SMEs and start-ups are facing some serious challenges as they begin to go international far earlier in their development than ever before.

In the global mobility arena we are seeing more and more businesses build a global client base and even invest in a presence abroad – long before they have scaled up enough to cope with the complications of doing business there.

The growth potential for these SMEs is massive but in the first instance they are often unprepared for the global mobility challenges which come with it.  Peter Sewell, Regional Director, Crown World Mobility, provides some advice on how to prepare.

You will often find a one or two-person HR team overburdened with a multitude of tasks, dealing not only with personal issues from staff who are working abroad but also with ever-changing regulation, immigration issues and of course Brexit.

SMEs generally don’t have a dedicated mobility team or programme, or even a structured policy. Perhaps they outsource, perhaps they just muddle through. It’s the hidden challenge which often businesses overlook in their rush to expand and embrace a global market.

Here are some of the biggest challenges facing SMEs in the global market – and tips to cope:

Take compliance seriously: Whether it is understanding international tax rules, coping with ever-changing immigration laws – particularly in the US – or surviving scrutiny for Base Equity Profit Shifting regulations, the potential fines are massive. The length of time it takes to deal with immigration compliance and vetting can be a major problem for businesses too. Businesses need to factor those delays into planning international moves and either seek outside help to keep track with international law changes or invest in internal experts. It takes more than a Google search.

Budget for recruitment: Many businesses look to foreign talent pools to find the expertise they need, but it can be expensive. The UK government has increased the Immigrations Skills Charge applied to workers moving from outside of the EU to the UK, from £1,000 to £2,000 per person per year. This is on top of the costs of applying for a visa in the first place – and in addition to the £600 per person annual NHS surcharge.

Consider the cost of assignment failure: The price of a failed assignment can be huge. It costs a lot of money to send someone to work abroad, only to bring them back a few months later. In fact, the cost of a poorly-planned assignment – leading to a failed assignment – can be four times the original budget.

Build cultural awareness: Failing to understand the cultural landscape and cultural differences of an international business partner can be a real threat. It can not only lead to misunderstandings which threaten business relationships but also see assignees fail to fit into new surroundings.

Value talent retention: Keeping hold of talent is a big part of modern business but international assignments, if not handled properly, can lead to costly mistakes. If SMEs do no look after and support their people abroad then they simply leave or get head-hunted by competitors, even during assignment.
It is clear that SMEs need to think more about global mobility, whether that is looking for help from consultants or putting their own programmes in place far earlier.

The key is in being able to forecast costs and mitigate risks as early as possible. Keeping up to date with immigration regulations is also vital.

For those who get to grips with these issues, however, the rewards can be significant. Companies which are skilled at dealing and working with different countries and different cultures have a big advantage in the modern world – and their leaders are sought after. Global mobility should not be overlooked or underestimated.

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Top tips for SMEs that are going global

Tech companies are on a solid footing

It’s an exciting time for UK entrepreneurs, especially if your company is involved in eCommerce. Britain’s 228,000 online retailers export more than the rest of Europe’s e-retailers put together. UK companies enjoy good credibility and, with a rise of up to three billion new online consumers expected over the next two years, the global opportunity is enormous.

If you own a tech company with an online presence, you’re doubly blessed; tech is thriving. More and more tech startups and SMEs are featuring on prestigious indexes, which are featuring increasing numbers of tech companies beyond London. This all points to healthy innovation in the sector.

At MPB, our bespoke, custom trading platform has allowed us to grow in a fiscally sound and scalable way since we launched nine years ago. The current climate makes this a perfect time for us to expand into new markets and we’re already laying the groundwork for our US launch.

Don’t be afraid of international expansion

UK retailers who fail to embrace the online route to international markets could be frozen out of opportunities that are actively being pursued by governments and businesses overseas, including the US. Other nations are already beginning to market their expertise through delegations visiting the Gulf and Asia. If you’re ready, go for it. You need to move fast to position your company in this market space.

Markets are opening up a-pace around the world. Business is booming in some areas but facing a real struggle in others, so it’s important to look carefully at where your company is best placed to capture new markets and expand its global influence. Based on factors including GDP, national debt and inflation rates, Globalvisas compiled a list of countries with the best prospects for enterprises wishing to expand their operations.

The global financial crisis opened a once firmly closed door to emerging economies. Many of these made the top 10 including Thailand, one of the fastest growing economies in Asia. Others on the list are Peru, South Korea, Turkey, Russia, Brazil, Chile, Indonesia, Mexico, and economic powerhouse, China.

The single VAT zone in Europe also offers huge opportunities for growth. Dependent on product and industry, now is a good time to cross the channel. And getting started is much more straightforward than you might think, all you really need is good systems, a well-translated site and a foreign language speaker.

To tap into the Euro-vein, you’ll need someone in your team who speaks the lingo and a perfectly translated, culturally sensitive site. There are some areas however (Scandinavian countries in particular) that can be entered using English, which makes them an ideal expansion route for UK online businesses.

Despite the fact that English is widely spoken in Europe, there’s plenty of research showing that it is important to offer local currency pricing and that this simple step is even more important for conversion than a fully translated site.

For us at mpb.com, the US is our perfect expansion-zone—and one that shouldn’t be ignored if you have the right offer.

Moving into other markets doesn’t have to be physical

International expansion for an online business doesn’t have to mean a physical expansion, at least not right away. Although mpb.com is opening a physical office in the US, we only came to this decision after extensive investigations and a successful test-marketing campaign. Start by testing the water: roll out some marketing and measure your metrics. And do as much market research on competitors and customers as possible.

Consider the structure of your activities abroad. Will you rely on making sales online or will you need to have premises and personnel located in your target countries? When it comes to moving your goods, the Eurozone offers excellent logistics. For web-based business worldwide this area can usually be taken care of in a cost effective way by using an international courier like DHL or Fedex.

Finally, make sure you build the right technology to support your expansion and use available services such as UKTI; an invaluable source for contacts and advice.

With the right support, systems and product, your expansion goals can be realised more easily, more efficiently and more cost-effectively than you might think.

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The HP Go Global Awards will shine a light on some of the country’s most dynamic, innovative and expanding SMEs, recognising the achievements of those that have successfully entered the international export market and encouraging those looking to break into new territories.

The HP Go Global Awards build on the success of Enterprise Nation’s established Go Global series of inspirational events, workshops and international missions for UK SMBs, launched during Global Entrepreneurship Week 2014. The awards echo Go Global’s original principles – that small business owners should not shy away from international trade opportunities because of perceived language, currency, cultural and business barriers.

The total number of HP Go Global Award entrants will be whittled down to a six strong shortlist, with all six offered a complimentary place on Enterprise Nation’s upcoming 2015 trade mission to China, gaining access to one of the world’s biggest markets, as well as invaluable training and consultancy. Two overall winners will go on to receive an HP Go Global Award for ‘Best Breakthrough Exporter of the Year’ and ‘Next Breakthrough Exporter of the Year.’

In addition to their place on the mission to China, the two winners will receive:
• A selection of HP’s top of the range business products chosen to meet the winners’ specific business needs
• 12 months complimentary membership to techUK
• Access to a Business in the Community arc one day training workshop, such as “The Six Box Strategy”, “Recruiting and Developing a Team” and “Develop a Marketing and Communications Strategy”
• 4 mentoring sessions on commercial banking to help grow your business, with Richard Bearman, UK Director of Small Business, HSBC

A panel of expert judges will determine the six HP Go Global Award finalists to be invited to China, two of which will be presented with their HP Go Global Awards at an exclusive SMB event in London on 4th September.

