Home Budget 2007 Company Profile Services Accountancy Zone Business Zone Tax Zone IR35 Update News Articles Feedback Search Legal Notice How To Find Us Exporting Your first inkling of a possible market may already have come to you, in the shape of unsolicited enquiries from abroad, or friends in the trade may have mentioned some possible opening. From these, and sources such as the trade press and newspapers, you can pick out one or two possible markets; then you need to do some desk research to find out the most hopeful. When you have found one or two markets that look promising, make sure that your product or service fits the need of those markets. Among the services available is help towards the cost of overseas market research through the Export Marketing Research Scheme operated by the British Chambers of Commerce (BCC) on behalf of the DTI. The DTI notifies UK businesses of overseas opportunities. Sales leads are identified from a variety of sources including Foreign and Commonwealth Office commercial staff overseas. By correspondence and by visits to the markets, you should try to find channels of distribution; these can vary from direct sales to individual outlets, to having your own marketing company. There will probably be companies with established operations who are prepared to help you, for agreed terms. To explore overseas markets, you could join a trade fair or mission, some of which are supported financially by DTI grants: the BCC produces a trade mission handbook. The DTI also runs the Export Explorer scheme, which, for a small fee, allows small and inexperienced exporters to visit popular European marketplaces and trade fairs with guidance from an experienced exporter who, for example, can help them set up appointments with possible customers. Alternatively, simply get in touch with the commercial attaché at the embassy in the country of interest. It is worth finding a good agent in each market (the DTI can help you with this): you must then give the agent full backup support. The DTI may also be able to provide a report on the local standing, probity and representational capacity of overseas companies. You will need to develop suitable promotional material. If it is to be in a foreign language, it should be prepared by a native speaker who also has some relevant technical knowledge. The National Languages for Export Campaign offers various services to exporters, including guides and a database of language-training providers, translators and interpreters: again, consult your local Business Link. To ensure a profit from overseas sales, it is important to have reliable channels of distribution. So take professional advice: from a freight forwarder, about the terms on which you should trade; from a broker, about insuring shipments; from the international division of your bank, about handling payment. You may also need to secure yourself against export credit risks by taking out insurance, but if you can, avoid taking such risks when you first start to export. Many overseas buyers expect credit, therefore risks cannot be entirely avoided. In order to calculate the price to your customer abroad, you must have the following items of information: The amount of any discounts for cash or quantity that your supplier will allow you (unless you are exporting your own goods) Any extra costs for export packing Cost of freight and transportation expenses; your forwarding agent will calculate these for you Bank charges; imposed by the bank through which you receive payment. They depend on the payment method chosen Any costs for currency exchange Insurance cost if you are responsible for insuring the shipment you may need to add a credit insurance premium Commission for your agent abroad, if you have one Your own profit. Although the euro has not replaced the UK currency, if you are exporting, the euro is likely to have a much earlier effect on you than on other businesses. Generally, if you are exporting within the euro zone of participating countries, you may want to price and supply your goods in euros. A euro bank account (already available from many high-street banks in the UK) may facilitate payments, but you will still have to bear the risk of any change in exchange rates between sterling and the euro. If you want to work completely in the new currency, you can now pay your UK taxes (including VAT) in euros, although returns and declarations will still have to be made in sterling. VAT invoices must show the sterling equivalent as well as the euro price. [ Business Zone Home · Previous - Accessing Capital To Fund Your Growth · Next - Staying Within The Law ]