|
As exports from the UK are worth nearly £268 billion per year, the opportunities for small firms to increase revenue through overseas trade are vast. Although exporting goods does pose some operational challenges, the financial rewards can be considerable.
bCentral.co.uk has produced the following top five tips to help small businesses handle the financial challenges posed by exporting:
1. Consult the experts for their advice – The delay between shipping goods and receipt of payment can have an effect on cashflow so before embarking on any overseas trading initiative, consult your accountant for his/her advice. Other good sources of information about exporting are your local Chambers of Commerce and Regional Development Authority.
2. Your website as a shop window to the world – An easy to use website that can securely process orders as well as act as an online catalogue will be a sound investment and does not need to be overly expensive.
3. Ensure your price includes all additional costs – Exporting carries a number of additional costs that you must recoup. For example, transportation costs may include the cost of special packaging and labelling whilst documentation may also involve costs beyond just issuing an invoice. In advance of concluding the deal, agree the ‘terms of delivery’ including the division of responsibility for costs and the risk of loss or damage in transit.
4. Consider various methods of payment according to the customer – The payment method you use can have a significant effect on the level of risk you are exposed to. For example, ‘letters of credit’ are the most secure method of payment other than payment in advance. If targeting consumers, consider the services of companies like SECPay or PayPal that offer solutions for the secure real time processing of credit and debit card transactions.
5. Be prepared to quote and invoice your overseas customers in their local currency – Most customers will prefer to deal in their local currencies and unless you are prepared to do so, they may choose alternative suppliers.
For more information on international trade, please visit:
http://www.bcentral.co.uk/startingup/international
|
