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Essential tips for UK technology firms trading overseas

It is an exciting time in the life of your business when you’re looking to expand overseas. The potential to tap into growing markets, around the world, brings about a huge profit potential, but also a plethora of risk too.

So what needs to be done to facilitate overseas trading? Here’s some essential tips for those technology firms looking to expand overseas:

Written by Paul Brown on 10th April 2015

Essential tips for UK technology firms trading overseas

It is an exciting time in the life of your business when you’re looking to expand overseas. The potential to tap into growing markets, around the world, brings about a huge profit potential, but also a plethora of risk too.

So what needs to be done to facilitate overseas trading? Here’s some essential tips for those technology firms looking to expand overseas:

 

Initial considerations
Common sense would normally rule that only companies who are thriving in the UK market should be looking to expand overseas. Those successfully exporting their products, services or expertise around the UK should be the ones considering overseas trading

 

Research should also be done on competitors, the market and potential new markets in the country you are looking to pursue. Evaluating at this stage will eradicate an expensive mistakes further down the line. 

Overseas trading risks
With every opportunity there is a risk, and looking to trade overseas brings many factors to the table. For example:

Exchange rates
Could your business now be dictated by fluctuating exchange rates? Dips in currency rates may affect expenditure.

Products compliant?
Does your products, or service, meet the specifications against the country-specific regulations and standards?

Same product quality
If you are using manufacturers, or workers, in the country of expansion, checks may be required to ensure the product quality is as good as your base back in the UK.

Extra licenses
If you are exporting electronic equipment, computers, telecommunications equipment or any other related components, you may need a licence.

Comprehensive insurance cover
Trading overseas can have a massive impact on your current insurance arrangement. Without consideration, your policy as it stands will exclude USA and Canada as areas of trading unless you’ve already specified.

Therefore amending your insurance is vital to ensure you’re fully covered.

Likewise, if your business decides to have a representation in the country of expansion, such as an office or factory, then additional issues need to be considered too.

This could include complying to local insurance laws which may stipulate that some of this additional insurance cover needs to be purchased locally, in the country of expansion.

For more information on overseas trading insurance, download our free eBook, Franklands guide to protecting your technology business here.

Is government support available?
Any support during the initial overseas investment is surely a welcome one for any business.

Businesses may be entitled to some kind of governmental support if they are expanding overseas.

As well as providing impartial and expert advice on your chosen new market, as offered by the Export Communications Review, you could also be entitled to funding.

Preparing for success
As you would have experienced with your successful UK business, planning is essential to ensure company growth with minimal disruption.

By going through the points above, as well as reviewing areas such as marketing and logistics, you can begin to plan properly for trading overseas.


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