Confirmed judges include:

• George Brasher, Vice President and General Manager, Printing & Personal Systems, HP UK & Ireland
• Susan Bowen, Chief of Staff, HP UK & Ireland
• Emma Jones, Founder of Enterprise Nation
• Lesley Batchelor OBE, Director General at Institute of Export
• Jane Pritchard, Enterprise Director, Business in the Community
• Paul Hide, Director of Operations at techUK
• Richard Bearman, UK Director of Small Business, HSBC

“The launch of the HP Go Global Awards represents HP’s continued commitment to promote the best achievements of the UK’s SMBs and to celebrate their innovation and significant contribution to the UK economy, “said George Brasher, Vice President and General Manager, Printing and Personal Systems, HP UK and Ireland.

Read more:
HP Go Global Awards launched to support UK SMEs

The three-day Enterprise Nation Go Global Mission will help 40 of the UK’s most dynamic and innovative businesses to become world-leading global enterprises through doing business with the fastest-growing economy in the world.

The independent delegates on the September mission will have their experience subsidised by leading global brands with a solid British grounding including HP, PayPal, HSBC, UKTI and the British China Business Council.

Small business network Enterprise Nation founder Emma Jones, who will lead the delegation said: “Exploring the Chinese market is an unprecedented opportunity – and yet the majority of home-grown businesses shy away from international trade because of perceived language, cultural and business barriers.

“The reality is that the booming Chinese market would welcome British firms with open arms through the right approaches, contacts and introductions.

“Last year Enterprise Nation led a successful small businesses mission to the US, which saw a delegation of micro businesses come away with just under £400K worth of businesses and a bag full of contacts under their belt. This year we’re pushing further afield, with a solid purpose.

“We’re offering the kinds of opportunities that are usually only given to big businesses – while 99 per cent of all British firms are small or micros. We’re looking forward to it.”

The mission will play an important role in the launch of the ‘HP Go Global Awards’ which recognise UK SMBs aiming to turn their businesses into truly global enterprises.

Six award finalists will be offered a complimentary place on the mission, with two overall winners receiving an HP Go Global Award for Best Breakthrough Exporter of the Year’ & ‘Next Breakthrough Exporter of the Year,’ and additional valuable SMB support.

The Enterprise Nation Go Global mission is looking for applications from companies looking to source production in China as well as sell to consumers in China

Jones added: “China is a market where 55,000 babies are born every day and 10 million weddings take place every year. That’s a lot of rings, gifts, fashion and baby clothes to be bought so the opportunity lends itself perfectly to designers and producers of food and drink, beauty and cosmetics, home wares, giftware, children’s toys, fashion and jewellery.”

The three day trip will include flights, accommodation, visits with Shanghai’s leading entrepreneurs and introduction to Alibaba contacts at its Hangzhou headquarters.

Applications should be submitted by Friday May 29 at enterprisenation.com/goglobal

The mission itself will take place in September successful delegates and HP winners will be notified in June.

Read more:
Entrepreneurs invited to subsidised trade mission with China

Following a trial last year with Dafiti, which is owned by global e-commerce incubator Rocket Internet, a long term contract to utilise Metail’s technology on over 7000 garments has been agreed. The products available include the ‘Dafiti Collection’, a new line fronted by Brazilian super model Alessandra Ambrosia. For the first time, users will be able to virtually try on a selection of the garments worn by the model.

The trial confirmed that customers using Metail were found to spend 3.5 times longer on the site, than those who did not use the Metail technology. The overall benefit to Dafiti was a 30 per cent increase in sales from the customers who used Metail as opposed to those who did not.

Dafiti’s Ben Bommert, Director of Special Operations said: “The hypothesis that Metail influences customers to buy more is proven; we have established that customers using MeModels on our site buy more products than customers who don’t use the technology.”

Metail CEO, Tom Adeyoola added: “Metail’s technology has delivered what we set out to achieve – consumers have greater confidence to shop online: they return to shop more often, spend more time on site and buy more. We look forward to our new relationship with Dafiti – helping them build a more loyal and valuable user base.”

Replicating this in Asia

With the Asia-Pacific region dominating B2C e-commerce sales on a global scale and set to generate £681 billion in sales in 20151, Metail believes there is significant opportunity to replicate its success for Dafiti with online retailers across Asia.

E-commerce sales for Asia-Pacific are expected to reach £1 trillion by 2017. As one of Asia’s most affluent and well connected countries, boasting a strong telecoms infrastructure and technology literate population, Singapore looks well-placed to benefit from such growth.

Adeyoola continued, “Metail was set up from the start to be a business that could scale globally and work with mass market high volume retailers. We now have the conclusive proof of positive disruptive change to fashion shopping online and we’re very excited at the prospect of replicating such success within the Asian e-commerce market and beyond.”

Metail’s technology allows the user to create a three dimensional model of themselves and virtually try on a range of fashion garments. After entering a few simple measurements, consumers can generate a ‘MeModel’, which is 94-96 per cent accurate to their specific size. The technology can be incorporated into any e-commerce platform and the company is able to photograph and digitise over 200 garments a day, facilitating work with mass market high volume retailers.

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The report says that the negative effects, such as pushing young people into prostitution by banning child labour in third world countries, are often hard to anticipate. This is because it is difficult to monitor and regulate all the social and environmental effects during production processes in foreign countries.

Dr. Frank Wijen says: “A European certificate issuer might target the elimination of child abuse in order to protect a vulnerable group and mandate a ban on child labour. However, farmers in countries like Cameroon will react with bemusement: they often view the deployment of their children in a family enterprise as akin to routine domestic chores, and therefore not abuse.”

To minimise the negative effects of sustainability labelling, Dr. Wijen suggests that:

Standard setters should develop and enforce rules in a comprehensive way, considering in advance all direct and indirect consequences. They should also not feel pressured by a potential public outcry and rush procedures.

Rules set for one country or area may not be applicable for another. Therefore, each country or region will need its own, niche, set of rules, incentives and practices on top of a universal basis for all adopters.

Setters of standards should encourage intrinsic motivation—for instance, through regular training sessions—so that producers carrying a label have their motivations aligned with those of standard setters.

Labels such as Fairtrade, Green Seal and Utz, claim that a product was produced in a socially and environmentally sustainable way. However, producers might deliberately not live up to the duties being imposed, or simply not understand how to comply and therefore the above points become crucial to minimising the negative effects.

Image: Thinglass / Shutterstock.com

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Tackling the negative effects of fair-trade labelling

Since the internet and cloud technology transformed the way businesses operate, flexible working has almost completely removed these restrictions, and the benefits to businesses and the economy as a whole was recognised by the UK government when they changed the flexible working laws in 2014.

Today, more than ever before, it is now possible for businesses to build teams of experts that work remotely across the world. In the increasingly fast-paced and globally competitive market, an international team can give your business a competitive advantage, including the following benefits:

Talent

While technology provides the infrastructure and platform for most companies’ growth, it is really the minds and knowledge of the people within the business that will make the difference between success and failure. Finding the right person for a particular job is important, and if you are looking for a very specific set of skills you have a much better chance of getting a talented, motivated and available individual if you open your search up to overseas candidates.

Productivity

Whether they are based in the UK or overseas, giving individuals the opportunity to work in a way that suits them can empower employees to be as productive as possible. Business leaders need to trust employees to find what allows them to work most efficiently for themselves and then judge them on their output, rather than worrying that you have to keep an eye on them at all times. Many people actually find that not being tied to a traditional office environment allows them to shut themselves away from distractions to focus on the really critical tasks.

Culture

Company culture is something many business leaders work hard to develop, and many people are concerned that it may be diluted in some way if their teams are spread across the world. In reality, many businesses find that adding diversity to their company actually helps enrich their culture and may even make them more desirable as an employer. The key is providing a platform and environment that allows individuals to communicate freely, collaborate on projects and make sure that they themselves have a degree of ownership of that culture rather than feeling isolated.

