BEN Networking - New Markets Abroad July 2012

BEN Networking Event

New Markets AbroadBristol & Bath Science Park,12th July 2012, 6-9pm

in collaboration with:

Practicalities

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emergency exits

Networking

Keep in touch!

Upcoming BEN Networking EventsTheme When Where What

Summer BEN Social Event

16th August 20126.30 – 9.30pm

River Cruise to Beeses

• Cruise Bristol Harbour• Head out into countryside• BBQ at Beeses Tea Rooms• Bring friends and family

Technology Update – Future Manufacturing

6th September20126-9pm

Bristol & Bath Science Park

• Leading edge technologies• Measurement – LIMA• Simulation and composites

Making the Perfect Pitch

11th October 20126-9pm

Bristol & Bath Science Park

• Tips and pitfalls• What investors are looking for• Get the tone and body language

right• Preparation for Venturefest

Venturefest Bristol2012

Wednesday 7th November 2012All day

UWE Conference Centre

• Keynote speakers• Workshops• Innovation showcase• Pitching panel

VenturefestBristol 2012 1-day event on 7th November at UWE Conference Centre Registration opens on 18th July ‘bringing together innovators, entrepreneurs

and investors to make things happen’– Keynote presentations + workshops

– Innovation Showcase + support exhibitors

– The Pitch

– IP Clinics + Funding Clinics

This Evening’s Programme6:45-8.30 Speakers

Introduction Alastair Watson BEN

Key Note Paul O’Collins UKTI

Views from the coal face

Tom Jarman Biocentre Technology

Mark Ellis Mervarde Ltd

Chris Swingler Propath Continental

Q&A

8:15-9:00 Networking

Exporting – Is it for me?Suggestions on how to become an effective exporter

Exporting 12th July 2012 9

Paul O’CollinsProject Manager – Public Sector ContractsBusiness West

UK Trade & Investment | Exporting for Growth 10

Protect and GrowExporting can help you survive and grow. There are real opportunities and real support activities to help you trade internationally. The UK offers exporters a market with few barriers to entry.

Top 10 products and servicesWhat we sell overseas


6.Aerospace (£7.6bn)

7. Telecoms (£7.6bn)

8. Organo compounds (£5.3bn)

9. Measuring/Analytical (£4.8bn)

10. Alcohol/beverages (£4.6bn)

Top 10 Products (up /down)

1.Pharmaceuticals (£16.9bn)

2.Petroleum related (£12.4bn)

3.Automotive (£11.8bn)

4.Other oil related (£9.9bn)

5.Engines/motors (£9.6bn)

Changing world ?The world is converging


Rapid growth in internet access

Demographics

• Western World

Long lives, small families

• Developing World

Short lives, large families

Example

• 1.3bn population in China

• 314m middle class in next 5 yrs

• Shenzhen 12m population

• 100m urban residents since 2006

• 100’s of millions getting out of poverty in Asia

‘The Asian Tilt’ - The move from West to East

Emerging markets are driving recovery

Export in the South WestThe facts…

• 196,605 VAT registered companies (9.4% of UK)

• 5,700 companies export from the South West 50/50 split goods / services

• South West lags behind the rest of the UK in terms of export

• National Challenge is to increase number of companies exporting from 20% to 25%

13

4.3% GDP

Challenge is to boost exports and increase number of companies exporting

UK Trade & Investment | Exporting for Growth

Source: HMRC and UK Trade & Investment

Helping South West exportersAcross sectors, markets and across the world


The world awaitsEconomic growth forecast

15UK Trade & Investment | Exporting for Growth Source: Price Waterhouse Cooper

The Export Journey

• If you don’t know where you are going, you don’t need a map.


What type of exporter are you?


Source: UK Trade & Investment

Strategic – based upon research and analysis

Adaptive – “How about selling this in xxxxland ?”

Reactive – “You want it for where?”

Passive – “How did that happen?”

