Elite Global January 2019

www.eliteglobalmagazine.co.uk

9

772631

ISSN 2631-665X

665002

01

JANUARY 2019 ÂŁ4.50

In this issue

How can you prepare your business for Brexit?

FUEL10K brings breakfast beyond Britain

EG Cover.indd 1

Businesses can’t be poor in Singapore

Can Soylent replace the UK meal deal?

Global goals for 2019 10/01/2019 11:46

Join the thousands of UK businesses like Mo Bro’s that are successfully selling overseas.

Visit great.gov.uk

2 Page Spread LHS.indd 1

09/10/2018 13:41

Mo Bro’s Leicester, UK

2 Page Spread LHS.indd 2

09/10/2018 13:41

contents REGULARS 7

From the editor

8

World tour

10 The lowdown

columns

4

11

Greg Sutch

13

Siddharth Shankar

22

David Josef

29

Nakul Sharma

49

Mark Price

14

24

60

Startups in these European locations enjoyed the most VC funding in 2018

Soylent has become the favourite meal startup of Silicon Valley. But can its success repeat in the UK?

Is your business ready for the UK crashing out of the EU?

Europe’s top tech investment spots

Food of the future

Past the Brexit point

16

56

64

Check out the industries that thrived after their nations’ crises

Unveiling these entrepreneurs’ international goals for 2019

Why expanding to Oz is a great opportunity for your business

From the jaws of defeat

World domination

Land down under

ELITEGLOBAL JANUARY 2019

Contents.indd 1

10/01/2019 14:58

JANUARY 2019

50 Fuelled up

FUEL10K aims to give people globally a great start to the day

30

Singapore on the rise

The Lion City has become a great but expensive hotbed for startups. Is it worth the price?

JANUARY 2019 ELITEGLOBAL

Contents.indd 2

5

10/01/2019 14:58

2018_09_27_UK_Ad_IrishTimes_275x340_V2_MIST-21323_TEST.pdf

1

27/09/2018

16:37

Employee spend happens in lots of places.

But you can manage it in one.

SAP Concur integrates expense, travel, and invoice management. concur.co.uk

Beyond.indd 7

08/10/2018 18:26

from the editor

contributors Nakul Sharma With remote workers from Lithuania to Australia, Hostmaker’s CEO knows a thing or two about using online tools to make expanding overseas a breeze.

Fresh PERSPECTIVE

A

laddin and princess Jasmine weren’t singing in the New Year as they belted “a whole new

world” but that’s precisely what 2019

Mark Price You’d think the digital sector has had its fill of innovation.

But the former trade and investment minister explains how Brexit will open floodgates to newcomers.

should open up to entrepreneurs looking overseas – if they embrace “a new fantastic point of view.”

The majority of UK SMEs are unprepared for Brexit even though it’s now in touching distance. While this may be a cause for concern, there’s still time to get ready as we heard from a handful

Greg Sutch

Intralink’s CEO has been busy converting sterling to yen recently because, like the rest of East Asia, Japan’s in for a fantastic 2019 and he won’t miss out on it.

Varsha Saraogi

Our junior feature writer opened the door to the east this issue and explored Singapore’s journey from sluggish economy to roaring tech hub.

of global-facing executives who shared their thoughts in this issue.

There are plenty of markets Brits can consider, with Australia tipped as one country to focus on as the UK dumps the EU. Then there’s Singapore – once a destination focused on manufacturing, it now overflows with tech developments and is hailed for its “world-class infrastructure and educated population.”

Elsewhere we’ve rounded up the

Meanwhile, Barney Mauleverer knows particularly well how troublesome going international can be. From his time as an exporting consultant in the food and drink sector, he thought he’d have a crack at launching his own brand and introduced breakfast beverage FUEL10K, which is now being swallowed up by retailers in markets such as South Africa.

Finally, we’ve picked the brains of UK entrepreneurs to find out what their roadmap looks like with a new year ahead of them, which covered everything from spending a £3m series A to conquering

countries that have faced troubled times

the US.

and made it out on the other side with

Zen Terrelonge - Editor zen.terrelonge@cemedia.co.uk

strong sectors at their core.

Elite Global Team EDITORIAL Zen Terrelonge – Editor Eric Johansson - Acting Web Editor Varsha Saraogi - Junior Feature Writer Angus Shaw – Editorial Assistant Anne Struijcken – Editorial Intern editorial@cemedia.co.uk

DESIGN/PRODUCTION Darren Marriott - Head Designer Vrinda Sejpal – Designer Lizzie Thurgood - Designer production@cemedia.co.uk Dan Lecount – Web Development Manager dan@cemedia.co.uk

ACCOUNTS Sally Stoker – Finance Manager sally.stoker@cemedia.co.uk

DIRECTOR Scott English – Managing Director scott.english@cemedia.co.uk

SALES Sam Deane – Sales Account Manager sam.deane@cemedia.co.uk Zane Zvirbule- Marketing Administrator zane@cemedia.co.uk Circulation/subscription

Copyright 2018. All rights reserved No part of Elite Global may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior written consent of the editor. Elite Global magazine will make every effort to return picture material, but this is at the owner’s risk. Due to the nature of the printing process, images can be subject to a variation of up to 15%, therefore Channel Edge Media, cannot be held responsible for such variation.

UK £18, Europe £38, Rest of World £60 Elite Global Magazine is published four times a year by Channel Edge Media, 1st Floor, Regency House, 16 Victoria Road, Chelmsford, CM1 1NZ

JANUARY 2019 ELITEGLOBAL

Welcome1.indd 1

7

10/01/2019 12:27

World tour BY angus shaw

Deutschland über alles for professional globetrotters There are many factors to consider when judging which nations are the best to take up a gig in and it turns out Germany is at the very top Speaking with over 22,000 expatriates, HSBC declared Germany the number one place to work on the planet, jumping one rank since last year’s survey.

The country of beer buoyancy, bratwurst bistros and Rammstein rock impressed 70% saying their work-life balance had improved there, no doubt aided by many German employers banning staff from checking their emails over weekends. It also received the top gong thanks to 65% of UK migrants labelling Germany as productive.

Bahrain took silver, leaping an impressive ten places due to its massive pay cheques, with 77% of foreign workers claiming they earn more there than in their native nations. Britain claimed the bronze, moving up six positions.

Encouragingly, many moved to the UK to boost their careers and gain a better work-life balance.

So if you’re looking to take your venture abroad, these are some great places to consider.

Tesla started building its first non-US factory in China The electric car company’s historic move will see it reap benefits from the world’s largest car market as well as dodge some US-China trade war repercussions From creating startup visas to VC funds, the Chinese government has been gunning to lure British and other western SMEs to its shores. But that doesn’t mean it’s adverse to catching big fish either, which was recently proved by becoming part of Tesla history.

A ceremony in Shanghai attended by CEO Elon Musk marked construction on Tesla’s first plant outside the States, named Gigafactory 3. Costing £1.6bn, it will serve as the country’s first totally foreign-owned car factory and is set to be finished by the end of 2019.

Such an endeavour was made possible after China pledged to lift restrictions over foreign ownership of automakers to boost industry growth.

As well as benefitting from China representing the globe’s largest car market, Tesla will no doubt mitigate effects of the US-China trade war with all its eggs no longer in one basket.

8

ELITEGLOBAL JANUARY 2019

WORLD TOUR THIS ONE 1

10/01/2019 11:07

Email scams from mega-rich foreigners top annoyances for SME owners Receiving random offers of money should ring alarm bells for all but someone must be falling for these grifters, given phishing scams were so prevalent last year Getting hit up by so-called international industrialists for opportunities is a scam older than the internet itself. In fact, it’s so dated you’d think swindlers would have stopped by now.

Surprisingly, it remained a huge bugbear for SME top brass in 2018.

A survey conducted by Q2Q, the IT support provider, showed phishing emails, including ones disguised as CEOs asking for financial details and foreign billionaires offering large amounts of cash, comprised 38% of the most frequent scam communications over the last 12 months.

It makes sense then that 36% of owners blamed cybersecurity for management stress and 22% named tackling online hazards as their biggest IT challenge for 2019.

Considering the overseas billionaire disguise is still a favourite among charlatans, some people are still clearly being suckered. So remember: if it’s too good to be true, it probably is.

British financial services will relocate £800bn of assets to Europe With Brexit merely months away, it’s the calm before the storm. Although, given many businesses will transfer to Europe, calm is perhaps not the right word 80 of 222 financial services businesses monitored by EY, the professional services firm, have moved or plan to move operations and workers from the UK to Europe. It means Brexit’s yet to cause a mass exodus, however there’s no ignoring the wealth it represents.

From 20 companies which have publicly taken the plunge – including eight investment banks, six insurance providers and five wealth and asset managers – EY estimates about £800bn worth of assets will leave Britain for the continent. And that’s a self-confessed conservative statement, considering not every company has declared exact amounts.

As a result of such movements, about 7,000 gigs may transfer from London to Europe in the near feature. These figures certainly makes sense of government initiatives like Exporting Is Great to keep Brits from jumping overboard to seize global opportunities.

JANUARY 2019 ELITEGLOBAL

WORLD TOUR THIS ONE 2

9

10/01/2019 16:44

the LOWDOWN

48 hours

The stats that matter to the UK’s global businesses and some that don’t

is the world’s longest average work week as found in Colombia and Turkey, while Britain sits near the middle with 37

£114bn

was the total value of exports to the States last year, keeping it the UK’s top overseas destination

£626bn was the total value of

£2.49bn is the amount of VC

54.2% of British exports now go

is Germany’s position as the best country to work in

UK exports in 2018

funding British tech companies scored in 2018

#1 $1.22bn

to non-EU countries

110,000 VAT-registered businesses

sold goods abroad in 2018, increasing 1.5% from 2017

10

is the sum of Apple’s record-breaking App Store holiday sales over Christmas

Sources: Apple, BambooHR, Centtrip, Department of International Trade, Digital Economy Council, HSBC, London & Partners, PitchBook

74%

of UK companies believe Open Banking will benefit them over the next two years

ELITEGLOBAL JANUARY 2019

The Lowdown.indd 1

10/01/2019 11:46

Greg Sutch CEO, INTRALINK

2019’S a year of great opportunity in east asia 2019’s Year of the Pig in China – a symbol for prosperity. And, given East Asia’s set for squealing success this year, it’s tough not to feel superstitious hat does 2019 hold for UK businesses? Hopefully, we’ll soon become clearer on the direction of Brexit.

But until then, few will be betting on sterling. Instead, like the CEOs of many international businesses of late, I’ve traded much of our company’s pounds for other currencies – mostly Japanese yen.

That’s because the opportunities Asia holds for western firms look set to be even bigger this year. For instance, everyone’s aware of China’s voracious appetite for foreign imports. Although, challenges with operating in the country remain – not least because of its stringent foreign exchange controls, which can make getting payments out of the country tough.

Nonetheless, no business with international growth plans can

w

afford to ignore a market of this scale and potential.

Commercial opportunities in Asia are by no means all about China, though.

The Japanese economy is faring well, with recent structural reforms paying dividends. The labour market’s becoming more laissez-faire, with large companies finally shunning ageold practices such as seniority-based pay and jobs for life. Furthermore, the country’s labour shortages look set to be eased as the government lets in thousands of foreign workers.

All of this this will make Japan’s economy more dynamic.

South Korea, meanwhile, will continue to power ahead. Its leadership in all things related to mobile networks and the internet, such as becoming the first to launch a 5G service, coupled with western concerns about Chinese companies like Huawei and ZTE will benefit Korean players such as Samsung, LG and SK Telecom. The country could also be a beneficiary of the US-China trade war, as customers there turn to Korean and Japanese products over each other’s. In turn, this all spells opportunities in Korea for western firms.

Internationally, I see focus shifting away from traditional entrepreneurial centres – particularly Silicon Valley. For investors, its valuations are too high and for businesses based there, it’s too expensive. Instead, with the advancement of communication technologies and increasing desire among Asian corporates to reach out to western startups through open innovation programmes, you can now set up pretty much anywhere.

My money’s on China, Japan and Korea thriving in the year ahead. And it seems fitting 2019 is the Year of the Pig in the Chinese zodiac – a potent symbol of prosperity. So if you have global ambitions and want to bring home the bacon this year, there’s no better place to look than East Asia.

JANUARY 2019 ELITEGLOBAL

contribpg11.indd 1

11

09/01/2019 20:41

Create Free B2B contact lists at the City Business Library

Having a City Business Library membership gives you access to a wide collection of specialist UK and international business information including company data and market research in the library and remotely.

The data available in City Business Library allows you to create free B2B lists from over 180 million companies worldwide; access in-depth global market research reports, country profiles and statistics and browse import and export statistics from over 95 countries. You can use global forecasting tools for hard and soft commodities worldwide and analyse forecasts for consumer markets, industry sector reports, global demographic and economic data all from the comfort of your own office.

You can also visit the library to take advantage of our flexible workspace, events and seminars, business start-up advice and room hire.

www.cityoflondon.gov.uk/cbl email: cbl@cityoflondon.gov.uk Tel: 0207 332 1812 Guildhall, Aldermanbury, London EC2V 7HH Untitled-1 1

09/01/2019 17:06

Siddharth shankar A leading expert in trading with asia and ceo of tails trading

dEAL OR NO DEAL? Will the Brexit deal Theresa May brought back from Brussels get approved by the House of Commons? Will we leave the EU in March with no deal? Will Brexit happen at all?

T

aking a long-term view, in reality there would not be a huge difference for UK trade prospects whether we leave the EU with a deal or without one.

But in the short-term, leaving with a deal in place will make for much calmer waters.

One of the biggest problems of leaving the EU without a deal means no 21-month transition period. This timeframe, agreed by Theresa May and Brussels, was designed to ease the exit process for UK businesses, consumers and public bodies. If no deal is reached, they’ll instead find themselves having to immediately adapt to the changes Brexit will precipitate.

This would be particularly troublesome for businesses which trade with fellow EU countries.

