David Beaumont, regional director for Lloyds Bank Commercial Banking in Wales
This year has been a bumper year for Welsh exporting, rising three per cent in the year to the end of September 2018, according to the latest HMRC export statistics.
As a result, the value of Welsh exports stood at £16.9bn during that period, compared with £16.4bn in the same period last year.
But from speaking to companies across Wales, we know many are still cautious about trading internationally, with some not confident about how they can start their exporting journey.
Current uncertainty surrounding macro issues could be causing some firms to be particularly cautious, but taking no action now could mean that they miss out on significant opportunities to grow later down the line.
We’ve outlined our top four tips to help firms capitalise on overseas opportunities or take their first steps onto the international stage:
- Do your research – Selecting a target market can be a difficult process, which is why undertaking in-depth research is key. Working with organisations such as the Department for International Trade, Business Wales and the local Chamber of Commerce is also useful, as they have a wealth of expert knowledge that can help first-time exporters find a market that’s right for them.
Our international trade portal can also help companies gather the information they need about new markets, helping them to understand international trends and build relationships with companies across the world.
- Create a business plan – Having a clear and realistic plan will help a firm to grow at a manageable rate, and to identify when it will need to invest, hire new staff or increase production.
Having a clear plan can also minimise the risk of overtrading, which can leave a business with insufficient free cash to meet day-to-day costs.
- Make sure you’re protected – Although the benefits of trading with overseas firms can be great, factors such as unknown regulatory regimes and delays with payments means that the risks can also be higher.
That’s why ensuring that a business is properly insured and has the right documentation in place is incredibly important when dealing with international suppliers and customers.
Trade finance products can also help businesses to manage risk and can be a valuable source of working capital.
- Take advice – Talking to others in your local business community can also be extremely useful for first time exporters, as others will be able to share their experiences and provide advice on how to avoid potential pitfalls.
At Lloyds Bank we also have a team of local relationship managers who understand the challenges that first-time exporters face and can provide the tailored funding that companies need to start exporting successfully.
Exporting can be daunting but following the simple tips above can help make the transition into trading overseas as smooth as possible.
