A few years ago, I visited a small company operating in a sector I knew quite well. They were a manufacturer, so I was surprised to see a small stock of another company’s products on their shelves. “Oh, we tried selling those alongside our products. We realised we’re not really very good at selling other people's products.”

A great lesson learned, in my view. Every business needs to know its strengths and weaknesses, and to be comfortable in acknowledging them. A venture into exporting, like any other business venture, needs to start with an honest self-assessment. It’s exactly half of the tried and trusted assessment technique called the SWOT analysis (strengths, weaknesses, opportunities, threats), and yet it’s the two parts that too many people try to gloss over.

We simply can’t expect to make any progress in exporting until we have a realistic understanding of our capabilities and limitations. It’s simply no use at all listening to the Department for International Trade or anybody else telling you that there are great opportunities in certain markets. Great for who?

There are two reasons why people tend to gloss over the internal assessment of a SWOT analysis; It’s uncomfortable, and nobody can do it for you. For this reason, it’s crucial that any export plans begin with a long, hard look at ourselves.

Exporting, like any business venture, carries risks. Inevitably, it will involve investing money, resources and time without any guarantee of ever seeing a return. Is your business strong enough? What’s the opportunity cost in seeking success in other markets? Is this the right path for your company at this time?

I find the best way to start a self-assessment is by gathering facts. Look carefully at your sales records, your financial position, your company’s resources and your track record. Is your business strong enough to withstand the inevitable additional pressures? Think as well about past ventures and experiences? What has gone well? What didn’t work? Discuss this honestly with your colleagues and advisors. Encourage them to challenge your assumptions.

It's also about “softer” aspects, things are more difficult to measure. What are your aspirations? What motivates you as a business? What do you enjoy, what do you try to avoid? In my experience, most small businesses are motivated by a genuine enthusiasm for their products/services and/or their customers.

If you’re confident you’re ready for the journey, you can start to think about the kind of opportunities that will fit. Be realistic about what you can safely invest. We’re not just talking about cash, but time and resources, in particular the human kind. This will help to prepare a plan that’s achievable, and to determine what your first steps should be. Armed with reliable knowledge about yourselves, your products/services and your aspirations, you can make an informed evaluation of the many and varied opportunities that exporting is likely to offer.

Don’t neglect this first step. Get it right and it will enable you to make better decisions and choices, and your ventures into exporting will bring greater success. 

While you are here you may be interested in some Strong & Herd LLP training courses related to this topic:

Beginners Guide to Export Development