Slides from the BEN New Markets Abroad event.

1. BEN Networking Event
New Markets Abroad
Bristol & Bath Science Park,
12th July 2012, 6-9pm
in collaboration with:

2. Practicalities
 phones
 emergency exits

3. Networking

4. Keep in touch!

5. Upcoming BEN Networking Events
Theme When Where What
Summer BEN 16th August River Cruise to • Cruise Bristol Harbour
2012 Beeses • Head out into countryside
Social Event 6.30 – • BBQ at Beeses Tea Rooms
9.30pm • Bring friends and family
Technology 6th Bristol & Bath • Leading edge technologies
September Science Park • Measurement – LIMA
Update – 2012 • Simulation and composites
Future 6-9pm
Manufacturing
Making the 11th October Bristol & Bath • Tips and pitfalls
2012 Science Park • What investors are looking for
Perfect Pitch 6-9pm • Get the tone and body language
right
• Preparation for Venturefest
Venturefest Wednesday UWE • Keynote speakers
7th November Conference • Workshops
Bristol 2012 Centre • Innovation showcase
2012 All day • Pitching panel

6. Venturefest
Bristol 2012
 1-day event on 7th November
 at UWE Conference Centre
 Registration opens on 18th July
 ‘bringing together innovators, entrepreneurs
and investors to make things happen’
– Keynote presentations + workshops
– Innovation Showcase + support exhibitors
– The Pitch
– IP Clinics + Funding Clinics

7. This Evening’s Programme
6:45-8.30 Speakers
Introduction Alastair Watson BEN
Key Note Paul O’Collins UKTI
Views from Tom Jarman Biocentre
the coal face Technology
Mark Ellis Mervarde Ltd
Chris Swingler Propath Continental
Q&A
8:15-9:00 Networking

9. Exporting – Is it for me?
Suggestions on how to become an effective exporter
Paul O’Collins
Project Manager – Public Sector Contracts
Business West
Exporting 12th July 2012 9

10. Protect and Grow
Exporting can help you survive and grow.
There are real opportunities and real support activities to help you
trade internationally.
The UK offers exporters a market with few barriers to entry.
UK Trade & Investment | Exporting for Growth 10

11. Top 10 products and services
What we sell overseas
Top 10 Products (up /down)
• Pharmaceuticals (£16.9bn) 6. Aerospace (£7.6bn)
• Petroleum related (£12.4bn) 7. Telecoms (£7.6bn)
• Automotive (£11.8bn) 8. Organo compounds (£5.3bn)
• Other oil related (£9.9bn) 9. Measuring/Analytical (£4.8bn)
• Engines/motors (£9.6bn) 10. Alcohol/beverages (£4.6bn)
UK Trade & Investment | Exporting for Growth 11

12. Changing world ?
The world is converging
Rapid growth in internet access Example
Demographics • 1.3bn population in China
• Western World • 314m middle class in next 5 yrs
Long lives, small families • Shenzhen 12m population
• Developing World • 100m urban residents since 2006
Short lives, large families • 100’s of millions getting out of
poverty in Asia
‘The Asian Tilt’ - The move from West to East
Emerging markets are driving recovery
UK Trade & Investment | Exporting for Growth 12

13. Export in the South West
The facts…
• 196,605 VAT registered companies (9.4% of
UK)
• 5,700 companies export from the South West
50/50 split goods / services
• South West lags behind the rest of the UK in
terms of export
4.3% Challenge is to
• National Challenge is to increase number of
GDP boost exports
and increase
companies exporting from 20% to 25% number of
companies
exporting
Source: HMRC and UK Trade & Investment
UK Trade & Investment | Exporting for Growth 13

14. Helping South West exporters
Across sectors, markets and across the world
UK Trade & Investment | Exporting for Growth 14

15. The world awaits
Economic growth forecast
UK Trade & Investment | Exporting for Growth Source: Price Waterhouse Cooper 15

