Export For Growth guide from Miller Rosenfalck & UKTI


Published on

This guide outlines the point you need to consider before venturing into international business. And it tells you where to go for help and guidance. As we are a law firm, it is perhaps no surprise that we urge all exporters to seek proper legal advice. But exporting does not usually start with legal issues – rather, with an opportunity! And then with research such as this.

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Export For Growth guide from Miller Rosenfalck & UKTI

  1. 1. Export for growthYour guide to getting started
  2. 2. Miller Rosenfalck LLPMiller Rosenfalck is a full service Englishlaw firm specialising in internationaltrade and business migration withinEurope and beyond.We offer guidance and advice oncompany set ups, corporate structures,inward and outward investments,commercial contracts, dispute resolution,intellectual property and employmentlaw with in-depth knowledge of crossborder issues.With our headquarter in London, ourexperienced multilingual team is onhand to advise you and your business.See also: www.millerrosenfalck.comwww
  3. 3. Welcome to Miller Even through challenging economic exporting does not usually start with times, there are unparalleled legal issues – rather, with anRosenfalck’s UK Trade & opportunities for British firms around opportunity! And then with research.Investment (UKTI) guide the world as the emerging high A great place to start is by talking toto getting started in growth markets continue to grow. In your local UKTI International Trade the UK, we need to encourage more Adviser, who has years of businessexporting. We are proud SMEs to take the plunge and export, experience and can give you one-to-to be associated with the and to encourage those already doing one advice. UKTI’s staff around theUK’s national export so to spread their wings. We know world can provide you with specialistchallenge. We hope that that companies which begin to export local, in-market intelligence and experience significant gains in guidance.you will find this guide productivity and competitiveness. Inuseful. essence, businesses which get This guide also steers you to other involved in the international market sources of help – from logistics to become more dynamic, innovative and intellectual property, from cultural successful. issues to getting paid. Britain’s future prosperity will be built on its success in This guide outlines the point you need international markets. Exporting to consider before venturing into provides a major opportunity for international business. And it tells you growth in the UK economy – and it where to go for help and guidance. As could be a major opportunity for your we are a law firm, it is perhaps no company too. surprise that we urge all exporters to seek proper legal advice. But
  4. 4. Miller Rosenfalck provides Firms that export have the potential of Almost 17% of new young companies achieving higher levels of growth which are active abroad and have startedadvice and guidance on would not be otherwise achievable doing business overseas from an earlythe legal issues and the domestically. Although exporting could stage of their development and over amarket information you be challenging, there are also big third of the firms of less than five years benefits. Recent figures produced by old reported that due to their exportneed to consider when the UKTI show that firms that export they have experienced great growth toexporting. This guide will report a 34 per cent growth in their business which would otherwisehelp you when taking the productivity, achieve stronger financial not have been possible. They havefirst steps in growing your performance and are 12 per cent more reported higher level of innovation and likely to stay in business. productivity, as well as improvedbusiness internationally. financial results. Indeed 53 per cent of Britain is now the centre of attention in firms have reported that a new product the world and it is not only the or service has been developed as a Olympics that are making our name result of their business overseas. known but also British television. The X Factor, Strictly Come Dancing and By exporting, your business can Downton Abbey have contributed to a increase not only its productivity and 13% rise in export revenues to more financial growth, but you can also than £1.4bn in the last year ensuring develop a higher level of innovation. that Britain is well known world over. This in turn can lead to the development of new products and new The above examples illustrate that we business opportunities. cannot underestimate the important contribution UK exporters make to our economy. And in the current financial market UK exporters are highly valued and are important in supporting our economy. UK SME’s now have a great opportunity to work with UK Trade & Investment when considering selling www.millerrosenfalck.com their products in new markets. With current UK Trade & Investment plans, such as the China mission launch, UK businesses are handed the opportunity to grow their business and showcase their products in new fast- growing markets such as China with the useful assistance of the UK Trade & Investment.
  5. 5. Have you ever thought about doing business inoverseas markets? If not, or you thought it toodifficult, then you might want to think again.
  6. 6. Exporting can help you survive and As hosts of the 2012 Olympic andgrow. There are real opportunities to Paralympic Games in London, thetrade internationally; UK products, eyes of the world are firmly on theservices and expertise continue to be UK. This provides a perfect platform If you become anin demand across the world. There for UK companies to showcase exporter, the evidenceare opportunities – both in traditional, their expertise and do businessestablished markets such as Europe in overseas markets. shows that you areand the US, and the high-growth likely to improve youreconomies of countries such as This guide aims to help you grow productivity by a thirdChina, India, Brazil and Russia. your business internationally. If you haven’t exported before, you will in your first year alone. probably have lots of questions. Mark Prisk, Minister of State As this guide sets out, there is a for Business and Enterprise lot of expert assistance available.
  7. 7. Why should you take the Exporting can also be a catalyst for A growing trend innovation. In many cases you willexport plunge? see new ideas and opportunities More and more UK companies areUK companies which export are recognising the benefits of exporting. overseas which will spur you to Research shows that a growingresponsible for 60 per cent of national develop new and modified products number of UK firms have increasedproductivity growth and more than 70 to meet the needs of international their export levels. A recent studyper cent of UK business research and customers. This can help you to gain found that the percentage of UK firmsdevelopment. This helps to give thema technical competitive advantage, and retain a competitive advantage in doing business overseas rose fromleading to more sales and opening the UK as well. 26 per cent to 31 per cent over anew markets. two-year period. Academic research confirmsDoing business overseas is a different that exporting companies: Exporting is not just for biggerexperience for every company and its are more productive and innovative businesses. A recent survey ofbenefits will vary greatly depending than non exporters; around 200 smaller exporters showedon the personal profile of each firm. are more resilient to an economic that three in every four planned to downturn; export more in 2011. A separateAs well as opening access to study found that the proportion ofnew sources of revenue, trading achieve stronger financial performance; small UK firms exporting increased byinternationally will allow you to 10 per cent in both manufacturingspread risk across a wider range of have a higher profile and more and services over a six-year period.customers, extend the market for credibility; andspecific products and ensure that you are more likely to stay in business.are aware of internationalcompetition.In some cases companies are ableto offer much more interesting rolesfor their staff, and to recruit betterpeople as a result.
