With signs that the UK economy has already moved into recession, compounded by uncertainty across Europe, Nick Baird, chief executive of UK Trade & Investment (UKTI) has advised firms to look further afield to countries such as China, Turkey, India and Brazil to boost sales.
This will involve an element of risk especially for firms that have no experience of exporting, says Baird. But the potential prize makes it well worth investigating and the risks can be reduced by good preparation, adds Baird.
"I'm not saying that exporting is easy," says Baird. "I am saying that when you have done your research properly, it is a lot easier than you might imagine, and the rewards can transform your business. It's worthwhile asking the question."
He cites the example of west London business New York Delhi, which is fast becoming a global brand thanks to its ViPnuts and snacks, which are now sold globally following UKTI advice. The nuts were sold in high-end stores when md Nina Uppal, from Barnes, contacted UKTI for advice on international growth.
"I met UKTI at an event and they told me they could help grow my business by giving advice on things such as developing an export strategy, and arranging meetings with potential international distributors," says Uppal. "The excellent advice, support and contacts provided by the UKTI team has catapulted New York Delhi into the global market."
According to Baird, statistics show that exporters become more productive, more resilient and more profitable. "A lot of this is common sense," says Baird. "If you find new markets, you will extend the commercial lifespan of your products and services. On average, there is a rise in productivity of 35% in the first year alone."
Other benefits can include higher margins for being "first to market" and less dependence on a single market. "It's vital to get your research done," says Baird. "That's why UKTI will provide free trade advice to firms looking to export."
UKTI was awarded an extra £45M in the chancellor's Autumn Statement to double the number of small- and medium-sized firms it helps each year to 50,000. It will be providing extra trade advisers, and extending access to programmes such as Passport to Export for new exporters, and Gateway to Global Growth for experienced exporters. These advisers will help firms to identify markets, find the right people to speak to and get them to trade shows.
To help exporters, UK Export Finance, formerly known as the Export Credits Guarantee Department, is offering help to firms of all sizes. Firms can buy insurance against the risk of not being paid on overseas contracts and get help with working capital; so that they can take on large export orders they would otherwise have had to turn down.