Transcript for Episode 4 - Move from accidental exporting to strategic exporting

The difference between accidental and strategic exporting comes down to proactivity. If a foreign buyer emails you and shows an interest in your product or service, it may be enough to encourage you to export there. This is accidental exporting. It was never in your business plan. You simply reacted to the opportunity.

Having an export strategy on the other hand, is when you proactively aim to expand your business internationally. You need to plan the steps to achieve this.

There could be many reasons for choosing to export. Your UK operations could have reached maximum growth. Or you have a seasonal product, such as swimwear, and operating in a country that has a different climate from the UK could help smooth over seasonal highs and lows.

Benefits of strategic exporting include spreading the risk from economic downturns and competition in the UK. But entering a foreign market comes with added financial and legal risk. So it’s important to do your research.

Be honest with yourself. Do you have the people, money and time to expand?

A common mistake is not being strategic when it comes to market selection. For example, lots of people want to export to the US, because it’s a large market where many people have a large disposable income. However it also has high levels of competition.

Wherever you export, make sure you're making the right strategic choice. Creating an export plan will help you understand the risks and benefits.