  8. 8. Business benefits Exporting can allow companies to: Achieve levels of growth Achieve economies of scale Improve financial not possible domestically. not possible domestically. performance. Increase the resilience Increase the commercial Improve of revenues and profits. lifespan of products productivity. and services. Spread business risk. Boost their profile and Increase the returns recognition internationally on investment in R&D. Case study — New York DelhiExporting is a must to Exports have helped west London Managing Director Nina Uppal says:survive in these difficult snack business New York Delhi more “We are truly going global. Because than quadruple its turnover since its of the excellent advice, support andtimes. Despite the launch in 2009. contacts we have received, Newchallenges, the York Delhi has been catapulted intoopportunities are simply Its premium peanut brand, ViPnuts, is the global market, giving it the sortstaggering. A British-made now being supplied to Canada, Eastern of exposure I had only dreamt of. We Europe, France, Germany, Spain have already caught the eye of aproduct is a mark of quality, and the US. Market visits to New York couple of giant food multinationals.and has a higher value and Delhi have enabled them to meetoverseas. Exporting can be potential distributors and exhibit at “I always knew we had an excellent overseas trade shows. product and brand, but it was reallychallenging but also exciting. about how we shouted about it.”Mary Barnett, Director, Chokolit www.newyorkdelhi.com
  9. 9. The advice we received not only helped shape my export strategy, but really opened doors, putting me in contact with the right people in the right countries. Parminder Kalsi, Managing Director BBC Pharmaceutical ServicesThere is an abundance High-growth markets middle classes in China and India, for UK exporters are also increasingly example, are set to increase householdof opportunities for UK expenditure fourfold over the next 20 embracing the myriad opportunitiesexporters – and plenty offered by the world’s emerging years. The Chinese middle class isof support to help you economies – many of which are forecast to grow from 172 million experiencing rapid rates of growth. to 314 million in the next five yearstake advantage of them. Such high-growth markets include – more than the entire population the ‘BRICs’ (Brazil, Russia, India and of the US.The UK is a major trading nation, able China), whose dynamic economiesto capitalise on the single market will provide a wealth of prospects These rapid growth rates, combinedthrough the European Union (EU), as for UK firms in the coming decades. with progress in infrastructure,well as being ‘socially close’ in terms communication networks and globalof culture and language to a number In addition to the BRICs, there are co-operation, are making doingof major international markets – other fast-growing markets with great business in high-growth marketsincluding the US. potential, such as the so-called CIVETS increasingly commonplace for UK (Colombia, Indonesia, Vietnam, Egypt, exporters. For example, since 2002,Many UK firms begin exporting by Turkey and South Africa). These often the number of UK companiesentering established markets such smaller markets have much to offer, exporting to China and India in theas these. The EU, with its open and UKTI International Trade Advisers construction and IT sectors hasborders and shared import/export (ITAs) are well placed to guide increased by over 100 per cent.procedures, provides UK companies exporters on how to select the bestwith unrestricted access to more than territory to target. You don’t have to be an experienced500 million consumers, while the US exporter to enter a high-growthcontinues to be our number-one Growth in such markets is driven by market. Two in five of the smallestexport market, offering opportunities rapidly rising populations and GDP exporters (with fewer than 10across a wide range of sectors. levels. Research has shown that the employees) already do business in at least one high-growth market.
  10. 10. Aid-funded business Every year, multilateral agenciesAs well as working with specific spend some US$60 billion ongeographic markets, there are everything from tents toalso huge opportunities for UK telecommunications. The UKcompanies in aid-funded business – currently gains between 4 and 17 perthat is, the contracts awarded by cent of this aid-funded business, withmultilateral agencies such as the the most sought after expertise beingUN and World Bank to support in the healthcare, construction,projects in the developing world. consultancy, ICT, environmental andMuch of the implementation of these transport sectors.aid-funded projects is contracted outto the private sector, representingsignificant business opportunities forconsultants, works contractors andsuppliers of goods and services.Case study —Kat MaconieExports have been a key way for “I knew I’d have to produce large “The UKTI-organised seminars wereBritish footwear designer Kat quantities of shoes early on to get really helpful, while the support I hadMaconie to build her business. a decent price point,” says Maconie. in meeting the costs of travelling toHaving received support from UK “I had to grow the business quickly new markets was invaluable – I wouldTrade & Investment, her label can and my best chance of doing this not have been able to fund such visitsnow be found in leading fashion was to look beyond the UK. on my own.”stores across the world, includingBrazil, Europe, Japan and the US. “UKTI’s support has been crucial. www.katmaconie.com The international trade adviser really understood what I was trying to achieve and had a very good insight into the nature of my business.Case study —Skyline-IFE LtdInternational business has really Managing Director Richard Barsby He adds: “We know that tradingtaken off for Suffolk-based in-flight says: “It is relatively new for us to conditions are going to get veryentertainment company Skyline-IFE. be selling in this way and the expert challenging in the coming year but, advice we received was one of the we believe we are well placed toSince getting professional advice and things that gave us the confidence come through. We’re now veryattending major airline industry to go ahead. Advice which is tailor- busy presenting new proposals toexhibitions overseas, the small firm made for a small business like ours prospective clients.”has won clients in Norway and made us take a considered look atSweden and is bidding for work our strategies and plans.” www.skyline-ife.comin the Middle East.