16. The Export Journey
• If you don’t know where you are going, you
don’t need a map.
UK Trade & Investment | Exporting for Growth 16

17. What type of exporter are you?
Strategic – based upon research
and analysis
Adaptive – “How about selling
this in xxxxland ?”
Reactive – “You want it for
where?”
Passive – “How did that
happen?”
Source: UK Trade & Investment
UK Trade & Investment | Exporting for Growth 17

18. What gets people into export?
Some examples of how companies become exporters
• Unsolicited enquiry
• Over selling
• Enquiry from a prospective sales channel
• “Cunning plan” suggested by colleagues,
suppliers or friends
Evidence shows
• Attended an international trade event that new exporters
are likely to
• Relatives live there improve their
productivity by a
Or....it forms part of a strategic third in their first
year
plan for growth
33%
Source: British Chambers of Commerce
UK Trade & Investment | Exporting for Growth 18

19. Rising to the challenge
Lots of reasons why not to do business internationally
 Resource, availability and cost
 Legal, regulatory and IP issues
 Insufficient margin in product
 Finance and cashflow implications
 Selecting channels to market
 Managing risk and getting paid
 Language and cultural barriers
 Logistics
 Loss of focus on domestic market
 Loss of control
UK Trade & Investment | Exporting for Growth 19

20. Why exporting is good for business
Become more dynamic, innovative and successful
Companies that export:
• More productive and innovative
than non-exporters
• More resilient to an economic
downturn
• Improve their financial performance 60%
• Better international profile and UK companies that
brand recognition / value export are
responsible for 60%
of national
• Are more likely to stay in business productivity growth
Source: Nottingham University / UK Trade & Investment
UK Trade & Investment | Exporting for Growth 20

21. The Export Formula
• For those who like neat formulae:
Pr + S((T + M + R )F
* (I))Pl/Rk = E
UK Trade & Investment | Exporting for Growth 21

22. The Export Formula
or:
Products and Services*((Time + Money +
Resource )*Fear * (Information))*
Planning/Risk = Export
UK Trade & Investment | Exporting for Growth 22

23. 5 Steps to Export
UK Trade & Investment | Exporting for Growth 23

24. Create an export culture - share the dream
UK Trade & Investment | Exporting for Growth 24

25. Creating an export culture
UK Trade & Investment | Exporting for Growth 25

26. Mine your resources, your clients and your network.
Employees, Associates, Suppliers
What do your customers do with
your products?
Who knows
who or what?
UK Trade & Investment | Exporting for Growth 26

27. International Trade Solutions - South West England
3 Support Agencies – 1 point of access
International Trade Adviser
UK Trade & Investment | Exporting for Growth 27

28. How UKTI support can help you
Working with European Partners
Enterprise Europe Network
Project funded jointly by the EU and by UKTI
Support for SME’s wishing to operate in Europe with help to implement
competitiveness and innovation initiatives
 Providing information and advice on trade in Europe
 Foster international business cooperation
 Stimulate innovation particularly in joint R&D and
technology transfer projects
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29. How UKTI support can help you
Working with European Partners
Enterprise Europe Network EEN Capability
600 host organisations
51 countries
4000+ staff
EEN operates across the European
Trade area covering > 21m businesses
and a population of over 700m
Also includes non EU countries Russia,
Israel, USA, Japan S.Korea and Chile
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30. How UKTI support can help you
Working with European Partners
EEN Core services include
 Access information through Partner Network
 IP Support and advice
 European R&D funding guidance
 Access to over 15,000 business collaboration opportunities
 Information and advice on EU Regulation and Legislation
 Partner search for commercial, technical and R&D collaboration
 Trade Show and Brokerage (B2B) support
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31. ERDF
Expertise in every aspect of international trade
 ERDF Internationalisation Programme for South West
eligible companies
- Enhanced support to help grow your business through export
- Grant funding (£1,000 up to £25,000) 2:1 match
- Additional support in the form of:-
International Trade Advisory support, Research, Events, Clinics and
Business Development Programmes
UK Trade & Investment | Exporting for Growth 31

