Exporting has always represented big business for UK firms, although its reputation as a profitable sector has taken a significant hit recently. This is thanks primarily to the geopolitical conflicts and tension that has impacted on Russia, Ukraine and the Middle East. Such conflicts tend to have a significant impact on international trade, as exporting links become strained and ultimately breakdown in the face of hostility. For smaller international businesses, this is an issue that could have a seriously detrimental effect on their earnings.
Export Tips for International Business Owners
If you find that your trade and exporting activity has been impacted by geopolitical conflict, it is important to reconsider your market and identify new opportunities. Consider the following: –
1. Study Trends and Identify Potential Issues
While it is extremely difficult to predict the onset of global, geopolitical conflict, it is possible to monitor trends and identify potential issues before they take hold. The majority of conflicts are caused by issues of faith, politics or economics, and these entities are all heavily influenced by visible trends. By absorbing information and adopting a proactive approach to studying real time trends, it is possible to make informed decisions and tailor your strategy accordingly.
2. Consider New Export Locations and Opportunities
The very best export strategies are flexible, as they enable you to react to change and identify new markets and opportunities. While the trade relations between some nations may experience a decline, for example, this does not mean that you cannot respond by breaking geographical boundaries and forging relations with new countries. Relatively low-key countries such as New Zealand have enjoyed consistent growth during the last five years, for example, while service providers such as TNT Direct can help you to develop small-scale export links for smaller products.
3. Diversify Your Product
As your company evolves and moves into brand new markets, it is important to maintain a proactive outlook and apply this to other areas of your business. After all, the existing product range that you export may not be so well received across the whole of the international market, whether this is a result of cultural, social or economic constraints. This will force you to diversify your products and tailor the range accordingly, so that you can continue to optimise your appeal as your consumer base continues to change. Without this, you will find that your export strategy fails to achieve its goal or keep pace with wider change.
Cover photo credit: Digimist / Flickr
