‘How do businesses grow in international markets?’ That was the key question discussed at the latest Breakthrough Business Class. Santander is delivering a series of six of these informal sessions, which deliver key business insights to delegates who are encouraged to solve their problems in real time. Each class will tackle a different area of business growth – from HR to sales – and show SMEs how they can optimise these factors and grow unencumbered.
Taking the plunge overseas
Selling overseas is a key route to expansion, enabling you to grow your customer base, create value for investors and insulate against local market shocks. However, for many businesses, exporting is a big and complex step and they are hesitant about making the first move.
There are certainly many considerations – not least costs, time spent away from reliable profit centres, language and cultural barriers, and the inherent risks involved with making new contacts, establishing supply lines and breaking into previously unknown markets. However, the potential rewards are substantial and the aim of this Business Class was to dispel myths and advise entrepreneurs about how to tackle the issues effectively.
“You need to plan properly and make sure your contracts are watertight.” Bill Winter, Managing Director, Groundworks SystemsThe event was hosted at Sci-Tech Daresbury near Warrington, a hub of innovation and technology with companies selling successfully across international markets. Led by professional business advisors Core Business Solutions, the collaborative event had a relaxed and informal atmosphere, with attendees encouraged to discuss topics in the context of their own growth stories. Global reach Sessions included presentations, interviews and Q&A sessions, as well as opportunities for networking. A range of export issues were tackled and case studies were used to illustrate positive outcomes, as well as setbacks experienced by exporters. A live interview with Bill Winter, managing director of Groundworks Systems, highlighted the fact that exporting is not necessarily a pain-free path to growth. “We came up with a patented plastic tool for forming building foundations, which was popular but the international patent wasn’t strong enough so we ended up with a lot of competition,” Bill said. “We also went to Dubai and established a partnership, but we fell foul of bad workmanship as well as other issues, which cost a lot of money. That happened at the same time as the global economic downturn so 18 months ago we were going out of business.” The company has subsequently turned its fortunes around and Bill had strong export advice for the delegates. “I’ve always been someone who goes straight out and just does it, but I have been wounded in the process. You need to plan properly and make sure your contracts are watertight,” he said. Getting your product to market In another session, Dan Davis at Core Business Solutions led a talk about the motivations behind companies that export and what impact this could have on the business. “It’s not just about what we want our product to achieve in export sales,” he said. “We also need to consider the chain of events that gets the product into the marketplace.” Dan cited two famous examples of businesses with international sales experience: Kodak, whose export exploits ultimately resulted in the company’s bankruptcy; and Jaguar Land Rover, which has recently enjoyed a huge spike in sales following its acquisition by Indian company Tata from Ford in the US. The lessons presented to delegates from these examples included listening to customers, being agile in the face of market changes, allowing experts scope to make decisions and basing company expansion plans on real data, rather than gut feeling. Supporting sustainable growth Breakthrough Business Classes are part of Santander’s wider commitment to help businesses grow faster and more sustainably, particularly by developing overseas sales channels. The events work in tandem with Breakthrough Trade Missions, which take delegates to popular international markets including the US, Mexico and Brazil. An upcoming Trade Mission will revisit Brazil and John Holmes, managing partner of Core Business Services, will be among those attending. To register your interest in attending a future Breakthrough Trade Mission or Business Class email your local Santander Relationship Director via our website. _____________________________________________________