Currently, nearly half of UK exports go to the EU but once we’ve exited the single market, this will get a whole lot trickier. Yet the outcome going forwards remains the same – businesses need to shift their focus away from the EU to building strong trading relationships with the rest of the world. This is imperative to

the UK making a success of Brexit.

There is a positive side to leaving the EU without a deal: Britain would immediately be released from the EU’s pre-Brexit arrangements. It would allow the UK to stop paying the some £13bn – according to 2017 figures – annual burden to the EU but would lose the £3bn British farmers receive through the Common Agricultural Policy (CAP). Although, even the CAP is widely criticised by UK agriculture for its lack of efficiency and rising costs.

If the pound weakens and the UK economy is performing poorly, exporting will be a key way for businesses to stimulate growth as UK exports will become much more competitive.

Reaching booming new export markets

– such as India and China – will be crucial. The sooner businesses begin to do this, the better.

As long as UK business starts looking outside the EU, a nodeal scenario could be more of an opportunity than a risk.

JANUARY 2019 ELITEGLOBAL

13

Cross-border capital

Europe’s top

tech investment hotspots

BY ZEN TERRELONGE

UK plc is being sucked closer into the baffling Brexit black hole but still demonstrated its firepower to be crowned the top country for European tech investment, while London led the cities. But where else has digital development got potential for businesses? e’ve just celebrated the New Year and although it brings fresh opportunities, 2019 will be a landmark period with Brexit officially taking place.

Whether you voted leave or remain, Britain’s longawaited, excessively-discussed, confusion-causing, sometimes side-splitting separation from the European Union will be official come Friday March 29 2019 at 11pm.

Nobody can truly be certain exactly what will befall businesses – or else there wouldn’t be so much debate – so preparation ahead of that day is key. But one thing of certainty is that 2018 prepared a strong foundation from which companies and investors in the tech sector can build on.

In an end of year report from the London mayor’s promotional agency London & Partners and investment data researcher PitchBook, it’s revealed that overall VC investments in UK tech firms totalled £2.49bn in 2018. And unsurprisingly, London businesses accounted for the largest slice of the pie with £1.8bn investment – equivalent to 72% of the grand total.

While this is down from the record-breaking figures witnessed in 2017, which saw VC funding hit £3.12bn and £2.53bn in UK and London-based tech enterprises respectively, it’s still significantly higher than the £1.5bn and £1.11bn injections received respectively in 2016. With Brexit

W

14

ahead though, it’s an obvious factor why some investors have decided to keep their cash in their pocket or shop elsewhere but also encouraging Britain is still a force to be reckoned with, even in the face of that.

“These figures demonstrate that London is going from strength to strength as a global hub for technology, innovation and creativity,” said Rajesh Agrawal, deputy mayor of London for business. “The fantastic success of our tech sector is rooted in our city’s openness and our diverse, international talent pool.

Regardless of the outcome of Brexit, London will remain open to innovation, talent and investment from all over the world.”

According to the report, the Big Smoke will continue to perform, while tech sectors of popularity in particular include big data, AI and blockchain, having received record investments throughout 2018.

Looking further afield, Berlin was the city that followed on from the UK capital in terms of high levels of investment from VCs, receiving some £936.53m. This helped Germany rank as the second-placed country behind the UK. Meanwhile, French firms generated £1.03bn of investment in 2018, up from £748m in 2017.

But for those sceptical the UK’s performance will continue or wanting to diversify their options, here’s how the other cities and countries in Europe measured up.

ELITEGLOBAL JANUARY 2019

European Investment.indd 1

10/01/2019 12:25

Cross-border capital

The top ten European cities for 2018 VC investments in tech companies:

£1.8bn

1. London 2. Berlin

3. Paris

4. Stockholm

£936.53m

£797.04m

£224.23m

5. Barcelona

6. Amsterdam

7. Zurich

£182.74m

£163.51m

£156.97m

8. Copenhagen

9. Dublin

10. Cambridge

£111.37m

£104.13m

£97.2m

The top ten European countries for 2018 VC investments in tech companies:

1. UK

£2.49bn

2. Germany

3. France

4. Switzerland

£1.38bn

£1.03bn

£531.80m

5. Spain

6. Sweden

7. Netherlands

£275.05m

£268.44m

£199.09m

8. Denmark

9. Ireland

10. Finland

£122.54m

£110.76m

£89.66m JANUARY 2019 ELITEGLOBAL

European Investment.indd 2

15

10/01/2019 12:25

CRISIS CAPITALISATION

FROM THE JAWS OF DEFEAT Brexit has made the future unreliable for British SMEs. However, a crisis can be a good thing. In fact, facing down adversaries made these nations’ industries stronger

BY ANGUS SHAW

B

usiness leaders across Britain worry about what the trade deal between the UK and the EU post-Brexit will look like.

But while many enterprises will certainly face challenges, going through adversity can actually be good for a nation and its different industries. For instance, British bosses can take a leaf from these seven countries that made global successes of industries and sectors in the face of crises.

16

ELITEGLOBAL JANUARY 2019

CRISIS CAPITALISATION

JANUARY 2019 ELITEGLOBAL

17

CRISIS CAPITALISATION

ITALY Like many countries ravaged by fascism, Italy’s economy was in a bad way post-Second World War. However, dubbed the Italian Economic Miracle, the 1950s and 1960s brought sudden record-breaking growth as the nation’s manufacturing exports rocketed. But it’s still clear Italy faces a colossal debt worth 133% of its GDP in 2017, according to Country Economy, the international economic data site.

In fact, its long period of political uncertainty and abysmal financial performance has from time to time singled out the nation, bestowing it with the sombre soubriquet the sick man of Europe.

But despite the nation’s overall lacklustre performance, Italy’s luxury goods remain a top export. In fact, they keep the country competitive on the world stage. “In a period of clear economic downturn, luxury goods is one of the sectors keeping high the flight of Italian competitiveness in the world,” says Alessandro Brun, director of the masters in global luxury management at MIP Politecnico di Milano, the business school. For example, roughly 40% of the planet’s clothing and footwear companies reside in Italy, according to Deloitte, the professional services network. Moreover, Italy houses more luxury goods companies than any other nation, which collectively generated sales of $1.4bn in 2018. No

wonder one of the country’s few unicorns, the YOOX NET-APORTER GROUP, hails from the fashion sector.

Such strength didn’t come overnight. Luxury goods were destined to become a global attraction ever since the Altagamma Foundation was established in 1992, enabling highend cultural and creative companies to join forces and boost their competitiveness. To this day, the foundation plays host to Italian luxury heavy hitters like Ferrari and Gucci. “It’s because of this that 67 years after the US-sponsored Marshall Plan ended, the luxury and fashion sectors are still boosting Italy’s economy,” Brun opines.

There’s no denying Italy’s yet to replicate its economic heyday of the 1950s and 1960s but recent economic struggles seem to have barely scratched its luxury goods.

SOUTH KOREA There’s perhaps no country that intrigues economists more than South Korea. Plagued by the Korean War ending in stalemate, it became one of the poorest nations in the world with $64 GDP per capita in 1955, according to Ceic Data, the economic data company. However, in what’s called The Miracle of the Han River, manufactured exports saw the nation rocket to become the 12th largest economy globally by GDP, according to The World Bank.

And it’s in no small part thanks to its integrated circuit industry. “The Koreans produce semiconductors that end up in mobile phones, computers, TVs, everything you know well,” says Gregory Sutch, CEO of Intralink, the international business development consultancy. And South Korea rolls them out in vast numbers, with $86bn worth of exports in 2017 topping Singapore’s $80bn and China’s $67bn, according to ITC. In fact, South Korea’s giving fellow Asian economic miracles and electronics industries a run for their money. “A lot of the problems Japan has experienced in the semiconductor industry is a result of Korean competition,” he details. “Now, Samsung and LG are responsible for the demise of half the Japanese TV brands, the only one left standing I think is Sony.”

18

ELITEGLOBAL JANUARY 2019

Speaking of which, Samsung Electronics is synonymous with the success of South Korea’s economy. “[Samsung] is around 17% of the entire country’s GDP, which is absolutely huge,” Sutch says. Clearly, this isn’t your average economy.

Especially considering South Korea’s five biggest companies in its wealth clique, called the chaebol, controlled 62% of the nation’s stock index in 2018, according to Bloomberg, with Samsung Electronics representing 30% alone. “When you say Korea you’re basically talking about Samsung,” Sutch adds.

And, the chaebol clearly aren’t putting brakes on South Korea’s roaring integrated circuit industry anytime soon.

CRISIS CAPITALISATION

FRANCE Thanks to decades-old safeguarding policies, France’s nationalised nuclear industry generates more electricity exports than anywhere else in the world. However, modern attitudes and technologies are seeing private companies take its place. In reaction to the 1973 oil crisis – where Arab states sanctioned oil exports to nations supporting Israel – France introduced the Messmer Plan.

It aimed to produce all French electricity by nuclear power and turn the country energy-independent. As a result, nuclear now generates 75% of France’s electricity, according to the World Nuclear Association. In fact, France stood as the globe’s biggest net exporter of it in 2018, according to the World Nuclear Association, bringing the nation more than $3bn annually.

However, it all happens across largely state-owned EDF’s 58 reactors, meaning the government has a near monopoly on electricity generation without much room for private companies. But thanks to emerging ecofriendly reforms and technologies, the playing field is levelling. “The French economy is experiencing a fourth industrial revolution based on new technologies and innovation,” says Eric Chauvigné, EMEA solution engineer and architect director at Cogeco Peer 1, the IT service management company. “The goal is to build [industries] that are increasingly interconnected and competitive

while being ever more respectful of workers and the environment.” The Energy Transition for Green Growth Act enacted in 2015, for instance, committed France to have nuclear provide only 50% of electricity by 2035 and make way for eco-friendly alternatives. Consequently, gaps are opening for private providers like Direct Energie and Alterna to make electricity with renewable sources like natural gas.

Although low-cost nuclear got France’s electricity exports where they are today, natural gas-fired power plants are far cheaper in terms of capital costs according to the World Nuclear Association. So with nationalised nuclear gradually being phased out of the equation, there’s no better time for alternative energy companies to comprise one of France’s most lucrative export.

SWEDEN Silicon Valley is the epitome of cutting edge tech to most.

But, Sweden has a similar reputation. In 2014, Stockholm was labelled the second most prolific producer of tech unicorns per capita by Atomico, the tech investment firm. While the Bay Area has 6.9 billion-dollar businesses per million people, Stockholm sported a close 6.3. And its tech sector’s become even more innovative since.

After economic reforms remedied its 1992 banking crisis, Sweden’s been able to breed an impressive roster of $1bn valued tech startups. “As the home of globally recognised technology companies like Spotify, Skype, Klarna and iZettle [it’s] definitely fair to say that the Swedish technology scene is thriving,” says Johan Attby, CEO and co-founder of Fishbrain, the social network for fishermen. Indeed, one only needs to look at Bloomberg’s Innovation Index, which named Sweden the second best fosterer of innovation over 2017 and 2018 – even overtaking the States’ 11th position. “Today, Sweden can legitimately call itself one of the world’s most successful exporters of innovative technology,” he adds.

As well as English being common parlance across Swedish workplaces, the country’s way of life is a huge pull for

entrepreneurs. “Sweden is also known for its high quality of life and has always ranked high when it comes to our education and social welfare system,” the Fishbrain CEO explains. Given Google, Facebook and other Silicon Valley workers famously hit bean bags and slides during lunch breaks, tech geniuses clearly appreciate good environments to work in. “These factors combined have made Sweden an attractive place for people from all over the world and a good place to also build a career,” Attby adds.

Although IKEA may still be most synonymous with Swedish ingenuity to some, tech unicorns are upgrading the country’s global reputation in a big way. The winner takes it all, right?

JANUARY 2019 ELITEGLOBAL

19

CRISIS CAPITALISATION

CHINA You’d think China’s obsessive coal imports mean environmental technology is the last thing the communist country’s contemplating. But its vast pollution issues have seen the government scramble to make Chinese environmental technologies incredibly lucrative. “The country is horribly polluted as a result of 20 to 30 years of rapid economic growth,” explains Sutch. “The air, water – everything.”

The government put its foot down in 2013 by pledging $16bn to ease the capital’s pollution over three years, as well as committing a staggering $124bn in 2014 to increase its air quality. Shortly after, premier of the state council of the people Li Keqiang sealed the vows by “declar[ing] war against pollution”. “[In] the environmental space the government has lots of policies in place, so there’s a really big incentive on the part of Chinese companies to adopt the leading technologies,” Sutch says.

And it’s paying off. “There are awful problems with water contaminations but many companies focused around purifying water have appeared,” Sutch describes.

Indeed, it means China now stands as the world’s biggest and fastest emerging producer of environmental technologies, according to the US International Trade Administration. In 2017, that translated to a $65.78bn market worth. “The opportunity to introduce innovative ideas and new cutting-edge technology for China’s needs, such as soil decontamination, are where the advantages lie,” he explains.

Transforming pollution problems into promising industries – now that’s a masterclass in turning a frown upside down.

JAPAN Known as its post-war economic miracle, The Land of the Rising Sun shocked the globe by stepping out from the nuclear ashes of World War II and becoming the second largest economy in the world by 1968. And although that reign ended after the Cold War – with Japan experiencing frequent recessions and poor growth ever since – robotics may be its saving grace.

From artificial nurses to machine hoteliers, today robotics are becoming embedded in Japanese society. “[Robotics] are very important to just about everyone today,” Sutch says. “But that’s not just from a consumer perspective – robots are especially important in fixing productivity.”

Certainly, the topic of artificial intelligence (AI) replacing people as favoured by dystopian sci-fi authors is becoming reality for many advanced nations and that’s no different for Japan. Machines are helping the country bridge huge talent gaps in its nursing sector as well as in warehouses. “[If] you have an ageing population, for example, that means a shrinking workforce,” he adds. “So either you get people to work until they’re older, in which case they probably become less productive or you use robots.”

