Wise Words from Small Business Owners

A new year brings unique possibilities to expand your business internationally - but sometimes that can feel overwhelming. To help you take your business to new places, we've asked small business owners with international expansion experience for their top insights into the challenges and the advice they would give their fellow entrepreneurs. Each story highlights the resilience, innovation and determination that define building small businesses. These insights offer a glimpse into the journeys of 5 UK-based entrepreneurs who are using Wise to help them expand internationally.

Particle6

Particle6, founded by Dutch comedian and producer Eline Van Der Velden, embodies a forward-thinking, creative, and analytical approach to video and content production, spanning Agency, Broadcast, and Kids TV. Particle6 has for example worked on BBC shows such as Tiny Happy People, Miss Holland, or Crazy Science. The company's expertise extends across various domains, from crafting limited series to devising advertising and marketing strategies, and even producing compelling music videos.

In addition to their UK-based endeavours, Particle6 have expanded their reach globally by collaborating with international companies and suppliers. Notably, they have established a significant partnership with one of China's largest gaming companies, having been selected as their production partner based on their accreditation in the Pact Future30. They serve as the primary point of contact for European promotional activities for the company, allowing them to venture into adjacent sectors.

Challenges when expanding internationally

For Particle6, overcoming language barriers was a crucial hurdle, requiring the establishment of clear communication channels to bridge linguistic differences. Aligning expectations with both international suppliers and talent was another significant challenge for them, demanding meticulous efforts to ensure everyone was on the same page. Operational hurdles arose, particularly when adapting to local regulations, such as navigating the distinct freelance and payroll system while conducting shoots in France.

Additionally, the unprecedented circumstances of starting operations during the COVID-19 pandemic added a layer of complexity. Particle6 had to rely heavily on digital communication and live streaming for shoots, given the stringent travel restrictions from China- This allowed them to showcase their resilience and ability to overcome remote coordination challenges during these extraordinary times.

Tips from Eline for expanding business internationally

Eline says financial prudence and being able to maintain a conservative approach to cash flow is crucial when expanding internationally: ''Ensure you have a reserve, ideally six months’ worth of salaries''.

She explains, seeking global clientele is a must, especially when domestic opportunities are limited, ''actively seek international clients''.

She also highlights the importance of choosing the right HR and payroll services: ''Utilise specialised services for HR and payroll when dealing with international transactions to streamline processes and ensure compliance''.

Startup School for Seniors

Startup School for Seniors is a business that assists older individuals in manifesting the life they desire in whichever way they choose—whether it's turning a hobby or passion into a business, becoming a consultant, or simply seeking to keep their brains active by joining a community of older, current, and soon-to-be business owners. The program provides the necessary support for these endeavours.

The co-founder Suzanne Noble says Start up for Seniors first expanded internationally by partnering with a developer in the Philippines. They had to overcome challenges related to time differences, different communication methods, and using tools such as Google spreadsheet to track workflows efficiently.

Suzanne's three tips for small businesses looking to expand overseas

Suzanne says conducting thorough market research before expanding is crucial, ''to understand its demand, competition, and cultural nuances.'' She emphasises the need to act on the research and to ''tailor your products or services to meet the specific needs and preferences of the new market.''

Building strong relationships and networks by cultivating relationships with local partners, suppliers, customers, and potential team members or contractors in the new market is Suzanne's next tip, highlighting ''these connections provide valuable insights, support, and collaboration opportunities.''

Lastly, Suzanne says adapting and localising offerings is really important so that ''products, services, and marketing strategies suit the local market - consider cultural sensitivities, language preferences, and legal requirements'', she adds.

Weather Factory

Weather Factory was founded by husband and wife team Alexis Kennedy and Lottie Bevan, who turned their passion for games into a business by creating a narrative game of obscure histories and sudden illuminations called Book of Hours. Weather Factory has since expanded its reach to encompass various digital storefronts worldwide, targeting new international markets.

Despite its small size, the team collaborates with a diverse and talented pool of freelancers, including individuals from different locations, such as a Breton, a Canadian, a team of Polish coders, and translators from Russia and Japan. Additionally, they launched a merchandised shop in order to monetize their intellectual property, which now ships internationally as far away as China and Kazakhstan.

