The UK market has continued to experience notable changes since Britain announced its EU exit plans in the referendum last year.
At the time, it was not certain how things would turn out and the market took a temporary dive with the Pound Sterling reaching its lowest point in 31 years. This led to market uncertainty and flat lines in investment, particularly in the property sector.
When the Prime Minister’s announced the decision to trigger article 51 early in January, “economists of doom” came out to predict the horrors a Brexit decision would impact on the UK economy.
It was also predicted, that the construction sector would be hardest hit because it depended largely on EU migrants. Several months later, the market is not the apocalyptic mess people imagined it would be.
However, that does not mean they have been no consequences. The export market will likely experience some turbulence from the tariffs and taxes to be imposed. But this shouldn’t be discouraging to small business exporters as the foreign income is an ideal way to protect and diversify capital.
Take advantage of these tips to ensure your export business leverages the opportunities within:
1. Take advantage of government aids and grants
The export market is not only beneficial to a company, it impacts the UK economy in general. By counterbalancing capital flight, exporters are increasing the value of the economy and thus helping the government. To encourage this, there are government grants designed to support the budding exporter and help them mitigate any losses they might incur.
2. Embrace digital platforms to connect faster with customers
The growth of Ecommerce is changing the exportation industry. In the past, most export businesses had to have a certain amount of capital before they could initiate a transaction. Today, the explosion of smartphones, internet reach and quick courier services are eliminating those boundaries. It is not only faster but cheaper to export goods abroad.
3. Research and test the waters before you dive in
This time last year, when the Sterling hit a temporary low, many businesses abroad were keen to do business with UK exporters because of the weak pound. However, not every trader was genuine. It is advisable to perform a thorough market research to avoid falling for avoidable mistakes. Are your offline and online resources in order? Check that you are not exposed to risk.
4. Always be proactive
The export business is a very volatile one. You want to make sure you are prepared for any incident. From new government policies to market reactions and currency exchange rates. Never leave yourself vulnerable; this means constantly studying news for information you can capitalise on or protect yourself with. The ball is always in your court.
5. Adopt a strategy for currency exchange rate information
Since a significant aspect of your business depends on the exchange rate, it is imperative that you adopt a strategy for information. Once your transactions cross UK borders, anything can happen. From business risks to new market conditions, the possibilities are there. If you have fore knowledge of an impending currency issue, it can inform your subsequent business decisions.
If you are an exporter, you have every reason to be optimistic during this period. Despite what people say, the opportunities are rife.