It seems a simple enough equation, on the face of it. A weak pound means that British businesses are competitive in overseas markets, marking out export as a means of propping up revenues while skies are grey at home. The evidence would seem to support this view — some businesses are already reporting an increase in inquiries from overseas as potential customers seek to use favourable exchange rates to manage costs.

However, the way in which businesses react to those opportunities is of vital importance. Undiluted opportunism in export is a dangerous course at the best of times and is doubly problematic now. Every inquiry should be properly evaluated before a deal is struck, with detailed market research vital to mitigating export's inherent risk: what works at home will not necessarily work overseas. Does the product comply with local regulations? What is the longer-term potential and does it justify the initial investment? Who will we be competing with and how are we going to reach more potential customers and provide the necessary after-sales service? All these questions and more must be answered if export opportunities are to be seized with any measure of confidence.

So, what of those overseas sales inquiries? Of course British businesses should be looking at every opportunity that comes along. However, I would urge businesses responding to ad hoc inquiries to take a long-term view. Approach every inquiry as an opportunity to test the market as well as a potential sale. Gathering market insight will ensure that leads are evaluated properly to determine what investment, if any, is required to convert them into sales. If that investment is high, then the initial sale is unlikely to turn a profit. At that point only a realistic view of the market's long-term potential can guide decisions as to the merit of each lead.

With economic outlook in key export markets looking far from healthy, that long-term potential is a key consideration. Indeed, in the Pre-Budget Report, the Treasury predicted that exports to Europe and the United States will grow by only 0.5 per cent in 2009, compared with 6.75 per cent in 2007. That is not to say that these regions should be avoided — for the right businesses, with the right products, there will always be a market — but even better opportunities may exist elsewhere.

For those businesses taking a strategic approach, and effectively blending opportunism with insight, export may well provide a silver lining in the short term, while putting in place solid foundations to be exploited if the economic storm can be weathered.

— Robin Godfrey is manager of UKTI's Export Marketing Research Scheme at the British Chambers of Commerce www.britishchambers.org.uk/exportzone

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