Selling your business? Maximise exports first

If you are an SME owner considering selling your business, have you wondered about its export value? A report out this week advises the government to focus on exports to boost revenues.

The report from the Confederation of Business Industry, or CBI, wants exports to increase from 29% of the UK's GDP to 36% by 2016.

The CBI believe that small to medium businesses have the greatest growth potential, and urge the UK to match the EU average of one in four SMEs exporting by 2020, adding £20bn to UK coffers.

If you own a business that deals in construction services, communication services, electrical goods, optical and high-tech goods, the creative industries or financial services, you have great export growth potential.

John Cridland, CBI director general, says: "The UK has a proud history as a great trading nation....but for too long we have been over-dependent on advanced economies for our trade.”

The UK has a proud history as a great trading nation....but for too long we have been over-dependent on advanced economies for our trade

John Cridland, CBI director general

In 2000 the UK exported 5.3% of the world’s global exports, but this slipped to 4.1% in 2010. This figure could rise again if owners concentrate on exporting to the BRIC countries, as these economies improve. 

Minister for trade and investment Lord Green agrees with the report saying “We need more companies to start selling overseas and moving out of their comfort zones into high-growth markets."

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Newly released research from business insurance broker Simply Business indicates that 27% of SMEs are planning to increase employee numbers in the coming year. 

The research looked at marketing spend, projected revenue, and headcount changes of 374 SMEs. This positive report could indicate that now is the time to buy a growing small business.