Creativity

A team that has a varied and diverse background will inevitably have a broader range of experience and ideas to draw upon. Whether it is creative input for product features, marketing campaigns or how to tackle a business problem, an international team member can offer a fresh perspective that a team that is entirely based in the same office may never have thought of. They will see what is working for other businesses they encounter in their part of the world, and adapting ideas that work elsewhere can be an invaluable kind of innovation.

Responsiveness

In today’s fast-paced business world, customers are increasingly expecting a response or a solution to their problem quickly. If your workforce is tied to the same location and core business hours, that can means issues can go unaddressed or even unnoticed for a relatively long time in the customer’s eyes. By having a team that is spread across time zones, with a technology infrastructure that allows them to work flexibility, you can make your company much more responsive and agile, which will not only establish a reputation for good service but could also allow you to capitalise on opportunities much quicker.

Cost

London might be a hive of thriving start-ups, but studies also repeatedly list it as one of the most expensive places to live in the world, and these high costs are inevitably reflected in premises and wages. By building a team that works remotely you are not only eliminating the need for expensive premises and all the utility costs that come with it, but you may also find equally talented individuals with lower salary expectations.

Of course, while building a team of talented individuals around the world might offer you a host of advantages, there are inevitably significant challenges that come with it. However, leading satellite teams is actually less different to leading office-based ones than you might think, with offsite individuals just requiring a little more process structure and communication in order to thrive.

In most cases, the key is empowering people to be able to work proactively and collaboratively towards wider company objectives, and implementing the right technology infrastructure and trying to develop the right kind of company culture can help you to achieve this.

Bostjan Bregar is the co-founder and CEO of The 4^th Office, a structured cloud workspace that enables teams to collaborate remotely. For further information or a free trial for your business go to www.4thoffice.com

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Go Global – The benefits of an international team

Frances Dickens, CEO and co-founder of media barter agency Astus Group, which has offices in London, Australia and Singapore as well as a presence in Dublin gives us her six top tips for small companies looking to expand overseas:

Make the most of existing contacts and clients
Current contacts and clients are a lifeline for small companies moving into new territories. If you have multinational clients, ask them to introduce you to their local offices in your target market – if they are pleased with the work you do for them in one market, they may want to work with you in another.

Prospective clients will want to know about your relationships with other companies and if these include local divisions of multinational brands, this can act as a positive recommendation. In our sector – the media barter industry – we need to have brand advertisers (our clients) onside before approaching media owners; it demonstrates there is demand for what we offer.

Pick your launch country carefully
Countries with a culture and laws similar to that of the UK are a good bet for launching a new business. Australia is an easy country to work in from this perspective, and the fact that the economy shows consistent growth is a good precondition for launching a new business.

Similarly countries such as Singapore have created tax and legal systems that are conducive to setting up a new business. Corporate tax rates are about 8.5% up to profit of $300K, with a flat rate of 17% above so it’s perhaps unsurprising that the World Bank rates it first in the world for ease of doing business. Singapore is also politically stable and offers a good quality of life.

Work with locals and be prepared to adapt your business model
Navigating Singapore and other Asia Pacific markets may seem daunting because of the language barrier and cultural differences but hiring local experts will help, as will modifying your business approach. When launching in Singapore, we adapted our model to make it more appealing to Singaporeans by blending current and traditional Asian business practices. Our continued growth in Asia is in no small part down to being agile enough to adapt our business using on-the-ground experience and local expertise whilst staying true to a model we know works.

It’s also important to be aware that markets such as Ireland can operate quite differently from those of the UK and require a tailored approach. Culturally, Dublin sees itself as part of the Eurozone which means it is not acceptable simply to replicate a deal or approach that worked for the UK in Ireland. In order to access Dublin’s tight-knit business community, we hired a consultant with 12 years’ experience of the Irish market, and who knows all the Irish media owners and agency staff personally.

Sometimes being second helps
Sometimes it’s easier to penetrate a new market by arriving there second rather than first. We followed our main competitor into one of the Asia Pacific territories which meant that advertisers there were already familiar with media barter and so open to a fresh approach. By contrast, being the first mover in a new market means having to explain your proposition from scratch, without any points of reference as well having to contend with cultural, language, legal and tax differences.

Start small
Although going for a ‘land grab’ in a new market may seem like a good way to block competitors and roll out your offer, I would recommend proceeding with caution. It’s more sensible to hold back on investing heavily in expensive offices/IT/hiring lots of staff until you are 100 per cent sure the market likes your approach and offers growth potential over the long term.

Hire the best people you can afford
Hiring the best talent is crucial for a successful overseas launch. You will need people who have an in-depth understanding of the business, are excellent brand ambassadors and who also have in-market expertise. Trust and good communication are paramount because you won’t be on the ground permanently – thank goodness for email and Skype!

Image: Passports by Shutterstock

Read more:
Six tips for launching an SME overseas

America is the UK’s single biggest export destination, accounting for 14 percent of our export trade. The two have, in the main, enjoyed a long history with each other, a common tongue and similar lifestyles. However there are core differences – not just linguistically, but also culturally and legislatively which can raise potential issues for UK companies who want to expand their business by exporting to the US.

Understanding these disparities is key to forging and sustaining successful US exporting relationships.

1. Be aware that the US business culture is very strict – success is almost exclusively defined by financial reward, meaning that the work ethic is often more intense than it is in the UK.

2. Ensure that the literature you produce is checked by a native speaker – seemingly small differences between our two languages can make life very complicated.

3. Understand the legalities of each of the different states you export to and know that you are not dealing with one nation as a legal entity. State laws can vary dramatically, which can impact on key areas such as Intellectual Property and disputes.

4. Account for the expensive cost of insurance. Product Liability or Professional Indemnity cover will start at £5000 – before any risk has been identified and quoted. This cost will impact on your final profit figures.

5. Avoid using humour in business meetings – whilst Americans are famed for their quirky comedy shows, this does not extend to the work place and you may be viewed as flippant, unreliable and not seriously minded if you present a jokey demeanour.

6. Be aware that Americans do not always get irony! As a nation we frequently use this style of humour, but it is often difficult and confusing for some countries, including America, to understand.

7. From a marketing perspective, you need to understand that this vast country has many different regional characteristics, and you must be prepared to modify your content accordingly.

8. Respect the fact that religion is taken very seriously in America. It played a starring role in the founding of the nation and remains central to the beliefs of many Americans today.

9. Ensure you get your paperwork right – following the security issues post 9/11, the US tightened all of its security processes for cargo – submitting incorrect documents will lead to delays, which in turn can have an impact on your margins.

10. Give plenty of notice to your US counterparts regarding planned holidays – Americans tend to only take 2 weeks holiday a year, whereas the UK has a more generous system – this can be frustrating for US importers, especially if they are left waiting to receive goods.

With over 50 states, an improving economy and a large and diverse population, America remains an attractive proposition for many expanding UK businesses. For those who succeed, it is a land of opportunity, but success is not easy and any firm looking to do business state side should be under no illusion as to the time and financial investment such a move will cost them.

Lesley Batchelor OBE, Director General, Institute of Export

Image: USA via Shutterstock

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Whilst the risks of hiring people without permission to work are obvious ones, this same assessment process can often be missed with travellers staying in the UK for shorter periods of time. A typical scenario for these types of businesses may involve a colleague from abroad needing to attend a critical client meeting in the UK in four weeks’ time. The person attending is needed on time and will need a visa to come.

Moore Blatch immigration specialist, Simon Kenny comments: “Many UK companies are failing to realise that in these types of circumstances, it is the UK company that still bears the legal risk of any wrong decision being made about immigration compliance.”

Currently business visitors in the UK can come for up to six months at a time, but many require a visa in advance of travel. Work in the UK, either paid or unpaid, is prohibited to people with this visa, but some activities related to business are allowed here. Some of the activities presented as “permissible” appear to allow employment.