32. UK Trade & Investment
Opportunities for British firms around the world
UK Trade & Investment
helps UK-based
companies succeed
globally and assists
overseas companies to
bring high quality
investment to the UK.
UK Trade & Investment | Exporting for Growth 32

33. Global reach
There are opportunities for UK exporters in all areas of the world
British Embassies and Diplomatic offices based in 96 markets, with
2,400 UKTI staff that offer local, in-market knowledge and expertise.
UK Trade & Investment | Exporting for Growth 33

34. Delivering the difference
UKTI core offer provides well defined incremental support to SMEs
Trade Market Business Export Export Overseas Develop Intense
Show Visit Language Market Training Market Export Support
Access Support & Culture Research (P2E) Introduction Strategy for Export
(ECR) (EMRS) (OMIS) (G3) Growth
Value Add
Strategic
Tactical
With intense support from International Trade Advisers to provide
customised export solutions to SMEs
UK Trade & Investment | Exporting for Growth

35. How UKTI has helped
Some key figures on UKTI activity
• Every £1 UKTI spends, £22 is generated for the
Over 3,000
UK economy. companies
increased R&D
• UKTI’s financial benefit to businesses across all activity as a
trade services £6 billion in 2011 (up from £5bn) result of UKTI
24,400 support
• Helped create more than 126,000 jobs in UK Companies
Benefited
• Over 3,000 companies increased R&D activity in
the UK as a result of UKTI support.
• UKTI assisted 24,400 companies to exploit
opportunities in overseas markets over a 12
month period.
UK Trade & Investment | Exporting for Growth 35

36. Access all Markets
Package of support to help companies grow exports
 Our goal is to help companies to export more
 Intense programme of support to help overcome
barriers and manage risk
 Help to grow export in new markets
 Diverse, flexible and customised support
 Support based on readiness, competence,
capability and desire to grow export sales
UK Trade & Investment | Exporting for Growth 36

37. Getting it right
Use the assistance available to:
1. Research your market and 1. Establish the effect on cashflow
choose well and profit
2. Create an export strategy in 2. Sort out logistics
line with your current /planned
3. Protect your Intellectual Property
capabilities and ambitions
4. Make sure you get paid
3. Understand tax and duty
5. Resource up and stay the distance
4. Choose and develop a
distribution model
5. Sort out contracts
UK Trade & Investment | Exporting for Growth 37

38. THE UK HAS THE MOST OPEN AND BUSINESS-
ORIENTATED ECONOMY OF EUROPE, WITH THE
MOST FLEXIBLE LABOUR MARKETS, AND THE
LEAST RESTRICTIVE SYSTEMS
38

39. How to contact UK Trade & Investment
For help, advice, access to International support programmes
Local help from the International Trade
Centre
• Access to International Trade Advisers and
support programmes
International Trade Centre:
Call
0845 6060969 0845 6060969
info@enterpriseeuropesw.org.uk
Enquiries@uktisouthwest.org
UK Trade & Investment | Exporting for Growth 39

40. 40

41. New Markets Abroad
Tom Jarman
Chasm Crossing
© Keydynamic Ltd

42. Tom Jarman
• Engineer
• Product Manager - CEO
• Generating Value through
Technology and Markets
• International / Partners
• Renishaw … Tellermate …
Screen Technology …
Chasm Crossing
Beach Solutions … Chevin
… Biocentre …
• VC – MTI
• Many funding rounds,
exits through trade sale,
IPO and secondary
• Cradle to exit, funding to
returns; technology, to
market, to business, to
wealth © Keydynamic Ltd

43. Other Side of the Chasm?
• >95% export
• 90% GM core products
• 90% + market shares
• Still managed by the founders
Chasm Crossing
• Still >50% owned by the
founders
• £M’s pa dividend income
• >£1Bn market cap
© Keydynamic Ltd