And that’s just what this nation has done. “Japan has more robots than Germany, France, Italy and South Korea combined, it’s absolutely vast in the manufacturing robot 20

ELITEGLOBAL JANUARY 2019

space,” Sutch explains. Across 2017 it exported more industrial robots than any other nation with $2.2bn worth, according to the International Trade Centre (ITC), the UN international development agency, almost tripling Germany’s $858m second place figure. Thanks to its manufacturing might, this meant Japan delivered 56% of global supply in 2017, according to the International Federation of Robotics. “Historically, Japan has been very good at hardware and very bad at software, to put it in very general terms,” Sutch explains.

Having turned its skills shortages into a motivator to innovate, Japan is clearly leading the way in robotics.

HIRING IN AMERICA?

Resume-Library is one of America’s fastest growing job boards offering simple, fast and reliable hiring solutions

Post your jobs in seconds

Search millions of resumes

Jobs shared across hundreds of partner sites

View an unlimited number of resumes

Fully branded and featured

Receive instant resume matches to your inbox

Boosted to the top of search results

Filter your searches by keywords, location and more

EXCLUSIVE

READER

OFFER

1 Job Posting and 1 month Resume Search for just $149

(RRP $249)

Contact us today and quote “ELITE GLOBAL” *T&Cs apply. New customers only. Exclusive hiring package only valid until 31/12/2018.

1-800-672-6706 | sales@resume-library.com | www.resume-library.com Beyond.indd 7

08/10/2018 18:30

David Joseph Founder, Hub of China

Learning from China’s tech miracle Chinese startups are quickly becoming the tech leaders of the world. And there’s plenty of things it can teach UK entrepreneurs hina is no stranger to building on its strengths.

In the past, the country has exploited its cheap labour, its command-and-control economy and the willingness of US leaders like Nixon to create new relationships. The country actively encouraged western companies to relocate their manufacturing and production to China and take advantage of cheap labour. For decades this has been the bulwark of the Chinese economy and has allowed it to develop into the powerhouse it is today.

China is now starting a new phase.

The Chinese can no longer compete with the low wages of other developing countries. Nor do they see a future in undercutting the labour market with artificial intelligence on the rise.

In the last few years, Chinese business leaders have started investing heavily in Silicon Valley and into their own tech hub. China is starting

C

22

to create the world’s largest tech ecosystem. Its current investment in physical and digital infrastructure in Shenzhen is unparalleled compared to their western equivalents.

In fact, Keyu Jin, professor at The London School of Economics, indicates this is the first time in history a developing country with only 25% of the GDP per capita of the US is at the cutting edge of technology. This is an indication of how well the Chinese tech sector is doing. Additionally, the increase in the willingness of Chinese students who have studied at UK universities heading back home has provided the Chinese economy with another boost.

How has this happened? Chinese startups have managed to implement a strategy of imitation and innovation. A clear example would be the innovative fusion app of WeChat. The app is a combination of many pre-existing western apps such as Facebook, WhatsApp, Skype, Skyscanner and

PayPal – but on one platform. They’re staying ahead of the game with face recognition payments and sharing apps like Mobike which enables bike sharing.

So what’s in it for UK entrepreneurs?

At Hub of China, Chinese startup owners mentioned a willingness to collaborate with UK tech businesses, which in their eyes offer innovation, creativity and a sense of entrepreneurship. Since UK tech companies have struggled to achieve the billion-pound valuations we see coming on a frequent basis from Chinese tech firms this can prove rather advantageous as China has the infrastructure and capital to help UK businesses scale up and achieve more than ever before.

UK entrepreneurs can learn from China in how they have been able to adapt quickly to the environment and utilise effectively the limited resources at their disposal. Indeed, China has now become a global tech hub willing to work with UK entrepreneurs.

ELITEGLOBAL JANUARY 2019

contribpg22.indd 1

09/01/2019 20:47

Your passport to success Overseas trade may seem unduly risky in the current climate but Coface can help you take your business in an exciting and lucrative new direction. Whether your experience of international trade is taking you across the Channel or to the other side of the world, it adds a whole new dimension to the risks your business is running.

How can you manage these risks and compete and export successfully in the global market place?

A

s some of the world’s leading credit insurers, Coface has been supporting the development of international trade for over 70 years.

We help more than 50,000 companies trade successfully across 190 countries and our global footprint means we have the information and resources to support these clients in a range of ways.

So how can we support your business?

•

•

•

By monitoring the trading behaviour and financial health of 80 million companies, so we can tell you which companies are creditworthy no matter where they are in the world Enabling you to make more informed decisions with exclusive and authoritative reports on countries and sectors, plus business and economic trends Our experienced collectors speak the local language and understand the culture, so they can often sort out an overdue payment without damaging your relationship with the customer

Whether you are a new or an established exporter a global credit specialist like Coface will make a big difference. With experts in every corner of the world, we are ideally placed to advise you on credit risk, as well as providing peace of mind through our insurance and collections services. But most importantly, we give you the freedom to explore emerging markets, win new business and trade with confidence.

To find out how Coface can support your business call 0800 085 6848 or visit cofaceitfirst.com

Coface is authorised in France by the Autorité de Contrôle Prudentiel et de Résolution. In the UK Coface is subject to limited regulation by the Financial Conduct Authority and in Ireland Coface is regulated by the Central Bank of Ireland.

EG_Coface_Jan19 [PRINT].indd 1

1/3/2019 6:25:34 PM

soylent

Food

of the BY eric Johansson

future

Having raised the foodtech world’s biggest crowdfunding round ever, Soylent must now aim to change how UK consumers think about eating. But is Silicon Valley’s favourite meal replacement scaleup up for the task?

U

There are several explanations why Soylent has become ltimately, Soylent plans to save the human as successful as it has. For starters, the foodtech industry race. “We’re setting out to change the way the is having a moment. “There’s a shift with consumers and world thinks about food,” announces Andrew how they think about nutrition,” claims Thomas. Naturally, Thomas, vice president of brand marketing investors have noticed. Funding for US foodtech startups at the meal replacement company. He argues current jumped from $60m to $290m food production will leave people between 2008 and 2013, according starving as the planet is set to have to PitchBook, the financial data 9.7 billion people on it by 2050. provider. Having reached the $1bn But there’s a light at the end of the mark in 2015, VCs are still very tunnel. “We believe technology interested in the sector. For instance, and human ingenuity are really one of Soylent’s competitors, the the solutions,” Thomas continues, UK-based powder food startup Huel, suggesting the scaleup is just the raised £20m in its first VC round in company to do it. That’s some lofty October 2018. aspiration from a company that’s But that’s only part of the reason essentially providing a hot rod why Soylent piqued the interest of version of SlimFast drinks. the Bay Area techies. At the time Nevertheless, Soylent has reason of its inception, Silicon Valley was to aim high. Since co-founder under the thrall of the life-hacking Rob Rhinehart launched it in movement where people bought into 2013, its drinks have become the notion that the right diet and Silicon Valley’s meal replacement exercises could dramatically improve of choice. The same year saw their lives. Or to put it another way – it raise the biggest foodtech by fine-tuning the fleshy hardware of crowdfunding round the world had Andrew Thomas, Soylent their bodies, they aspired to maximise ever seen and in the autumn of the processing power of the gelatine 2018 it made the jump across the software inside their skulls and pond, hoping to solve the hunger extend their warranty of life. While pangs of UK entrepreneurs, this pushed some enthusiasts to experiment with microstudents, gamers and other high achievers. “It’s very dosing LSD, Soylent’s founder was less extreme – he only exciting,” declares Thomas.

Anytime you have a brand or a product that catches fire in the way that Soylent did initially, it’s bound to draw attention

24

ELITEGLOBAL January 2019

Soylent.indd 1

10/01/2019 10:43

Soylent

Starting from scratch and turning my passion for a better food system into a booming business with world class products and employees has been the experience of a lifetime Rob Rhinehart, Soylent

wanted to ensure his body received the nutrients needed to survive.

Whether it’s the rising tide of foodtech or Rhinehart tapping into the life-hacking movement – in 2013 he caught the interest of anyone that matters in the Bay Area.

Back then, Rhinehart and his co-founders were working on a startup looking into creating affordable cell phone towers. “They were all working under the same roof, eating the same diet of frozen pizzas and instant ramen noodles,” Thomas tells. Rhinehart hated it, feeling the experience was unsatisfying, time-consuming and forgettable. There had to be a better way. Using the analytical mind he’d sharpened studying electrical engineering at Georgia Tech, he embarked on a mission to solve the problem. Deciding to experiment on himself, Rhinehart read up on everything he could find on nutrition and began mixing the chemical form of the 35 nutrients humans need to survive. These included potassium gluconate, calcium carbonate and monosodium phosphate. As he pursued his undertaking for more than 30 days, he blogged about his experience. “The blog went viral,” Thomas says. “This idea of someone living off this product for a month or two [was] just so interesting.”

When his first startup failed, despite being backed by the legendary Y Combinator incubator, which has supported the likes of Airbnb, Dropbox, Reddit and Twitch to name a few, Rhinehart decided to turn the buzz around his experiment into a product. He picked the name from Harry Harrison’s 1966 novel Make Room! Make Room!. The book imagines a world in which overpopulation has led to food shortages, resulting in riots when a store has soy and lentil – or soylent – burgers on sale.

JANUARY 2019 ELITEGLOBAL

Soylent.indd 2

25

10/01/2019 10:44

soylent

demand unsurprisingly meant big investors soon came knocking. “Anytime you have a brand or a product that catches fire in the way that Soylent did initially, it’s bound to draw attention,” shrugs Thomas. The mealreplacement product was no exception. In October 2013, Soylent revealed that it had secured a seed round worth $1.5m from VC investors Andreessen Horowitz and Lerer Hippeau. This and four more rounds have seen the company raise $72.4m in total. “There was this tension, there was this pain point for [consumers],” Thomas explains Andrew Thomas, Soylent the VCs’ interest. “This product helped solve that and there are so many more consumers out there who have this pain point.” These different rounds enabled Soylent to

While not violent in any way, Soylent caused a virtual stampede of its own in 2013 when it launched a campaign on the crowdfunding portal Crowdhoster. Tempted by the idea of taking control of their own nutrition and time, over 10,000 people pre-ordered over $1.5m worth of products. Clearly, plenty of people had zero time to do something as pedestrian as clocking out for a Big Mac. “Even today, that’s the largest crowdfunding campaign in history for a food or beverage,” claims Thomas.

Having already raised awareness with the blog and proving the

My guess is that we won’t take as long to go click to brick

26

ELITEGLOBAL

Soylent.indd 3

JANUARY 2019

10/01/2019 10:44

soylent

move away from only offering powder supplements to providing complete drinks that are sold on Amazon and, since July 2017, in US 7-Eleven stores.

That doesn’t mean the company hasn’t had a few setbacks. For instance, in 2016 the scaleup recalled the Soylent Bar after it reportedly caused gastrointestinal illness, including nausea, vomiting and diarrhoea.

Moreover, in October 2017, the Canadian Food Inspection Agency banned Soylent from selling its product in the country. “They said, ‘You don’t align with what we believe is a meal replacement,’” Thomas explains. While the scaleup is still not available in the country, it’s working to reformulate its offerings and return to the nation. “Fortunately for Canada, we want to get back there,” Thomas says.

Feeling he had taken the company through its startup phase, Rhinehart stepped down as CEO in December 2017 to ensure the scaleup could continue to grow.

He passed the torch to Bryan Crowley, president of Rosa Foods, Soylent’s parent company. Remaining the business’ biggest shareholder and chairman, Rhinehart wrote a blog entry to explain his decision. “If you love something, set it free,” he wrote. “Soylent and the people involved have become the loves of my life.

Starting from scratch and turning my passion for a better food system into a booming business with world class products and employees has been the experience of a lifetime.”

And Soylent’s certainly still steaming ahead under its new leadership. In September 2018, it announced it would begin to sell its products in the UK. Having

learned from its Canadian misadventure, Soylent ensured it adhered to the EU’s rules before entering Blighty. “We obviously worked very closely with all the appropriate regulatory bodies to ensure that we were in compliance and that we had a product they deemed safe for the consumers,” Thomas explains.

This dialogue resulted in Soylent swapping seven genetically modified ingredients with non-modified ones to ensure it complied with UK laws, paving the way for its British launch. “And in general the reception has been positive,” Thomas suggests. “We’ve got a lot of press coverage and there has certainly been some outlets who haven’t been [as big a] superfan of the taste as we’d like them to be.”

At the moment, Soylent’s products are only available in the UK via Amazon but Thomas suggests there is a plan to introduce it in grocery stores. Although, he doesn’t know when that will happen. “That’s the million-dollar question,” Thomas explains. “We don’t have a timeline set for that just yet.” At the moment, Soylent is focused on tracking how the drinks are received in the UK, how well it sells and what the press say about the bottled meals. While there’s no set date, he’s confident it will be sooner rather than later. “My guess is that we won’t take as long to go click to brick,” Thomas promises. “My guess is that it won’t be the four or five years that it took to get us here [in the US]. My sense is that it would be sooner.”

Putting aside that the name invokes dystopian famine and fighting, Soylent may be well on its way to changing the way you eat.

January 2019 ELITEGLOBAL

Soylent.indd 4

27

10/01/2019 10:44

Mayors International.indd 1

09/10/2018 13:43

Looking to expand your business abroad?

Then look no further than the Mayor’s International Business Programme.

Celebrating some of the fastest-growing, innovative companies in London, 2017 was a stellar year with cohort members expanding into new including Century Tech, Yoti Ltd, McLEAR & Takumi.

Learn more about the programme and our past successes >> gotogrow.london “The community of entrepreneurs that the programme has built has been fantastic in sharing knowledge with us.� Priya Lakhani, Century Tech This exclusive programme is open to fast-growing companies in London operating in four broad sectors: technology, life sciences, creative and urban. It provides a bespoke mentoring scheme, delivered by leading entrepreneurs and business leaders; expert advice and workshops; targeted trade missions; and access to live business opportunities.

