As the UK seems to be heading towards brighter financial times, an increasing number of small businesses are planning for growth through overseas trading.
A recent survey by Citrix and YouGov found that six out of 10 UK SMEs expect to be doing business internationally in 2016. This is a 20% increase on the number of UK SMEs currently selling or sourcing products and services overseas.
While the results show that optimism towards growth has been boosted among small businesses in the UK, they also suggest that many realise that international trading is vital if they want to pursue growth.
Tech makes it easy
Many small business owners who are just starting out in overseas trading will find themselves stretched to build relationships abroad while keeping the company going at home.
But, according to Janan Leo, founder of shoe manufacturer Cocorose London, it is surprisingly easy with the technology now available. “It’s not the same as being able to jump on the tube, head to a local cafe and physically sit opposite each other and chat, but technology has opened up our world and we’re so lucky to be able to work proactively and build strong relationships so quickly overseas,” she explains. Cocorose operates in Europe, Asia, USA and the Middle East. A large part of the manufacturing takes place in China. “I still believe in meeting personally, but this isn’t always possible, due to travelling costs and time. The use of email and Skype has helped immensely, as both make it so easy to connect over long distances and have a conversation.”
For Simon Duffy, the founder of Bulldog skincare for men, language can present challenges. “Fortunately a large number of people now speak English and it has become somewhat of a default language in business. I’m constantly impressed with language skills of our European partners,” he says. For the situations when there is a language problem he says Google Translate works well. “It is a dream because although it does not translate 100% accurately all the time, it enables you to decipher the basic message in an email or document,” he explains.
With business partners in Europe, Australia, New Zealand, North America and Asia, he stays in touch via GoToMeeting. “It is a fantastic tool that has enabled us to hold in-depth meetings with nearly all our export partners over the years. It is a simple and straightforward way to hold online meetings, webinars and training sessions from our London HQ,” he says.
Infrastructure challenges
But how do you set up and implement smooth communication in a country where the infrastructure may not be as advanced and the employees less used to using technology? David Hathiramani, co-founder of bespoke tailoring service A Suit that Fits says: “When we started with five tailors in Nepal we insisted that they all use technology and that was their bible because it had to be.
“Because we are 9,000 miles away you have to trust the system. We have built up a tailoring unit around technology.”
This includes a common email and messaging platform, which he says makes it feel like it is one team no matter where you are. It means that a shop assistant in a London studio can send a message directly to the tailor in Nepal who is stitching a suit with specific instructions from the customer in the UK.
While the infrastructure in Nepal is not strong enough to accommodate video conferencing every week all the heads of business have a call to discuss business objectives and progress. It is a straightforward, but important tool. “It keeps us moving,” he says.
One company culture
Operating across several geographies with a mix of cultures presents its own challenges. “It is a huge learning curve,” admits Hathiramani. “First you have to learn how the different cultures operate and then try to get everyone working within your company culture.”
In addition to a 70-strong tailoring studio in Kathmandu, Nepal and retail outlets across the UK and in Ireland and New York, A Suit that Fits is currently working on setting up an operation in India. But the business has come up with an effective way to spread an understanding of how everybody works.
To create a uniform company culture where everybody understands the part they play in the business, one year ago A Suit that Fits started producing videos. They were uploaded to YouTube to share with colleagues across the world.
“The tailors involved will create little videos themselves of how they do everything over there and it really informs the UK unit so it feels like one team,” he explains.
“It is interesting to see what everyone contributes to any order that goes through the system. We have had videos of our telephone team here, explaining to the company how they pick up the phone, how important it is making sure you say good morning and respond well to the customer.”
Leo from Cocorose credits technology with much of the company’s success in overseas markets. “Our strong growth overseas is due to technology helping to open up the world to us. We run an e-commerce website, which receives orders from far-away places, are active on a number of social media platforms which helps to increase brand awareness and sales, and have met and developed our relationships with some of our business partners,” she says.
Content on this page is paid for and produced to a brief agreed with O2 Business, sponsor of the supporting business growth hub.
Sign up to become a member of the Guardian Small Business Network here for more advice, insight and best practice direct to your inbox.
