5 tips to take your tech business global

by Startacus Admin

Start-up to scale-up! Considering international growth? Markus Stripf, CEO and co-founder of Spoon Guru shares his top tips on how to scale up and take your tech business global! 

With the Office for National Statistics reporting that the number of registered firms in the UK has risen to 2.72m, it’s evident that start-up Britain is well and truly alive. From cool challenger banks to food discovery apps to mobile health tech, the UK startup community is home to some of the most innovative and dynamic businesses in the world. 

Once launched on the ground, next on the agenda for budding entrepreneurs is often rapid growth, with many having global expansion plans in sight. However, the big question for many is when exactly is the right time to launch into new markets, and where is it best to invest next? Scaling up prematurely, entering the wrong market or holding off too long can be detrimental and cause an expansion effort to sink like a stone. 

Markus Stripf, the CEO and co-founder of Spoon Guru, a London-based start-up that launched in 2015, recently went global into several new markets with some heavyweight partnerships. Developing a unique food search and discovery engine for consumers with specific or complex dietary requirements and hailed as the “Google for food”, Spoon Guru has expanded with key partnerships with Tesco, Jet.com in the U.S., Albert Heijn in the Netherlands, and Woolworths in Australia and New Zealand. 

For those considering international growth, Markus Stripf shares his top tips on how to scale up and take your tech business global:

Dig deep into research

Going into a new market blindly will more than likely not bode well. Don't underestimate the power that comes from exhaustive research which will help to understand the local landscape and demographic. Suss out who are your competitors and most importantly whether or not there is demand for your solution. If you do have direct competitors, decide how much share of the market are you after, what will be your point of difference, and if it is realistic.

Do more of what works... and drop what doesn't

If something works in one market, pick the closest comparable market to begin your geographic expansion. Also, be sure to align yourself with local partners who can offer tactical and strategic value to your plans for growth. Additionally, acquiring a contact on the ground will smooth out any friction when breaking into the market and can also help secure further investment. If there are some areas of your business that haven’t been as fruitful as you initially envisioned, analyse if it might work better in your new market or to remove it altogether.

Apply the lean model

No doubt easier said than done, but as a start-up, it’s important to realise that one of the biggest advantages over incumbents is the ability to respond quicker to micro and macro changes. Pay attention to shifts and trends, stay agile, and more than anything, learn from mistakes - not just yours but others too.

Carry the right costs

Time is a key factor when expanding as some phases move quicker than others. To ease the company of the added pressure of potential financial woes mid expansion, try to have as little fixed costs as possible. A move to change variable costs will cause much less disruption than a fixed one, so keep an eye on overheads.

Surround yourself with the right people

Make sure you build a team that is aligned with your vision for the company and values. With many challenges and obstacles ahead - as well as rewards - you want a team that you can trust and depend on, especially to teach new staff your culture as you grow. Additionally, create a network of mentors and advisors you can tap into, particularly those who have market entrance experience and can help you with the right strategy for a successful launch. Not only will they inspire you, but they can connect you with influential people in new markets.

 

 

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Published on: 23rd October 2019