44. Chasm Crossing – The
Challenge for Technology
Businesses
Chasm Crossing
G A Moore. 1991 and later …. Differences?
© Keydynamic Ltd

45. Chasm Crossing – The
Challenge for Technology
Businesses
Chasm Crossing
• Founder / Owner’s Attitudes – Endeavour …. Sleepy Decline
© Keydynamic Ltd

46. Chasm Crossing – The
Challenge for Technology
Businesses
 The technology adoption chasm
 New markets, new geographies chasm
 Funding chasm
Chasm Crossing
 Management / leadership chasm
 Strategic growth chasm
 Exit chasm
© Keydynamic Ltd

47. Our Kind Of Product
• Product which is a big step forward for the
industry / market – Major USP’s
• USP’s OF VALUE to target customers
• Core USP more than just price or/and brand
• Not easily copied
Chasm Crossing
• Protected IP
• Markets with significant geographic factors
• Modest marketing budget
© Keydynamic Ltd

48. New Market Chasm
Pick a chasm – not all are equal
Chasm Crossing
© Keydynamic Ltd

49. New Market Chasm
Pick a chasm – not all are equal
• Strategically Significant Market
• Ease entry to other markets / reference / partner / OEM
Chasm Crossing
• Ability to access
• Identified partner
• Benign competition
• Killer USPs
• Ability to support
• Resource compatible – can you do it!
© Keydynamic Ltd

50. Be Prepared
• Product
• Partners
• Pricing
• References
Chasm Crossing
• Support
• Supply
• Market knowledge
• Competitive positioning
• Targeting
• Goals
© Keydynamic Ltd

51. Think outside the box
Chasm Crossing
© Keydynamic Ltd

52. Think outside the box
Total Product Marketing
• Product – whole product / system
• Partners
• Pricing
Chasm Crossing
• Competitive positioning
• References
• Support
• Supply
© Keydynamic Ltd

53. Be Prepared
• But only just
Chasm Crossing
© Keydynamic Ltd

54. Find a local champion
Chasm Crossing
© Keydynamic Ltd

55. Find a local champion
Options:
• Distributor
• Agent
Chasm Crossing
• Franchise
• OEM / ODM
• Direct
• Subsidiary
• Customer / JV
© Keydynamic Ltd

56. Find a local champion
Characteristics:
• Believer – from a position of knowledge
• Hungry
Chasm Crossing
• Motivated
• Driven
• Helpful
• … and preferably connected
© Keydynamic Ltd

57. The Value of Partnerships
• Supply Chain Investment, Capital and Working Capital
• Investment, Direct and Indirect (eg licencing)
• Broaden Technology Base
• Spread Investment, Research, Development etc
Chasm Crossing
• Provide Leading Edge Technology
• Market Access
• Local Knowledge
• Potential Acquirers
• Allow Business to ‘Punch above its Weight’
© Keydynamic Ltd

58. Be Present
Chasm Crossing
© Keydynamic Ltd

59. Be Present
• Physically, and in commitment
• Local people
• Visit, spend time
• Communicate – two way
Chasm Crossing
• PR and Web/social
• Language
• Listen, and respond
© Keydynamic Ltd

60. JFDI
Chasm Crossing
• Don’t dither, don’t over-complicate, deliver!
© Keydynamic Ltd

61. JFDI
Chasm Crossing
• Believe in the dream and GFI
© Keydynamic Ltd

62. JFDI
Chasm Crossing
• ACPMM – firewood!
• Renishaw – Mitutoyo
• Tellermate – Mouldings
• Screen Technology - Taiwan
© Keydynamic Ltd

63. Don’t get lost
Chasm Crossing
© Keydynamic Ltd

64. Don’t get lost
• Be focussed and driven
• But not blind
• And not inflexible
• Listen to customers
Chasm Crossing
- don’t be afraid to believe better
- eg Renishaw, Tellermate, Dyson
• But recognise the dead horse
• Impossible?
© Keydynamic Ltd

