How to unlock global opportunities

The past few years have been relentless. The business world—like the rest of the world—has endured one geopolitical upheaval after another. But here’s some positive news: The appetite for international growth is returning. Four hundred and fifty thousand UK businesses are “poised to seize international opportunities,” according to HSBC UK’s report, ‘Going Global For Growth’. Eighty-seven percent of those already trading internationally intend to expand this year, with 33 percent targeting significant growth. Businesses yearning to dip their toe in international waters feel increasingly emboldened, too: 10 percent are eager to unlock global opportunities.

These businesses have much to look forward to. International growth can present “real ‘pinch me’ moments,” says Leah Hutcheon, Founder and CEO of online booking and scheduling system Appointedd, this year’s winner of the British Chambers of Commerce Export Business of the Year Award. “We work with LEGO worldwide to schedule their events and shopping. That, for me, was a brand I grew up with, a brand that my daughter absolutely loves,” says Hutcheon. “So to be able to say that we’re pairing with a brand like that on a global scale is definitely a source of pride for us.”

Of course, securing a brand like LEGO wasn’t just luck, it was the product of careful strategy. “LEGO had chosen to use a competitor after running an RFP. At the time, Appointedd was really early stage, but we kept in touch with the team at LEGO, and when the contract came up for renewal we were able to prove how Appointedd was a more valuable tool,” she says. Part of that involved sweating over how it differentiated itself from its competitors. “And part of that was, and still is, great customer service.”

Isolating your USP on an international scale is just one essential when it comes to global expansion. So, what other strategies are important? We solicited advice from Appointedd and others on guiding principles and pitfalls to avoid. Here’s what we learned...

"Before you even consider international play, you need to know exactly where you will be playing,” says Brian Allen, founder and CEO of Rovco, which automates and accelerates the planning, construction, development, and maintenance of offshore wind farms.

When the company was looking to expand, Rovco had to identify target markets with high growth potential. To do this, the team gathered data on international wind farms, examining planning documents for information on when and where they were going to be placed around the world. They combined that information with government net zero pledges; strong commitments indicated a greater market potential.

This research left Rovco with an epic spreadsheet of 3,000 planned wind farms, all allied with dates, sizes, locations and information such as lengths of cables and numbers of turbines. From that, the business calculated what “share of wallet” —the percentage of would-be customers’ total spending in this category—they could take in each individual market.

“And that actually showed the growth potential in each market, which allowed us to pick our top countries,” says Allen. “I’d counsel others to do exactly the same: you've got to find market sizes in your countries and make sure you lead by the data.” Of course, there are many ways to conduct market research—examining competitors, surveying customer insights—but the important thing is to find the optimal approach and execute it thoroughly.

You now have a shortlist of target countries. Prioritise the ones where you have the best product-market fit, advises Appointedd’s Leah Hutcheon. “Our go-to-market strategy internationally has been determined by where our technology is most valuable and impactful—the market has pulled rather than us having to push,” she says. “The market-leading timezone functionality that we have has meant that anywhere where domestic business is being done over multiple timezones is a great place to utilise Appointedd. As such, enterprise clients in the US and Australia were early adopters.”

As you prepare to enter new markets, never underestimate the need to localise the product. People, wherever they are, need to feel like a product has been made for them, says Hutcheon. Appointedd built a platform that underpins its software to enable it to spin up translated versions in a matter of hours, rather than days or weeks. “Without us translating the software into different languages, we just wouldn't have seen that growth,” says Hutcheon. “So it’s important to be respectful of your market and think about how you can make people’s lives easier.”

This goes for the service side as well. Think: how will you service your new international clients? Appointedd, for instance, opened a 24/7 offshore team to offer technical support. “We’re B2B SaaS (software as a service), so it felt like it was definitely necessary, especially with our enterprise clients,” says Hutcheon.

Find investors that support your vision

As Rovco prepared to expand into North America, it encountered a challenge: It had less access to capital than equivalent businesses in that territory. One US competitor received a valuation five times larger than Rovco, notes Allen, despite bringing in significantly less revenue. Succeeding abroad therefore required finding investors that brought more than money. They needed to find backers who supported the company’s vision and could bring other kinds off advantages.

These included Equinor, which is transitioning billions into offshore floating wind, and In-Q-Tel (IQT), whose involvement has been crucial to bolstering sentiment around the company. “In 2022, IQT chose to invest in the business,” says Allen. “In-Q-Tel invests on behalf of the U.S. national security community and America’s allies, and they have a really good investment pedigree. So that gave a lot of other investors confidence in the business because IQT really does know tech, and they know which tech is going to be useful—that was a great milestone.”

There comes an inflection point in the life of any scaling business, where, after developing a meaningful international customer base, it becomes necessary to open a local office. Staffing it with the right people is crucial, explains Allen, because those initial “boots on the ground” will set the culture for that new branch of the business.

That’s easier said than done. HSBC’s Going Global report found that while the issue of staff availability has improved by 9 percent on last year, it is still cited as a problem by 24 percent of surveyed businesses. How, then, do you source the right talent?

“In my book, you either hire your leads out there from very strong, good, personal recommendations from people that you trust,” says Allen. “In other words you look into your network and see who has got people—who has got friends, colleagues, folks they know—who are high performers in the area that you're trying to expand in.” Otherwise, the founder or the CEO must go. You must be the first pair of boots on the ground, and lead the expansion yourself.

Leverage existing customer relationships

Rovco’s first contract in Europe developed from the UK wing of the company passing on a recommendation to the German wing .“Our first European project was amazing, but getting your first win under your belt is hard,” says Allen. “Doing it from your existing customers is probably the best way. Because it's lower risk for your customer if they already know you.” And, once Rovco had fulfilled that European contract, he explains, that demonstrated a proven track record and other companies in that territory were eager to collaborate. “So the first one's hard, but after that, it's like playing dominoes,” he says. “And you have to give a little shove every so often when you haven't quite lined them up correctly.”

International expansion comes with numerous challenges, yet conquering these obstacles unlocks vast opportunities. As Peter McIntyre, Head of Business Banking at HSBC UK, points out: ‘‘Success breeds success when it comes to overseas trade. Businesses that have found creative ways to adapt and been able to grow internationally despite recent uncertainty are now looking to expand further. The higher the turnover from international activity, the better-equipped businesses are to continue that expansion.’’