This is especially relevant to exporters – when exporting, ask for your money upfront. This could make the difference between achieving international success and sinking.
“If you have a good enough product, someone will pay for it upfront,” says Lara Morgan, the founder of Pacific Direct, the toiletries business she sold for £20m in 2008. “So just make sure they do.”
Getting your money upfront will give you the necessary cash flow to grow your international business. For example, why not use letters of credit, asks Lara Morgan. “It means you don’t have to quite have the cash required to grow, and they’ll pay by advanced payment.”
Currently, only 23 per cent of UK businesses export, which means there are still plenty of businesses which could grow their business through exporting.
“There’s no excuse not to export. People put up unnecessary barriers, and that’s a waste of time. Just get on a plane!” says Lara Morgan.
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