What gets people into export?Some examples of how companies become exporters


• Unsolicited enquiry

• Over selling

• Enquiry from a prospective sales channel

• “Cunning plan” suggested by colleagues, suppliers or friends

• Attended an international trade event

• Relatives live there

Evidence shows that new exporters are likely to improve their productivity by a third in their first year

33%Source: British Chambers of Commerce

Or....it forms part of a strategic plan for growth

Rising to the challengeLots of reasons why not to do business internationally


Resource, availability and cost

Legal, regulatory and IP issues

Insufficient margin in product

Finance and cashflow implications

Selecting channels to market

Managing risk and getting paid

Language and cultural barriers

Logistics

Loss of focus on domestic market

Loss of control

Why exporting is good for businessBecome more dynamic, innovative and successful


60%UK companies that export are responsible for 60% of national productivity growth

Companies that export:

• More productive and innovative than non-exporters

• More resilient to an economic downturn

• Improve their financial performance

• Better international profile and brand recognition / value

• Are more likely to stay in businessSource: Nottingham University / UK Trade & Investment

The Export Formula

• For those who like neat formulae:

Pr + S((T + M + R )F * (I))Pl/Rk = E


The Export Formula

or:

Products and Services*((Time + Money + Resource )*Fear * (Information))*

Planning/Risk = Export


5 Steps to Export


Create an export culture - share the dream


Creating an export culture


Mine your resources, your clients and your network.


Employees, Associates, Suppliers

What do your customers do with your products?

Who knows who or what?

International Trade Solutions - South West England3 Support Agencies – 1 point of access


International Trade Adviser

How UKTI support can help youWorking with European Partners

Type your title and date here 00/00/0000 28

Enterprise Europe Network

Project funded jointly by the EU and by UKTI

Support for SME’s wishing to operate in Europe with help to implement competitiveness and innovation initiatives

Providing information and advice on trade in Europe

Foster international business cooperation

Stimulate innovation particularly in joint R&D and technology transfer projects

EEN Capability

600 host organisations

51 countries

4000+ staff

EEN operates across the European Trade area covering > 21m businesses and a population of over 700m

Also includes non EU countries Russia, Israel, USA, Japan S.Korea and Chile



Enterprise Europe Network

EEN Core services include

Access information through Partner Network

IP Support and advice

European R&D funding guidance

Access to over 15,000 business collaboration opportunities

Information and advice on EU Regulation and Legislation

Partner search for commercial, technical and R&D collaboration

Trade Show and Brokerage (B2B) support



ERDFExpertise in every aspect of international trade


ERDF Internationalisation Programme for South West eligible companies

- Enhanced support to help grow your business through export

- Grant funding (£1,000 up to £25,000) 2:1 match

- Additional support in the form of:-

International Trade Advisory support, Research, Events, Clinics and Business Development Programmes

UK Trade & InvestmentOpportunities for British firms around the world

32UK Trade & Investment | Exporting for Growth

UK Trade & Investment helps UK-based companies succeed globally and assists overseas companies to bring high quality investment to the UK.

Global reachThere are opportunities for UK exporters in all areas of the world


British Embassies and Diplomatic offices based in 96 markets, with 2,400 UKTI staff that offer local, in-market knowledge and expertise.

Delivering the difference

TradeShow Access

Business Language & Culture(ECR)

Market Visit Support

Export Market Research(EMRS)

Overseas MarketIntroduction(OMIS)

ExportTraining(P2E)

Develop Export Strategy(G3)

Tactical

Strategic

UKTI core offer provides well defined incremental support to SMEs

Intense Support for Export Growth

Valu

e A

dd

With intense support from International Trade Advisers to provide customised export solutions to SMEs

UK Trade & Investment | Exporting for Growth

How UKTI has helpedSome key figures on UKTI activity

• Every £1 UKTI spends, £22 is generated for the UK economy.