  11. 11. There are opportunities India Saudi Arabia and UAE UK exports to India grew 45 per cent Popular emerging markets withfor UK exporters in all between 2005 and 2010. nearly a quarter of internationalisedcorners of the world. Ireland UK firms already doing business here.They include: Widely considered the ‘easiest’ South Africa overseas market for UK exporters, A popular emerging market, with who sold goods worth £17 billion 45 per cent of firms involved in or Brazil there in 2010. considering export activity eitherThe value of UK goods exported there already or with some likelihood Mexico of entering in the next two years.to Brazil grew by 24 per cent to UK goods exports to Mexico increased£2.2 billion in 2010. by £207 million in 2010. 24 per cent of US China internationalised UK firms said that The UK’s number-one exportChina has become the UK’s ninth they are already doing business here market, with around £38 billion of UKlargestgoods export market and or are ‘very’ or ‘quite’ likely to do so goods exported here in 2010.British export activity there rose in the next two years.by 418 per cent from 2000-2010. Russia France Around £3.6 billion of UK goods Source: All figures taken from 2010 UKTI were exported here in 2010. International Business Strategies BarriersThe UK’s fourth-biggest export and Awareness Survey and ONS Monthlymarket. Review of External Trade Statistics, March 2011.
  12. 12. International trade is more important than ever and exploitingthe opportunities of fast-growing markets in Asia and LatinAmerica is vital to the UK’s economic future. The difficultiesand risks of operating in these fast-changing markets are lessthan the risk of not participating in their growth.Miles Templeman, Director General, Institute of DirectorsTop 20 goods export marketsfor UK companies (2010)
  13. 13. We saw our website as a critical tool to reach our customer base. Getting it right was crucial. The consultant was inspirational: hugely experienced with a wealth of knowledge. Working with him provided us with invaluable insights and ideas. Andy Cox, Director Cox & Plant Ltd, West MidlandsIf you are serious about ITAs can draw on years of business Make an export plan experience and give you – at no costtrading internationally, you – a more detailed assessment and After completing your market research, you can draw up an exportwill want to think about practical advice on a one-to-one basis. plan defining how you will enter thehow to research, target new market. That should include: Carry out market researchand grow a presence in It is essential to carry out detailed a marketing strategy which incorporates international tradeoverseas markets. market research to identify and development; evaluate the target market. AreasBut how should you begin? How do an understanding of the route to to examine include:you even know whether exporting is market, e.g. the preferredright for you? Before you commit to the industry structure; distribution channel for yourexporting you need to honestly assess the predicted demand for your products or services;your export potential – both in terms of product or service; the chosen business model e.g.the readiness of your business and of the competition and how you plan agent, distributor, B2B, sales office,your product or service. The following to fit into that marketplace; and joint venture or subsidiary company;steps should help you to do this. any modifications required to make the necessary financial resources; your product or service saleable. the right people to develop the newAssess your export export markets;capabilities Desk research is a good starting adequate knowledge of theBusiness Link’s online tool ‘Are you point an increasing amount of requirements of your chosen marketready to export?’ provides a quick, information is available online –basic assessment of your export but you may also wish to consider e.g. modifying packaging to meetcapabilities and the issues and commissioning some bespoke local regulations and standards; andpracticalities you need to know about research from an export specialist. an understanding of export paymentbefore beginning to export. The tool mechanisms and export finance.provides a useful starting point for UKTI’s Overseas Market Introductiondiscussions with a UKTI International Service (OMIS) draws on the localTrade Adviser (see ‘Who can help knowledge and expertise of its staffme export?’ and ‘UKTI contacts’ around the world. The cost of this islater in this guide). very competitive.
