International Trade: Go for it, but look before you leap
THE chairman of one of the region’s oldest trading companies says international trade has “transformed” its fortunes.
Ian Meadows of Liverpool-based lubricants manufacturer RS Clare, which was founded in 1748, urges other regional businesses to embrace global opportunities, but not without being aware of the risks.
Export business accounts for 48% of RS Clare’s £24m turnover. The award-winning company has offices in Singapore, China, Abu Dhabi, Cairo, Norway and Houston.
Its relationship with UK Trade and Investment, the government department leading the export effort, is continuing to open doors to new markets – a visit to Turkey with trade minister Lord Green is one such example.
To download our International Trade supplement, sponsored by DLA Piper and RSM Tenon, click here.
Asked about his experiences and advice to other SMEs, Mr Meadows said: “The most important thing is to never put all your eggs in one basket, because things are never as they first seem – agreements that are set to happen on day ‘X’, invariably get pushed back – it is the nature of the beast.”
DLA Piper’s Manchester office managing partner David Gray says that with the right approach, moving into a new market can be a risk worth taking.
“A lack of awareness of the challenges that have to be faced with international trade is dangerous. However, the weaker pound coupled with the reputation for quality in all things British, means that, for those who plan effectively, choose their markets carefully and build their knowledge of the way those markets operate, the prospects for international growth are very real.
“With the right advice, there has never been a better and more important time to make the most of the opportunities that international activity will bring.”
Paul Langhorn, international development partner at RSM Tenon agreed, adding: “There are lots of reasons why overseas expansion is a good idea, however, as well as potential rewards there are associated risks for the inexperienced.
“Firstly, going overseas will not correct a business that has fundamental issues in the UK and it is important to ensure that the expansion is a well considered part of your strategy. Whilst entering a new market on a whim has occasionally been successful it is more likely to fail than succeed. Secondly, its vital to know your market – don’t assume that it will be the same as over here, it’s not!”
To download our International Trade supplement, sponsored by DLA Piper and RSM Tenon, click here.