Having already helped over 450 companies realise their ambitions for international growth, the programme is now searching for its next cohort of companies to take overseas #GoToGrow. If you want to follow in the footsteps of Eporta, Seenit, BookingBug and other high-growth London companies, make sure you apply to the programme via gotogrow.london

Mayors International.indd 2

09/10/2018 13:44

SINGAPORE

The door to the east Evolving from being a manufacturing base to a tech hub, Singapore is perfect for startups prepared to pay extra to get the maximum benefit

BY VARSHA SARAOGI

30

ELITEGLOBAL JANUARY 2019

THISTHISISISISSSingapore.indd 1

10/01/2019 10:57

SINGAPORE

JANUARY 2019 ELITEGLOBAL

THISTHISISISISSSingapore.indd 2

31

10/01/2019 10:57

SINGAPORE

T

here’s no recipe to recreate Silicon Valley’s confluence of tech genius, insane investment level and unparalleled talent which produced giants like Google and Apple. But business bosses eager to find the next hotbed of innovation can — and should — search for the rare ingredients that combined attract generations of tech visionaries and VCs to San Francisco’s Bay Area. For scores of businesses around the world, that search now leads to Singapore.

One of the entrepreneurs finding his way to the Asian city is Ng Jing Shen, cofounder and CEO of Paktor, the dating app for people in Asia, having launched the business there in 2013. “Singapore was and still remains the perfect testbed for us because of its world-class infrastructure and educated population which is why, until today, we do all our product testing in Singapore before we roll out to other markets,” Shen says.

Its vast multi-ethnic population is an incentive for businesses who are looking to expand to other south-eastern countries but it’s imperative for every product to be tailored according to the local use, which Shen was particularly aware of. “Dating is extremely culturally sensitive, especially in Asia where we have a mix of so many different cultures that differ in sometimes dramatic and subtle ways,” he says. “We had to understand instinctively that not all Asian countries are the same.”

Shen says every potential business looking to expand or launch in the south-east Asian country must be prepared to “think global but act local.”

Indeed, he speaks with experience after he had his fair share of obstacles to overcome. Shen had to both understand the dating apps market and find new ways to enthrall users who relied on competitors like Tinder and Coffee Meets Bagel. And with the help of his research along with support from Singapore’s government, the Paktor app today has over 25 million users and the startup has secured more than $52m in series A and B funding rounds.

Shen is hardly alone. Indeed, Singapore continues to be an ideal launchpad for 32

startups and was ranked second just after the US in the World Economic Forum’s 2018 global competitiveness report. The rankings were based on many factors including human capital, agility, resilience, openness and innovation. Moreover, Singapore’s exceptional infrastructure is one of the main reasons the entrepreneurial culture is thriving. And in Paktor’s case, the startup tasted success not only due to its high demand but mainly because Shen and his cofounder chose Singapore over other neighbouring countries and capitalised on those factors.

And it isn’t limited to startups. Big businesses also establish their APAC – or Asia-Pacific – headquarters in the Lion City. The list includes tech giants like Facebook, Microsoft and Google. These big players didn’t stop there. Looking at the immense talent available, Facebook teamed up with Singapore’s Infocomm Media Development Authority to launch Startup Station Singapore, its first data innovation startup programme in Asia, in October 2018 which will prepare fledgling startups for flight.

Additionally, James Dyson, founder of Dyson, the British household appliances company, unveiled a plan in 2018 to build an electric car plant in Singapore, benefitting from the city’s exceptional supply chains, access to markets and the availability of expertise.

The region has come a long way to be on the list for these titans of industry.

Indeed, the island wasn’t always seen as an advantageous land for commerce.

Being a former British colony and then being captured by the Japanese after the Second World War made Singapore’s journey to industrialisation and economic stability sluggish at best. But the transformation took place after it got its first elected prime minister, Lee Kuan Yew, who is also touted as the country’s founding father.

“He realised Singapore’s port made it easy to connect with neighbouring countries for import and export,” says Angeline Lodhia, general manager of InSkin Media Asia, the advertising

ELITEGLOBAL JANUARY 2019

THISTHISISISISSSingapore.indd 3

10/01/2019 10:59

SINGAPORE

technology business. Indeed, his foreign policies ensured strategic relationships with western countries as well as other Asian ones. And with his vision, Singapore’s per capita income in 2017 went up to $57,714 compared to $427 in 1960, according to the World Bank.

This is proof Kuan Yew’s governance made Singapore an economically powerful city despite it being smaller in size than its neighbours. “Essentially, he made it easier for businesses to come here and set up shop compared to other countries,” Lodhia adds. “For instance, in Dubai, [the government] is very protective about their land and property and in Malaysia you can’t buy a property unless you’re partnering with a Malaysian company for work.

Even in China you can’t just open a business – you have to partner with a local one [which] then takes a margin and you’re going to have to work harder for your dollars.”

Since its independence, not only has Singapore become the go-to place for trade, export and import but it’s also a global tech hub. From adtech to fintech, the Lion City is leading in south-east Asia and progressing at a quick pace. However, the transition from being a manufacturing base to a tech hub took some time. “The [Singapore] economy moved its focus of activity and upped the value chain exponentially after independence and the tech phase really came in through the ‘8os [and] ‘90s,” says Henry Goodwin, venture partner based in Singapore for Octopus Ventures, the global VC firm. “We already had the advantage of a strong financial services sector, shipping sector, big ports and it has maintained a reputation for a strong infrastructure – not only in terms of the public convenience but also in terms of institutions, law and business.”

And now the city has a raft of startups coming up in the digital sector. Clearly for Singapore, innovation is integral and the island city gives it maximum attention. In fact, it ranked third in the Bloomberg innovation index for its R&D spending among other factors, up three positions from 2017 and even beat the tech mecca of Silicon Valley.

Singapore will be a melting pot for regional startups with global ambitions and global startups looking to expand into the Asia-Pacific Prajit Nanu, InstaReM JANUARY 2019 ELITEGLOBAL

THISTHISISISISSSingapore.indd 4

33

10/01/2019 10:59

SINGAPORE

“Deep tech, artificial intelligence [and] machine learning are becoming the focus,” Goodwin adds. “For startups, I think there’s been a sort of recurrent theme coming through around financial services and fintech. And so those within the brackets of a cyber flavour as well as healthtech has definitely been another area ripe for innovation.”

Today, with Kuan Yew’s efforts coupled with exceptional business acumen, Singapore has become a startup paradise. In fact, in the last few years, it’s climbed in the top ten list of leading global startup ecosystems, according to Startup Genome’s rankings. “With a growing number of new startups setting their base here and existing startups graduating to become household names, this ecosystem will only get stronger,” says Prajit Nanu, CEO and co-founder of InstaReM, the digital remittance provider. “Singapore will be a melting pot for regional startups with global ambitions and global startups looking to expand into the Asia-Pacific.”

While startups are innovating and utilising tech, a major factor in their progress is the immense support the government offers. From aid in funding to getting grants, entrepreneurs are given the resources needed to make their startup a success story. “The driving force [has been] the Singapore government’s clear policies and open mind when it came to adopting technology,” Nanu says. “This has led to more positives such as an ease of conducting business [and] the simple process of acquiring licences has helped attract foreign investment.”

And most startup owners are aware of the incentives they get if they leverage that support. In a study carried out by NUS Enterprise, the National University of Singapore’s business and entrepreneurship centre, it was reported startups are increasingly relying on government support. A total of 69% relied on government schemes, an increase from 19% in 2010.

Indeed, in line with its strong commitment to foster entrepreneurship, the Singapore government has launched 34

Singapore was and still remains the perfect testbed for us because of its world-class infrastructure and educated population which is why until today, we do all our producttesting in Singapore before we roll out to other markets Ng Jing Shen, Paktor Startup SG this year to support startups in various areas such as branding, funding and talent attraction during their various stages of growth.

Additionally, fintech startups are supported greatly by the government and Singapore’s central bank and governing body the Monetary Authority of Singapore (MAS), which was the one Nanu capitalised on when scaling up. “In 2016, MAS laid out a roadmap that would help transform the country into a smart financial centre where innovation and technology would be pervasive,” Nanu continues. “Leveraging its regulatory role, the MAS has fostered a conducive and supportive environment for innovation by private sector players and the establishment and growth of fintech startups and next-generation disruptors.”

An efficient startup ecosystem is one that has all components in abundance. Along with government support, catalysts such as accelerators, incubators and co-working spaces are crucial. Interestingly, Singapore has a thriving business environment in place and the reason is because of the amount of accelerators and incubators that it has to offer – including Startup SG, Entrepreneur First and Startupbootcamp FinTech to name a few. This gives founders an additional opportunity to network with likeminded entrepreneurs. “That’s one area that’s definitely accelerated a lot over the last five years or so,” Goodwin says.

Additionally, the space-starved island is encouraging more co-working spaces for startups and there are already around 100-120, according to the Singapore Business Review. “There are

a range of prime office spaces but they come at a premium here,” he adds. “And with co-working spaces in Singapore – there’s a whole load. WeWork in and all around the region are great solutions on that front.”

Consequently, Singaporean startups are also climbing up the ladder in VC investments. In 2018 Grab, the ridehailing company headquartered in Singapore, received an investment of $2.7bn in a series H round, of which $1bn was invested by Toyota. Taking into account only this investment, Singapore beat its own record of $1.2bn in 2017 according to an annual report by KPMG. In fact, Grab and Uber announced in March 2018 that the former had acquired the latter’s operations for Southeast Asia. No further proof is needed to see how the island city is luring more investors and VCs due to its exceptional startup calibre. What has worked so well in its favour is the nation’s strategic advantage in terms of infrastructure availability, ease of doing business and technology adoption, as well as clear government policies that look to encourage entrepreneurialism amongst its workforce.

And many chieftains would agree.

For instance, Nanu secured $20m in a series C funding round in December 2018 and believes launching in Singapore made all the difference for the success of his startup. “You can kickstart your business in Singapore, make use of the great facilities and services that the country offers and turn all the ingredients into a winning formula,” he says. “Starting up in Singapore gives us an edge in the other

ELITEGLOBAL JANUARY 2019

THISTHISISISISSSingapore.indd 5

10/01/2019 16:43

SINGAPORE

eastern and western markets. It really is the perfect base.”

While the startup community spawned in Singapore is well-catered to in terms of funding and support, there are a few mountains they must scale. One of the pitfalls plaguing many businesses is the high cost of living and infrastructure. “Employees expect higher salaries and the office rents are relatively higher,” says Nanu. “To keep our overheads manageable, we get most of our operations and back-end work done in India which is not as expensive as Singapore.” Indeed, the city-state has been dubbed the world’s most expensive city to live in for the fifth year running in the Economist Intelligence Unit’s Worldwide Cost of Living 2018 survey.

However, while these statistics suggest the high costs to be an obstacle, not all agree it’s unjustifiable. Moreover, it’s not exceptionally dissimilar to the likes of London or New York. “I think here in Singapore it’s more expensive but with that you’re getting all these benefits which if you read out – you know it’s worth it and makes working here more efficient,” Lodhia says, adding that the systemised transport system is a major factor in attracting expats from across the globe. “I’ve never been anywhere in the world where you can be at your desk within 45 minutes,” she adds. “The efficiency of Singapore for international business where people can come in and go out fast instead of wasting hours in commuting comes at a price.

And I think the fact that Singapore has

become an international hub for Asia [means] people have realised those costs are justified.”

While finances are a major concern, sourcing talent can be tricky. It may not seem like it at a first glance. After all, the city is home to the top two universities in Asia – The National University of Singapore and Nanyang Technological University. Singapore is also the home to management institutes such as Singapore Management Institute and INSEAD. However, even with these, the talent is there, it’s just not always easy to find or attract. And Lodhia experienced the struggle first hand when she was hiring.

“Everyone laughed and said ‘Oh my God, good luck finding somebody when recruiting,” she recalls. “When you enter Singapore as an international company, you need a person who is locally knowledgeable but also internationally trained to tackle concerns and deal with clients. And it was very hard to find talented digital advertising people.”

Another essential lesson many entrepreneurs learnt was being generous with resources when researching about the city-state. Not just in the business community for potential deals but also in its local culture. Since Singapore is a gateway to other south-east countries, owners cannot use the same strategies when expanding. “South east Asia consists of not just Singapore but Malaysia, Indonesia, Vietnam and Thailand and trust me, they’re worlds apart from each other,” Lodhia says. “From language

and etiquette to attitude and culture and even values – what one market finds attractive, the other will not. For instance, you need to make sure your staff are capable and creative enough to be able to have conversations in Thailand if you’re venturing there.”

While it’s common for companies who are licenced in Europe to get instant access to 28 markets, in Asia, company leaders have to go to each country to get a separate licence as each of them have their own procedures, as laid out

by Ernst and Young. And Lodhia had to even tailor her business plans when she planned to expand the business in South east Asia. “We were very naive and a lot of companies really do think one size fits all,” she says. “Thinking ‘we’re going to enter Singapore and within six months we’ll be taking revenue out of Malaysia and Indonesia and it’s not going to be very hard’ is far from true. It doesn’t work like that.”

However, even with its fair share of challenges, it’s easy to see why businesses are booming in the Lion City. And Singapore is surely going to go from strength to strength. Unicorns such as Grab, e-commerce company Lazada and technology services provider SEA are proving you can make it work starting in Singapore and then use it as a platform to venture to other markets around the world.

“Singapore’s got the infrastructure, the support services, an open minded business-first government and the talent,” Nanu concludes. “What more could you ask for?”

JANUARY 2019 ELITEGLOBAL

THISTHISISISISSSingapore.indd 6

35

10/01/2019 10:59

Nakul sharma CEO AND FOUNDER, HOST MAKER

Managing team productivity across a digital world Global expansion can be taxing for staff. But thankfully, the rapidly shifting workplace sees technology erase the hurdles apid expansion for any startup can prove incredibly challenging.