• UKTI’s financial benefit to businesses across all trade services £6 billion in 2011 (up from £5bn)

• Helped create more than 126,000 jobs in UK

• Over 3,000 companies increased R&D activity in the UK as a result of UKTI support.

• UKTI assisted 24,400 companies to exploit opportunities in overseas markets over a 12 month period.

35UK Trade & Investment | Exporting for Growth

24,400 CompaniesBenefited

Over 3,000 companies increased R&D activity as a result of UKTI support

Access all MarketsPackage of support to help companies grow exports


Our goal is to help companies to export more

Intense programme of support to help overcome barriers and manage risk

Help to grow export in new markets

Diverse, flexible and customised support

Support based on readiness, competence, capability and desire to grow export sales

Getting it rightUse the assistance available to:


1. Research your market and choose

well

2. Create an export strategy in line with

your current /planned capabilities

and ambitions

3. Understand tax and duty

4. Choose and develop a distribution

model

5.Sort out contracts

6. Establish the effect on cashflow

and profit

7. Sort out logistics

8.Protect your Intellectual Property

9. Make sure you get paid

10.Resource up and stay the

distance

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THE UK HAS THE MOST OPEN AND BUSINESS-ORIENTATED ECONOMY OF EUROPE, WITH THE MOST FLEXIBLE LABOUR MARKETS, AND THE

LEAST RESTRICTIVE SYSTEMS


How to contact UK Trade & InvestmentFor help, advice, access to International support programmes

0845 6060969

CallInternational Trade Centre:

0845 6060969

[email protected]

[email protected]

Local help from the International Trade Centre

• Access to International Trade Advisers and support programmes

mailto:[email protected]

40

© Keydynamic Ltd

New Markets AbroadTom Jarman

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Tom Jarman

• Engineer• Product Manager - CEO• Generating Value through

Technology and Markets• International / Partners• Renishaw … Tellermate …

Screen Technology … Beach Solutions … Chevin … Biocentre …

• VC – MTI• Many funding rounds,

exits through trade sale, IPO and secondary

• Cradle to exit, funding to returns; technology, to market, to business, to wealth

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Other Side of the Chasm?

• >95% export• 90% GM core products• 90% + market shares• Still managed by the founders• Still >50% owned by the

founders• £M’s pa dividend income• >£1Bn market cap

© Keydynamic Ltd

Chasm Crossing – The Challenge for Technology Businesses

G A Moore. 1991 and later …. Differences?

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Chasm Crossing – The Challenge for Technology Businesses

• Founder / Owner’s Attitudes – Endeavour …. Sleepy Decline

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Chasm Crossing – The Challenge for Technology Businesses The technology adoption chasm New markets, new geographies chasm Funding chasm Management / leadership chasm Strategic growth chasm Exit chasm

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Our Kind Of Product• Product which is a big step forward for the

industry / market – Major USP’s• USP’s OF VALUE to target customers• Core USP more than just price or/and brand

• Not easily copied• Protected IP

• Markets with significant geographic factors• Modest marketing budget

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New Market ChasmPick a chasm – not all are equal

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New Market ChasmPick a chasm – not all are equal

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• Strategically Significant Market• Ease entry to other markets / reference / partner / OEM

• Ability to access• Identified partner• Benign competition• Killer USPs• Ability to support• Resource compatible – can you do it!

© Keydynamic Ltd

Be Prepared

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• Product• Partners• Pricing• References• Support• Supply• Market knowledge• Competitive positioning• Targeting• Goals

© Keydynamic Ltd

Think outside the box

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Think outside the boxTotal Product Marketing

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• Product – whole product / system• Partners• Pricing• Competitive positioning• References• Support• Supply

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Be Prepared• But only just

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Find a local champion

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Find a local championOptions:

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• Distributor• Agent• Franchise• OEM / ODM• Direct• Subsidiary• Customer / JV

© Keydynamic Ltd

Find a local championCharacteristics:

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• Believer – from a position of knowledge• Hungry• Motivated• Driven• Helpful• … and preferably connected

© Keydynamic Ltd

The Value of Partnerships

• Supply Chain Investment, Capital and Working Capital• Investment, Direct and Indirect (eg licencing)• Broaden Technology Base• Spread Investment, Research, Development etc• Provide Leading Edge Technology• Market Access• Local Knowledge• Potential Acquirers• Allow Business to ‘Punch above its Weight’

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Be Present

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Be Present

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• Physically, and in commitment• Local people• Visit, spend time• Communicate – two way• PR and Web/social• Language• Listen, and respond

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JFDI

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• Don’t dither, don’t over-complicate, deliver!

