Will your products sell overseas?
In many cases, if your product sells in the UK, it will also sell abroad. Nonetheless, it’s worth investigating to ensure there is a market for it. In addition, there are may well be costs associated with developing new markets; changes to packaging, meeting local health and safety requirements and import duties all need to be taken into account.
Which markets should you be considering?
This decision is made easier if you already have demand in certain areas from existing clients. Even if this is the case though, it’s still vital to assess the full cost of supply before moving forwards.
Without existing customers, any move overseas is more difficult. It will be necessary to research potential markets and decide where the best opportunities lie. This research is much better completed before any forays into new markets.
What can you sell your products for?
The simplest way to determine this is with a basic ‘cost plus’ formula, in order to work out a minimum price. Working in this way however does not guarantee that potential consumers in these new markets will pay your price. As such, in many cases, supply versus demand factors will largely determine what you can charge.
What will the production and sales costs be?
If you manufacture your own goods, and your business has spare production capacity, then your production costs could well be cheaper than for your existing goods. Nevertheless, there is a good chance that alterations may need to be made to your existing product, its packaging or labelling, which will incur additional costs.
Similarly, it is likely that your sales costs will be higher, as any travel, accommodation and translation services will all need to be factored in.
Following all of these questions…Are you fully committed to trading overseas?
There is little point in moving ahead with a plan to export unless you are fully committed to investing the resources to make it happen.
If you have thought about all of the points raised above, and think you could make a good go of it…what are you waiting for!? Start doing some serious research and speak to a business adviser (us, for instance!), who can talk through your ideas and plans with you.