For many small firms, exporting is still regarded like flying was in the 1950s something only to be indulged in by the more affluent and well-to-do. However, exporting is no longer as 'foreign' a business venture as it used to be. Andrew Meadwell, sales and marketing director of South West business-to-business group Bibby Factors International, attempts to dispel the myths that continue to deter companies from venturing abroad

Exporting can not only considerably increase a business' sales and profit, but is also crucial to the UK's economic health increased exports mean business growth, and business growth means more jobs.

Yet more than 95 per cent of UK businesses are not exporting as much as they could.

For many, fear of the risks and a lack of knowledge of who to turn to for advice are major factors in this inactivity.

However, rather than being seen as a risky venture, it has now been proved that exporting is good for business.

A recent report by Trade Partners UK indicates that exporting firms tend to be larger, more productive and pay higher wages than their non-exporting rivals.

The report also found that companies selling to overseas clients increase productivity by 2.7 per cent within two years, increase sales volumes by more than five per cent and take on an average of 4.1 per cent extra staff as a result of growing business levels.

But many companies still fail to embrace exporting as a means to grow the business, with the most common concerns being they don't know enough about the export process, are unsure whether their product would be competitive overseas and think the cost of entry to new markets would be too high.

So below, some of the main myths that surround trading overseas are dispelled.

Only large businesses export

This could not be further from the truth. In fact, smaller firms dominate the world's exporting population, with most having fewer than 50 employees and annual sales in the £500,000 to £5 million range.

It's too complicated to export

You don't need to be an expert to export.

In fact, exporting has never been easier, and for companies venturing overseas for the first time, there are literally hundreds of experts which specialise in helping companies export their products.

These include Export Management Companies, Freight Forwarders and Overseas Agents and Distributors.

Between them they can represent a business, drive sales, handle the necessary paperwork, find overseas customers and deliver the goods.

It costs too much to set up

There are costs involved when deciding to export goods, but these should be seen as investment that will allow the business to grow.

According to a survey conducted by independent market research company MORI, 23 per cent of potential exporters believe the cost of a tailor-made market research report is £10,000, when the actual cost is likely to be between £300 and £500.

Likewise, there are cost effective ways to market your products abroad, such as via the internet. Trade Partners UK can provide you with advice on how to export your products without it costing the earth.

Also bear in mind there are economies of scale that small businesses can take advantage of by requesting bulk discounts from suppliers.

Exporting is risky business

It is natural to be concerned about the issue of getting paid. Selling anywhere has its risks, but these can be reduced with reasonable precautions.

To ensure you get paid, use Letters of Credit and if customers request credit terms, ensure you are covered by a robust credit insurance policy.

If you are worried about cash flow, there are alternative funding options available, such as Export Factoring that provides up to 80 per cent of the value of export invoices, together with an overseas collection service.

It is imppossible to compete

If your product has demand in the UK, it stands to reason that there might well be a demand elsewhere.

Never make the mistake of assuming your prices are uncompetitive.

Products can still be extremely good value in strong-currency countries even after adding overseas delivery costs and import duties.

And remember, price is not the only selling point quality, demand and consumer taste count as well.

You need to talk the talk

Different languages and cultures can seem daunting to new exporters.

However, simply by learning a few of the rudimentary elements of a customer's language, an owner or manager will be remembered as someone who makes an effort to build relationships, rather than just a business tourist who is only in it for the money.

Working with third parties who have an understanding of a particular international market is also sensible.

There is too much red tape

The rules and regulations of exporting are very strict, but that does not mean they are impossible to comply with.

Exporters should consider using a Freight Forwarder to help.

Their expertise and knowledge of distributing goods abroad is invaluable, and they can often save time and money.

So long as companies are diligent and thorough, there is no reason why exporting should be any more difficult than trading at home.

With so much help available to small businesses, exporting can be an extremely positive step in growing a business.

Developing sales overseas isn't that different to finding new sales at home, all it takes is a little encouragement for those who have avoided exporting in the past through misplaced fear about the difficulties and expense of doing business abroad.

There is no excuse for businesses with good quality products and services and sound, professional management structures, not to take advantage of the opportunities that exist to build profitable overseas ventures.