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JFDI

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• Believe in the dream and GFI

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JFDI

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• ACPMM – firewood!• Renishaw – Mitutoyo• Tellermate – Mouldings• Screen Technology - Taiwan

© Keydynamic Ltd

Don’t get lost

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Don’t get lost

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• Be focussed and driven• But not blind• And not inflexible• Listen to customers

- don’t be afraid to believe better- eg Renishaw, Tellermate, Dyson

• But recognise the dead horse

• Impossible?

© Keydynamic Ltd

How to fund the (ad)venture

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Lots to observe but in summary•Its expensive, and far more time consuming than you want, and very draining resources•Look to partners, suppliers, customers, channelbefore funders (bank, VC, friends and family etc)

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Be lucky

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Be lucky

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• Focus, but don’t put all your eggs in one basket – a paradox?

• Be able to cope with challenges – how?• Keep your eyes open• Encourage people to help you – give them

reasons• Be able to respond to opportunity

© Keydynamic Ltd

• Choose your chasms• Be prepared – but only just. Plan and monitor,

don’t paralyse• Find a local champion : hungry, committed and

able : incentivise!• Be present – communicate• JFDI• Don’t get lost – be committed, but not blind• Fund the venture – partners!• Be lucky – give yourself chances and react

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Questions : Thoughts : Input ?

[email protected]

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HELPING HIGH GROWTH SMES TO ACCESS NEW MARKETS ABROADMark Ellis, Mervarde Limited 7th July 2012

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Introduction and Context72

My background Real-time Software Engineering background Bag carrying sales guy Sales Manager, Sales SVP Managing Director

Experiences 3 * UK VC backed organisation (3i, Questor) 1 * Finnish backed (Connor, Ferd) 1 * PE (HG Capital) Verticals

Document Management in Life Sciences Outsourcing and Hosting in Accountancy and Legal SME Fuel saving / Green energy Maratime.

So I have a few badges

My Metaphor73

Mountains & climbing expeditions Inspiration

Sheffield Climbers Rebecca Stephens

My mountains…

Experiences of accessing new markets

74

UK based targeting W. Europe, Middle East & Japan

(B)leading Edge Software Technology, B2B

So how do you do this?75

Establishing base camps76

Sales, pre-sales and consulting Local corporate entity Hiring

Hiring is difficult, a local, a native Training and Indoctrination

Training them at your HQ, continue to train them Technical and business Belief Socialise with them

Make sure that you are hiring skills and experience, not strong bilingual speakers

Work with Partners Get references

Localise Marketing Have a country & market plan

Use it as an “aide memoire” and corporate memory Don’t be afraid to change it Give it time 4-6 months

Cultural Issues77

Diversity of issues Italian Contracting processes Japanese entertaining UAE partnership promises Business ethics – gifts, bribes and entertaining

Effort Required Pacing your self Quarter ends, Year ends Marathons and sprints

Success and Failure Have a medium term view You need pockets Expect the first foray into a market to fail

Failure will help you learn and focus Manage the joining and leaving of staff professionally

And Finally…78

You only have 2 real problems:-Expectation setting

Internal & ExternalCommunication

Reaching the summit…79

So you make it to the peak…Result?

Trade Sale? Acquisition by larger organisation

Losing control Cultural and Organisational issues Loyalties change

Staff departures Professional, humane and respectful Fast exits

What about you? Should I or stay or should I go ?

