INTERNATIONAL GROWTH

There is a large amount of free advice and government-backed support for UK manufacturers and service companies, which are planning to launch or increase sales into export markets. Whether you are a beginner or an experienced exporter, this advice is helpful and can be sufficient to get started, or make first moves into new markets, attend first local exhibitions, meet potential partners and build awareness of the local competition, regulations and entry barriers. 

But for the company, large or small, which sees real growth potential in one or more export markets and is prepared to invest to seize the business opportunities and lay the foundations for significantly faster growth, this is sometimes not enough. Professional support from former executives who have direct experience, knowledge and contacts in the market - and speak the language - will help that company to realise their growth expectations.

BGML has over 30 years of successful business experience in overseas markets including North and South America, throughout Western, Central and Eastern Europe, the BRIC countries (Brazil, Russia, India and China), South East Asia, Southern and North Africa and the Middle East. We have multi-lingual capability and network of associates and senior-level contacts in over 40 countries. 

These are some of the key service areas:

BGML has built, restructured and managed international agency and distributor networks, set up sales offices, service centres, assembly plants and manufacturing subsidiaries and has recruited and managed local staff in many overseas locations. 

 

To build further on that knowledge and experience, BGML applied to join the ibd Business Advice Group network. Within this network of approximately 200 independent business advisors, we have the expertise and executive-level management experience in most of the major global markets. Between us, there are not many international business challenges that we have not faced and managed.

 

BREXIT Planning – things to get in place right now

There are many questions to consider on future trade with the EU. While the facts and political positions are constantly shifting, it is, of course, impossible to define a comprehensive BREXIT plan. However, it is there are tasks that all exporting businesses should be doing now.  

Have you got these covered?

  • What EU marketing initiatives make sense to underline your continued market presence and ability to serve your customer groups?

  • How are you going to fight to retain your existing customers in EU markets - whatever the outcome of the trade negotiations, life is about to get easier for your EU competitors.

  • Is your current market presence adequate? Even with a full trade deal, retaining customers and winning new business will require extra competitive edge, well trained and supported sales channels and excellent customer service.

  • What is (or could be) the cost/selling price impact of BREXIT on your products in EU markets? 

  • What additional administration will you need?

  • How can you optimise your product HS coding to ensure that you are not falling under higher duties than necessary?   

  • What time delays and logistical challenges should you now be making allowance for?

  • What new technical issues or regulatory hurdles may now arise for your products in the EU? 

  • How do you intend to support your existing customers with customer service, parts and regulatory compliance?

Please call BGML for an initial discussion, free of obligation.

Entering new export Markets

If you are looking at new export markets, ‘Initial market exploration and business development’ could be an ideal service for you. This is a hands-on business development role in the target market, saving you the time and resources of your most valuable salespeople. With this service, BGML acts through local associates or own activities to explore your target customer groups, to identify the demand for your product, local market pricing, technical and import barriers as well as local and international competition. From this, you will receive an initial market report, with concrete sales leads to get you started.    

Please call us or request a call-back for an initial discussion.

Building existing export Markets

Whether you are a small SME with export potential or a large multi-national with particular growth constraints in specific markets, the task of managing international growth never stops. 

Building an international or export business can be fun, rewarding and profitable - if done properly. Conversely, it can also be a significant drain of time and resources, producing low-margin business, accompanied by complexity, cash flow strains, payment risk and contract liability. It should not be undertaken lightly.

If you are just starting out, BGML can help you identify target markets, plan your route to market and take the first steps. 

If you are a more experienced exporter, it is almost certain that one or more priority growth markets is not producing the expected sales growth and this could be costing the senior management a disproportionate amount of time and expense to try and resolve. Or you may be satisfied with the structure and performance in your Tier 1 export markets, but are looking for market intelligence, local knowledge and direct support in selecting, entering and growing in your Tier 2 markets.  

BGML offers the entire spectrum of support for new exporters as well as experienced old hands.

 

Please call to discuss your particular export market growth challenges.

 

Establishing sales offices or manufacturing operations

For many companies, there comes a moment in the evolution of their international activities, when it is time to establish a company presence. Your sales in this market are stable and growing (COVID-19 permitting) and you have established a degree of customer loyalty from a core group of customers. You see the potential for significant sales growth and your existing agent/distributor may not be capable of delivering this alone. If the market potential is big enough, this is the moment when many companies establish their first permanent presence on the ground for sales and/or customer service. 

But the move requires a leap of faith and the culture gap can be large, especially if a new local manager is employed. The amount of management and company support time in the early months and years is often underestimated, as are the training and set-up costs. Against this, the expected uplift in sales arising from physical presence in the market is frequently overestimated and slower to materialise. 

A less than positive experience in this first international move can set back the company’s international growth ambitions by several years, so it is important to take the time and trouble to get it right. 

BGML has the experience and international network to support you through this phase.

 

If local assembly or manufacture is under consideration in a particular market, there is a huge range of questions that need to be addressed – to name but a few: 

 

  • The market, competition and customer requirements need to be mapped thoroughly. 

  • Political and legal risk needs to be clearly defined.

  • What is the strategic plan – Is the move intended primarily for the local market, or re-export within the region; Are we “offshoring” for lower cost manufacturing, to supply third markets?

  • Duties and trading regime need to be fully researched.

  • What services (assembly, customer service, full manufacture) is it appropriate to offer in the first phase?

  • What are the legal constraints (if any) of foreign ownership? 

  • Does it make sense or is it essential to find a Joint Venture partner? Is there a suitable acquisition target?

  • How easily can we repatriate the assets if things go wrong?

  • Where (which state or region within the country) do we want to establish operations? What FDI incentives are available in this state/region? 

  • Do we have a senior manager whom we would trust to set up and run the business (and who is prepared to live there)?

…and many more. 

BGML is able to assist in all phases of the project. 

 

Please call for an initial discussion.

Full-Spectrum - range of international growth services

BGML offers the full range of services to help manufacturing and trading companies generate maximum return on their investments in export markets. Here is a list of common export tasks – challenge us with these and others!

  • Initial market exploration and business development

  • BREXIT plan

  • International growth strategy

  • UK inward investment and operational support for non-UK companies.

  • Partner search (agency/distributor/JV partner)

  • Market analysis

  • Market entry plan

  • Internal export skills audit – training and recruitment

  • International distribution chain strategy and partner assessment/improvement.

  • Acquisition target search

  • Greenfield overseas manufacturing planning – concept to start-up

  • Overseas FDI-incentive negotiations with host governments.

  • Target market competitor intelligence and technical standards analysis. 

 
 
 
 
 
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© 2020 Business Growth Management Ltd

Contact Us

Business Growth Management Ltd

Argoed Lane

Overton-on-Dee

Wrexham LL13 0HH

United Kingdom

 

Tel: +44 (0) 1978 254954