Managing team productivity, ensuring staff feel valued and maintaining high levels of motivation can make or break new businesses and this is particularly true when expanding into new, unknown regions. However, embracing digital tools can make a difference.

At Hostmaker, for instance, we’ve launched in nine cities across the globe in just four years and faced these challenges head on. Moreover, with worldwide remote workers from Lithuania to Australia, we’re always embracing digital nomad team members to ensure we attract the best talent. After all, the traditional

R

€

£ 36

workplace has changed a lot over the years and so too has the workforce.

The conventional nine-to-five is no longer set in stone so finding new strategies to manage team productivity is of utmost importance. Fortunately, technology has enabled us all to log on from anywhere in the world, be it the comfort of your own home, a café or even a sun lounger.

And there are plenty of tools available which streamline communication and enable employees to log on from across the globe. At Hostmaker we use a variety, including Jira, GitHub, Google Hangouts and Slack to communicate seamlessly with one another and ensure everyone is on the same page.

As well as using smart communication tools to fit your business model,

managing team productivity is also about investing in your company culture, which has never been more vital than in an increasingly digitised world. A lot of business leaders often forget the key to retaining a productive workforce is to do with how your staff are feeling. If they feel valued and motivated, team productivity will naturally increase.

One key way to build company culture is therefore by pulling the team together. And even in a world of digital workers, bringing staff closer won’t go unnoticed. For example, our tech experts are made up of experienced consultants scattered across the globe.

To create a welcoming and friendly culture we meet up every three months, rotating cities and organising fun activities as well as making time to strategise for the future. Aside from away days and trips, other benefits could include team treats such as shopping vouchers for hitting targets or cash bonuses for winning new business.

Above all, it’s a chance to build relationships and connect with other members of the team.

Overall, when it comes to managing team productivity, it’s vital to remember your staff are what make your business a success. So investing in your company culture and adopting new technologies to streamline communication is the perfect mix.

ELITEGLOBAL JANUARY 2019

contribpg29.indd 1

09/01/2019 18:28

world of

opportunity 02 | WELCOME 03 | KEYS STEPS FOR EXPANDING ABROAD 06 | ONLINE: AN OVERSEAS OPPORTUNITY 08 | BEYOND EU BORDERS 10 | THE EXPORT RUMOUR MILL

worldfirst Cover.indd 1

28/09/2018 11:06

WORLD OF OPPORTUNITY

Welcome

I

n a climate that’s currently filled with uncertainty, concern and rumour, UK business leaders are constantly being updated with various reports about the risks surrounding their companies. But what about the opportunities? Those beyond Britain?

We’ve spoken with a series of entrepreneurs about their experiences of operating internationally and started at the best possible place – the beginning.

If you plan on launching your company abroad, it stands to reason you won’t have all the answers, which is why we’ve questioned those who have been there and done it on what they believe are the most crucial things to consider in order to successfully secure a footprint overseas. With everything from costs, strategies and being honest as to whether the market actually wants your service, you should have everything you need to get the ball rolling with an export plan.

There’s an incredible amount of data doing the rounds on what seems to be a daily basis surrounding Brexit and the UK’s future. So we’ve crunched the numbers and rounded up the key figures in one infographic to bring you up to speed.

2 pages 3 -10.indd 2

Setting up shop overseas may seem like an uphill struggle and, while we’re by no means saying it’s easy, online has helped the ambitions of entrepreneurs to open overseas and achieve sales.

Indeed, we’ve heard how some business owners haven’t even had to set foot on a plane to attract international customers thanks to the internet. As one leader puts it: “Cross border e-commerce is the backbone for our ambitious business growth.”

So we’ve covered what to consider when growing abroad and how the web can help your ambitions but the next question is where should you go? China is a solid destination for its market opportunity thanks to a love of Brand Britain as well as the spending power possessed by local consumers in the country.

Finally, some things you’ll hear on the grapevine about export will be true and others the work of fiction. We’ve done some myth-busting to break down what you can expect to hear when setting out overseas to give you a head-start on what’s true and what’s false. Happy exporting!

www.worldfirst.com

06/07/2018 13:38

worldfirst

Follow the leaders Growing a company overseas can seem daunting, so we’ve secured first-hand pointers from business leaders that have successfully expanded beyond the UK “It’s important your website talks directly to your new market.

Having a platform that sells in pound sterling isn’t going to entice a US audience. Speak to your new audience by pricing products in their national currency and, if you can, make the shipping, returns and delivery process as barrierfree as you can.”

Richard Valtr is the founder and CEO of Mews, the hospitality software provider

Niamh Barker, founder of The Travelwrap Company, the cashmere wrap retailer “The most important thing for us was making sure that customers around the world have a positive journey with us, from when they order an item to when they receive it. It’s vital not to rush into making decisions and to look at all the options when it comes to order fulfilment.”

“Research into the market size, native languages and customer behaviour in your desired location are important to think about. This will ensure you understand your market well. Also, your financial situation – make sure you’ve got budget and resources to expand in the way that you want to.”

Ashleigh Hinde, founder of Waldo, the direct-to-consumer contact lens brand

pages 3 -10.indd 3

“Have a very clear business plan with a clear export strategy. Ensure your value chain can accommodate an importer-distributor margin and remain market-led if it’s a premium brand proposition. If you’re serious about export, having credibility is key, otherwise you will not attract the right partners.”

Mark Dawkins, co-founder, Langley’s England, the gin brand

Tom Jeffrey, e-commerce manager at Jules B, the luxury clothing brand

www.worldfirst.com

“Seriously consider whether or not your product or service has a potential customer base in your new market. While you may be successful in your home country, this doesn’t always translate to success overseas. Put simply, if there’s no need for your service or product, and you do not undertake due diligence on a new market, you’re doomed to fail.”

“It’s very unlikely you’ll be an expert in the country you are doing business in, so always try to find a local partner that understands the landscape.

This is a strategy we’ve pursued to great success in South Korea and Japan.”

Omar Rahim, CEO of Energi Mine, the energy company

3 06/07/2018 13:39

SUPPLEMENT world of opportunity TITLE

Of UK-based businesses expect their overseas trade to increase over the next year

Is the amount exported UK goods and services will increase by 2020 - which will double by 2030

The value of international imports in April 2018 – a 2.5% increase from last year

of London-based SMEs make a foreign transaction each month, followed by 30% of the South East and West Midlands

The value of international exports at the start of Q2 in April 2018, showing an increase of 6.6% year-on-year

of European businesses are moving operations out of the UK following Brexit – down from 15% in 2017

of UK SMEs export to Western Europe, making it the most popular destination, followed by Central Europe, the Nordics, Eastern Europe and the US

SMEs invested in exports in Q1 2018

of small businesses are positive about leaving the EU

4 pages 3 -10.indd 4

of UK SMEs trade internationally in Q4 2017 – down from 52% in Q4 2016

Source: Bibby Financial Services, UBS Evidence Lab, WorldFirst, HM Revenue & Customs, HSBC/gov.uk

www.worldfirst.com www.xero.com

06/07/2018 13:39

XERO

The smarter way to trade.

Use the New World Account to hold and switch between multiple currencies in one simple place.

Compete like a local business, globally.

Register at worldfirst.com

www.xero.com

pages 3 -10.indd 5

5 06/07/2018 13:39

world of opportunity

Online:

An overseas opportunity

The power of online shopping and communications means companies can now cross countries at the touch of a button, so we’ve spoken with the leaders who did exactly that with their businesses to head overseas

T

he UK high street has been hit hard throughout 2018, with a seemingly endless list of retailers including John Lewis, Toys R Us and House of Fraser announcing store closures.

Comparatively, online retail is surging. An IMRG Capgemini sales index revealed that purchases online spiked by 19.4% year-onyear in May 2018.

Commenting on the study, Andy Mulcahy, strategy and insight director at IMRG, said: “Growth for the online retail market has been exceptionally strong so far in 2018, with May’s result being the highest

6 pages 3 -10.indd 6

for that month in eight years. It’s becoming increasingly clear that shoppers are favouring online channels over physical ones to a greater degree than they used to, which is accelerating the pace of change for multichannel retailers.”

Of course, online shopping doesn’t just support consumers and make their lives easier, it simplifies things for retailers in many ways, particularly when it comes to expanding the business and operating overseas. Indeed, rather than physically visit countries, look at locations and property options, introducing an

online store into a new market can speed up the process.

Jules B, the luxury clothing brand, is one such company that didn’t even venture overseas to explore markets before selling in them, it just went in for the kill, according to Tom Jeffrey, Jules B’s e-commerce manager. Explaining why the move outside the UK was made, he says the opportunity to build the brand was too good to pass up. “Selling outside of the UK meant we could expand our potential customer base and bring our unique mix of brands and styles to more people,” Jeffrey details. “These things always

www.worldfirst.com

06/07/2018 13:40

worldfirst

take a lot of work and figuring out to begin with but it’s been a worthwhile process and has increased brand awareness for us in a way that couldn’t have happened if we were only selling in the UK,” he says.

“Without having to physically leave the country, we’ve reached a point in which international orders represent 20% of our business and this figure is constantly increasing.”

When assessing where to launch, the brand turned to Google insights and keyword tools alongside paid advertising to weigh up the best options suitable for its growth. And although there were challenges, they’ve been overcome and have literally paid off.

Jeffrey says: “With the tools and technology we have access to now, selling online is certainly the easiest way to take a business overseas and make that expansion. Without having to physically leave the country, we’ve reached a point in which international orders represent 20% of our business and this figure is constantly increasing.”

In terms of the approach to achieve sales, Jules B is open-minded with the method it chooses, although online marketplaces have both been valuable. “We look at all options, from Amazon and affiliates to apps and third party platforms, to help us build the Jules B brand and generate traffic to our site,” says Jeffrey. “We already use both Amazon and eBay to drive sales and have found this to be a successful strategy.”

China is one such market that businesses should pay attention to closely if they want to branch out to new territories. According to PwC, the professional services firm, the Far East country is the biggest e-commerce market with online sales of $307.4bn in Q1 2018 – that’s a 35.4% rise year-on-year. Langley’s England, the gin brand, secured a deal to enter Asia in 2018 and cofounder Mark Dawkins said he’s keen to achieve the success there that it has in Europe and the US. He believes that an international presence is needed in order to be a true brand. “40% of our global sales are currently from the UK but we have a clear three-year plan to reduce that reliance to 20%, whilst still doubling the UK sales,” says Dawkins. He notes that export sales were crucial to let the business reinvest in its marketing plan to scale abroad.

www.worldfirst.com

pages 3 -10.indd 7

Interestingly though in the case of Langley’s, achieving online sales abroad hasn’t been as key for the business as it has for Jules B. “Our brand is available on many online retailers and we have a good online presence via our non-commercial website and social media platforms but importers do not buy from their brand partners online and we’ve noticed that not many overseas consumers do either,” Dawkins says. Focusing on Amazon specifically, it hasn’t been particularly prominent for overseas sales either but does have its benefits.

“It has been very good for us in the UK and if you are a successful performer with a good sales performance on Amazon it does prove the saliency of your brand and that does make import partners sit up and take notice,” he adds. “It has a similar impact to having good sales in multiple grocers these days.”

Elsewhere, Niamh Barker, founder of The Travelwrap Company, the cashmere wrap retailer, has been able to enter most foreign markets with the power of the internet without travelling to them in person. “For our overseas audience, our signature product, Scottish cashmere travelwrap lends itself well to an online audience,” Barker explains. “Our brand emphasis on the quality, craftsmanship and British heritage provides reassurance and reduces barriers to purchase for overseas customers.”

With that product reassurance and brand exposure overseas, Barker feels the business expanding outside of the UK has been low risk. “As customers spend more and more time shopping online our strategic growth plan continues to be following our customers anywhere in the world.

Cross-border e-commerce is the backbone for our ambitious business growth.”

7 06/07/2018 13:40

world of opportunity

Beyond EU borders What the UK’s SMEs may have thought of being a slow death with the triggering of Article 50 has resulted in increasing profits from the Far East

T

here are no second thoughts about China being the largest economy on a purchasing power basis. Whether it was British beer, Whittard tea from Chelsea or British pork, China seems to have taken a shine to goods manufactured in Blighty. And the UK was always viewed as a gateway to entering the tech industry with the increasing startups. China’s interest in the country was shown when it issued the first overseas sovereign RMB bond in 2014.

This means endless opportunities for UK-based companies. As the Brexit countdown ticks even louder with each passing day, business owners widen their gaze beyond the EU over to the Far East.

Post-Brexit vote, the UK’s trade increased by £0.6bn with countries outside of the EU and declined £1.2bn with countries inside the EU in the first quarter of 2018, figures from National Statistics show. While businesses believed that failing to reach a deal with the EU could

8 pages 3 -10.indd 8

be fatal and the single market access is crucial, SMEs are now confident about expanding and are being able to produce profits from overseas.

In fact, 60% of medium-sized business leaders plan to increase investment in exports beyond the EU in response to Brexit according to research by Mills and Reeve, the national law firm. The study based on a survey of 500 companies said that despite an unstable economy being foreseen, businesses are feeling bullish with 83% of them planning to increase their turnover this financial year.

But Brexit is not the only reason for expanding in other countries. Many Asian investments were being directed to the US until now. But figures by Magister Advisors, the M&A advisory firm, witnessed a change when Asian investors turned their back on America after Trump’s punitive trade tariffs. This would mean that foreign investment from Asia would scale up UK businesses far faster.

www.worldfirst.com

06/07/2018 13:40

worldfirst

An example of a British business thriving in the Far East is Jaguar Land Rover, which racked up export sales in China after it opened its first engine plant in the country and is to be one of the largest exporters to the market. Indeed, while the full financial year ended March 2017 saw the firm’s retail sales up 16% year-onyear, China dominated the growth with a 32% sales spike over the period. That’s more than the 24% in North America, 16% in the UK and 13% in Europe. “We continue to make encouraging gains in key markets such as China and North America,” said Andy Goss, sales operations director at Jaguar Land Rover.

