Charles Burch suggests that firms should look to international markets to help combat domestic growth problems

1. September-October 09 Construction Journal 13
International – Overseas expansion
Going global
Charles Burch suggests that firms should look to international markets to help combat domestic growth problems
here is no greater spur to a business than
a domestic recession to encourage
thoughts of international expansion.
“Export or die!” was the rallying cry in the
1970s and 1980s when UK businesses
turned to flourishing overseas markets to
compensate for sluggish demand at
home. This time it’s a little more
complicated both because the UK,
like many developed Western economies,
is now largely a service economy and
also because this recession is global. So
the challenge is greater than before but so
are the opportunities. The global nature of the
world economy has opened up vast markets,
especially to service businesses that have the skills
and expertise needed by rapidly developing nations.
There are two instinctive – and wrong – reactions
to this challenge. The first is to translate a brochure/
manual/website into three languages and jump on the
first available plane. The second is to sigh deeply and
give up because it all looks too difficult. Sooner or
later all successful businesses go international. It
takes hard work and a strong nerve but the rewards
are often huge. Here are some practical ideas on how
to expand overseas.
1. Make sure you know your strengths
Revisit your business strategy and be certain of your
Unique Selling Propositions – your USPs. These
should be equally attractive in international markets,
but do you need to repackage them in some way to
remove any obvious domestic slant?
2. Think about ‘transportability’
This is an obvious issue for physical goods and a
more subtle one for services: which core skills in a
high wage economy can you sell at a profit when
local alternatives are bound to be cheaper?
(Especially when you may have the extra cost of
relocating key staff to the new country to kick-start
the business.) Combining with good local service
providers may reduce your slice of the cake but it
will ensure premium costs are kept manageable.
3. Get free help
All governments have trade organisations that will
help businesses to sell into foreign markets and
much of their advice, at least at the pre-sales phase,
is free. UKTI1
and Enterprise Ireland2
for example
not only have home-country-based staff but an
international network of offices to give in-country
help. These are usually staffed by knowledgeable
local business experts who can provide contacts
and set up meetings.
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4. Look for local partners
These may be current clients who have gone
international and will value a known, trusted supplier.
There will also be local businesses in your sector
that you may see as competition – but which by
partnering with you could move themselves up-
market and provide you with a stream of business.
But don’t be in too much of a hurry; you need to
choose your partners carefully, making sure you don’t
just go with the biggest or the most eager but with
the one you can really work with effectively.
5. Build trust through business relationships
Again this means taking time – to understand the
culture, adapt the way you do business so that you
fit in and ideally to learn the language (even if this
means just a few polite sentences at the start of
a business meeting). Also, ensure you dedicate
resources to give support to your new ventures:
staff used to dealing with domestic clients will tend
to leave the ‘foreign’ ones to last because they
perceive them as more difficult to deal with.
6. Commit your business for three years
Going international isn’t easy and the results are
never instant. You will make mistakes – every
business does – and you need to learn from these
and not be tempted to throw in the towel too soon.
Put together a realistic business plan that recognises
the up-front investment you need to make.
Working internationally expands the mind as well as
the sales figures. Meeting and working with people
from other cultures is fascinating, fun and enriching,
both personally and to your business. Do it properly
and enjoy the ride.
Further information
1
UK Trade & Investment,
www.uktradeinvest.gov.uk
2
Enterprise Ireland, www.enterprise-
ireland.com
Charles Burch has marketing
and general management
experience in the engineering
and infrastructure sectors and is
an independent consultant and
member of the acumen7 network
charles@burchconsulting.co.uk
Sooner or later
all successful
businesses go
international. It
takes hard work
and a strong
nerve but the
rewards are
often huge
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