How small businesses can research exporting opportunities overseas

International trade offers entrepreneurs exciting opportunities to grow their business, but it’s not without its challenges

Are you ready to export? 

Before you begin to look at export, you should consider the saturation of your existing markets first. 

Mike Wilson, the founder of Go Exporting, said the key question to ask yourself is ‘have we maximised our potential in the UK? If there is still scope to improve market share, then really consider whether your resources can stretch to working in two or more markets at the same time,’ he advised. 

‘Focus is all important in successfully entering a market, including your home market. If growth has slowed and you are receiving enquiries organically from international markets, then now is the time to consider exporting.’ 

Sanjay Aggarwal, co-founder of Spice Kitchen, exports to Dubai, Belgium, Ireland, and the US. 

Discussing his first moves into exporting, he said: ‘We’d built steady sales in the UK and were getting strong feedback from international customers who’d found us online, which made us curious about whether our products could travel further. 

‘At the same time, our production and logistics had become stable enough to handle larger orders, so we had the infrastructure to take that leap. 

‘I also spoke quite early on with a trade adviser at the Department for Business and Trade, which really boosted my confidence. Having someone walk me through what was involved, from shipping options to trademark protection, made it feel achievable rather than overwhelming.’ 

Researching exporting opportunities 

Once you’ve decided you’re ready to export, the next step is working out which are the best markets for your products.  

Wilson advises the following: 

• Start with your own knowledge and logic. The USA is clearly a bigger market than Canada, for example, but which is best for your product or service?  
   

• Look at where the UK has free trade agreements as these offer reduced barriers and tariffs. Tariffs are an important consideration in a volatile world.  

• Assess your own internal data. Where do your website visitors and social media followers come from? Where do your enquiries come from? Where do you currently sell? What are the drivers for those sales? One-offs or regular orders? Multiple enquiries or orders from one area? Where is the real market demand?  

• Don’t be afraid of competition as it is an indicator of market demand. Where do they sell? Where are their distributors? Do they have any country-specific websites? Which languages do they have literature in? Speak to their team at exhibitions and conferences. 

• Look for real market data and growth rates from research papers, publications, government departments, trade statistics from organisations such as the ITC, trade bodies, Zauba etc. You can also use AI tools, but check the results as they can make mistakes.  

• Speak to your potential customers. They will have first-hand experience of the markets you are considering and could provide you with lots of useful information. 

• Assess the barriers to entry in potential countries, such as local registrations or licences, recognition of qualifications, customs duty and procedures, rules of origin, competition, pricing, currency, payment terms, language, logistics/transport, and country risk. 
   

• Evaluate if your product is a good fit for the market. Does it meet local norms, market expectations, official approvals, market taste, service scope, packaging etc. 

• Compile the barriers, costs, and market opportunity data for each potential new market into a league table. Score each new market for each of the factors to establish the market with the most potential for your products or services. 

Visit the country 

Most experts agree there is nothing better than actually visiting the country you’ve decided to export to.  

This can be expensive but it’s a worthwhile investment. You might be able to access funding to cover all or some of the costs of an exporting research trip. Contact the business support department in your local council to check what’s available. You might also be able join a trade mission which could be part subsidised.  

During a trip, visit potential customers, distributors, agents, and even competitors if you’re considering collaborating.  

Wilson said: ‘At each meeting, always ask “who else should I be talking to?” Leave time in your schedule to add new appointments.  

‘If possible, arrange your visit around a trade show or conference. Pre-plan the companies you want to speak to and arrange meetings in advance at the event. Speak to the organisers and ask their opinion who you should speak with. Ask for introductions.  

‘As a minimum you should come back with a list of potential customers or distributors and information or samples you have promised to send.’ 

Aggarwal visited the US before exporting. ‘When we finally made the move, we flew out to New York to meet retailers face-to-face, and that trip was invaluable,’ he said.  

‘We saw first-hand how people shopped, what packaging stood out on the shelf, and what price points felt right for the market. The Department for Business and Trade’s in-country advisers were brilliant too. They helped us navigate Food and Drug Administration requirements, labelling, and the realities of shipping.’ 

Exporting mistakes to avoid 

When researching exporting opportunities for your business, there are several common mistakes to avoid.  

Assuming what works in the UK will automatically work abroad 

Your sales might be doing really well in the UK, but that doesn’t mean you’ll do the same in other countries. Every country has its own buying habits, cultural nuances, and expectations, so detailed research is vital. 

‘Our Indian spice tins are hugely popular here, but in the US we’ve found more demand for global blends and seasonings, so we’ve had to adapt our range,’ said Aggarwal. 

‘Similarly, in Dubai we learned that the retail landscape is completely different. It doesn’t have the same kind of premium independent gift shops that thrive in the UK.  

‘The market is heavily franchise-driven, and high import costs can make artisan products less affordable. You also have to make sure there’s enough margin in your products so everyone in the chain, from importer to retailer, can make their cut while keeping the price fair and competitive for customers.’ 

Being seduced by the big countries 

It can be tempting to just jump in and start selling in major markets like the US, but they are tough to crack. If you don’t consider the full implications and barriers to entry, you could come unstuck and lose a lot of money. Consider smaller markets which might be easier to start with.  

Underestimating the paperwork 

Exporting is complicated. Customs forms, labelling requirements, and tariffs are among the red tape that you need to tackle and it can be overwhelming for first time exporters.  

Do as much research from official sources as you can so you fully understand all your obligations and consider working with an export consultant. It’s also worth talking to other entrepreneurs who have been successful in the market you’re looking to launch in. 

Box out: 

Resources for researching export opportunities: 

• Government’s country guides 

• Business Academy events 

• NatWest or Santander’s country profiles 

• Chartered Institute of Export and International Trade 

• HM Revenue & Customs’ UK Trade Info 

• ITC Export Potential Map 

• Google Trends 

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