This was seen in other companies as well. For instance, the sky-rocketing demand for luxury commodities led to a 4% increase in sales last year for Burberry, the British clothing brand, and much of it came from China. Similarly, Intertek, the product-testing company, said in its annual report that China, Vietnam, India and Hong Kong are main markets. Another business witnessing an upward growth was BP, the UK-headquartered oil and gas company. Its report said that energy consumption in China rose by 3.1% in one year making it the largest growth market for 17 consecutive years. It

www.worldfirst.com

pages 3 -10.indd 9

just goes to show how closely the fortunes of UK firms can be linked to Chinese markets.

But export does comes with its challenges. For many exporting SMEs that sell in foreign currencies, foreign exchange risk is the most cited challenge and many see either gains or losses fluctuate due to exchange rates, given the depreciation of the sterling. According to Civitas, an independent think tank, SMEs find finance to be another mountain to scale when it comes to expanding abroad.

But despite these challenges, figures from global currency company WorldFirst’s ninth quarterly Global Trade Barometer showed that of the 1,000 SMEs surveyed, one in four are looking to export to a new country in the next quarter. Of the ten markets that saw the greatest growth in payments from UK SMEs in the first quarter of this year, seven are outside of the EU. These include — Turkey, Norway, Morocco, Singapore, Russia, Indonesia and the UAE. Commenting on the issue, the chief economist at WorldFirst, said: “These SMEs will be our global exporting pioneers post-Brexit and it is vital that the government and wider industry does all they can to support them. This could mean anything from facilitating connections between UK small businesses and foreign counterparts, to offering advice and training on how to do business and communicate with international trading partners.”

Despite the more confident outlook, 46% of those surveyed said that some form of external support would encourage them to export more. Digging deeper, 18% want help to discover international partners, while 17% want to see government to play a more active role.

At times like these, government departments such as UK Export Finance (UKEF) is useful as it offers insurance and capital to viable UK companies. Elsewhere, the China-Britain Business Council is on hand to support and advise UK businesses who are considering entering the Chinese market. The UK government has been trying to aid businesses by equipping them with tools such as the legal proceedings and laws they need to know so as to reach its goal of £1tn worth of exports by 2020.

Leaving the EU might pose a challenge but with the Far East as well as other international markets proving to be the silver lining, it seems like company heads would do well to look beyond EU borders.

9 06/07/2018 13:41

world of opportunity

The export rumour mill You’ll see and hear a lot when it comes to shipping your business out across international borders but how much of it is accurate?

P

eople will always have a difference of opinion when it comes to certain business situations.

For example, is it better to bootstrap or seek funding early on? What works for one company will not necessarily work for another – although that doesn’t mean anyone is necessarily right or wrong.

However, there’s a difference between opinions and what is fact or fiction.

Some business myths come from assumptions and others from word of mouth but, regardless of its origin, a myth is still false. And when it comes to exporting, one such belief is that small companies can’t thrive overseas – which was denied by Dominic Jermey, the former UK Trade & Investment chief executive back in 2014.

Supporting that further, the June 2018-released UK Export Finance report revealed smaller businesses accounted for 77% of the UK exporters that the government funding arm helped sell in 75 countries over the past year.

10 pages 3 -10.indd 10

So to prevent any other UK leaders falling for international information they believe to be accurate, we’ve spoken with a handful of entrepreneurs that have expanded globally to find out what fables they were fed during their expansion.

Beware the costs According to Omar Rahim, CEO of Energi Mine, which now operates in South Korea, there were a couple of standout myths he heard when looking at taking his company overseas and cost was chief among the factors. “Probably the first myth we encountered was that moving into new territories is phenomenally expensive,” Rahim says. “Really, it doesn’t need to be if you manage it properly. If you try and do everything yourself, from a distance then the costs can soon rack up.”

The second thing he was led to believe is that

www.worldfirst.com

06/07/2018 13:41

worldfirst

you need to become a font of knowledge before daring to embark on an export expedition, which also proved to be inaccurate.

Referring to cost and expertise, he advises: “In both cases, the key is to make use of local support specialists that know the ground you want to cover and can to get you up and running at reasonable rates, rather than trying to hire and negotiate deals on premises and services from afar.”

We know that discussion with peers can be a good thing but you hear a mixed bag of positive and negative points, the latter of which could easily act as a deterrent. Indeed, Rahim was met with a fair share of horror stories when conferring with others. “Issues of spiralling costs and expansion plans becoming time vampires that drain the rest of the business are commonplace and you can’t help yourself but accept that it’s an unavoidable part of the challenge,” he details.

“However it really doesn’t have to be that way. Just plan, be smart, and don’t try to do everything yourself. Local help is essential to being successful in new territory.”

conserving a company once it’s up and running in an overseas market. Commenting on his experience, Richard Valtr, founder and CEO of Mews, the hospitality software provider, says: “Much gets made of the pains of starting up and maintaining businesses in other countries.

For us, hiring our financial director and using a cloud service has really helped us streamline processes in all of these different countries.

Of course, there is no startup that seems to remove the headache of transfer pricing but startups shouldn’t be afraid of the risk and must be willing to accept some costs in order to establish multi-market growth.”

Piece of cake Seemingly, myths tend to be linked to negative elements surrounding exports. However, on the other side of the coin, Tom Jeffrey, e-commerce manager at Jules B, the luxury clothing brand, revealed people think internet retail is a walk in the park. “That the online market place is ‘easy’ is a myth,” he declares. “A lot of people think it’s easy but it takes a lot of time and effort to do it right. We would always recommend putting the effort in at the start as it will make everything more stable and automated in the long term, which makes doing business online and continuing to expand much easier.”

It’s too risky For Ashleigh Hinde, founder of Waldo, she could have quite easily been put off exporting altogether had she taken the words of peers to heart. “Generally speaking, the feedback I’ve experienced around internationalising is that people are very risk averse and tend to warn against it,” Hinde reveals.

The key, she believes, is to take a step back and assess the risk for yourself as it’s you who knows your business better than anyone else. “For a lot of products their points might be valid but I think it’s important to look at your business through your own lens and make decisions, particularly regarding expansions, based on your own situation. Analyse your own company’s abilities and resources and if you truly believe it will work, don’t let people scare you.”

Running wild Elsewhere, another myth that can get in the way isn’t simply costs of getting started or the risks once you’re there but

www.worldfirst.com

pages 3 -10.indd 11

11 06/07/2018 13:42

Hungry to grow your business overseas?

With the new World Account you can open local currency accounts and sell on any global marketplace.

Compete like a local business, globally.

Register at worldfirst.com

pages 3 -10.indd 12

06/07/2018 13:42

mark price, Founder of engaging works and former minister for trade and investment

Reimagining the UK’s digital sector post-brexit While platforms like Facebook and Instagram created the ever-increasing demand for digital in businesses in the past, Mark Price thinks the time is ripe for the sector to evolve further t’s tempting to think the online world is mature but it’s very young.

Facebook is merely 14 years old, WhatsApp came in 2009 and Instagram followed a year later. They all now have billions of users but that doesn’t mean there can’t be new entrants.

Incumbents either slip up, miss the new trends or become too big to adapt. Jeff Bezos recently announced even Amazon is not too big to fail – he’s right. Think David and Goliath.

Who would’ve thought the first trains or factories at the start of the industrial revolution wouldn’t be around today or that only a third of the companies named in the first FTSE 100 list in 1984 would survive?

As Brexit nears, growth of the digital sector should be a priority – it could even provide an opportunity for the UK to lead the way and reimagine the sector. This year we saw the Department for International Trade cite digital design, services and data as essential to the UK’s exporting success. As we move into a post-Brexit era, it’s important to protect and nurture British digital platforms and ensure they stay competitive.

It’s well known Generation Z are taking a stand for privacy on social media. 2018 has been a landmark for advancements in online privacy. The GDPR regulations aim to give higher levels of data privacy coveted by the

I

new generation and digital platforms must wake up to this.

Similarly, as new companies enter the market each year, we’re seeing a change in digital trends. Does Facebook appeal to 21-year-olds as it did a few years ago? Looking at its scandals, you can make a good guess. This brings opportunity as it proves there is appetite for new platforms to fit the needs of millennial users.

How can we see change in the economic model of digital platforms? In the past, social media platforms developed as a series of targeted offerings – a marketeer’s dream.

For instance, remember the early days of food shops where you’d walk along a high street and stop at the butcher, baker, grocer and fishmonger?

And then someone had the idea to build a supermarket where everything was synced under one roof. Could this be

the future for digital platforms? My vision for the is a one-stop shop for all digital needs. A platform where you can log in to manage your messaging, emails, conference calling, articles and much more.

Reimagining digital platforms will definitely grow the sector. With Brexit approaching and the government’s support there’ll be loads of opportunities for tech entrepreneurs to transform the way digital platforms are used.

JANUARY 2019 ELITEGLOBAL

contribpg49 1

49

09/01/2019 18:48

FUEL10K

Global

BY ZEN TERRELONGE

delicacies

Sensing an overseas opportunity over ten years ago, Barney Mauleverer flew solo to help UK food and drink brands go international, which eventually led to his own breakfast disruptor FUEL10K launching and embarking on global growth

B

arney Mauleverer is a man who knows a thing or two about food and drink, especially when it comes to appetites overseas. After all, he spearheaded international strategy at Innocent, the smoothie maker, having joined in 2000 just six months after the company launched. “My job spec was ‘Here’s a caravan, go and sell to anyone with a funny accent,’” recalls Mauleverer. “So literally I was given that brief and took off in a caravan to try and hunt down anyone who might wear a kilt or have an accent that wasn’t West London.”

His first win for Innocent resulted in him securing Ireland before it joined the euro. “We got the Irish market up to 10% of the UK business,” Mauleverer details. “And as they joined the euro it became very buoyant and that really gave me my first flavour of international operations.” From that point onwards, he begun calculating countries that would be ripe for picking, which resulted in offices opening in France, Holland, the Nordics and Germany.

After some six years in the role, Mauleverer had guzzled a wealth of international information, which led him to realise his knowledge could be of use to other young brands, prompting him to leave Innocent. From there he launched a food and drink-centric export consultancy venture in 2006, earning his former employer as a client in France. “I left Innocent to set up Fresh Marketing, which was to help these brands accelerate into Western Europe to begin with but also the Middle East and Far Eastern markets, which we’ve been doing for the last 13 years or so,” he details. While some would come and go, others – such as Eat Natural and Burts Chips – became exemplary successes.

In terms of sniffing out edible entrepreneurial endeavours, looking to the US was often a fruitful undertaking. “Most 50

ELITEGLOBAL JANUARY 2019

Fuel 10K.indd 1

09/01/2019 18:18

FUEL10K

of these brands were establishing themselves quite well in the UK and following food trends from west coast America and New York,” says Mauleverer.

Such trends would subsequently spread across the globe, which Fresh Marketing aimed to capitalise on. “We were trying to pick up brands in the UK that had foundations in the States that we could then take east,” he continued. “Smoothies originated in the States, came to the UK and then went out into Europe three to five years later. Cereal bars followed the same track and coconut water or vitamin water are more recent ones.” He points to an annual Anaheim trade show as a place where “you can almost look into the future” to discover what’s set to become of the food sector in the UK and then Europe.

Of course, some of the developments would seem bizarre or unheard of to those not in the know – and that’s the point to an extent. “We’ve met quite a lot of brands, so we feel like we’ve got our nose right at the coalface for what’s working, what isn’t and what brands are likely to make it,” says Mauleverer.

“We’re looking at products that highlight new topics [such as] the normalisation

of protein, which used to be reserved for gym junkies and now it’s already become big in the UK.” In fact, it was the power of protein that energised him to think beyond Fresh and take a go at cofounding a brand of his own – FUEL10K. Witnessing the good, the bad and the ugly side of creating a food and drink brand through clients, it seemed like too good an opportunity for Mauleverer to pass up and get his hands dirty.

Indeed, while Fresh is a solid business, it’s a distribution channel rather than

a tangible good you can hold or indeed consume. “[We weren’t] building a brand or something that’s saleable,” reasons Mauleverer of the consultancy. “We’ve helped many brands become successful and some have ended up selling and doing very well for themselves. We wanted to use our network and experience to create some value for ourselves as well.” And that’s where FUEL10K came in. Seeing the rising trend of protein in the crystal ball country of the US and the declining demand for breakfast in Britain, FUEL10K

We’re looking at products that highlight new topics [such as] the normalisation of protein, which used to be reserved for gym junkies and now it’s already become big in the UK JANUARY 2019 ELITEGLOBAL

Fuel 10K.indd 2

51

09/01/2019 18:19

FUEL10K

52

ELITEGLOBAL JANUARY 2019

Fuel 10K.indd 3

09/01/2019 18:20

FUEL10K

was built to fuse the two together and ignite a new hunger with a freshly-squeezed product. The brand started with proteinrich breakfast drinks, then added porridge, granola and more to its roster. “We thought if we could design a product in a brand that spoke to younger consumers that believe in the category then we might stand a chance,” says Mauleverer.

Having operated since 2013, FUEL10K has previously partnered with Tough Mudder to generate brand awareness and it can be bought from the big four supermarkets of Tesco, Asda, Sainsbury’s and Morrisons, as well as Co-op, Waitrose and more. As the business moves towards global growth though, even by leveraging Mauleverer’s two decades of experience, it’s not as simple as sending goods overseas and achieving sales. For example, although the US is generally the ideas factory for new goods, it presented a significant opportunity for FUEL10K. “A couple of years ago we met with a number of retailers over there,” he says. “[We] actually ended up with quite a significant listing with a big retailer, which we ended up pulling back on because we just didn’t have the finance to be able to really do it properly.”

Similarly, moving to Australia, which is ripe for FUEL10K to attack as it’s a market familiar with breakfast drinks, had to be put on ice. “[In 2017] I went to Australia three times and met with Woolworths and very nearly got a starting point in all of those stores but at the time we weren’t quite ready to take that on,” says Mauleverer. “We were 85% certain it was all going to happen but because it wasn’t 100% we made the decision not to [move forward] because if

that 15% came in, it could have really rattled us.” Thinking with his head rather than his heart, that too was walked away from in order to launch with a more strategic method. “I think we would get more success coming with a range of four or five products that solve a problem over there rather than just trying to compete with the local incumbents.”