  14. 14. Assess your product/service Key questions to ask before you exportTo assess whether your product/ What are the unique selling Who will be leading theservice is suitable for export to your points to your business project within your company?target market, consider: proposition? Will there be a Do you need to work with an consumer preferences, competitive market for your products and overseas partner to succeed? offers (local production and services? Can you communicate with imported) and their market share; Are there any legal barriers to them effectively? product standards and regulations your business model? Have you evaluated business in the overseas market – the British Where in the market would risks (such as protecting your Standards Institution offers help for you start? intellectual property) and exporters; and conducted research and due Do you have sufficient the costs of adapting your product diligence? resources (management time, or service. project finance and expenses) Do you know how to secure to fund your overseas payment and get the rightUnderstand the law projects? quality products?There are various legal responsibilitiesassociated with doing businessoverseas – all of which you shouldunderstand before starting to export.For example, you’ll need to familiariseyourself with the VAT rulesadministered by HM Revenue &Customs (HMRC), and be aware of anyexport controls which relate to yourparticular product. See ‘Who can helpme export?’ later in this guide.Case study —WOW ToysQuality toy manufacturer WOW Toys we generate from our overseas opportunistic about which marketsdecided to adopt an export strategy customers allows us to be a to pursue. Sometimes smallershortly after opening for business completely independent business. markets such as those emergingin 1997. Today, the London-based We also spread the risk, rather in Eastern Europe are easier andcompany trades with 40 countries than relying on just one company.”-- quicker to access. And make thearound the world. most of support available from He continues: “If you’re serious UK Trade & Investment. They canManaging Director Nadim Ednan- about exporting, you need to help you get on the right path toLaperouse says: “These days, our recognise it as your number-one international success.”international sales far outweigh priority, focus on it and make itsales within the UK. The revenue happen. Be open-minded and even www.wowtoys.com
  15. 15. I was quite taken abackby the thoroughnessof the CommunicationsReview, the insights itdelivered and the sheerdepth of resources it gaveus access to the reviewchanged the way we thinkabout our exportcommunications.Britten Sinfonia, CambridgeSelling and distribution You can use a sales agent who When arranging a sales contractOnce the initial homework has been sells products on your behalf, or with an agent or distributor, youdone, and you have decided on the puts you into contact with potential need to ensure that responsibilityexport market/s to approach, you customers on a commission basis. for delivery and payment is clearlythen need to organise your sales Note that an agent never takes title defined. You will also need to securepresence there. of the goods but merely stocks intellectual property protection in and sells them on, making a each country you sell into.Depending on your product/service, commission in the process butyou may be able to sell directly. For never accepting responsibility for Marketingexample, you might be able to sell profit or loss. Marketing is a key element ofover the internet or by exhibiting at You can enter into a joint venture successfully selling overseas.local trade shows. with a local business. This gives To be effective, your marketing you a share of the management strategy should be tailored toMany businesses look for a partner and profits of the joint venture, each target market.who already understands the local but it can be a more complicatedmarket. For example: and expensive option. You’ll need to appreciate the If you want complete control over traditions, culture and legislation You can sell to a distributor who sales, you can set up your own of the countries you are trading with then sells your products locally. local office. This is the most to exploit your exporting efforts. Note that a distributor takes expensive option. Customisation of your marketing title of the goods once the sales activities is essential if there are transaction is complete; and is cultural differences affecting the responsible thereafter for any consumption of your product. profit or loss in stocking and selling them on.
  16. 16. Visit the marketVisiting the market is an invaluablepart of trading internationally.You will experience the marketplacefirsthand, and make the contactsnecessary to do business.Attending overseas events, such astrade fairs, or participating in atrade mission can be great ways 314m The Chinese middle class is forecastto test markets, attract customers,appoint agents or distributors and to grow from 172 million to 314make sales. million in the next five years – more than the entire population of the US.
  17. 17. Often a two minute chat to the right person saves about 30 minutes trawling through a website. Nigel Darby, Associate Director, Angle Ring Co LtdExporting may be a Resource costs Legal, regulatory andchallenge, but the potential Entering an overseas market may intellectual property issuesrewards are huge. Following require bothin manpower. Timescales an increase financial investment and The barriers to success which exporters talk about most are legalare some of the most can also be an issue, with short-term and regulatory issues. Some firmscommonly cited hurdles ‘pay back’ not necessarily guaranteed. also say that intellectual propertyto doing business (IP) protection can be an issue. The It’s advisable to discuss your financial Intellectual Property Office (IPO) caninternationally, and advice position with your accountant and help in this area. See ‘Who canon how to overcome them. bank manager before committing to help me export?’ later in this guide. exporting. It is also important to take the long-term view and build Adopting the right mindset is appropriate timescales into your vital to overcoming such hurdles. projections. Customers and partners Every country has its own trading, in high-growth markets, for example, taxation and IP systems and you will tend to put an essential value on need to be willing to get to grips with relationships and it is unusual for a those systems and adapt to them. return on investment to emerge So doing your homework is vital when within the first year. planning market entry.
  18. 18. We have a long-term development strategy to achievea strong presence in global markets. This is importantas it allows us to be far more competitive, whilstgiving us access to new technologies, manufacturers,skills and materials, all of which feed our creativityand influence new product development.Richard Liddle, Founder and Managing Director, COHDA DesignManaging overseas risk accessible and topical informationPolitical and economic developments, online on countries and the key issuescyber risks, bribery and corruption related to their political, economic– these are some of the issues your and business security environments.business could face when you beginto trade overseas or expand into This can help you identify andfresh markets. understand possible risks – and guard effectively against them.UK Trade & Investment and theForeign & Commonwealth Officebring together authoritative,Case study —Chokolit “K Iabeara po UT s eng t pt h esu rYoung British entrepreneur Louis “ UKTI has been a great support He adds: “We have also worked withBarnett has used UK Trade & to us as we develop our business UKTI to get our products sold inInvestment’s (UKTI) services to internationally,” says Barnett. “It was Spain, Hungary and 12 States in thehelp sell his award-winning luxury instrumental in putting the Mexico US, and are currently in discussionschocolate brand, Chokolit, overseas. deal together, advising and helping with China. By the end of 2011, us with back-end details and we expect that 90 per cent of ourAfter participating in UKTI’s Passport regulatory matters, including getting revenue will come from export.”to Export programme, Chokolit our products through Customs.appointed a distributor in Mexico, This kind of after-care made all www.chokolit.comwho has since introduced the The difference.”company’s products into thecountry’s biggest department store.