Climbing Kit80

Preparation And Homework “Crossing the Chasm” - Geoffrey Moore “Good to Great” - Jim Collins “Angels, Dragons and Vultures” (How to tame

your investors… and not lose your company) – Simon Acland

“Strategic Selling” - Miller Heiman “SPIN”, Simon Rackham, Huthwaite International

Rent or buy some experience… …going up and coming down… Energy drinks and sleeping aids

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Mark Ellis +44 7788 871052 [email protected]

“Sales, Management and GotoMarket Consultancy services to accelerate growth

within dynamic entrepreneurial businesses”

mailto:[email protected]

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Exporting:

Relationships and Showing an interest in the local

language pays dividends

Chris SwinglerPROPATH CONTINENTAL

+44(0)7980.915290www.propathconsultingservices.co.uk

New Markets Abroad - Exploring the Opportunities for ExportingBEN event at Science City Bristol – Thursday 12th July 2012

My background

University of Sheffield Degree in Accounting, Finance and Computer Science

27 years in IT in many technical roles (worked in Paris 1989 - 1996)

16 years running own software consulting business

Over the past 3 years have moved from technical focus to sales focus(a very long transition...)

Partnership with IAP (German software tools company) since 2009- have successfully sold to customers in France, Italy and Turkey

France - Experiences prior to selling German software tools

Progress Software (NASDAQ: PRGS) Paris office

- Worked for 5 years as a technical consultant delivering technical training in French across France and twice in Africa

CNAF - French National Child & Family Benefits – Clermont-Ferrand

- Project work all in French

Phoenix Engineering and Specsavers Optical Group – Lyon & Eastleigh

- Translation and Interpretation for Document Imaging system now integrated and used in Specsavers stores for storing prescriptions.

Delivering training in Frenchwas mandatory for all

customers

Working in Frenchwas essential

Providing the language bridge between French and English was key to the pilot

project success

France - Paris

April 2010: Seminar in Paris

Nov 2010: Deal with Atuana to use german software tools(OF-1) to build a SaaS/Cloud Payroll application for accountants in France “Atuana in the Cloud”

Atuana.com

The seminar I ran on the “Volcano day” in Paris wasall in French.

French businesses expect to be spoken to in Frenchperhaps more than other nationalities do (although the level of English of younger French people is getting better and better).

I am fortunate to be fluent inFrench. Fluency in a languagemeans that customers can forget that the supplier is not local.

ITALY - near Bologna

Dr. Donato Battistini MD Aptiva srl

Application Orientated Platform (AOP)December 2011: Deal to integrate AOP with IAP Skin-Client

Jan 2012: AOP Seminar in Bristol

June 2010: I sent my introductory email to Aptiva in Italian.This increased the confidence and seriousness of my propostition.

June 2011: When visiting Aptiva I spoke as much Italian as I could in the evenings but still spoke English in the meetings.

Creating very warm relationships.

Turkey - Istanbul

2009: Initial contact

May 2012: After 3 year sales cycle, signed deal with Turkey's 2nd largest logistics software company: 35 employees 600 customers Chosen to represent

Turkey for a pan-european logistics integration project Part financed by the

Istanbul Development Agency

Chris Swingler Propath and Ilker Pakten CEO UlukomIstanbul 9th May 2012

Used a few Turkish words in emails, Skype exchanges

and calls. This helped to create warmth in the relationship.

We had only met once before at a conference in 2005.

Recommendation

Take a little time to learn the local language. Even just a few words of well intentioned effort can go a long way.

Shows recognition that the potential customer is not the only one making the effort to be bilingual.

Increases the feeling that a potential supplier is making an effort and taking an interest in the culture of the country.

Learning Languages - at least a few words - is within the reach of most of us

Experience inFrance - Italy - Turkey

Chris SwinglerPROPATH CONTINENTAL

+44(0)7980.915290www.propathconsultingservices.co.uk