Unpacking the Central South Mid Market |Issue 2 International Growth

Unpacking the Central South Mid-Market

The first focus area of our latest Central South Mid-Market campaign has been all about international growth and expansion. Unprecedented economic uncertainty, global trade wars and the impacts of leaving the EU at the end of January have and continue to be distractions that growing businesses can overcome. Doing business overseas hasn’t got any easier but nor has it got any harder so now is the time to seize the initiative… but not before doing your research.

The Central South Suitcase We asked ourselves the question: What would you put in a suitcase to showcase the very best of the Central South Mid-Market? and What can be learnt from its leaders and their strategies for success? This is our second look inside the Central South Suitcase, scroll down now to find out more about all things global.

Issue 2: International Growth | Winter 2019

Each year BDO identify the mid-market companies in the region who are being most successful in growing their overseas business. Nearly 50% of this year top 20 companies are new to the list, demonstrating that more businesses have developed successful strategies for exporting and selling services to the global market despite the political and economic uncertainty of the last few years.

TOP PERFORMERS

ARBINDER CHATWAL, BDO Partner, discussing International Day.

Click here to see the top 20 performers for international growth 2019

What we've heard

INTERNATIONAL DAY

HSBC Regional Director, Anthony Reed and BDO US specialist, David Butcher on some of the key learnings from the businesses they work with.

Useful information sources

Future fit FD

Against a backdrop of rapid developments in technology and regulation, the desire for growth, international expansion and consolidation in a number of markets, the remit for the ‘future fit’ finance director has had to change to keep pace with the needs of today’s mid-market business. As part of our Central South Mid-Market campaign, BDO in Southampton is working with CMA Recruitment Group to share ideas, knowledge and insights to support the successful FD.

Find out what we look for in our Top Performing FDs and how to make a nomination.

nominate now!

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Our latest analysis shows that the mid - market in this region continues to grow both domestically and overseas with consumer markets including retail and leisure, the services industry and manufacturing leading the way in the Central South. Considering the economic and political uncertainty in the UK and globally over the last few years, this is impressive but can it continue?

Partnering with HSBC, our first ‘International Day’ for the mid-market took place on 26th November. Kicking off with a breakfast workshop focused on how to achieve overseas success in uncertain times, attendees gained advice on doing business in very different markets – the US, SE Asia, the Middle East and UAE, India and, of course, the EU after Brexit.

HSBC's UK economist Elizabeth Martins set the scene assessing the current global economic situation. Although manufacturing seems to be struggling globally, the service sector and consumer spending are holding up much better, so currently there aren’t signs indicating a potential wider recession. However, European customers are diversifying away from UK suppliers due to the Brexit uncertainty.

In the evening, company directors took a deeper dive into what some are doing to Brexit proof their businesses, the challenges of IP protection when going international, raising funds as a tech company looking at global expansion and the potential hurdles for the central south as a region.

DO YOUR HOMEWORK

Research and repeat

Do your homework, then do it again. You can start with a scattergun approach but then focus in on specific regions or countries.

Getting the right person in local markets

Bring on board someone in the country who you can trust to manage relationships with your distributers and customers, and make sure you give them a vested interest in your success.

Fools rush in

Many businesses falter or fail overseas by rushing in too quickly and not being flexible enough to respond to changing situations.

Know your exit strategy

Know how your products will be distributed, how you’ll get income back to the UK, and how you’ll extract yourself from a market if you need to.

don’t underestimate cultural fit

One on the commonest reasons for failure overseas is not getting to grips with local cultures. Try and find out first hand and don’t ‘copy and paste’ your approach from one country to another.

Here are five tried and trusted ways to target new international markets:

BDO IBC – The BDO international business compass is an interactive tool which provides guidance and draws together numerous aspects regarding countries’ suitability as markets and production locations. www.bdo-ibc.com Trade Navigator – www.business.hsbc.com/navigator

Looking to the Spring Next out of the Central South suitcase will be a focus on specific sectors that are key to the mid market in our region.