The difference between accidental and strategic exporting
comes down to proactivity.
If a foreign buyer shows an interest in your product or service
it may be enough to encourage you to export there.
This is accidental exporting.
It was never in your business plan.
You simply reacted to the opportunity.
Having an export strategy is when you proactively aim to
expand your business internationally.
You need to plan the steps to achieve this.
There could be many reasons for choosing to export.
Your UK operations could have reached maximum growth.
Or you have a seasonal product, such as swimwear.
So operating in a country with a different climate from the UK
could help smooth over seasonal highs and lows.
Benefits of strategic exporting include spreading the risk
from economic downturns and competition in the UK.
But entering a foreign market comes
with added financial and legal risk.
So, it’s important to do your research.
Be honest with yourself. Do you have the people
money and time to expand?
A common mistake is not being strategic when it
comes to market selection.
For example, lots of people want to export to the US
as it’s a large market where many people have a large
disposable income.
But there’s also a lot of competition.
Wherever you export to, make sure
you're making the right strategic choice.
Creating an export plan will help you
understand the risks and benefits.