It’s not always easy to step away from lucrative propositions to scale, admits Mauleverer. But if the risk is too high, it’s a case of having to do so for the greater good.

“We’ve been on such a crazy train for a long time, you’ve got to pick your battles,” he says. “Sometimes we can be really opportunistic and turn things around very quickly.

But if it might destabilise the home market, you just want to take steps carefully. So when considering any market, like we did with the States

and Australia, we have five stars that have to align.” They include ensuring there are hungry consumers, retail destinations to work with, brand control, whether the production will need to take place in the UK or in the local market and, perhaps most important of all, being certain the finances can cope. “We haven’t taken any finance on since we’ve started. Maybe now is quite a good time to consider that,” he adds.

Clearly FUEL10K is wise to walk before it can run. But some companies don’t understand the importance of biding their time, which can be to their detriment – something Mauleverer has learnt through Fresh. “Sometimes new brands aren’t formed enough to consider international [growth], let alone their own home market,” he says. “As a very general rule of thumb, I wouldn’t get involved with a brand that hadn’t been around for at JANUARY 2019 ELITEGLOBAL

Fuel 10K.indd 4

53

09/01/2019 18:21

FUEL10K

The bottom line is the world likes trading with each other and we’ll all want to make it as easy as possible least two years.” That means it needs a significant supermarket listing or similar at the minimum to receive his counsel. “Export is not an easy play, there are lots of moving parts and any brand will need to be able to survive reputation, find a solution for labelling, complexity around palletisation and logistics, shelf life etcetera, not least of all having enough stock to be able to manage the quite yo-yo ordering that export brings.” Another important element that needs to be in place to go global is ensuring the commercials are up to scratch. Just because something works in the UK doesn’t mean it will translate in other markets.

One of the misunderstandings that Mauleverer seems to face when dealing with his clients is that they want to be on overseas shelves yesterday. “I think more often than not, there’s a myth out there that exports should be more possible in the UK and should happen quicker,” he notes. “And that is a myth I try and dispel time and time again.” Another area that brands trip over is the amount of work behind their international roadmap – it can’t be done half-heartedly. “If you think about the energy and effort they’re putting into the home market in terms of websites, trade shows, PRs and all that stuff, to expect a country on the other side of the world will get your brand and be successful without all the energy and support it has in the UK is also a thing to get into people’s heads,” Mauleverer continues.

While he is well aware of the places FUEL10K will have appeal, Mauleverer likes to gauge the thoughts of Fresh clients to see where they would like to enter with their goods. “Very quickly you get the feedback if the products work, the prices work, the branding is right, then you start focusing on the markets that are picking up the concept,” he says. “A lot of UK brands immediately ring-fence America and we’re almost delighted to leave them to it. It’s a very expensive and difficult market to get right.” And that’s precisely why he’s been so keen to ensure all boxes are ticked accordingly to give FUEL10K lift 54

off. “When you have your own brand, you look at it in a slightly different way and strategically it was really important we did really well in one place before stretching ourselves too thin,” insists Mauleverer.

Rather than blindly entering new countries and hoping for the best, he concedes FUEL10K isn’t going to be all things to all people. “If you take a brand like Burts Chips, a crisp brand has got quite broad appeal, people know what crisps are internationally,” Mauleverer says. “Whereas with our product in breakfast drinks, which we sell in the breakfast aisle in the UK, the French just don’t get it. They don’t eat breakfast like we do, they don’t really have a breakfast aisle like we do, so the thought of drinking a breakfast in France is probably not high on their agenda.” But the US, Australia, South Africa and the Nordics are all areas he believes are in the Goldilocks zone, much like Baby Bear’s porridge. “At the beginning of 2018 we started South Africa,” details Mauleverer. “We’re in a chain of stores there called Dis-Chem, which is bit of a cross between Holland & Barrett and Boots. We’re in gyms and also in a number of health food stores. We have pockets of FUEL in Norway, Finland and Sweden. And we’re just about to start in Germany.”

Just a couple of weeks before we spoke, Mauleverer had been in Shanghai at a trade show and that region appears to be one FUEL10K can add to its plan for growth. “We think we’ve found the right route to market to take on some import distribution in Shanghai and further afield, particularly for our milk products so that will be quite interesting to see what comes of that,” he says. Likewise a Canadian contact that’s been in cahoots with Mauleverer for a long period believes now is the right time to restart conversations. “Much of it is timing, when people feel like it’s ready and you’ve been around long enough [for them] to say ‘Okay I get it, I see what you’re trying to do’,” he explains.

“When you’re launching something new and different, people want to see you be successful before you start exporting.”

Of course, no conversation about global expansion could end without Brexit rearing its ugly head. “The benefit of Fresh Marketing is we were pretty aware of the pitfalls around export, having fallen into plenty of them over the years,” Mauleverer opines. As a result, the business is able to navigate changes well, having adapted throughout the years. So even if a hard Brexit arises, while more expertise will be required due to new complexities, it’s a bridge that will just need to be crossed at the time. “I don’t think it’s anything to shy away from or be worried about,” he concludes. “The bottom line is the world likes trading with each other and we’ll all want to make it as easy as possible.

We don’t grow much [food] in this country compared to other countries but we’re good at concept-building as a country. And we should lean on that and have confidence that’s something the rest of the world wants to trade with.”

ELITEGLOBAL JANUARY 2019

Fuel 10K.indd 5

09/01/2019 18:22

XERO

The smarter way to trade.

Use the New World Account to hold and switch between multiple currencies in one simple place.

Compete like a local business, globally.

Register at worldfirst.com

www.xero.com

pages 3 -10.indd 5

5 06/07/2018 13:39

Global goals

WORLD

DOMINATION

BY ZEN TERRELONGE

New Year spells fresh opportunities. So now that 2019 has finally arrived, how can you make your global ambitions a reality? We spoke with a handful of companies about their territorial targets and plans to achieve them

T

he phrase “New Year, new me” is thrown around by people across the world at the stroke of midnight every January 1. But without strategy and goals things are unlikely to change, which is true for personal targets and more so in business.

So now that 2019, the year of Brexit, is finally here after over two years since that decisive and divisive EU referendum took place, we wanted to find out first-hand how UK entrepreneurs across sectors will tackle their international aspirations. Here’s what they had to say.

LeaseFetcher Will Fletcher, managing director of LeaseFetcher, the car leasing comparison site, is in the process of thorough research ahead of plunging into international waters, having only launched in Britain during the first quarter of 2018.

“We’ve steadily cemented our position in the UK market and we’re now looking to expand towards the international market too,” he says. “We plan on doing that by completing a pretty comprehensive analysis of the leasing situation in each country and the competitors to watch out for.” Fletcher is under no illusion that the expansion won’t come complete with challenges. “The uncertainty that Brexit is creating obviously makes predicting the success of investments overseas a lot more challenging,” he opines, adding that predicting the UK car market’s performance is near on impossible. “The signs don’t look promising – especially if a no-deal Brexit goes ahead. Businesses just don’t have the knowledge about potential customs arrangements that they need in order to plan for the future so investments are much riskier than normal.”

56

ELITEGLOBAL JANUARY 2019

Goals for 2019.indd 1

10/01/2019 15:58

global goals

As such, LeaseFetcher is running small test campaigns in different countries to assess how Brexit could impact it, with consultants placed in each market to manage analysis.

Despite the concern, Fletcher believes there’s a unique opportunity. “There is a real gap in the market for userfriendly leasing companies and ours is leading the way in the UK,” he says. “We’ve secured our position, things are ticking along well and, now we have breathing space, it makes sense to think about our future plans and direction.”

Yumpingo With clients including Wahaca and Jamie’s Italian, Yumpingo, the restaurant intelligence startup, views the UK as a starting block for the grand plan. “Focus is key when you’re starting out but our vision has always been to establish a global technology platform,” says Yumpingo founder and CEO Gary Goodman. “The UK has been our test market, ensuring our platform is effective and that we have the playbook in place to effectively launch overseas.” While keen to grab international opportunities, he notes the UK will always be an essential market for customer base and product development. “We launched in the US last year

with TGI Fridays,” says Goodman. “The market is 14 times the size of the UK for our core customer base, with US consumers spending more money eating out of home than eating in. So whilst the opportunity to connect consumers with kitchens in real time to transform the guest experience is everywhere, the US is our natural next step.”

To ensure the move across the pond goes well, finding the staff with local knowledge will be key for Yumpingo’s push. With a VP of US sales and VP of US operations, 2019 will see the American team grow further. “In Q1 we’re also launching operations in Europe, both with existing customers with an international presence and new customers,” details Goodman. The technical platform is serverless so a bit of coding is all it takes to enter new territories without delay, with hardware shipped from headquarters accordingly. “If we didn’t anticipate bumps in the road, we would have fallen over a long time ago,” he adds, recognising that the path to success doesn’t always run smooth. “A key value for our company is to run fast and learn faster,” he says. “Feedback is our fuel that ensures we’re able to do that and we culturally embrace times when new obstacles emerge.”

JANUARY 2019 ELITEGLOBAL

Goals for 2019.indd 2

57

10/01/2019 15:58

global goals

Jungle Creations Founded out of London, Jungle Creations, the social media company, launched in New York in September 2017 and followed up with further North American growth with offices in Los Angeles and Toronto. “As our audience is global, it made sense for us to partner with international clients on branded campaigns to help them reach the demographics they need to,” says Jamie Bolding, founder and CEO of Jungle Creations.

And having closed a £3m series A investment at the end of 2018, the business plans to really establish itself in America. “Over the last year the US made up 20% of our sales revenue and with the growth of the team and launch of our Toronto office, we plan to double that and increase its share of the commercial revenue generated,” declares Bolding. He admits that the market is totally different from a commercial aspect when compared to the UK but adds that local specialists are in place to help. “The main challenge is education and awareness in the market so we’ll be putting all of our efforts into ensuring potential clients know who we are and what we do,” he concludes.

Floom Floom, the marketplace for florists, launched in early 2016, so founder and CEO Lana Elie immediately concedes that “it can appear a little abnormal” for such a young company to look beyond the home market so soon but felt the move was a no-brainer. “The first thing that triggered the idea was noticing how many of our UK deliveries were actually coming from a global customer base,” says Elie.

A fifth of orders were US-based at the time the numbers were crunched, which she notes was “a substantial amount considering we didn’t actually deliver into the US market [then].” Unsurprisingly, the appeal was great. “The likelihood of these customers also having reasons to send in their home turf would be high, therefore providing great reason for them to return,” she reasons.

Floom bit into the Big Apple just two years after launching, while partners could also be found in the City of Angels as of October 2018. With 2019 here though, Floom intends to get even more ambitious with five US city launches 58

ELITEGLOBAL JANUARY 2019

Goals for 2019.indd 3

10/01/2019 15:58

global goals

across the year. “Whilst every city presents its own nuances and challenges, we have now got a streamlined process for new cities that enables us to launch quicker and more effectively,” Elie details. “From digital marketing to content, there’s a set plan for each department to execute ahead of launch. After a new city has launched, we constantly review it.” That means complacency is definitely not an option, with conversion rates and user experiences among the factors analysed. “Whilst we meticulously plan and forecast for every city launch, naturally there are things that don’t always go exactly to plan – from florists to customer service to AdWords,” says Elie, noting strategies to manage issues are essential, with 2019 growth to benefit from all the lessons of 2018.

ATG Access Looking at the year ahead, ATG Access, the manufacturer of road blockers and barriers, has a steep hill to climb but solid momentum behind it, having achieved its most successful exporting year to date in 2018. “2019 will see ATG Access continuing its international push, expanding into new markets and nurturing existing relationships in overseas territories,” says managing director Gavin Hepburn. “Leading up to 2020, we have a revenue growth projection of 35%.

This will be achieved by continuous product development to meet client and market security requirements.” The South East Asian market will be one of the key target markets, with Singapore, China and Japan already demonstrating a solid appetite for ATG products. “This has been due in part to the huge economic growth that China is currently experiencing and the next Olympic Games that is set to take place in Tokyo in 2020,” Hepburn explains.

To capitalise on this, ATG will be working to improve understanding of the region and develop both products and skills accordingly. For Japan in particular, an Overseas Market Introduction Service report in conjunction with the British Embassy has been commissioned to assess risk and rewards. “We have found it extremely challenging to break into Japan and to do so has required huge amounts of focus and determination,” Hepburn says. This is a result of the country’s complex culture, which means good personal

relationships must be established with clients in order to succeed. “A pivotal part of our strategy has centred around actually visiting Japan to meet potential partners and this is something that we will ensure we continue to do in 2019, so maintain the momentum we’ve now started to gather there,” he adds.

Hepburn believes vehicle attacks witnessed worldwide will increase the demand for its services. “Following a positive response in the UK, which has seen the technology installed across a number of major cities and events, we are expecting similar orders to come into fruition from the USA and Australia over the next year.”

Grenade With sales in 80 countries already, it’s fair to say exports are explosive for Grenade, the sports nutrition company – especially when half of those markets are served directly from the UK. Grenade co-founder Alan Barratt admits that global growth “just happened” rather than any strategy being put in place initially. “We found that nailing your domestic market is key to global success,” he says. “As our name began to spread and the demand began to grow overseas, we were able to naturally explore relationships with foreign buyers.”

With US and EU deals secured back in 2011, the company is still out to build its reach. “Our customer base stretches as far as the Far East, including recent deals with retailers in Hong Kong and Malaysia,” details Alan’s wife and co-founder Juliet Barratt. In addition to maintaining those relationships, the US office will be developed further to manage sales locally as well as scale exports from the States when the new year rolls around. “2019 will be an especially exciting year for our Middle Eastern expansion – we’re currently building a team in Dubai, where we now have an office,” she adds.

