Have you considered expanding overseas but not sure where to start or how to get the right support and guidance?
Our specialists have the expert knowledge you need to help you begin your export journey.
Doing business overseas could offer a major expansion opportunity for your business but to establish and quantify the potential will require significant planning and preparation. From that point you will then need to assess all the operational considerations and how best to progress.
As part of Kreston Global, we can help you with this process.
Not only do we provide a full range of accountancy and business advisory services that will help you to achieve your personal and business goals, but we also understand your professional challenges and opportunities. If doing business overseas is your aspiration, as members of the Kreston network, we can help.
This global network gives us access to the knowledge and skills of our trusted counterparts in over 155 countries. Wherever in the world you want to begin, we can help your business to meet the demands of the future.
What should you think about before doing business overseas?
Your business is personal to you and has most likely developed to fit the prevailing cultural landscape in the UK. This means that there are many aspects of overseas trading that you will need to think about such as culture, compliance and commercial goals.
There is no one size fits all approach to taking your business overseas as the direction you take will be guided by where you intend to start and with some research into the local market to establish if there is a viable opportunity.
Advice from a trusted resident business expert will provide insight and guidance and will allow you to expedite your planning.
Business advice from a resident specialist in whatever countries you identify as potential will be crucial for early insight and help you to formulate and benchmark a plan.
Which routes are available for doing business overseas?
What options are available and how do you choose between them? Again, this will be directed by your plan but there are various routes to consider.
Testing the market
You could start by just having a digital presence or even a concession arrangement to test the market.
Using local distributors
This entails having physical stock but no other presence in the market, which can help test logistics and appetite for trade.
Full immersion
This option can be reserved for future commitment when the market has been thoroughly risk tested and an execution plan has been created to deliver offices, retail space, employee relocation and possible local recruitment.
Exporting – Is there any grant/financial support available?
Grant support may be available to assist with your export plans. Funding availability changes regularly but grant support is often available towards activities such as market research, IP advice, translation services, trade fair attendance and international market visits.
Furthermore, should you decide to setup an overseas facility, grant support may be available towards setup costs including acquiring or leasing premises and investment in plant, machinery and equipment. Rules on eligibility and availability of funding vary from country to county so you should take expert advice before commencing any application process to ensure you understand the potential levels of support and maximise your chances of a successful bid.
In addition to grant funding, there are a range of export finance products available that could assist with the financing of your expansion plans. This includes working capital facilities, bonds and credit guarantees. A range of financial institutions and some government agencies offer products that can help and it is important to seek advice on the most appropriate options for your business and project.
The Department for International Trade (DIT) also has a raft of support available from government advice to interactive planning and market research tools to help you compare possible markets.
You can find more information here
What barriers are there to doing trade internationally?
Barriers can come in all shapes and sizes and often present in unexpected ways.
The kinds of things that may impact your ability to trade could include.
- The economy may be very different.
- The legal system in country including employment regulations, VAT, customs and tax requirements. Sometimes there are additional local taxes to consider, and property negotiations can vary widely.
- Culture and language barriers can be significant.
- Local marketing and advertising norms may differ.
- Management of the overseas business may require a senior level relocation to show commitment which could impact UK resource and capability.
A local expert will be familiar with all the compliance matters you will need to consider and will be able to help you access the most appropriate support to maximise your opportunity.
We look forward to starting a conversation with you on how you could do business overseas.
