The UK economy is gradually gathering pace and showing signs of improvement. For ambitious small and medium sized enterprises (SMEs) this can mean increased access to growth capital and opportunities for international expansion.
While guidance for an international expansion varies depending on your destination, one absolute must is having a clear strategy. From my experience developing international strategies, I recommend a three phase approach I call Pre-Pro-Post.
The “Pre” component of a strategy includes those things which must be considered before beginning to lay the groundwork for an international expansion; Pro involves implementing your expansion programme or activity; and Post is what you do as follow-up after entering the market.
The “Pre” perspective
Do be proactive
As you consider expanding your business, being proactive from the start is key. This does not mean going into overdrive and overtaxing the resources you have; it means realising the need for a thorough plan and starting to think about all possible angles including human resources, taxation, messaging, channel partners, and legal.
Being proactive rather than responsive was made abundantly clear when I was called upon to resolve an issue for a company that had set up an office abroad before realising it would take six to eight months to obtain work permits for their staff. The delays and expenses could have been avoided by the firm being proactive and doing a bit more forward planning.
Do make sure you understand the marketplace
When considering a location it pays to do your research. Important questions to consider are whether there is an educated workforce that has the right skills for your business, and what incentives and programmes are on offer to help new businesses get off the ground.
In many jurisdictions, including Ontario, the government provides financial resources and complimentary business set-up and development assistance. Without research, it’s unlikely you’ll even be aware that these valuable benefits exist.
Don’t take unnecessary risks
Financial, legal, compliance and intellectual property matters need to be given careful and detailed thought ahead of a move. So I always recommend that my contacts seek professional advice to ensure they don’t waste time or resources. When it comes to these areas, it is just not worth penny-pinching.
One company I worked with was concerned with their advisory costs when they were setting up in a new jurisdiction. As a result they had to delay their opening by a year, and it jeopardised the entire operation. Only once they received professional advice were they able to get around a statutory compliance issue.
The “Pro” perspective
Do be culturally aware
While international business coaches often stress understanding cultural differences when working in foreign countries, I prefer to emphasise working from “similarities”.
A basic similarity is that everyone appreciates being in “a relationship” and treated with respect. So, get to know the person you’re doing business with, be attentive to their approach and open to learn and adapt to their culture.
Do act like a startup
Your domestic and international business will be two separate entities. Whether your company has been around for 12 months or 12 years, is worth £12,000 or £12m, a newly internationalised business or branch is a “startup”.
Like a start-up, your international business is a new venture, in a new market, with new clients and all this needs time, attention and resources.
Being present and visiting your new market is important – find out why, as well as how to create support networks, on page two.
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