The key to making business traveller assessments is to consider the activity being undertaken in the UK. There is a list of what UK Visas and Immigration term as the “permissible activities” and gives a definitive distinction between what is a “work activity” and a “business activity”.

The risk involved in getting this assessment wrong is considerable. The individual travelling can be refused entry to the UK and is the most obvious immediate immigration risk. Immigration officials have a wide discretion about admission of visitors and decisions as to what is ‘work’ and ‘business’ often seem arbitrary. Such difficulties may also have an impact on future immigration applications.

Fines of up to £20,000 can be imposed by the immigration authorities penalising companies who ‘employ’ people without the correct permission to work. Employers may also find that any immigration problems with business visitors can lead to a compliance audit by the authorities and potential revocation of a licence to sponsor workers from overseas.

Kenny concludes: “Travel to the UK requires careful consideration of the employee’s proposed activity in the UK every time. Entry as a business visitor is not a suitable substitute for permission to work and there is significant risk to both the individual and the entity in the UK in hoping the travel will not be scrutinised.

Those responsible for global mobility should ensure these issues are addressed properly and there are suitable systems in place to identify risk.”

Read more:
Short-term business travellers present an immigration risk

As the US dollar grows stronger, US companies are seeing currency swings unfavourably chipping away at their profits; the Financial Times reported that Apple Inc. lost $2bn in the fourth quarter of last year due to unfavourable currency exchange rates as a result of a strengthening US dollar. This was over 10% of their net profits.

Given the capricious nature of currency markets, UK businesses currently benefitting from US dollar strength need to have strategies in place to deal with a strong dollar and the possibility of significant changes in the current dollar trend.

1. Timely Currency Repatriation
UK businesses need to gauge when to repatriate income charged in US dollars back to sterling, for use on home ground. For instance, a UK company invoicing in dollars may want to convert dollars back to sterling sooner rather than later, in case the dollar starts to weaken, resulting in less income per dollar earned.

2. Assets and Liabilities
UK companies with operations in the US need to ensure that their assets and liabilities are valued in the same currency as much as possible, so that any strengthening or weakening in currency does not affect their ability to finance their operations and business growth.

3. Robust Currency-Buying Strategies
Most important of all is the need for UK businesses trading with the US (or any other country) to set in place a currency strategy that helps them to mitigate risks should currency exchange rates move against them.

Currency markets can fluctuate greatly, and UK businesses need to be aware of the severe impact that this can have on their bottom line, as well as the steps available to mitigate the risks involved.

Carl Hasty, Director of SmartCurrencyBusiness.com

Image: American currency via Shutterstock

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Tips for UK Businesses Dealing With A Strengthening US Dollar

The UK remains Europe’s leading destination for foreign investment – and, in the global marketplace, is second only to the US for inward investment. In 2013, Foreign Direct Investment (FDI) in the UK reached an unprecedented £975 billion – an 8.3% increase that, according to the UKTI, underlines overseas investors’ long-term interest and confidence in the UK economy. Analysts estimate that the UK’s inward FDI stock could reach £1.5 trillion by 2020 – and with China recently announcing a £125 billion investment in UK infrastructure by 2025, and sustained investment from companies in the US, Canada, France and Germany, current trends reinforce the belief. In parallel, investment from the Asia Pacific region and leading emerging markets continues to rise year-on-year. It’s clear that Britain is not only open for business, it’s widely recognised as one of the most attractive markets on the global stage. But for foreign-owned companies seeking to trade in the UK, setting up – and sustaining – a business in an overseas territory presents numerous challenges. Making sure the inward journey runs smoothly and compliantly requires good, and on-going, professional advice that covers a rich tapestry of rules and regulations.

The immediate considerations when setting up a new corporate structure in an unfamiliar foreign environment are manifold; taxation, accounting, property and people are often the highest priority. In addition, aspects such as commercial contracts, intellectual property, infrastructure and regulatory compliance are also critical.

Beyond the essentials of the legal formation of a commercial entity, one of the most important early issues is securing the right human capital – and in the case of foreign investors this commonly cascades into challenges around immigration. Multinational companies setting up operations in Britain typically require key employees from their domestic market to migrate to the UK. These can often be senior managers expected to play a crucial operational role ahead of, and beyond, launch. However, with inward investment not confined solely to start-ups, the immigration challenge can also apply to foreign companies that have invested in – or indeed acquired – going concerns in the UK and similarly wish to bring key workers from their local market into the country. How effectively companies navigate that inward journey can have both commercial and human implications. Getting it wrong can lead to avoidable personal dramas at border control – and significantly undermine companies’ operational plans and growth strategies.

The UK government’s recent attempts to reduce net immigration have made it harder for people from outside of the EU to work in the UK without a commercial sponsor. As such, the most common mechanism to ensure an appropriate working visa and residency is to secure a Tier 2 Sponsorship license for skilled workers. However, as recently as November 2014, the UK Border Agency has reformed its guidance under the points-based system and is limiting the number of Tier 2 immigrants to fewer than 2,000 per month. In addition, the permanent right to remain under Tier 2 is also being made more difficult to achieve.

Securing a Tier 2 Sponsorship license can be a lengthy and onerous process. It requires proactive planning and a robust understanding of regulatory requirements in the UK. Moreover, the successful award of a sponsorship license will depend on companies meeting a range of criteria, some of which overlap with common aspects of employment law.

Ahead of any sponsorship application, companies must ensure they have the appropriate policies and procedures in place – not least employment handbooks and contracts of employment. The ability to demonstrate effective procedures, as well as ensuring that relevant processes and documentation are drafted correctly, forms an important part of the assessment process. In some cases, applying companies can be subjected to an audit from the UK Home Office.

For existing UK operations bringing in skilled migrant labour from a parent companies’ domestic market, policies and procedures are generally – though not always – sufficiently robust. But for start-ups, this aspect alone can uncover cultural differences in employment policies that must be overcome. A trusted legal partner that has experience of managing and responding to those cultural sensitivities can help resolve any issues and accelerate the application process. They can also ensure that all the relevant paperwork is optimally completed.

One of the most important procedures to have in place is an Absence Management system. Once a sponsorship license is issued, the company effectively becomes the Authorising Officer and is ultimately responsible for migrant employees. Businesses must therefore prove that their absence management systems protect against the risk of foreign workers going AWOL. Likewise, if an employment is terminated, businesses have a duty to inform the Home Office, but will retain responsibility for the individual until they have left the country. Once again, the ability to demonstrate effective procedures to manage the migration process, from end-to-end, is critical to the application.

Beyond the obvious business considerations, and the need to satisfy Border Agency requirements to secure the appropriate sponsorship and visa arrangements, immigration also involves important human considerations. Clearly, the major business challenge is to ensure that individuals gain legal entry to the country, but at both ends of every migrant employment the potential for impactful human disruption is significant. Failure to meet visa requirements at the outset can mean entire families are refused entry with distressing repercussions. Likewise, when a license expires, families face the risk of being deported. Sponsorship licenses are only maintained for fixed periods of time – but with the legislation that surrounds it both complex and evolving, the need to ensure that employees are supported with the best legal advice at all times is paramount.

Immigration is just one piece in the complex jigsaw of inward investment. As the rate of FDI in Britain continues to increase, any international business looking to set up in the UK should consider early engagement with legal and professional services experts. Inward investment is not a one-off destination, it’s a perpetual journey that encounters all of the common challenges that every business faces. These can encompass, but are not restricted to, taxation, employment issues, real estate acquisition, partnering, contracting, e-commerce and data protection. Securing the support of a full-service law firm can help foreign companies align for growth – and overcome the many pitfalls along the way.

To thrive, the most successful inward investors will seek proactive dialogue with a trusted legal partner and develop a long-term partnership that can support them at every point of the business lifecycle.

Britain is indeed open for business. Getting the right legal team on side can help ensure your company flourishes in its new environment – and that your long-term investment goes inwards and upwards.

