A large audience of agency founders and owners recently attended a Rainmaker hosted seminar at London\'s Groucho Club. A panel of experts discussed expansion - both launching new services and setting up overseas. Rainmaker is increasingly retained by companies who have reached the stage where overseas growth is either attractive or already happening. In this latest Dimension, we\'ve summarised our panel\'s thoughts and advice regarding international expansion and the role new business activity plays in both market testing and successful launch. As always, if you’d like to talk about the piece or how we can help you win new business, please don’t hesitate to send me a message.

1. NEW BUSINESS DIMENSIONS 36
WIDENING THE NET
International expansion - time to take another look
In the last few years, recession, hesitant like to be approached by agencies), you’ll be on
recovery and uncertainty in home markets have the back foot before you’ve even started. Always
prompted many an agency owner to consider know what you stand for and communicate it
options overseas. The number of briefs we have clearly, but within the context of the market
responded to from agencies with international you’re targeting.
requirements has quadrupled over the last year,
with almost 40% of our client-base no longer Then, consider all the options for entry: Would
looking exclusively to the UK for new business. you contemplate buying a minority stake in a
However, while international expansion may local agency to minimise cost and risk in the
turbo-charge growth, it is of course not without early days? Could you partner informally with a
risk. Our Rainmaker seminar - Widening The Net local agency in order to widen your reach?
- featured advice from a panel with much (Though the biggest challenge here is ensuring
experience of seeking new business in this area: your agenda align.) Or to avoid the substantial
Ian Millner, CEO, iris Worldwide, Hamish Franklin, headache involved in merging or acquiring a
Director of Europe, Atlantis Healthcare, Scott whole business, is it possible to literally buy key
Garett, CEO, The Storytellers, and Gareth Dixon, people from an overseas business in order to get
Founder, Rainmaker Consulting. Taking into started?
account the advice arising might help you offset
the risks whilst embracing opportunities. Here is Beware the hidden costs - indeed potential
a summary of the main points: - illegality - inherent in some overseas expansion.
While the major outlay appears to be your senior
First and foremost, win your home games: If you people shifting focus to new horizons, we’ve
create the right conditions via strong leadership heard numerous reports of less conventional
and solid, profitable client relationships, territories expect foreign entrants to ‘pay their
opportunities for international expansion will way’. Costs you may not have bargained for can
present themselves. This will also provide you be sprung at any stage.
with the confidence to act.
Loss-lead with foundation clients if you must, but
Plans for expansion should be agreed among the know why you’re doing it and don’t overstretch.
principals from the outset, with regular forums to Consider offering a structure whereby you loss-
explore routes to develop the business – for lead initially but recoup on achievement of
instance an annual director conference where the certain results.
primary topic is ‘Where next for our agency?’
Don’t ignore internal comms: Irrespective of size,
It's important to really know your people: Only a as your team grows overseas you need clarity in
very small number are likely to have what it terms of the culture you want to create. You also
takes to set up a new division in a strange place. need a plan how to communicate within your
Identify and foster them. Primarily you’re looking team, to create the kind of internal dialogue that
for those with an entrepreneurial bent mixed with will enable this culture to thrive.
the ability to take initiatives with risk attached.
They must learn quickly from their mistakes. Don’t assume New York is America: If your
Critically, when you find them and employ them expansion plans include the US, be mindful that it
in these roles, give them clear ownership. can be very regionalised, and at times, insular.
New York is fiercely competitive from an agency
Be sensitive to local differences: If you don’t perspective, and there are plenty of other places
know how the locals do business (for example, in the US where there are lots of potential clients
what their attitude to networking is and how they

2. and far fewer highly effective agencies to choose
from.
Lastly, be realistic with timescales: It can take up
to 18 months to enter a market and then the
same again to make it viable. Things change so
quickly you need to be completely on top of your
game, so adjust your tactics as you go and watch
everything like a hawk!
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These points above are extracts concerning the
dimension of international expansion from our
seminar. However it also discussed expansion by
new verticals and by marketing discipline. For the
complete summary of Widening The Net, please
visit this link: http://www.rain-
maker.co.uk/upload/rainmaker_seminar_-
_widening_the_net_pr%C3%A9cis.pdf
The most effective new business consultancy to the marketing services industry; Rainmaker is part of The INB www.intelligentnewbusiness.com
Group. For further information please contact geraint.jones@rain-maker.co.uk, +44 (0)20 7837 1122 © Rainmaker Consulting Ltd. 2011