  19. 19. Language and cultural Being able to speak the language ofbarriers your potential customers can help to establish mutual confidence. If youEvery market is different, and don’t speak the local language, youcompanies need to be sensitive to could consider investing in foreignlocal ways of doing business, even language training for your staff.in different regions of the same Alternatively, you could employ acountry. Lack of awareness and translator or interpreter. It can alsoknowledge of local cultural norms can help to have your promotionalimpede the development of material translated. It’s a good ideaa business relationship. to avoid colloquialisms and metaphors in promotional material – they could be embarrassing in the local language.Attending trade shows You should conduct research intoand exhibitions is a key your target market to establish local considerations. These may includeway of marketing the product or packaging modifications tocompany and its products enable your product to conformto international audiences. to local cultural demands. Or it could be that local sales and marketingClaire Watt-Smith, MD, BoBelle channels for your particular product are different from those in the UK.Case study —Ellis PharmaThe Middle East has become a key Doha Clinic Hospital. It further Business Development Director Garymarket for UK firm Ellis Pharma, a established itself in the region by Campbell says: “We are confidentspecialist in global supply chain going on trade missions and having that with our own efforts andsolutions for the pharmaceuticals numerous one-to-one meetings support, our exports will increaseindustry. with local decision makers in substantially in the coming months governments and hospitals and and years.”Following expert advice, the potential agents. This led to EllisStaffordshire-based company Pharma securing orders worth www.ellispharma.comdecided to focus on the emerging £150,000.markets of Oman and Qatar,winning an £18,000 contract with
  20. 20. Logistics The best mode of transport for your country – and use the correct goods will depend on the type of Incoterms to describe this in theGetting international transport goods and how quickly they need quotation and written contract.right can be complicated and to be delivered. You may needdepends on the agreement you more than one mode, for example, Most companies use a specialisthave with your customer or supplier. sending goods by lorry to a port in freight forwarder to handleYour obligations should be clearly set the UK and then by ship overseas. transport. Confirm exactly what theyout in a written contract using In all instances, the goods will need will do and whether they can handleIncoterms – standard trade terms suitable packaging and labelling all documentation and otherwhich state who is responsible for for transportation. You should clarify procedures. Look for a forwarder whotransporting goods, insuring the in advance who will be responsible exports regularly to that destination.goods during transportation, paying for UK customs procedures, for They can ‘consolidate’ your goodsduties and customs clearance. freight and insurance, and for with other consignments in a single customs clearance in the customer’s container to reduce costs.
  21. 21. Getting paid There are also currency issues youThe risk of late or even non-payment need to consider. In some countriescan sometimes be greater when where there are restrictions ondoing business internationally. access to foreign currency, yourEnsuring you get paid for overseas customers may face problems gettingsales is a combination of assessing currency to pay you. In this case, it’srisk, settling on acceptable payment worth insisting on a (confirmed)terms and methods and considering irrevocable letter of credit thatinsurance to protect yourself against secures payments according to theproblems. terms of the credit and often at an agreed rate.Help is available from UK ExportFinance (formally known as ECGD). Businesses which sell on credit to foreign customers can use factoringTo minimise the risks of nonpayment, or invoice discounting to free up cashyou should research the market flow. Export factors specialise in theconditions in your target country and collection of money from overseas.the credit worthiness of potential The factoring company pays you acustomers before you start trading. percentage of the invoice value up-front and the balance (less their percentage) once they have collected payment.Case study —ABF EuropeOverseas sales have soared for ABF now supplies 17 countries growth of their own and countriesABF Europe, the creator of the globally and has offices in a number where we can really play a part inrevolutionary Kite table system. of overseas markets, including Spain helping companies compete in and Dubai. the international arena throughThe North Yorkshire firm first effective use of office space andintroduced the conference and Managing Director Darren Buttle cohesive work-life strategies.business table, which can be adapted says: “Our international operationto accommodate both large and is gathering pace. Our immediate It promises to be an exciting journeysmall groups of people, into the focus is undoubtedly America, but ahead as we harness the skills andinternational market four years ago I’m keen to explore opportunities in expertise available from trade adviserswhen sales took off in the US. Canada, Brazil and regions of South to support us and show us the way.” East Asia as well. These are all markets that are experiencing rapid www.kitetables.com
  22. 22. Ten key steps to successful exporting1Research your market 2 Implement an export 3 Construct an export planDoes your prospective foreign strategy and review your Define how you will enter thecustomer need what you are foreign market. Finalise humanselling at the price that will yield capabilities resources and marketingyou a profit? What is the Ask yourself: what would my strategy and allocate ancompetition and how will business gain from exporting? adequate budget to coverthey react? export start-up costs.6Get the Customs side 7 Get paid on time 8 Choose your distributionright Ensure your cashflow will methodsContact HM Revenue & Customs remain at a safe level. Guarantee Consider the implications ofand the UK embassy of your sufficient credit for your future selling over long distances anddestination country to clarify sales. Take out insurance cover across national frontiers.requirements. Make sure if necessary.your reporting practicesare watertight.
  23. 23. 4Choose your sales 5 Promote your productpresence How are you going to market andEstablish whether you need a sell your product? Customisedirect sales operation. Or is an marketing to the target country.agent or distributor moreeffective? How will you manageyour overseas sales presence?9Transport goods 10 After-sales policyeffectively Regularly liaise with customers,Assess and choose the most export agents and banks.effective transport method and Monitor political unrest ormake sure the goods are insured other adverse conditions inby you or the importer. the country of destination. Manage regular servicing and warranty claims. Source: UK Trade & Investment
  24. 24. Who can help me export?A wide range of support services exists to help UKexporters and would-be exporters to tackle virtuallyall of the issues and challenges which they are likelyto face, and help them become established ininternational markets.Following are just some of the many organisations whichcan help you get started on your exporting journey.
