Albeit I now value the benefit of a decent plan, every plan needs knowledge – hence the road to export starts with research, either in country (where you think your products might work) and a little bit from outside country, to maximize the opportunity when you arrive.
Irrespective of this, frankly the fastest, most profitable and lowest cost discovery in my opinion is taking a holiday to the place where you believe your product has potential. Clearly that depends on the product or service, and some products simply are not going to sell in some countries (do your price checking from afar) but frankly common sense will answer many of the questions that should be all those you had when you first even set out to sell your first product. Here I do assume most companies move to export – having put a toe in local UK sales waters. Today though, I am not even sure this is the best way forward.
Passport to Export from UKTI will give you a solid framework. Don't get hung up on paperwork, glamour, the need to have an office and set up overseas. These formalities and costs can follow once you have established an income stream, a marketplace and customers are buying.
Most importantly pack your humility, put aside your British reserve and go and let people know what really are the wonderful features, advantages and benefits there are for your service. Your unique proposition, your intention to provide world-class service, your points of difference that offer value over others. Clarify your sales pitch and then share it liberally. Be not afraid to visit the competition, you might learn a great deal, indeed you may established an agency or distributor relationship is the better way forward. Discover first then make decisions later.
Think hard about where the competition and how you can beat them. Ask about local service standards, and work out way to change and own the marketplace. Then think again, how can you be both better and different. Be memorable, pack a brilliantly original business card and learn a little of the local lingo – to have a go, it will be appreciated.
--Should the ‘safe’-ness of a market be a consideration when choosing where to do business as a start up? Possibly, it depends where you are going. I have only ever felt threatened in Bromley-by –Bow in the East end of London, and Mexico City arriving at 2.30am in the morning which was frankly stupid of me.
Financially be aware – you cannot chase your funds abroad so learn from your bank how you can control your incoming payments and be assured of money. Payment terms are critical and you need not give credit. Infact export income can help you with your UK cash flow and growth far more considerably than UK financial expectations for credit.
--Is IP protection worth it when entering a new market for a start up – or should you rely on trade secrets. Another ridiculously impossible question to answer and of course, once again, it depends on your product and service. I depended on the licencess of my product to protect their brands abroad. The fact is, you may well be copied, but to what level and if you are fleet of foot and agile, you will always remain the market lead and offer the better product or the market is not right for you to survive in, more on. (Simply maths – can the new 3rd world economy really afford your products in a sustainable way to allow you to build a business?) Have you done basic economics to establish market potential?
You might find experimenting in a slightly smaller place like we did with Czech – rather than France or Germany to start will allow you to build confidence. I think the Middle Eastern world is a fabulous marketplace to put your export lessons into play. It is a substantially growing and considerable market with huge demand for brand, luxury and quality products. English is spoken widely wherever you go in the world, please do not let this be an excuse to slow you down.
Take advantage of any UKTI missions, export trade show support and simply get out there and start selling. Consult companyshortcuts.com for learning help. I have sold in 84 countries and delivered to over 110 and I cannot underline enough the positive experiences I have had in selling abroad.
Lara Morgan is founder and ex-CEO of Pacific Direct Group, and founder of Company Shortcuts Ltd
She now invests her time in fast growth companies, having previously exported to ten countries
Catch Lara on Twitter at @iamlaramorgan, and on her website at www.laramorgan.co.uk