The challenges of expanding internationally

As they worked to develop their games in their microstudio, the ambitious duo encountered a number of the challenges that come with being an independent business. Despite the limitations of being a small team, they have embraced creativity, turning constraints into unique advantages. The team opted for a distinctive art direction when illustrating the games, which has sped up production, while prioritising text as a medium for their game means they don't need to invest in costly spectacles and cinematic extravagance. Proudly competing against larger studios with superior marketing budgets, they acknowledge the necessity of punching above their weight to achieve success in this fiercely competitive landscape.

Lottie's top three tips for successful international expansion

''Firstly, you will almost certainly never reach audience saturation'', Lotties says, further highlighting that the ''biggest problem is making people aware of your product in the first place.'' That's why Lottie suggests international expansion ''because every new country or language-speakers are a blue ocean ready to be impressed.''

Secondly, Lottie talks about the need for small companies to be agile and smart, ''because we have to be''. Established companies have money, status and powerful brands, but they’re often slow and risk-averse. That's why Lottie suggests small businesses can afford to try new things, to pivot if they don’t work out, and take the risks that lead to the major success stories people read about in newspapers. ''That’s a real power'', she says.

Thirdly, she emphasises the need to recognise your limitations as a small or solo entrepreneur: ''Work with that reality, not against it'', Lotties says, emphasising ''it will help to plan accurately, stay sane and not feel guilty all the time that there are things you haven’t yet done. There will always be things you haven’t yet done. That’s OK.''

Carifex

In 2018, Carifex, a UK-based automotive pioneer founded by Azzam Sheikh, strategically entered the USA market, establishing a warehouse in North America and forming partnerships in China for high-quality production of innovative LED headlights. They made the leap in e-commerce via Amazon USA, aiming to connect with a wider global customer base. Their team is truly international, with members in the USA, Nigeria, Pakistan, the Philippines, the UK, and India which they say brings together diverse perspectives and enriches their understanding of various markets.

Challenges when expanding to the US

Carifex has faced multiple challenges in expanding to the USA, including navigating complex legal landscapes for registration and compliance, addressing logistics complexities in supply chain management, adapting to the unique American automotive market as well as other cultural nuances and financial intricacies related to international expansion, all while building a local presence and reputation for Carifex.

Overcoming challenges with Azzam's tips

Azzam highlights the need for effective cash flow management, stating that it's "crucial for business expansion, especially in international markets where currency exchange rates can significantly impact profits." He encourages the use of "multi-currency accounts or foreign exchange services to minimise conversion costs and implementing smart strategies like invoice factoring to maintain steady cash flow, essential for covering operational costs and seizing growth opportunities."

Furthermore, he emphasises the importance of in-depth market research: "Understand the nuances of your new market. This involves analysing consumer behaviour, competition, legal requirements, and market demand. In international settings, pay attention to cultural differences, language barriers, and local business practices. Adapting your offerings to local preferences can significantly enhance market acceptance. Establishing local partnerships can also provide invaluable insights and facilitate smoother market entry."

Lastly, Azzam discusses leveraging technology for scalability: "Employ digital tools to streamline operations and enhance customer engagement. Technologies like CRM systems, cloud-based accounting, and e-commerce platforms are invaluable for managing a growing customer base,” he explains. “In international expansion, tools that aid in language translation, logistics, and compliance with regulations are particularly beneficial. The right technology investments can dramatically improve operational efficiency and scalability.”

Expanding overseas can feel overwhelming, especially as a small business owner. At Wise, we understand the need for financial tools that help to save your money and streamline your operations, so you can take your business to new places. That's why we created a multi-currency account designed to help businesses scale with fast, easy, international transactions.

Create a Wise Business account today and take advantage of payments in 40+ currencies at the mid-market exchange rate, and low, transparent fees with the ability to connect your accounting software, set up direct debits and get business expense cards.

Create your Wise Business account

Disclaimer: Customers were not paid for their statements.