  25. 25. UK Trade & Investment UKTI services have helped its UK Export FinanceUK Trade & Investment (UKTI) is the customers to: UK Export Finance is the operatingGovernment Department that helps understand how to do business name of the Export Credits GuaranteeUK-based companies succeed in overseas; Department (ECGD), the UK’s exportglobal markets and assists overseas identify opportunities and open credit agency.firms in bringing their high-quality doors;investment to the UK. reach customers/business partners UK Export Finance does not lend not otherwise accessible directly, but supports UK exportsUKTI has a global network of by issuing insurance contracts to UK raise their profile and credibility2,400 staff. Its International Trade exporters and by issuing guarantees overseas;Advisers (ITAs) around the UK have to banks which make loans to overseasyears of business experience to draw overcome barriers to entry or borrowers, which are used to purchaseon when advising companies. In 96 expansion; supplies from UK exporters. UK Exportmarkets based in British Embassies improve overseas marketing Finance’s services help facilitate exportand other Diplomatic offices around strategy; contracts by providing protectionthe world, UKTI staff can offer local, gain access to information not against the risks of the exports notin-market knowledge and expertise. otherwise available; being paid for. understand the competition;UKTI has helped many thousands In 2010-2011, UK Export Finance (thenof businesses achieve international access powerful research to inform known as ECGD) supported £2.9 billionsuccess by providing tailored services management decisions; and of UK exports (up from £2.2 billion thewith specialist support covering a have the confidence to explore or previous year). In late 2011 itwide range of industries. Its clients expand in overseas markets. announced an extension to its creditconsistently cite the importance of insurance policy to cover all sectors andUKTI support in helping them to www.ukti.gov.uk sizes of company, as well as the launchovercome barriers to new overseas of three new short-term products.business and improve their businessperformance. See the following pages for details of those services provided by UK Export Finance which are most relevant to small- and medium-sized businesses. www.ecgd.gov.uk UK Trade & Investment and UK Export Finance services and products are detailed overleaf.
  26. 26. UK Trade & Investment– servicesPassport to Export Export Communications Business opportunitiesProvides new and inexperienced Review (ECR) News emailed directly into yourexporters with the training, planning Assesses the way companies in-box, highlighting hot leads in youradvice and ongoing support they need communicate with overseas chosen overseas market. Companiesto succeed overseas. customers and makes practical can sign up for this free service by recommendations for improvement. visiting www.ukti.gov.ukOverseas MarketIntroduction Service Events and seminars Gateway to Global Growth(OMIS) Held across the UK and the world. A service for more experiencedA tailored service by our overseas They include specific sector and exporters. It offers focussed planningteams to access market and industry market based activities. and advice, and support to helpinformation, identify potential contacts companies to build on their previousor assist in planning an event. This Trade missions success and develop new overseasservice attracts a charge. markets. Organised to help UK companies visit the marketplace they’re interested inExport Marketing Research and talk face to face with prospective High-value opportunitiesScheme (EMRS) business partners. UKTI also programmeOffers support, advice and some organises missions into the UK to Proactively identifies global supplygrant funding to eligible companies allow overseas delegates to meet chain opportunities, coupled withwishing to research a potential with potential partners or investors. an online service giving access toexport market. several hundred sales leads around the world each month.Contacts UKTI East T: +44 (0)8456 419 955 UKTI West Midlands T: +44 (0)8450 743 515 E: info@uktieast.org.uk E: info@wmchambers.co.ukUK Trade & Investmentis the Government UKTI East Midlands UKTI Yorkshire T: +44 (0)8450 524 001 and the Humberdepartment that helps E: info@uktiem.co.uk T: +44 (0)300 365 1000UK-based companies UKTI London E: info@uktiyorkshire.co.uksucceed in an increasingly T: +44 (0)20 7234 3050 Invest NIglobal economy. E: info@uktilondon.org.uk T: +44 (0)28 9023 9090 E: customerservicemgr UKTI North EastOur range of expert services can @investni.com T: +44 (0)8450 505 054be tailored to meet the needs of www.investni.com E: enquiries@ukti.rito.co.ukyour company to maximise yourinternational success. Scottish Development UKTI North West T: +44 (0)8456 037 053 InternationalYou can find contact details for E: info@uktinorthwest.co.uk T: 0800 917 9534 within Scotlandyour local UKTI International T: +44 (0)141 228 2828 from the UKTrade Adviser on our website: UKTI South East www.sdi.co.uk T: +44 (0)8452 789 600www.ukti.gov.uk Business Wales E: info@uktisoutheast.comor telephone us: T: +44 (0)3000 603000+44 (0)20 7215 8000. UKTI South West E: businessinformationhelplineOur helpline is open from 9.00am T: +44 (0)8456 060 969 @wales.gsi.gov.ukto 5.00pm Monday to Friday. E: enquiries@uktisouthwest.org www.business.wales.gov.uk
  27. 27. UK Export Finance– Products and ServicesUK Export Finance has In the case of an advance payment Foreign Exchange Credit bond, the exporter’s bank may Support Schemea range of products and require the exporter to deposit the When an exporter enters into anservices to support UK buyer’s advance payment with the export contract under which itexports; mentioned below bank as security for the exporter’s will be paid in a foreign currency, undertaking to pay. This wouldare those specifically the exporter may be exposed to deprive the exporter of the cashflow unfavourable changes in exchangetargeted at small and benefit of the advance payment. rates over the course of thatmedium-sized businesses. UK Export Finance can provide a contract. In order to bring certainty guarantee to the bank of up to 80 to this aspect of the contract, theExport Insurance Policy per cent of the advance payment exporter may ask the bank to enter bond’s value, which will reduce or into a contract to purchase, withUnder an export contract, there is remove