65. How to fund the (ad)venture
Lots to observe but in summary
•Its expensive, and far more time consuming than
you want, and very draining resources
Chasm Crossing
•Look to partners, suppliers, customers, channel
before funders (bank, VC, friends and family etc)
© Keydynamic Ltd

66. Be lucky
Chasm Crossing
© Keydynamic Ltd

67. Be lucky
• Focus, but don’t put all your eggs in one basket –
a paradox?
• Be able to cope with challenges – how?
• Keep your eyes open
Chasm Crossing
• Encourage people to help you – give them
reasons
• Be able to respond to opportunity
© Keydynamic Ltd

68. • Choose your chasms
• Be prepared – but only just. Plan and monitor,
don’t paralyse
• Find a local champion : hungry, committed and
able : incentivise!
Chasm Crossing
• Be present – communicate
• JFDI
• Don’t get lost – be committed, but not blind
• Fund the venture – partners!
• Be lucky – give yourself chances and react
© Keydynamic Ltd

69. Questions : Thoughts : Input ?
Chasm Crossing
tom@keydynamic.com
© Keydynamic Ltd

70. Chasm Crossing
© Keydynamic Ltd

71. 71
HELPING HIGH GROWTH
SMES TO ACCESS NEW
MARKETS ABROAD
Mark Ellis, Mervarde Limited
7th July 2012

72. Introduction and Context
72
 My background
 Real-time Software Engineering background
 Bag carrying sales guy
 Sales Manager, Sales SVP
 Managing Director
 Experiences
 3 * UK VC backed organisation (3i, Questor)
 1 * Finnish backed (Connor, Ferd)
 1 * PE (HG Capital)
 Verticals
 Document Management in Life Sciences
 Outsourcing and Hosting in Accountancy and Legal SME
 Fuel saving / Green energy Maratime.
 So I have a few badges

73. My Metaphor
73
 Mountains & climbing expeditions
 Inspiration
 SheffieldClimbers
 Rebecca Stephens
 My mountains…

74. Experiences of accessing new markets
74
 UK based
 targeting W. Europe, Middle East & Japan
 (B)leading Edge
 Software Technology, B2B

75. So how do you do this?
75

76. Establishing base camps
76
 Sales, pre-sales and consulting
 Local corporate entity
 Hiring
 Hiring is difficult, a local, a native
 Training and Indoctrination
 Training them at your HQ, continue to train them
 Technical and business
 Belief
 Socialise with them
 Make sure that you are hiring skills and experience, not strong bilingual speakers
 Work with Partners
 Get references
 Localise Marketing
 Have a country & market plan
 Use it as an “aide memoire” and corporate memory
 Don’t be afraid to change it
 Give it time 4-6 months

77. Cultural Issues
77
 Diversity of issues
 Italian Contracting processes
 Japanese entertaining
 UAE partnership promises
 Business ethics – gifts, bribes and entertaining
 Effort Required
 Pacing your self
 Quarter ends, Year ends
 Marathons and sprints
 Success and Failure
 Have a medium term view
 You need pockets
 Expect the first foray into a market to fail
 Failure will help you learn and focus
 Manage the joining and leaving of staff professionally

78. And Finally…
78
You only have 2 real problems:-
Expectation setting
 Internal & External
Communication

79. Reaching the summit…
79
So you make it to the peak…
Result?
 Trade Sale?
 Acquisition by larger organisation
Losing control
 Cultural and Organisational issues
 Loyalties change
Staff departures
 Professional, humane and respectful
 Fast exits
What about you?
 Should I or stay or should I go ?