James Townsend, Partner, Employment, B P Collins LLP

Image: Exports via Shutterstock

Read more:
A safe inward journey

The ONS also reported a £0.2 billion increase in exports, to £42 billion, and a £0.6 billion decrease in imports, to £44 billion.

Exporters should focus on emerging markets
The rise in exports is encouraging, but still phenomenally distant from the Government’s goal of achieving £1 trillion in exports by 2020. UK exports to the EU increased by £0.1 billion, as did UK exports to countries outside of the EU. This year, I have been stressing the point that, given the stagnation of the Eurozone, and the fact that there exist many other markets elsewhere, the UK should be striving to accelerate exports to countries outside of the Eurozone and the EU.

UK exporters need to focus on emerging markets in particular, like China. China’s move towards a free-floating currency has the potential to expand its involvement in international trade, not just in terms of exports, but also in terms of importing from countries like the UK. UK exporters need to seek opportunities and cut costs wherever possible.

What UK exporters need to consider in 2015
1. UK businesses selling their goods and services abroad need to be informed of the opportunities present in exporting to countries outside of the Eurozone, especially those with emerging economies. They need clear guidance on how to access support from the Government, for instance, by working with UK Trade and Investment (UKTI).

2. They need to know that funding is not the only aspect of finance – once funding has been secured, businesses need best-practice knowledge about how to handle the funds and cut costs. They may face a wide range of costs, from costs incurred by logistical strategies that have not been optimised, to hidden costs.

3. Given the growing uncertainty around global risk, currency markets are liable to shift significantly. UK exporters need to know how to plan their currency exchange strategies in advance in order to save money and mitigate risks on currency costs.

Read more:
What UK Exporters Need to Consider in 2015

Office Genie, providers of an office search engine that allows small businesses, startups and freelancers to search for and compare office space for rent, have approached women in business all across the world to share their advice and insights for other women looking to start or grow their existing business.

Rita Sheth is the owner and founder themanysides.com, an online retail shop that was launched to to encourage women to express themselves through fashion. The Many Sides features an eclectic mix of edgy, indie and global contemporary designer fashion. Rita curates fashion-forward pieces from emerging designers from around the world and features them in her shop and on her blog.

Below Rita discusses the creation of her business:

What made you decide to start your own business?
I think I have always had an entrepreneurial bent and always wanted to start a business at some point in my life. On my 29th birthday I wrote myself a bucket list of all the things I wanted to achieve and I later realized that being an entrepreneur, creating my own business and growing it, was probably the most fundamental thing on my list and which would lead to all the other elements I wanted from my life – freedom, creativity, contribution. In a nutshell when it actually happened it was very spontaneous and quick – I went shopping, had an idea, texted a friend that I was going to start this business, he said awesome, and then I just started it that week!

Did you experience any difficulties when setting up your business?
Yes! There are lots of challenges but at no point did I find that it was prohibitive – it just means you have to be braver or think creatively sometimes. The most obvious obstacle I faced was probably the fact that I knew nothing about the industry and had to get to grips with fashion jargon and those insider customs that exist in every industry. I think this kind of thing puts people off but you are always a outsider when you start out and you just have to realise that you will look, act, sound stupid in the beginning but you will learn fast.

What is your favourite thing about running a business?
I think that would have to be the fact that you can be exponentially creative and every idea is something you can try and test out no matter how crazy. There is literally no one to stop you from going in any direction you want and the sky is the limit that is something you don’t always get in a employed position. I get to make all the creative decisions about buying, branding and my message that I find incredibly satisfying.

What advice do you have for women who want to grow their business?
I would say that the most important thing is to just get out there and network with people in the industry whether this is online, via social media or in person. People are surprisingly helpful and its very strange that the right person can find you at the right time to help in various ways whether that is finding mentoring, advice, funding etc. I do think that having a mentor is a great help and its awesome to have someone to chat through your ideas and give you a steer that is objective and not involved in the day to day of your business. I also think that you should allow yourself to be fearless, brave and to take every idea seriously because you never know which one is going to work.

What is the one piece of business advice that every business, no matter the size, needs to remember?
I would say that the most important advice I can give is to act with integrity and respect others. Its very cheesy but even if you go away from a meeting or negotiation not having achieved what you want if you approach things with class, respect and integrity then you will make a positive impression in peoples minds and they are more likely to think of you again if an opportunity comes up to work together in future. It’s a small world and you do not want to be known as the person that asked for a ridiculously cheeky freebie or didn’t pay their invoice. Basically its a co-dependent world – you can’t just take, you have to think about others too.

If you move from the realm of retail to money and business management, you’ll see s similar picture, with a number of female entrepreneurs making waves. Barbara Turley, an expert in women and money management, has started her own business (energisewealth.com) in Australia from the ground up. Barbara offers money and business management insights in Australia and is looking to expand her reach to the UK, EU, and the US.

Below Barbara provides us insights on how to grow and develop your business:

What made you decide to start your own business?
Honestly I became quite bored and jaded with the 9-5 monotony of the corporate world. I had a burning desire inside to be a leader and to create something of my own so that fuelled my desire to launch my own company and really go for it. Over the years I spotted a need for a different approach to wealth, especially for women. Advice is important but a lot of people need education and confidence before they go for advice so they don’t get led down the wrong financial path. All of those factors together led to the creation of Energise Wealth – a global online platform dedicated to creating really savvy women.

Did you experience any difficulties when setting up your business?
Yes! Setting up your own business is a daunting task full of overwhelming emotions. It’s like a roller coaster that can take you over pretty quickly. The key to getting through this is to focus heavily on strategy and not get carried away with ‘shiny object syndrome’ and ‘busy’ work.

What is your favourite thing about running a business?
I love the dynamic nature of it and that sense of continual creation. Every day you go out and create. It’s a constantly evolving process that appeals to my personality a lot. I am someone who gets bored easily so running my own business gives me plenty of ways to stay interested!

What advice do you have for women who want to grow their business?
If you truly want to grow your business then you need to focus on strategic thinking and foundation building. The only way a business can grow is if you have a solid foundation in place that can then support growth. Time and time again I see business owners trying to build on very shaky foundations and ending up burnt out and exhausted. Usually they do not have the right strategy, systems, processes and automation in place to support healthy and enjoyable growth. The result is they end up chasing their tails, constantly putting out fires and being dragged from pillar to post. Build your solid foundation first and then look to leverage and scale it for maximum impact.

What is the one piece of business advice that every business, no matter the size, needs to remember?
No matter what business you are in – you are in the business of marketing and sales! The only thing that actually matters is how you are going to feed the need or desire of you ideal client or customer – as defined by them! Not as defined by you. Ask them, listen to them and then build products and services that will delight them based on what they want and have told you is important to THEM. If you do that then your products and services will sell themselves.

Finally, we have advice from Helen Moulinos. Helen started the creative business space1a.com in London with her husband 3 years ago. Helen and her husband produce British-made sustainable home and interior accessories, and business has been going from strength to strength.

Helen shares the secret to her business success below:

What made you decide to start your own business?
I started my own business for two reasons – the first was in response to a lack of British-made quirky home accessories. The second reason was that after many years of working in an office job I felt I had my future options were not necessarily personally challenging or fulfilling. Starting my own business addressed gaps in both my consumer buying habits and work life too.

Did you experience any difficulties when setting up your business?
Yes – many challenges. I experienced quite a bit of self-doubt and also found it difficult sometimes to take the leap of faith needed to push forward and conceptualise a growing thriving business. When you first start out and you create a product, you assume sales will just appear. A great lesson for me early on was that business needed patience, perseverance, learning and careful planning.

What is your favourite thing about running a business?
I really enjoy receiving letters from customers and hearing about how our products find their way to different parts of the world and what place in someone’s life they take on from there. Meeting suppliers here in Britain and also developing new products also top that list.

