spread the risk and will have access to an
organisation that understands the nuances of the local marketplace. People
often assume they should try to partner with the biggest company in the field
but smaller firms can be hungrier for joint success. Find a company with
similar values you feel you can work with in the long-term.
Get the right people
onboard
The extent of your specialised export personnel determines
your company's ability to take control of global sales. If your people have the
required cultural, linguistic and legal skills, you can consider direct selling
methods. If not you'll need to work with partners or recruit local
professionals into your overseas operations.
Product image
The maintenance of a strong product image which is so
central to branded products requires a high degree of control when it comes to
selling internationally. Exporting via partners can only guarantee limited
power over your brand image, which is just one more reason to look carefully to
make sure you can trust your partners.
For more information visit www.stridingout.co.uk
