Why SMEs should start exporting: with Teddo Play Founder Keisha Shah

What is stopping the over 5.5 million small businesses in our country from exporting?

According to Keisha Shah , it’s a ‘steep learning curve’ to start exporting. Founder of much-loved children’s educational brand, Teddo Play , Keisha spoke to us about the sometimes-complex regulations and unfounded fears among the small business community that stop them from exporting.

Keisha exports her products to a number of countries around the world, and that required her to dedicate time to learn about the different regulations, customs requirements and better organising export-related documents to avoid the overwhelm that comes if you leave the details to the last minute on an order-by-order basis.

Another initial challenge was the cost of delivery, especially to individual customers, rather than B2B sales, “it was a massive strain on the business as I tried to absorb the delivery costs, making it attractive for international customers.”

“Despite being a small business with manufacturing based entirely in the UK, I haven’t shied away from exporting to the US, select countries in Europe and we are currently exploring new markets such as Dubai, Saudi Arabia and the Middle East at large.

“This has enabled me to share my knowledge and experiences with other small businesses as well as contributing to thought-leadership reports at the national level making recommendations to the government for policy changes and smarter regulations.”

Keisha spoke through some of the key benefits exporting has brough to her business including:

1. Enabling them to reach new customers in countries beyond the UK.
2. Helped diversify their customer base and reduce reliance on a single market, which has been beneficial in terms of risk management.
3. By allowing access to new markets and reaching a wider range of customers, exporting has helped them become more competitive.
4. Being entirely Made in the UK, their initial costs have been very high. You of course get the great quality, the attention to detail, direct communication, proximity to the factories but the profit margins become very slim, making financial growth much slower. As they begin to export more, it will help them to take advantage of economies of scale by increasing production volume and reducing costs.
5. By exporting internationally, they are seeing the benefits of increased brand exposure and recognition in new markets, which will support them in attracting new customers and building long-term brand equity.

In terms of support from the government, Keisha notes how she partnered with the Department for Business and Trade to work on an export plan with her dedicated international trade advisers.

“It has been an intense exercise, but in a very good way. It is amazing to have that kind of one-to-one support and guidance, and also a clear roadmap to follow.

“We secured an internationalisation grant back in 2022, which has been great news for my business. The 50–50 funding arrangement provided a significant boost for us to take our children’s products to new markets, which would have been very challenging to achieve on my own.”

While Keisha accepts there are challenges to trading internationally, she believes, “many small businesses have convinced themselves, based on unfounded fears, that exporting is a highly complex and challenging process for small businesses, and not something that they will be able to manage”.

Teddo Play proves this doesn’t have to be the case, and Keisha reiterates, “there’s certainly plenty of help and support out there – in the private sector and from government-funded initiatives – that are too good to not take advantage of.”

Keisha also outlines support she has received from the UK Export Academy , Enterprise Nation and Santander Navigator , describing the three as her go-to places.

?“The events, training, blogs, and expert articles have been so helpful, not just for learning about navigating our way with exports, but also at a wider level of running a business internationally,” she adds.

Keisha shares her 3 top tips for SMEs to export more:

1. Focus on the upside, not the overhead: Many small businesses shy away from exporting due to the perceived complexity. Small businesses must know that international trade brings with it the potential for significant growth. Look at the success stories of similar businesses finding new markets and revenue streams and learn from them. Exporting is a way to diversify your customer base and mitigate risk from relying solely on the domestic market.

2. Start small, scale smart, unlock global growth: The UK market, while valuable, has limitations. Exporting opens doors to a vast pool of potential customers, leading to significant sales and revenue growth. Don't overwhelm yourselves with the idea of global domination. Test the waters by participating in trade shows or online marketplaces focused on specific regions or niches. This will allow you to gain experience, build relationships with potential buyers, and refine your export strategy in a manageable way.

3. Leverage free resources and support: The UK Government offers a variety of resources and programs to assist small businesses with exporting. Government initiatives such as the new Help to Grow campaign , the UK Export Academy and of course the international trade advice from DBT offer a wealth of free resources specifically designed to help small businesses to navigate the export process. This includes market research assistance, logistics guidance, and even financial aid programs. Connect yourselves with these resources and you will be able to confidently navigate the initial steps.