What advice do you have for women who want to grow their business?
Know your own mind. Everyone will have a point of view on your business, you need to research and identify your own options. Sometimes the right path and choices are unpopular and less chosen. It’s important to canvas and listen to other business owner’s experiences, but remember that just because it worked for their business it doesn’t always translate to yours.

What is the one piece of business advice that every business, no matter the size, needs to remember?
Cash flow management is one of the most important disciplines within our business. Keep an eye on spending and growth within the context of the size of your business. I would also add that creating a network of entrepreneurs you trust is really important as the work can be isolating. Having a group of friends who choose to live a similar life to you is very important for moral support and for discussing tricky problems.

Although these insights are aimed at other woman who are looking to start or grow their existing business, these are learnings that can be utilised by any small business or startup.

Read more:
What do women in business really think the challenges are?

Next week (10-14th November 2014) is the sixth annual National Export Week, a campaign to bring together public and private sector organisations to boost the UK’s exports.

The Government is all too aware of the importance of overseas trade for future economic growth, setting an ambitious target of doubling current figures to £1 trillion by 2020. Exporting is not for everyone, but if this is inspiring you to look to overseas markets to growing your revenue and profit, remember to do your homework! Below are some important things to consider before you venture overseas.

Research is key!
Before you commit to exporting you need to honestly assess your company’s export potential – both in terms of the business and the product or service you are looking to sell.
Detailed market research is essential to identifying and evaluating the target market. UKTI for example, can provide focused business advice and helps you assess whether there is a market for your goods.

Plan, plan and plan again
After the research, comes the export plan defining how you will enter the new market.
Some important things to think about include:

• A clear marketing strategy that incorporates international trade development and the necessary financial resources needed.
• Resource – Do you have the right people in place to develop the new export markets and adequate knowledge of the requirements of your chosen market – e.g. modifying packaging to meet local regulations and standards?
• Making sure you are fully up to speed with export payment mechanisms and export finance.
• Careful consideration of Selling and distribution in overseas markets. How will you organise your sales presence in export markets through direct selling, a strategic partner, a distributor, a sales agent, or your own local office?
• How will you market your products? You’ll need to appreciate the traditions, culture and legislation of the countries you are trading with to exploit your exporting efforts and customise your marketing efforts accordingly.
• An understanding of legal obligations as an exporter. You’ll need to familiarise yourself with the VAT rules administered by HM Revenue & Customs (HMRC).

With exporting identified as an important driver in the UK economic recovery it is definitely worth considering. Careful research and planning may appear time consuming in the beginning but are vital in avoiding any potential problems further down the line.

Remember that help also available from a variety of sources, including business organisations such as the Forum. For further information and advice on exporting visit www.fpb.org/exporting

Image: Exports via Shutterstock

Read more:
Top Tips for would be SME exporters

What was the Go Global Mission, why did you support it and what were you hoping to achieve?

The Go Global mission was hugely inspiring. Enterprise Nation organised a seamless three day event with some extremely talented British small businesses in attendance. I was really very impressed with the energy and optimism of the companies that attended and the sense of determination across the board to get out there and explore new markets.

Go Global was announced at the Home Business Summit (attended by David Cameron) in August and was launched mid-air, during a flight from the UK to the US, on the 25^th September.  It was the UK’s biggest ever small business trade mission, and saw 67 growing British businesses travel to New York to meet with Etsy, PayPal, eBay, Freelancers Union and Squarespace. The delegates also met with top entrepreneurs Judith Clegg and Heidi Messer, who shared their experiences of getting their businesses off the ground.

There’s never been a better time to consider growing your business outside the UK and exploring untapped markets. There’s an abundance of support out there, but we do hear from our customers that finding the right expertise is often the hardest part. That’s why we were delighted to be involved in the trade mission – to hear exactly what the challenges SMBs felt they were faced with and to demonstrate how access to the right communications tools and services can support businesses operating in international markets.

Why did you develop the research and what do you believe to be the most interesting findings?

The aim of the research was to understand how small businesses in the UK are growing and how they are exploiting other markets. We were also keen to raise awareness of why SMBs might not be fully exploring the potential of the global market and gauge their thoughts on what international trade means to their businesses.

We conducted the research with YouGov surveying 2,000 small businesses in the UK. The findings showed us that the future is looking bright with six out of ten UK SMBs anticipating that they will be doing business internationally by 2016 – a 20% increase on the number that are currently selling or sourcing products and services abroad. A fifth expect to increase the number of countries they trade with in that time, and over a quarter predict they will see more revenue from international sales by 2016.

Here are some additional insights:

• Younger SMB managers are more positive on expectations for revenue growth (23% more likely to project growth) and expansion in numbers of countries they trade with (60% more likely)
• Technology and marketing services companies are the most bullish on expectations for international expansion and revenue growth. Nearly four in ten (36%) IT and Telecoms SMBs expect to increase revenues from international sales by 2016, whilst over a third (34%) expect to increase the number of countries they trade with

What advice would you give to businesses looking to go global?

Firstly, don’t give up. I know it sounds like a cliché, but if you lack determination to trade internationally, you’ll never get out of the starting blocks.

In addition, from the research we’ve conducted, it’s clear that international trade and technology innovation are intrinsically linked. Those businesses that embrace technology and communications tools will be better equipped to build relationships with international partners and, therefore, improve their chances of developing strong global trade links.

Where do you think UK SMBs will look for growth opportunities and why?

Our research has shown that, whilst Europe and North America continue to dominate international trading relationships, at least one in ten UK SMBs say they are doing business outside of these markets. These SMBs in particular have grown up at a time when countries like China and India have become more viable trading partners and, as such, they are reaching out and seeking opportunities in these regions.

In addition, I think technology SMBs in particular have an opportunity to look at BRIC regions like Brazil, where new services, such as those in mobile, are being more widely adopted by consumers.

Can you provide details on a Citrix customer that is currently doing a great job in expanding their businesses, globally?

CritelliLaw, a global firm with fewer than 15 employees, has harnessed technology to bolster its legal practice and operate globally. By using the “proof of receipt” feature in Citrix ShareFile (our cloud-based file sharing and storage service), the company now has legal proof that digital files have been sent, received and opened – eradicating a cumbersome email process and speeding up approval time from weeks to just days. Video conferencing via Citrix GoToMeeting has helped the company to connect with employees remotely, whilst saving time and money.

CritelliLaw’s founder, Nick Critelli, says that his company uses GoToMeeting “to litigate in both the US and Europe, saving us time and money. It’s a great tool for us and without it I would spend half of my life on a plane. The face to face conversations and the ability to share documents on screen enable everyone in the meetings to communicate faster and more effectively. Embracing technology like this has helped us to keep the company small, focused, nimble and most importantly profitable.”

What does Citrix do?

Our mission is to enable flexible working and power business mobility by providing our customers with instant access to apps, desktops, and data across any device.

Most people know of GoToMeeting, which allows you to hold online meetings with HD video and screen-sharing with your colleagues, partners and customers wherever they may be based. We also have a number of other tools that improve ways of working including Cubefree, our app that aims to help people think outside the office cubicle and get down to business by locating nearby cafes and co-working spaces around the world that can be used to work remotely.

This year Citrix is celebrating 25 years of innovation, making IT simpler and people more productive. With annual revenue in 2013 of $2.9 billion, our solutions are in use at more than 330,000 organisations, and by over 100 million users, globally.

Read more:
Go Global: Andrew Millard

What does your company do?
iamadventures takes artists, entrepreneurs, and social innovators on creative adventures around the world. To be inspired, explore, learn and reach their personal potential through guided activities and through each other.

What products services does it provide?
Through guided creative activities, walking and collaboration within the group and communities that we visit, we help people to achieve their goals and find their truth. Using techniques from all different backgrounds and cultures we aim to grow each individuals human and personal potential so that in turn they can help others do the same.