80. Climbing Kit
80
 Preparation And Homework
 “Crossing the Chasm” - Geoffrey Moore
 “Good to Great” - Jim Collins
 “Angels, Dragons and Vultures” (How to tame your
investors… and not lose your company) – Simon Acland
 “Strategic Selling” - Miller Heiman
 “SPIN”, Simon Rackham, Huthwaite International
 Rent or buy some experience…
 …going up and coming down…
 Energy drinks and sleeping aids

81. 81
 Mark Ellis
 +44 7788 871052
 markmellis@blueyonder.co.uk
“Sales, Management and GotoMarket Consultancy
services to accelerate growth within dynamic
entrepreneurial businesses”

82. 82

83. Exporting:
Relationships and
Showing an interest in the local
language pays dividends
Chris Swingler
PROPATH CONTINENTAL
+44(0)7980.915290
www.propathconsultingservices.co.uk
New Markets Abroad - Exploring the Opportunities for Exporting
BEN event at Science City Bristol – Thursday 12th July 2012

84. My background
University of Sheffield
Degree in Accounting, Finance and Computer Science
27 years in IT in many technical roles (worked in Paris 1989 -
1996)
16 years running own software consulting business
Over the past 3 years have moved from technical focus to sales
focus
(a very long transition...)
Partnership with IAP (German software tools company) since
2009
- have successfully sold to customers in France, Italy and Turkey

85. France - Experiences prior to selling German software tools
Progress Software (NASDAQ: PRGS)
Paris office
Delivering training in French
- Worked for 5 years as a technical was mandatory for all
consultant delivering technical customers
training in French across France
and twice in Africa
CNAF - French National Child &
Family Benefits – Clermont-Ferrand
Working in French
- Project work all in French was essential
Phoenix Engineering and Specsavers
Optical Group – Lyon & Eastleigh
Providing the language
- Translation and Interpretation for bridge between French and
Document Imaging system now English was key to the pilot
integrated and used in Specsavers project success
stores for storing prescriptions.

86. France - Paris
The seminar I ran on the
“Volcano day” in Paris was
all in French.
French businesses expect
to be spoken to in French
perhaps more than other
nationalities do (although
April 2010: Seminar in Paris the level of English of
younger French people
Nov 2010: Deal with Atuana is getting better and better).
to use german software tools
(OF-1) to build a SaaS/Cloud I am fortunate to be fluent in
Payroll application for French. Fluency in a language
accountants in France means that customers can
“Atuana in the Cloud” forget that the supplier is
Atuana.com not local.

87. ITALY - near Bologna
June 2010:
I sent my introductory email to
Aptiva in Italian.This increased
Dr. Donato Battistini MD Aptiva srl the confidence and seriousness
of my propostition.
Application Orientated Platform
(AOP)
December 2011: Deal to June 2011:
When visiting Aptiva I spoke as
integrate AOP with IAP Skin- much Italian as I could in the
Client evenings but still spoke English
in the meetings.
Creating very warm relationships.
Jan 2012: AOP Seminar in Bristol

88. Turkey - Istanbul
Used a few Turkish words
in emails, Skype exchanges
2009: Initial contact
and calls. This helped to create
warmth in the relationship.
May 2012:
We had only met once before at
After 3 year sales cycle,
a conference in 2005.
signed deal with Turkey's
2nd largest logistics
software company:
35 employees
600 customers
Chosen to represent
Turkey for a pan-
european logistics
integration project
Part financed by the
Istanbul Development
Agency
Chris Swingler Propath and Ilker Pakten CEO Ulukom
Istanbul 9th May 2012

89. Recommendation

Take a little time to learn the local language. Even just a
few words of well intentioned effort can go a long way.
Shows recognition that the potential customer is
not the only one making the effort to be bilingual.
Increases the feeling that a potential supplier is
making an effort and taking an interest in the
culture of the country.
Learning Languages - at least a few words - is within the
reach of most of us

90. Experience in
France - Italy - Turkey
Chris Swingler
PROPATH CONTINENTAL
+44(0)7980.915290
www.propathconsultingservices.co.uk