the requirement to use the sterling, the foreign currency whichalways a risk of not being paid by advance payment as security – the exporter will receive at a pre-the buyer - or of not being able to thus freeing up funds with which agreed rate of exchange.recover costs incurred performing to perform the export contract.the contract due to it being However, the bank will be takingterminated in circumstances Export Working Capital a risk on the exporter’s ability tobeyond the exporter’s control. deliver the required amount of Scheme foreign currency on the agreed date:UK Export Finance’s Export To fulfil an export contract, the if the exporter fails to do so andInsurance Policy may be able to exporter may require funds in order exchange rates have moved againstprovide an exporter with cover to be in a position to provide goods the bank, the bank may suffer a loss.against those risks, such as specified or services. Specifically, the exporter The bank may therefore wish topolitical or buyer-related events, may have won more or larger receive some protection against thiswhich prevent it being paid, lead contracts than usual and a bank risk of loss before entering into theto the contract being terminated, may be cautious about lending any forward foreign exchange contract.or prevent its performance. further funds to meet the exporter’s needs for more working capital, thus Where the exporter’s bank has beenBond Support Scheme constraining the company’s ability requested to provide a working to grow. capital facility guaranteed by UKUnder an export contract, the buyer Export Finance in respect of anmay require the issue of an on UK Export Finance’s Export Working export contract and is also requested-demand contract bond (for example, Capital Scheme can offer a partial to enter into a forward foreignan advance payment, performance guarantee to the bank (of up to 80 exchange contract in relation to theor retention bond) in order to assure per cent of the value of the working same contract, UK Export Financeitself that the exporter will meet capital facility in some cases), so will increase its guarantee of theits obligations. Before issuing such that the exporter can gain access to working capital facility in order toa bond, a bank will require an enable the bank to enter into thatundertaking from the exporter to pay the working capital with which to forward foreign exchange contract.to the bank any amounts which the perform a specific export contract.bank may pay out under that bond.The bank is therefore taking a risk on Further informationthe exporter’s creditworthiness under For additional information orthat undertaking. Where the bank details on the full range of UK Exportis unsure about taking that risk, a Finance’s services, please contactguarantee from UK Export Finance them on +44 (0) 207 512 7887 or visitfor part of it may persuade the bank www.ecgd.gov.uk.to issue the bond.
  28. 28. Other sources of helpAs well as the help RBS/NatWest Your lawyer David I.Houghton MBE,available from UKTI and Director, Strategic Partnerships Your lawyer will also be able to help you. Similar to the ICAEW’s BAS,UK Export Finance, there M: +44 (0)7785 708611 the Law Society has many members E: david.i.houghton@rbs.co.ukare many other sources which offer a service for SMEs.of help available to you. Santander ‘Lawyers For Your Business’ is a Martin Hodges, network of 1,000 solicitor firms inYour bank Head of Trade Finance England and Wales offering specialist M: +44 (0)7827 872312 advice and a free half-hour initialYour bank can provide a range of help E: martin.hodges@santander.co.uk consultation to small and mediumsizedon topics such as managing foreigntransactions, trading overseas in businesses. Advice can besterling, owning assets abroad, Your accountant sought on a range of legal issuesexchange rates and managing foreign Your accountant can provide you with – both domestic and international.exchange risks. For more detailed a range of advice, from starting afinancial advice and guidance on business, organising your financial In 2012 the Law Society will alsoissues that affect you, you should talk affairs, financial management and be working with its solicitor membersto the international section of your to produce practical ‘Doing taxation. You should also be awarebank. If you can’t find the right international business’ guides aimed that the Institute for Accountantsperson to talk to, you could contact at SME firms new to exporting theirthe following people at the one of in England and Wales (ICAEW) has just launched a new scheme: small products and services internationally.the five major banks who will point youin the right direction: businesses across the UK are being offered free expert advice from The guides will look at some of theBarclays ICAEW Chartered Accountants fundamental legal issues which SMEsJohn Bevan, as part of an initiative called the need to consider when workingHead of Trade and Working Capital Business Advice Service (BAS). internationally. Topics being coveredT: +44 (0)1256 791401 It aims to help small companies will include:E: john.bevan@mercantile. and start-ups with business and international employment issues; barclays.co.uk financial advice to help economic international contracts; growth. Small businesses canHSBC business structures; find details of ICAEW charteredFelipe Hsieh, Senior Manager, debt recovery; accountants in their local area atTSC Client Management www.businessadviceservice.com tax; andM: +44 (0)7920 411997T: +44 (0)20 7991 1706 dispute resolution.E: felipe.hsieh@hsbc.com These guides will be available asLloyds TSB publications, but also as webinarsBarry George, Senior Manager, and will be promoted widely toTrade Products small businesses.M: +44 (0)7793 670292T: +44 (0)20 7463 1690 For more information visitE: barry.george@lloydstsb.co.uk the Law Society’s website at www.lawsociety.org.uk
