How small companies suddenly transform into global players
How can a small enterprise grow into a fast-moving, global player when they may be doing business across Europe, the Middle East, Russia and Brazil? Founder and director of Eggcelerate, and all-round business expansion expert, Stefano Maifreni is here to tell you how.
Global trading is about much more than having a website in different languages. Deeper changes are essential if you want to expand your presence and ensure your client base grows rather than stalls.
In order for growth and business expansion to be sustainable, companies need to become more flexible, scalable, streamlined and focused. Let’s look at some of the key changes that can be made in order to achieve this:
- Go-to-market strategy: Whether you add a new product management function or restructure your marketing and sales capability, any new product or service needs to be brought to the market in a way that focuses on customer benefits and not product/service features.
- Customer Experience: How would your company cope if business took off massively in multiple countries? If the answer isn’t effectively, one way you can address this is by introducing new customer relationship software and management tools to help streamline business processes, enabling your team to deliver a great customer experience and cope with a surge in demand.
- Tracking & Reporting: There is always a danger to growing quickly as, more often than not, a business can become a victim of their own success. However, by implementing a managerial reporting system you, and your colleagues, will be able to spot logjams and other problems early. So, if extra workers or equipment is needed, they’d know exactly where to put them.
- People & Change: By updating your vision, mission and values you are able to translate these into clear objectives for both yourself and your team. Try opting for a performance evaluation system to help everyone to stay focused on the tasks ahead.
So how does this make a difference when put into practice?
Megatron Sensors (Megatron Srl), founded in 1992 and based near Napoli in Italy, designs and manufactures temperature sensors for coffee, vending, and slush machines; boilers, HVAC, refrigeration and temperature control systems; food and medical equipment.
The family-owned company and its 10 employees were turning over a healthy €1.5M per year. But new CEO Luca Grimaldi recognised that revenues had flattened out and the firm needed to sell beyond Italy. Megatron knew that expansion was about more than simply winning international orders. For growth to be sustainable, the company needed to become more flexible, scalable, streamlined and focused.
Working with pan-European business expansion experts Eggcelerate, the Megatron team made key changes in the four key areas above.
What happened next?
With these fundamentals sorted, Megatron re-branded itself, launched a new website in six languages and crafted a company presentation to pitch to prospects world-wide.
The approach worked. Revenue grew by 40%, thanks to new international clients. A sales pipeline of €350,000 took shape within two months. And the company achieved a 10% gross margin increase on its international sales.
Crucially, the growth is sustainable. New orders haven't caused the company to over-promise, over-extend and overheat. Instead, Megatron has been able to play in the global league by thinking in a different way about its own company, its products and its customers.
CEO Luca Grimaldi says: "We knew where we wanted to go, and what we wanted to achieve. This gave us all a new mindset and eased the discussions with international prospects - many of which are much bigger than Megatron. Most of them are now our best clients."
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