It is reported that every UK SME loses an average of 325,000 euros in business because they don't possess the language skills necessary to effectively trade overseas. Eleven percent of exporting European SMEs - which is 945,000 companies - may be losing business because of communication barriers. There could be significant gains to the whole EU economy if this is addressed, so what can SMEs do to fully optimise their overseas trade?

Leading business woman and translation specialist Isabella Moore CBE highlights the pitfalls of SMEs relying on the English language and the common mistakes that they make, and explains how they can effectively harness languages to build their overseas trade. She runs through four steps that SMEs can take to build their language strategy and capitalise on the benefits of overseas commerce.

English is often regarded as the universal business language - but whilst it may be acceptable to use English if you are buying from another country, it won't be appreciated when trying to sell to international customers. In fact, customers are three times more likely to buy when addressed in their native language, and once on board, using their native tongue will build deeper relationships and advocacy. It's a myth that everyone speaks English - three quarters of the world's population speak no English at all and 94 per cent of English speakers only speak it as a second language. In today's climate, talking to customers and suppliers in their own language provides you with a commercial edge - paying real dividends for UK exporters. So where do you start?

Create a language strategy

The first thing to do is to actually create a language strategy. Recent research has shown that only 48 per cent of companies even have a language strategy in place. Having a language strategy affects your whole company; it can lead to higher levels of productivity, and make your company more open to innovation because it can change its whole ethos. Research indicates that exporting SMEs are more productive than those which do not export and that there is often a hidden bonus through exposure to increased technical know how, market-awareness and cost or efficiency savings.

Given that SMEs account for more than 50 percent of employment within the European Union, it would thus appear that, if a greater number of SMEs were to become successful exporters, and if those currently exporting were to expand their markets, there would be a significant impact on the European economy and also that there could be considerable additional benefits in terms of greater innovation and market awareness, which in turn could impact on productivity within national economies.

Take an audit of the language skills you already have in your company - it might surprise you as to how many languages are used by your staff unbeknown to you. Ensure staff are not over egging their skills - or underplaying them and find out what they would be comfortable doing. There are many language skills lying dormant within companies which could assist you in making that crucial first contact with a client. Once you have made contact, however, it would then be essential to recruit expert help with marketing and sales materials, website translations, technical specifications and contract negotiations.

Appoint native speakers

Appointing native speakers (those whose first language isn't English) or near native speakers (those who are bi-lingual) can make a huge difference in building relations with your customers - not only will they be able to converse with ease, they will have shared traditions and an understanding of a country's culture and ethos and thus make it easier to develop relationships and build trust with your customers. Graduates from your target markets are good to employ; they often have several languages including English, good technical skills and are attracted to the UK job market.

Recruit staff with language skills

Only 40 percent of companies actually recruit staff with language skills so it is essential that this is built into your recruitment policy. But to ensure that our education system delivers home grown graduates with the necessary language skills businesses need to start demanding that language skills are part of both vocational and higher education courses in the UK and that the language teaching reflect business needs - both in the short and long term.

Define the language skills you need and ensure they are specified in the job description and in all advertising. French, German and Spanish are still the most common languages required by UK exporters but you may be looking further a field and require other languages such as Chinese and Russian.

Use interpreters and translators

For professional sales and marketing materials it is essential that a professional translator is employed. To fully integrate and communicate with customers it is essential that all ‘touch points' are dealt with in their language. All literature should be translated - don't just consider the sales and marketing process, consider the documents your clients use once they are onboard - such as operating, technical and training manuals. Develop a relationship with a company you can trust, that uses native speakers and harnesses the latest technology to deliver fast and cost effective translations for your company.

To further develop your language strategy, you may also like to consider providing work experience to foreign students or employees, or becoming involved in international business to business exchanges.

With an effectual language strategy your company is equipped to fully exploit the benefits of exporting. For more information on developing an effective strategy, please contact a member of the Comtec team on +44 1926 335681 or info@comtectranslations.com.

* ELAN: Effects on the European Economy of Shortages of Foreign Language Skills in Enterprise.

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