First steps to exporting

Exporting can boost your turnover and reduce your dependence on UK-based customers. But moving into selling overseas is a big step – it’s important you consider whether your business is ready for the challenge.As well as identifying promising export markets, you’ll need to plan how to cope with issues such as extra legal complications, organising transport and making sure you get paid.

SANTINAS Accountants and Business Advisors

Export finance

Exporting tends to be more demanding financially than selling in the UK. Consignments are usually larger, lead times are longer and the risks are more difficult to control. At the same time, you may need to take into account the problems of handling payment in foreign currencies.

Developing an export strategy

Exporting offers the prospect of new markets, more sales, better profits and a greater spread of customers. A clear strategy makes it much more likely you will succeed.
Your export strategy should be based on an assessment of your own position and research into promising opportunities. You will need to think about how to reach new customers and finance your exports, as well as making sure you understand legal and tax issues.

Buying a franchise

Buying a franchise allows you to set up your own business without starting from scratch. You use a tried and tested formula, and benefit from the experience and support of the franchisor (the company offering the franchise).

Buying a business

When you’re looking to buy a business, identifying the right one to buy is only a first step. Approaching the business purchase methodically is key to making the most of the opportunity and avoiding potential pitfalls. Careful checking, due diligence and skilful negotiation are essential.

VAT

While VAT creates additional paperwork, it can also reduce your costs by allowing you to reclaim the VAT you pay on your business purchases. Many businesses have no choice but to register for VAT once their sales reach £85,000 a year.

Corporation tax

If your business is a company, you need to submit corporation tax returns and pay corporation tax on your profits.Although you are likely to use accountants to prepare your returns and calculate your tax liability, you cannot afford to ignore corporation tax until the year end. The way you finance and manage your business can have a significant impact on the final bill.