Where did the idea for your business come from?
I’ve always been creative and interested in different cultures and people. When I was young, I lived in Greece where my grandparents, who were artists, used to take me out for long walks in the fields and amongst the olive groves to find something that would inspire us to paint. When I started my first business, iamsociable, I was offering guidance support and it occurred to me that people felt more comfortable talking whilst walking. Allowing their thoughts to move with them and their subconscious to shine through. Shortly after I walked the Camino de Santiago on my own I realised that I need to combine this thirst for inspiration and adventure with walking and personal development.

When did you start up, and what support were you given?
I started thinking about iamadventures only 3 months after I started iamsociable and began working on the idea whilst part of the School for Creative Startups (founded by Dragons Den Doug Richard). I made my own website, social media accounts and some videos and up it went in January 2014. The first adventure was in May and was the Camino Adventure – I thought it fitting as this is the walk that inspired me and that I had only completed just 9 months prior to it.

What has been your biggest achievement so far?
Finishing the Camino pilgrimage on my own even though I sprained my ankle in the first two hours! But also and perhaps one of the main achievements has been getting started and believing in myself and allowing for things to simply happen. I’ve met some amazing people along the way too and I couldn’t have done it without them.

What are you looking to achieve from the Go Global mission?
I decided to take this trip to New York because one of the main beliefs behind iamadventures is the idea of the human potential movement – which has been growing in the US at a larger scale than the UK – this I want to explore, as it could mean a more targeted audience in the US for iamadventures and what better way to explore it than to meet new people who live there and who want to live there.

The ethos behind iamadventures and their trips that include walking the Camino de Santiago and collaborating with entrepreneurs in Nepal has been inspired and is continuously driven by the belief that those who begin to unleash their assumed human potential often find themselves directing their actions within society towards assisting others to release theirs.

When I first spotted the opportunity to go on this mission one of the main deciding factors for me was the people that Enterprise Nation had secured to speak to us. In particular I was keen to hear what Etsy, Judith Clegg and Heidi Messer had to say about their own stories and what advice they had for us, as this is where I felt I had particular interests, but also and perhaps more importantly to form connections with them.

One of the most important things for me is to in fact forge real relationships with other human beings and I believe that this can only ever truly be done in person. So whether it’s networking, meeting or collaborating with the people I meet in New York or with the entrepreneurs, like me, who come along on this mission, I think having a new network of individuals to call upon will be the most valuable achievement for this particular mission. Particularly because the main purpose for me at the moment is to talk about my own mission and to spread the word and values that myself and iamadventures share.

Which countries would you most like to export to, do you see any hurdles ahead?
I would love to do the adventures in Chile, India, South Africa, Canada and the US. I would also like to connect more with the US and Canadian market, as I’ve already explained there’s a large demographic here that are interested in personal development and doing something meaningful. I think that the main hurdles will be in the logistics of getting things done on time and trusting that they will be carried out properly and to plan. One of the factors for iamadventures that could cause errors and affect time management could be language barriers and cultural differences.

What advice would you give to businesses looking to go global?
Make sure to do your research, find people that can support you both at home and in the countries you want to export to. Make contact with UKTI who can offer great advice and put you in touch with people on the ground. But most importantly don’t be afraid to do it. As you might find that you love what you’re doing even more and like Judith Clegg, end up staying in the country you’ve decided to do business in.

Read more:
Going Global: Natalia Komis

UKTI’s e-Exporting Programme is a response to how the rise of the web over the last 20 years has changed the way that UK companies succeed in the global economy. This will include an evolution in the support currently being provided by UKTI on export strategy. It will present key opportunities to UK companies wanting to use online channels to drive their exports.

This dramatic change in UKTI export advice, to include online opportunities, will be communicated through UKTI’s global network. This includes UKTI’s overseas network, allowing them to offer support to UK companies entering foreign markets. Advice available under the e-Exporting Programme will also be available to UKTI’s national network of international trade advisors, working with UK companies in every region across the country to exercise their export plans. It will also be communicated to UKTI partners within the devolved administrations in Scotland, Wales and Northern Ireland. UKTI’s overseas trade missions and events will also including e-exporting content and advice, as well as acting as a vehicle for UK companies wanting to enrol onto the programme.

Initially, UKTI’s e-Exporting Programme will focus on servicing the UK consumer goods sector, identified as the fastest growing sector for online exports. This service will include UKTI signing formal agreements with the world’s major e-marketplaces in order to allow UK consumer good companies to e-export efficiently through these goliath channels.

What is e-exporting?

The term e-exporting is defined as the act of selling your products overseas through the internet’s various e-commerce channels as a fast, more efficient route to new markets. This presents an alternative to the traditional model for exporting, such as setting up a physical presence in a new market or using a distributor, which can be timely and expensive.

Why e-export?

All businesses that are selling to global consumers (the B2C channel) should be examining how e-exporting and the use of multiple channels can benefit their global expansion. Companies wishing to gain market share globally must reach out to their target consumers through their chosen channels, which is increasingly online channels. In some markets purchasing decisions and brand trust are acquired primarily through online channels. Companies that do not operate in these spaces will not optimise their growth and seize market share.

Today, 70 per cent of UK retailers are using e-exporting to access international markets. This has helped to establish the UK as the most developed online market in the EU. By 2018, the value of UK e-exporting is estimated to be £66 billion (Source: IORMA, 2014).

UK companies are also in a prime location for e-exporting to the world as the UK has been identified as a global leader in online exporting (Source: Qubit, 2014). This is largely due to a global demand for UK goods, associated with quality, innovation and heritage. Global consumers are increasingly buying via the web and expect UK goods to be available to them to purchase online. With online consumers forecast to rise by 3 billion over the next two years, there is a huge opportunity for UK companies to cater for this audience by presenting their goods online, such as through an e-marketplace. This opportunity is particularly ripe for UK consumer goods companies, as the fastest growing categories for global e-exports are;

• Men’s and Women’s apparel
• Footwear and accessories
• Health and beauty
• Sport and outdoor
• Home and Garden
• Electronics
• Giftware and Jewellery
• Food and Drink (Source: McKinsey 2013)
• Specifically within these categories there is a global demand for luxury goods.

What is an e-marketplace?

An e-marketplace is an online location that provides a platform for retailers of all sizes to conduct business through e-commerce. Well known examples include Amazon, Tmall and eBay.

How can UKTI help my business to e-export?

UKTI provides support for businesses based in the UK wanting to expand overseas, particularly through exports.

This support is provided by UKTI’s vast network of industry specialists and advisors, who hold a wealth of knowledge on all the ways you can access a new market efficiently, including through e-exporting.

UKTI’s e-Exporting Programme will deliver a new enhanced suite of services for UK companies with global ambitions. This will include tailored advice specifically aimed at online opportunities for export-ready businesses. These added services augment the current opportunities for UK companies within the UKTI suite including the Export Communications Review.

Read more:
Lord Livingston Launches UKTI’s e-Exporting Programme

What does your company do? What products services does it provide?
Sales Coaching Solutions Ltd is a specialist sales and customer service, training and coaching provider. We work with start-ups, SME’s and small corporates business as well as business owners to increase their profits through sales. We genuinely believe when delivered correctly sales and customer service are one and the same. Lots of companies have fantastic products and services but no knowledge of the sales process, so we work with them to integrate this at the heart of their company. This method we create new habits and therefore change. Currently we work with business across the UK but are looking to GO GLOBAL!!

Where did the idea for your business come from?
I spent a lot of my working career as an international hotel manager in Australia, South Africa and the Chanel Islands and early on developed a love of people and high levels of customer service. On returning to the UK, I worked as an award winning sales person for some of the world’s largest Blue chip companies including BT, Yell and Douwe Egbert’s. Through my experience I’ve been able to develop a formula which provides fantastic results for my clients.