Having experienced mistakes in the past, the Barratts accept it’s part of the process when growing globally, which they feel is fine as long as you learn from them. “The biggest difficulty we may encounter next year though is likely to be currency fluctuations,” says Alan. “With Brexit on the agenda, it’s difficult to predict with any kind of certainty our relationship with the global market. But we’re entrepreneurs, it’s in our nature to navigate a way though.”

JANUARy 2019 ELITEGLOBAL

Goals for 2019.indd 4

59

10/01/2019 15:58

PREPARING FOR BREXIT

Past the Brexit point Two-thirds of SMEs are unprepared for Brexit.

Fortunately, they can still ensure they survive the UK’s divorce from the EU

BY ERIC JOHANSSON

60

brexit.indd 1

ELITEGLOBAL JANUARY 2019

10/01/2019 15:57

PREPARING FOR BREXIT

L

et’s talk about Brexit. Whether you believe the divorce will enable Britain to reclaim its sovereignty or it’s the biggest wound the nation’s populous has ever inflicted upon itself, leaving the EU will have considerable effects on British businesses. Of course, corporate chieftains have known Friday March 29 2019 is the final exit date ever since Theresa May triggered Article 50 in 2017. Since then, they’ve had opportunities aplenty to lay down plans, devise stratagems and iron out grand designs for how their companies will survive the break-up. However, it seems like most SMEs have yet to prepare for Blighty’s exodus from the trading bloc.

Having surveyed 1,083 small-business leaders, new research from international payment services company WorldFirst revealed 65% of UK SMEs have done zilch to protect their brands from the separation fallout. And that’s despite 34% of them believing sterling will plummet by 10% after Brexit. Dismaying as these figures are, it’s still not too late to do something to protect your business and its international commitments. “Above all, SMEs can’t afford to do nothing,” says Caroline Milton, partner and manufacturing sector specialist at Menzies, the accountancy firm.

But don’t rush in blindly. Instead, ensure you know what you’re working with. “The first step is definitely [to] audit where you are now,” says Jennifer Claire Robson, founder of Routes & Branches, the small business export consultancy, and author of the book Export. Thrive. Change the World.

This means taking a long, hard look at your strengths, weaknesses, staff, supply chains, financials and intellectual properties. When you do, try to imagine what dangers may lay ahead for each vertical and what the worst case scenario would look like. “You can then plan for those fears and overcome them,” Robson explains.

For instance, many SMEs will have to face the fear of how new post-Brexit trading regulations will look. “Because, obviously, the rules are going to change,” Robson states.

Recognising these concerns will empower you to adjust to the changing circumstance. The most obvious example is what would happen in a no-deal scenario when it comes to British trade with Europe. In that case, the default would be to revert to World Trade Organization rules. “Well, we already know what they are and what impact they would have because they’re already in use in other countries,” Robson JANUARY 2019 ELITEGLOBAL

brexit.indd 2

61

10/01/2019 15:57

PREPARING FOR BREXIT

comforts. “Smart small businesses are already looking at these rules and what will happen [if they’re] applied.” In other words, while Britain separating from the EU could end up being all about the survival of the fittest, facing your fears could see you become a happy child of divorce if you’ve done your homework.

Your audit should also include checking your financials. “Aside from an impact on turnover, there is a risk that investment levels could fall after Brexit,” says Richard Litchfield, head of operations at Lending Works, the financial services company. While the market has so far avoided the apocalyptic nosedive predicted before the referendum, the economy has continued to disappoint. Having had the fastest growing economy in the G7 between 2013 and 2016, the UK’s growth slumped to the back of the pack in the first six months of 2018, according to figures from the OECD, the intergovernmental economic organisation. Moreover, as the debate about the divorce deal intensified in December 2018, the sterling dropped

62 ELITEGLOBAL

brexit.indd 3

to its lowest level since April 2017.

Given market uncertainties are still likely to be a common feature over the foreseeable future, saving some money for a rainy day seems increasingly like a winning strategy for British businesses. “And, in the event of a smooth Brexit, they’ll then be well placed to unleash these reserves in the form of future investment,” argues Litchfield.

Another important consideration is what will happen to your supply chain after March 2019. “For an SME manufacturer reliant on EU imports, changes affecting tariffs and customs arrangements could pose the greatest risk, either through delays [or] increased costs,” says Milton. Protecting themselves from skyrocketing costs, British businesses could, for instance, look into ways of reducing crossborder movements. “To facilitate this, they could consider outsourcing key processes or, alternatively, [initiate] an acquisition or joint venture in order to establish a facility in continental Europe,” Milton advises.

Indeed, partnering up with other companies could have more advantages than just saving SMEs’ supply chains.

“They can buddy-up with other businesses of a similar size and scale to increase their chances of success,” suggests Patrick Gallagher, CEO of CitySprint Group, the logistics and courier firm. He claims that doing so can also help businesses unlock sales and marketing opportunities, setting them up for a more promising future.

“Nurturing relationships and working with like-minded SMEs will play a vital role for business success going forward,” Gallagher argues.

Brexiteers – like former foreign secretary Boris Johnson and secretary of state for international trade Liam Fox – have long pointed out that breaking up with the EU could enable Britain to sign new trade deals with other countries around the world. Often, they’ve hinted that strengthening the UK’s bonds with the Commonwealth is just the way to do it. While it’s fair to point out that reinvigorating relationships with the Anglosphere would enable British businesses to tap into about a third of the world population’s spending power, others have criticised the notion that the 9.5% of UK exports that go to the Commonwealth today will not be enough to counter potentially losing the 48% going to EU countries. “If the Commonwealth is the future, then we’re in even more trouble than I thought,” quipped Philip Murphy, the director of the Institute of Commonwealth Studies, in an essay in the Guardian in April 2018.

Nevertheless, the idea of expanding one’s horizons beyond the EU does hold water to SMEs. “Exporting to new markets with thriving economies where British goods are in demand, such as many Asia countries, is one way to boost the way if the UK economy is performing poorly,” says Siddharth Shankar, CEO of Tails Trading, the company exporting UK products around the world. But don’t jump in at the deep

JANUARY 2019

10/01/2019 15:57

PREPARING FOR BREXIT

You can then plan for those fears and overcome them Jennifer Claire Robson, founder of Routes & Branches end before testing the waters. “Indepth research into whether a market is a good fit for your product and brand values is essential before implementing this strategy,” he warns.

Ever since 51.89% of the UK populous voted to leave the EU, one of the key concerns for UK SMEs has been the access to labour from European countries. “Put skills at the top of the agenda,” says Tom Huckle, lead cybersecurity consultant and head of training and development at Crucial Group, the professional information

technology and services company. “It’s no secret the country faces a skills shortage that most employers believe will worsen following Brexit.” Indeed, this is hardly a small concern given 8.5% of UK employees came from an EU country in 2017, according to The Migration Observatory at Oxford University. Again, the way forward in this matter is to face your fears and start planning for the eventuality that accessing skilled European staff will become more difficult. Start by looking into what areas are most at risk and

then act accordingly. “Whether it is upskilling the workforce, exploring new recruitment pipelines or focusing on retention, UK SMEs in every sector should consider their strategy for beating the skills gap before it widens even further,” Huckle continues.

So no matter if you’ll be celebrating Friday March 29 2019 as Britain’s new independence day or feel it’s like the doomsday clock striking apocalypse now-ish, you alone can determine if your business will survive Brexit.

JANUARY 2019 ELITEGLOBAL

brexit.indd 4

63

10/01/2019 15:57

AUSTRALIA

Aussie you soon

BY ERIC JOHANSSON

Australia is often poised as a great trading partner with the UK, especially in the run-up to Brexit. But British brands have to plan carefully to trade successfully in Oz

64

ELITEGLOBAL JANUARY 2019

Australia.indd 1

10/01/2019 15:56

AUSTRALIA

y the time payment scaleup GoCardless decided to expand its services Down Under, Joseph Robins had already acquired extensive experience that made him perfect as the company’s Australia and New Zealand country lead. “Before moving into my current role leading GoCardless’ expansion into [the Southern hemisphere], I was managing the company’s growth into emerging European markets, notably France, Germany, Spain and the Nordics,” he says. From the outset it looked easy given the nation’s close relationship with the UK, the fintech startup’s massive knowledge about working across different borders in Europe and how its research suggested its services would be heavily in demand in the nation.

However, when Robins began to explore the different growth

B

options in the sunburnt country as well as the challenges, he soon realised that venturing into Oz would come with many challenges, the biggest of which was the distance. “Entering any new market is tough but entering one so far away from your HQ adds another layer of complexity,” Robins explains.

Navigating these challenges is paramount for any UK SME looking to expand their services and export to Australia.

There are plenty of reasons why they should be. For instance, in the run-up to Brexit government representatives have consistently suggested divorcing the EU will enable Britain to move closer to the Commonwealth. As such, countries like New Zealand, Canada and, indeed, Australia are at the top of the list of nations UK entrepreneurs should be looking into outside of the EU. In fact, Liam Fox, the

JANUARY 2019 ELITEGLOBAL

Australia.indd 2

65

10/01/2019 15:56

AUSTRALIA

international trade secretary, has pushed for Britain to join the Comprehensive and Progressive Agreement for TransPacific Partnership (CPTPP) which includes Japan, Canada, Mexico, Peru, New Zealand and Australia. As part of his charm offensive, the minister travelled to The Great Southern Land in November 2017 to promote trade between the two nations. And Fox made no secret as to why he thought it was a good idea. “The UK and Australia already have a strong economic and cultural relationship – based on our shared histories, language and open liberal economies,” he said at the time.

While Fox’s plan to join the CPTPP has been overshadowed by doubt due to uncertainties surrounding what the final Brexit deal will look like, the chaotic uncoupling from the EU has made exporting a better opportunity, at least in the short run. “The overall weakness of the pound has created a huge opportunity for UK SMEs to export to countries like Australia by making their products and services more competitive on price,” suggests Lee McDarby, corporate IP managing director at moneycorp, the foreign exchange expert. The trade has certainly grown. Between 2016 and 2017, UK exports to Australia rose from $5.368bn to $5.755bn, according to Statista, the statistics portal. However, McDarby warns UK entrepreneurs from blindly relying on their domestic currency remaining weak. “Any British business that imports and exports goods should consider having a concrete currency plan to ensure they’re not left exposed to volatile currency rates,” he explains.

Moreover, there are many ways for UK SMEs to expand into the Lucky Country and offer their services. For instance, thanks to the Australian population having reached 25 million in mid-2018, a decade earlier than expected, the nation is in dire need of infrastructure improvements. Recognising this demand, the government has announced investments roughly worth £113.18bn to be put into those projects in the next decade. It’s not difficult to see how a savvy British enterprise could make a buck by offering its expertise in this area. And that’s just the beginning – similar opportunities can be found in key industries like finance, business consulting, metals and mining, energy and utilities as well as healthcare.

The Australian e-commerce sector offers another promising opportunity for UK entrepreneurs. “It’s slightly unique to other e-commerce markets,” says David Nicholls, director of enterprise development at OFX, the international money transfer scaleup. “It’s been closed for quite a while to cross-border commerce.” This isn’t really a shock to anyone who’s heard about the sunburnt country’s history of protectionism, which essentially saw it being closed down to international competition during huge chunks the 20th century, according to KPMG, the professional services firm. While the nation has increasingly opened its borders, there are still some remnants of this policy. When it comes to e-commerce, this is exemplified

66

You won’t want the move to be a flash in the pan venture, so plan for every eventuality Zoe Morris, Frank Recruitment Group. by the fact Amazon didn’t enter the country until late 2017.

Instead, Nicholls suggests that most e-commerce has taken place on eBay and Shopify. Therefore, before you set up shop in that sector it’s important to know which platform will suit your needs the most. But given Statista estimates that the e-commerce sector was worth roughly $18.628m in 2018, doing that research is time well spent. “It’s a really fast-growing e-commerce market,” argues Nicholls.

Once you’ve decided to go into Australia, you need to start planning. “You won’t want the move to be a flash in the pan venture, so plan for every eventuality,” advises Zoe Morris, chief operating officer at Frank Recruitment Group. “Do your market research, either internally or by outsourcing it to another business.” This means looking at the competition, ensuring that you offer a service people can relate to and defining your business plan. “This structured plan should outline the costs and time it will take to break into this new market, which can have a more positive impact in the long term,” she argues.

A big part of the planning should be around ensuring compliance with local laws. “With any international move, it’s important to understand the regulatory processes that need to be adhered to when trading in that market,” argues Robins. This research should look into everything from labour legislation to payment laws.

Once you set up shop in Australia, it’s usually a good idea to investigate the many networking opportunities the country has to offer. “One thing that we were really pleasantly surprised by was the reception we’ve received,” says Robins.

“Australia is super advanced in the way companies here collaborate with one another, with countless meet-ups and groups.” So whatever industry you’re in, make sure to do a quick web search, see what events are on offer that suit your business and attend them to see what contacts you can make. “It also helps that the weather is great and the coffee even better,” Robins quips.

Once you’ve done your research and made these important contacts, British businesses have every chance to make a success Down Under. “Brand Britain is a benefit in all markets,” concludes Nicholls. “But Australia is going to be a very significant one. They’ve got so much nostalgia and affinity for everything that has to do with Britain. So British brands are going to do very well down there.”

ELITEGLOBAL JANUARY 2019

Australia.indd 3

10/01/2019 11:17

Get your business China ready

The China-Britain Business Council (CBBC) helps UK companies of market in the world. CBBC provides:

o o business services o o a membership programme delivering access, seminars and networking Visit www.cbbc.org to get your business China ready.

ChinaBritain

CBBC_China

China-Britain Business Council

CBBCChina

建议 Advice | 支持 Support | 网络 Networking Beyond.indd 7

08/10/2018 19:13

Tangerine London, UK

Join the thousands of UK businesses like Tangerine that are successfully selling overseas.

Visit great.gov.uk

Welcome1.indd 1

02/10/2018 12:08