How to Do Export Business

Planning your export strategy is about thorough research, understanding the practical implications and setting clear objectives.

• UK Export Finance (UKEF),The Department for Business and Trade (DBT), and HSBC UK’s own Export Resource Centre are good sources of information and support, which can put you in a strong position when it comes to exploring options and negotiating terms.
• Get a feel for the markets you’re interested in by visiting them if possible, or through some targeted desk research. HSBC’s International Business Guides can get you started with international insights that can help connect you to new opportunities.
• HSBC's Stefan Johnson simplifies the process into ten achievable steps. Discover how exporting can unlock growth potential for your business here.

• Once you’ve done your research, you’re ready to build a successful export strategy.
• Be clear about why you want to export to help make your strategy specific.

Pick a product to export

Selecting the right product to export is your first step towards unlocking exponential growth. By doing so, you can:

• Boost turnover and profits
• Keep growing from a strong position in your domestic market
• Meet the needs of customers who expect you to operate internationally

Identify key risks:

Venturing into international markets, your journey begins with a comprehensive evaluation of potential challenges. This includes understanding how to navigate the complexities of:

• Assessing how you’ll meet the challenge of operating in a different language and culture
• Plan for how foreign payments will impact of foreign payments on your cash flow
• Investigate rules and tariffs for your target markets, getting local assistance and expertise where possible

Focus on key objectives:

Focusing on key objectives sets the course for your success, starting with:

• Choosing the markets that offers the most scope for growth
• Establishing the driving force behind your desire to export. This could be:
  • To enhance turnover and profits
  • Continue growth from a robust domestic market position
  • Meet the expectations of your international clientele

From the funds you need for your expansion to handling currency exchange risk, there’s a lot to think about when you start exporting.

Securing payments

• When you’re just starting to export, trading on open account, sending an invoice and getting paid in 30 days, is a simple way to start as long as your customer is willing and able to pay.
• As your export volumes increase, the risk of non-payment grows. Trade finance tools such as bills (documentary collections) and letters of credit can provide you with greater control.

By securing your payments effectively, you're not just protecting your current operations - you're laying the groundwork for a robust, thriving international business.

• When you’re just starting to export, trading on open account, sending an invoice and getting paid in 30 days, is a simple way to start as long as your customer is willing and able to pay.
• As your export volumes increase, the risk of non-payment grows. Trade finance tools such as bills (documentary collections) and letters of credit can provide you with greater control.

Navigating the world of international business requires a keen understanding of currency volatility. With the right tools and strategies, managing currency volatility can become a manageable aspect of your global business operations.

• Accepting and paying in foreign currency can make your business more profitable and attractive to overseas customers but it can bring risk.
• You can mitigate this risk by setting up a forward contract with your bank - a contract to buy or sell currencies at an agreed exchange rate on a particular date in the future.

Embarking on the journey of international trade requires strategic planning, particularly when it comes to building an export pricing strategy. Your approach must be well-rounded and consider various factors. With the right strategies in place, you can successfully navigate the complexities of international markets and propel your business towards growth.

• You could opt to sell directly or partner with a distributor, an agent, or even enter into a joint venture. Remember, as your business expands, your strategy should adapt to accommodate growth and change.
• It is crucial to have clear agreements when dealing with partners. Do not hesitate to seek legal advice on key issues. This proactive approach will help you steer clear of potential pitfalls and ensure smooth business operations.
• Your strategy should take into account your entire trade cycle. Consult with professionals such as those at HSBC, or an accountant or tax advisor. Their expertise can help you review your options and make informed decisions.
• Integrating sustainability into your business model can enhance your Environmental, Social, and Governance (ESG) credentials. This not only boosts your reputation but also contributes to greater business resilience in the long run.

Building an effective export pricing strategy is a crucial step in expanding your business internationally. There are several paths you can take - selling directly, employing a distributor, leveraging an agent or entering a joint venture. As your business grows, it's important to adapt and refine your strategy to align with your evolving needs.

• You can sell direct, use a distributor, use an agent or enter a joint venture – just remember to evolve your strategy as your business grows.
• Make sure you have clear agreements with partners and get legal advice on key issues.
• Consider your whole trade cycle and speak with HSBC or an accountant or tax advisor to help you review your options.
• Think about sustainability – being part of a sustainable trade cycle not only improves your ESG credentials, but can provide greater business resilience as well.

• The Department for Business and Trade (DBT) offers a variety of services for exporters including a detailed export capability assessment and support programme.
• The British Chambers of Commerce offer a range of export services, support and events.
• With our global network, trade specialists and range trade finance solutions, HSBC can support your international ambitions

Whether you’re looking to expand your global reach or just starting out on your journey, speak to us today to find out how we could support your ambitions.

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