When did you start up, and what support were you given?
I set up my business part time in 2011 after a course from Business Link, which gave me an overview of the things I needed to create and how to develop my business. I believe specialist advice is invaluable and always take as much as I can when it is available.

What has been your biggest achievement so far?
Soooooo many!!! Seeing the results when my clients learn to sell, Winner of Small Biz Saturday, meeting Lord Young as the representative and spokesperson for Growth Vouchers, being in the final list of GB Entrepreneur of the Year and becoming an employer of 2 staff.

What are you looking to achieve from the Go Global mission?
The UK has several US Sales Training franchises which have made their way over to the UK, I am looking for opportunities to export my training and coaching to the US.

Which countries would you most like to export to, do you see any hurdles ahead?
I would like my brand to go Global, the obvious hurdle in some countries is the language barrier.

What advice would you give to businesses looking to go global?
Having worked and lived internationally the world is smaller than you think, BELIEVE you can do it and it’s amazing what you can achieve.

Read more:
Going Global: Alison Edgar

This represents a 20% increase on the number of UK SMBs currently selling or sourcing products and services abroad. Over the next two years, the 2,000 UK SMBs surveyed in 11 regions project that their international business relationships will increase in both scope and importance to their business.

• 20% expect to increase the number of countries they trade with by 2016
• 28% expect revenue from international sales to increase by 2016
• Nearly three quarters of those trading internationally say international business partners will be important to their business in 2016, over two fifths that they will be very important.

However, the report indicates that many UK SMBs are still not convinced by the benefits of international trading. The two biggest reasons cited for not doing more international business were that products or services weren’t relevant to trading internationally and there is more opportunity for growth locally.

The study highlights how UK SMBs are increasingly building relationships in new and emerging markets, as communication technologies and global logistics networks reduce the barriers to trade. Of those currently selling internationally almost one in two sell through the business’ own websites and a growing number are using online marketplaces.

While Europe and North America continue to dominate international trading relationships, at least one in ten UK SMBs say they are doing business outside of these markets. Significantly, younger SMB managers are more likely to be trading with emerging markets than those aged 45 and over.

These younger SMB managers are more positive on expectations for revenue growth and expansion in numbers of countries they trade with. They are also pioneering new social and digital communications channels to build and maintain relationships with international business partners, highlighting the role an increasingly networked world is playing in enabling SMBs to work with international partners.

However, younger SMB managers are also more likely to have employees on the ground in local markets, underlining the continuing importance of a local presence.

Technology and marketing services companies are the most bullish on expectations for international expansion and revenue growth. Nearly four in ten IT and Telecoms SMBs expect to increase revenues from international sales by 2016, whilst over a third expect to increase the number of countries they trade with. Unsurprisingly, it is also the sector most likely to use video conferencing to communicate with partners while marketing services SMBs are among the heaviest users of social networks.

Emma Jones, Founder of Enterprise Nation and organiser of the Go Global small business trade mission to New York on 25th September, agrees that International is fast becoming the de facto trading position for the UK’s small businesses: “With over two billion people and millions of businesses now online across the globe, it has never been easier for small businesses to trade internationally. In an increasingly digital world, many of today’s start-ups are thinking globally from day one and reaping the benefits, however there are also many small businesses that aren’t online and aren’t exploring the potential of international trade. Whether you’re a small business owner looking to take your first international order or expand into emerging markets there’s a wealth of advice, support and funding available to help you make your ambitions a reality.”

Simon Bullingham, CEO, We are Journey (a Brand & Marketing agency based in the UK) said: “Expanding our international footprint is crucial to our business as we specialise in delivering digital consultancy to hospitality and tourism clients. We know we have the technologies in place to work with international clients and partners, but the real challenge, as a small business owner is knowing where to go to access the right advice and support to start exploring new markets. We’re excited to be part of Enterprise Nation’s unique trade mission to New York to gain exposure to the right expertise so that we can make decisions faster and accelerate the international growth of our business.”

Andrew Millard, Senior Director, International Marketing, Citrix said: “Our research shows that international trade and technology innovation are intrinsically linked, and those that embrace communications tools are better equipped to build relationships with international trade partners. At Citrix, we are proud to be part of Enterprise Nation’s Go Global campaign and we look forward to discovering what international trade might look like in 2016 – and how the larger businesses of this world might learn from their smaller counterparts.”

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6 out of 10 UK SMBs will be Trading Internationally by 2016

The 65-strong collective of up-and-coming UK firms looking to take off in the US, is part of an unprecedented small business trade mission lead by entrepreneur Emma Jones, founder of small business network Enterprise Nation.

The two-day curated visit, subsidised and backed by London Gatwick Airport, worldwide leader in logistics UPS, global technology giant HP, PayPal and UKTI, is part of a wider 12 month programme of activity aimed at driving export growth amongst the UK’s small business community.

The mission comes in the light of a new report, out this week, which found British firms that export beyond the EU saw the highest growth compared to firms that only export within the European Union.

The findings from UK SME Exporting Insights, commissioned by UPS, showed 72 per cent of firms that exported beyond European borders saw growth.

While in New York, British delegates will have a hectic schedule including face-to-face meetings with US-based e-commerce platforms including Etsy, Indiegogo and Squarespace, as well as with angel and tech investors like Judith Clegg and Heidi Messer – both are British, but their investment work straddles the Atlantic.

There will be visits to meet New York’s hottest start-ups and intensive networking session with US firms keen to source products and services from the UK.

Emma Jones said: “It’s clear exporting is an important route to growth, and yet trade missions often focus on large and medium sized firms – partly because costs and time commitments often make them inaccessible to the smallest firms and start-ups.

“We wanted to offer a short, affordable opportunity for the growing number of small businesses in this country to help open up valuable connections, meet the right people and literally take their business to the rest of the world.

“An an excellent contact on the ground is an invaluable asset – and the chance to explore international markets in person can often elude even the most passionate entrepreneur.

“The trip will herald a 12 month national campaign which will include workshops, online webinars and access to advice from experts in global trade.”

There will also be an address from the US’s small business lobbying organisation, Freelancers Union.

The Go Global campaign, launched last night/Thursday September 25 aboard a Norwegian Air Shuttle flight from Gatwick to New York will offer expert advice on international trade to destinations including the US, China, India and Europe and will also cover international social media, website translation, technology for working on the move, and shipping.

Norwegian launched its low cost US routes from Gatwick in July – introducing new, more competitive transatlantic fares to the market.

George Willis, Managing Director, UK, Ireland and the Nordics, UPS said: “With ‘Brand Britain’ continuing to drive investment into the UK, there is a strong opportunity for ambitious SMEs to look to international markets to grow their businesses. However our recent research conducted with SME owners across Europe, found that perceived risks including administrative burden and a lack of information regarding customs regulations, are holding back businesses from exporting for the first time.

“At UPS we work with businesses big and small to take the unknown factor of international shipping out of the equation, allowing them to focus on what they do best, providing high quality products and services to their customers. We understand that having access to the knowledge, resources and a guiding partner during the first stages of export is vital to give young businesses the confidence they need to explore new markets and we are delighted to be partnering with Enterprise Nation on this important trade mission to the US, an ideal first market for small businesses to export to for the first time.”

Stewart Wingate, CEO of London Gatwick, said: “Businesses of all sizes need connections to key markets and we are delighted the UK’s biggest small business mission to New York has chosen Gatwick as its launchpad. Gatwick is consistently increasing its share of the business travel market, with 20% of passengers now flying for business. Small business thrives on securing value for money and Norwegian’s ground-breaking low cost, long haul routes from Gatwick to the US are demonstrating how much the aviation industry has changed and enabling more small businesses to explore vital new markets.”

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Small army of British firms land in New York