  29. 29. British Chambers of Export Control HM Revenue & CustomsCommerce (BCC) Organisation (ECO) HM Revenue & Customs (HMRC)The BCC, and its network of affiliated Any item exported from the UK which provides assistance on a number ofChambers, support and advise is subject to export control needs a matters relating to the importing andbusinesses in all areas of international licence. The ECO is responsible for exporting of goods. Information andtrade. With a worldwide network of assessing and issuing (or refusing) guides are available covering topicsbilateral and international chambers export licences for a wide range of such as the classificationof commerce, the BCC can provide controlled, so-called “strategic” of goods, the European Union,UK exporters with numerous services goods. This includes military and Relief Procedures on Duty andincluding: export documentation, dual-use items. VAT, Tariffs and Duties, Intrastatmarket research, training, translation and the requirement to submitservices and letters of credit. You can find out more on export Supplementary Declarations,For more information visit controls, including applying for together with basic guides on exportthe BCC’s website at a licence and rating enquiries, licences, export taxes, importwww.britishchambers.org.uk licensing policy, key documents, key licences, rates of exchange, etc. links, notices for exporters and news www.hmrc.gov.ukThe Institute of Export related to export control, by visiting(IoE) the businesslink.gov website at Business Link www.businesslink.gov.uk The Business Link website providesThe Institute’s mission is to enhancethe export performance of the UK the information, advice and supportby setting and raising professional Intellectual Property needed to start, maintain and grow astandards in international trade Office business. It provides information andmanagement and export practice. Intellectual property rights can allow advice to help customers make theThey achieve this by the provision of you to own things you create, in a most of their opportunities. Rathereducation and training programmes. similar way to owning physical than providing all the advice and helpThe IoE offers recognised formal property. You can control the use itself, it fast-tracks customers to thequalifications in international trade. of your IP, and use it to gain reward. expert help they need. For SMEsIt also runs a series of short training IP rights only give protection in the thinking about exporting there is acourses covering every aspect of country where they are registered, so simple diagnostic tool that helps youinternational trade management, if you are thinking of trading consider whether now is the rightsales and marketing, logistics and internationally, then you should time to export.documentary requirements, and consider registering your IPinternational trade finance. rights abroad. For more information go to www.businesslink.gov.uk/For more information visit the IoE The UK’s Intellectual Property Office bdotg/action/layer?r.website at www.export.org.uk (UKIPO) can provide guidance: l1=1079717544&r. www.intellectual-property.gov.uk s=tl&topicId=1084654164
  30. 30. Freight forwarding Useful export linksOne of the other things you’ll need tothink about is how to move your Country Information Standards and Technicalgoods overseas. Much will depend on BBC website Regulationsthe nature of your goods and their http://news.bbc.co.uk/1/hi/ British Standards Institutiondestination and you will need to country_profiles/default.stm (BSI)evaluate the best combination of time www.bsigroup.com/en/ Foreign & Commonwealth sectorsandservices/Disciplines/and cost with the characteristics of Office country profiles ImportExportyour product. There are various www.fco.gov.uk/en/travel-and- National Physical Laboratorymethods of shipping goods: by air, living-abroad/travel-advice-by- www.npl.co.ukroad, sea, or rail. Some companies country/country-profile Trade Statisticsoffer multi-modal solutions; thismeans that they offer more than Customs & Regulations Trade Statisticsone service. HM Revenue & Customs National Statistics Information www.hmrc.gov.uk www.statistics.gov.uk/hub/ index.htmlFor more information about freight Economic Informationforwarding please contact the British The Economist UK Trade InfoInternational Freight Association at www.economist.com/countries www.uktradeinfo.comwww.bifa.org Market Access Travel Advice Market Access Database Foreign & Commonwealth for Tariffs (for non-EU Office markets only) www.fco.gov.uk/en/travel-andliving- http://mkaccdb.eu.int/ abroad mkaccdb2/indexPubli.htm NHS SOLVIT – Overcoming Trade www.nhs.uk/nhsengland/ Barriers (EU markets only) Healthcareabroad www.bis.gov.uk/ EUMarketAccessUnit Travel Health www.travelhealth.co.uk
  31. 31. ContactAylesbury House17-18 Aylesbury StreetLondonEC1R 0DBT +44 (0)20 7553 9930F +44 (0)20 7490 5060E info@millerrosenfalck.comI millerrosenfalck.comMember of Warwick Legal Network, an association of independent law firms.I warwicklegal.comMiller Rosenfalck is the trading name of Miller Rosenfalck LLP, a limited liability partnership registered in Englandunder No. OC301257 authorised and regulated by the Solicitors Regulation Authority (SRA No. 353380). A list of members isavailable for inspection at the above address.
  32. 32. Stuart Miller – Senior Partner, SolicitorT +44 (0)20 7553 9936E sm@millerrosenfalck.comStuart advises on commercial and corporate matters and heads our German desk. Stuart’scommercial work includes international and domestic brand protection, technology & IP licensingand partnership issues. Recommended in Chambers Global 2011 directory. Stuart is a BritishBusiness Advocate for UKTIs Catalyst scheme.Steen Rosenfalck – Managing Partner, Solicitor & Advokat (L) (Denmark)T +44 (0)20 7553 9931E sr@millerrosenfalck.comSteen Rosenfalck is head of Miller Rosenfalck’s Commercial team and of our Scandinavian desk.Steen’s practice covers a broad range of commercial work with particular emphasis on businessmigration and international trade.Emmanuelle Ries – Partner, SolicitorT +44 (0)20 7553 9938E er@millerrosenfalck.comEmmanuelle is an experienced employment solicitor and head of our French desk. Shespecialises in all aspects of contentious and non contentious employment law advice toemployers and employees including contract drafting, cross border dispute resolution, executiveseverance, planning and implementation of large-scale restructuring and/or redundancyprogrammes and employees’ issues on the sale of businesses (TUPE).Ian Baker – Partner, SolicitorT +44(0)20 7553 6004E isb@millerrosenfalck.comIan is an experienced corporate/commercial solicitor with a thriving practice in the franchisesector and is an active participant in the Affiliates section of the British Franchise Association. Heis an active member of our firms French and German desks. Recommended in Chambers UK2012 directory.
  33. 33. All images © UK Trade & Investment except: Miller Rosenfalck logo at pages 1, 35 & 36 and all photos at page 36, © MillerRosenfalck LLP