For would-be UK exporters, the last few years haven’t been the easiest.
British firms have had to grapple with a new range of rules and processes to trade with the EU since the country’s departure from the bloc. This has particularly affected smaller businesses that export goods.
Indeed, research from the London School of Economics’ Centre for Economic Performance found that goods exports to the EU have fallen by around 30% since the introduction of the Trade and Cooperation Agreement, the UK’s post-Brexit trade deal with the bloc.
SME opportunity
New trade rules with the country’s largest trading partner have come at the same time as the pandemic, conflicts in Ukraine and the Middle East, and all the supply chain and inflationary issues these crises have caused.
Despite this, some British SMEs have started to export in recent years, and encouraging more to do so could support the new government’s mission to boost UK economic growth.
Indeed, research in 2022 by the Social Market Foundation found that encouraging some 70,000 potential SME exporters to start trading internationally – particularly using online platforms – could contribute £9.3bn GVA to the UK economy annually.
With business leaders preparing to gather at the Chartered Institute of Export & International Trade’s Import Export Show in November to discuss how to empower more businesses in their international trade, we spoke to three award-winning SME exporters about how they’ve navigated recent disruptions to grow through trade.
Navigating Brexit
Navigating post-Brexit rules continues to be a challenge for Bob Gokani, the founder of EziDrops, which won Micro Business of the Year at last year’s International Trade Awards.
The Watford-based firm offers an innovative device to assist in the application of eyedrops, and its exports currently account for about 25% of its overall sales.
“Brexit still causes problems in Europe with more compliance and delays,” he tells us, but he says he has “streamlined” the business’ operations to deal with new challenges.
“Since starting to export over the past three years, we have managed to streamline our systems from the many trials and tribulations of past experiences.
“There’s been no major problems encountered this year. We’ve just had to be patient and try to pre-empt any delays in paperwork not being in order.”
Global challenges
Nick Marsden, the founder of sustainable ski wear brand OOSC Clothing, which won a King’s Award for Enterprise in International Trade this year, highlighted global challenges.
He says “the global economic downturn due to rising inflation and interest rates following on from the various wars erupting around the world” have been an issue.
He says this has caused “shipping issues and delayed production times” for the firm, for which 70% of sales are exports. He also cites “tech issues with marketplace integrations” as another factor “delaying product launches”.
Chris Balmer, commercial director at Inciner8, which was highly commended in the government’s ‘Made in the UK, Sold to the World’ awards, with exports contributing to 70% of its business, also cites global shipping challenges.
“Hitting deadlines is always challenging, and this year has proved no different, especially when taking into consideration the limited availability of containers and the subsequent cost increases.”
Supply chain relationships key
Balmer says strong relationships with supply chain partners and internally within the business are key for navigating these global issues.
“A strong network of suppliers can help, but relationships are key in delivering the best solutions to day-to-day challenges.
“Relationships combined with teamwork. Sharing the problems at hand with your wider team can sometimes deliver more creative solutions.”
Marsden notes that being flexible is key, saying his business has shifted “marketing budgets to regions that are performing”.
Get good advice
When asked about what advice he’d give to any other SMEs considering exporting for the first time, Marsden says it’s important that businesses “reach out” to their networks to get support.
“Reach out to everyone in your network who may be able to help and also seek support from the Department for Business and Trade (DBT) – they can help steer you in the right direction and give advice on things like IP and trademarking.”
Gokani and Balmer echo this sentiment, with the former advising businesses to get “direct advice from the very start” from organisations like DBT and the Chartered Institute of Export & International Trade.
“Their experience and directions are invaluable to helping avoid costly mistakes,” Gokani says.
Balmer adds that communication and planning are key.
“Understand the timing around the production or completion of the product,” he says.
“Understand the timing of the collection and delivery. Ensure that the export process is clear within your organisation and the necessary documentation is competed.
“And talk to DBT or the Chartered Institute to ensure clear understanding of the process and the paperwork required. Communicate regularly with the customer so they know and understand the steps involved in exporting and that you are managing them.”
“I would also recommend documenting the whole project to use as a case study,” he adds.
“There will be lessons learned and areas to improve for the next export orders.”
Go for it
More fundamentally perhaps, Marsden says businesses have to simply “take the plunge and give it a go”, as that’s the only way SMEs are “going to learn” how to succeed in trade.
“Go for it! We started by cold-calling key retailers in different regions and trying to find buyers on LinkedIn.
“While everyone says this doesn’t work, it worked for us, and some of the accounts we found initially through this method we still have as customers today.”
He further advises that for e-commerce brands, it’s wise to “start small”.
“If you are an ecommerce brand like OOSC, start small, ship from the UK and minimise your risk in sending bulk stock loads to a different market where you may lose an element of control.
“If you can get out to the region you want to sell to, this is really helpful, as you’ll learn more about the market you are trying to sell in. I highly recommend exhibiting at international trade shows too.”
You can hear more from Balmer, Gokani and Marsden at the upcoming Import Export Show in London on 3 December. You can book your tickets now, here.
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