Expanding your business internationally can be an exciting prospect, but it’s not as simple as just deciding to sell to “the West.” In this episode of the Real World Entrepreneurship podcast, hosts Alan Clarke and Bhairav Patel dive into the intricacies of selling into new markets, with a focus on the UK.
The conversation kicks off with Bhairav sharing his recent experiences advising companies looking to enter the UK market. One key takeaway? The “West” isn’t a monolithic entity. Selling in France is vastly different from selling in the UK or Germany.
So, what should businesses consider when eyeing international expansion? Here are some key points:
- Know your customer: Understand who your target customers are, where they’re located, and who the decision-makers are in those companies.
- Recognize regional differences: Even within a country, different regions can have vastly different business landscapes.
- Understand cultural nuances: Business practices, communication styles, and even concepts of time can vary significantly between cultures.
The hosts emphasize the importance of doing your homework. For instance, they discuss how analyzing business distribution in the UK revealed surprising insights. While an area like Croydon might have 12,000 businesses, the vast majority are micro-businesses with less than five employees. In contrast, the greater Gatwick area has a higher concentration of larger businesses due to its proximity to the airport.
When it comes to the UK specifically, Bhairav notes some unique characteristics:
- Cold calling and cold emailing are generally less effective.
- Face-to-face meetings are crucial for building trust.
- British businesses tend to be polite to a fault – they may string you along rather than give a firm “no.”
The conversation also touches on why many Indian companies are looking to expand westward. With many Indian graduates returning home after working abroad, there’s a growing understanding of western markets and a recognition of untapped opportunities.
However, the hosts caution against trying to conquer too much too quickly. It’s not realistic to think you can simultaneously tackle multiple European countries. Instead, focus on understanding where your core customers are and where key decision-makers sit.
One fascinating point raised is how even small cultural differences can trip you up. Bhairav shares an anecdote about a misguided attempt at cultural connection in Norway, highlighting the importance of truly understanding the nuances of a culture before trying to leverage them in your outreach.
The hosts also stress the importance of understanding local laws and regulations. For example, cold outreach in Germany could land you in hot water due to strict GDPR enforcement.
Key takeaways for businesses looking to expand internationally:
- Understand your customer deeply
- Research the culture, not just the market
- Be aware of local laws and regulations
- Focus on specific regions rather than trying to conquer entire continents at once
- Recognize that selling tactics may need to change based on the culture
In conclusion, while international expansion can offer great opportunities, it requires careful planning and research. Don’t assume that what works in your home market will translate directly to a new country. Take the time to understand the nuances of your target market, and you’ll be much better positioned for success.
Remember, there’s no magic bullet for international expansion. But with thorough homework and a willingness to adapt, you can navigate the complexities of new markets and grow your business beyond borders.
