Scottish companies 'should look to overseas markets despite Brexit'

The Covid pandemic also sparked huge problems for traders, with lockdowns across the continent sparking downturns in every country in Europe.   

But as business networks revive and firms reach out again, there are great opportunities for Scottish companies which are able to lift their eyes to the horizon and seek new markets beyond these shores.  

Firms say that there are eager and waiting customers abroad and institutions which can help facilitate trade waiting for new contacts to come forward.   

And while roadbumps exist, for canny firms there are huge opportunities navigating the complexities of overseas trade.    

Glasgow-based Willo is one of the world’s fastest-growing async video interview platforms, and has experienced strong growth since launching in 2018, counting organisations such as HelloFresh, the NHS, Coinbase, and Prada among its clients.   

tech entrepreneurs Euan Cameron and Andrew Wood (Elaine Livingstone) (Image: Elaine Livingstone)

Founded by tech entrepreneurs Euan Cameron and Andrew Wood, the business grew significantly during the pandemic when remote working became essential. 

The lucrative US market already accounts for more than 65 per cent of its, with the firm working with major stateside clients including Coinbase, Chick-fil-A, and Sureify. Willo currently operates in more than 135 countries worldwide.  
  
In 2023 Willo grew significantly YOY, and welcomed more household name businesses and major employers including HelloFresh, Toyota, and Inchcape. 

Euan Cameron, Willo’s CEO, said: “Scottish businesses should treat overseas markets as new audiences worth testing. With digital marketing and digital payments there is very little barrier to entry to doing business overseas, and when a new market works, go all in on it.  

“Just because a business is founded in a specific location doesn't mean that it needs to have customers in that location. We see this every day with candidates applying for jobs in other countries – geography should no longer be a barrier to employment, or trade.”  

Willo remains on target to grow turnover to £40m by the end of 2025, an ambition that will include reaching more than one million video interview completions per month – a key metric for the burgeoning firm – and in excess of 80,000 paying users. 

Willo's team (Image: Elaine Livingstone)

Mr Cameron said: "If businesses are not trading abroad then they are severely limiting their opportunities. Without trying it, it's impossible for a business to realise its full potential.   

“For example, it costs Willo less to acquire a US customer, so our margins are higher – we'd never have realised this without going out and doing it.   

“Entering a new market should be treated like a marketing experiment, quick, cheap, and simple. If it doesn't work then you've learned something.”   

He added: “When we set out to change the way companies hire, we were very open to the fact that certain business cultures are more open to change than others.  We intentionally cast our efforts far and wide to test the market.   

“What we found was that the US and Australian markets are incredible adopters of new technologies, particularly tech that makes their businesses more efficient.  

“Today more than 65 per cent of our revenue is from the US and this is down to the willingness to implement new technologies into businesses, with a great appreciation for the fact that efficient organisations are better places to work.   

“Employers don’t want to sit at their desks on telephone interviews all day long, and neither do candidates.”  

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Willo’s experience has been mirrored by Candle Shack a ‘one-stop-shop for candle making education, technology, and materials’ founded by husband and wife team Duncan and Cheryl Maclean a decade ago.   

The business counts aspiring entrepreneurs to large companies including Paul Smith, Floral Street and Overose among its customers and employs more than 80 people at its factory in Falkirk.  

It expects turnover of more than £15m this financial year.  

Two years ago, Candle Shack opened a fulfilment centre in Echt, Netherlands. The facility, home to 10 employees, acts a base for the business’ operations in Mainland Europe, which have grown significantly – particularly in the Netherlands and Germany.  

Mr Maclean said: “Given the challenges faced by retailers in the UK, our overseas customer base has been pivotal in maintaining our growth.   

“In fact, almost all growth has come from outside the UK over the last 12 months, especially in Western Europe.”  

He said that firms should consider overseas markets a priority, with a few caveats.   

Duncan and Cheryl Maclean (Image: Newsquest)

Mr Maclean said: “Timing is very important.  Opening an overseas business takes longer than you think, and it can be a complex and daunting exercise, so you need to have cash available and probably more than you originally thought you would need.   

“Market conditions must also be right and make sure you understand who is already competing in the market. However, the rewards far outweigh the challenges and if faced with the same choice again, I wouldn’t hesitate to add an overseas business.”  

The firm stress the importance of having an overseas presence such as their base in the Netherlands, and that gaining hands-on experience was vital.   

Mr Maclean said: “We opened our Dutch business over Zoom. Seriously. So I got used to not being there.   

“Ideally, founders should spend much more time than we did when they first open an overseas business or branch, as it really helps to make the new team feel like part of the business.    

“Lots of time with the founders also helps new overseas employees to understand the culture better, which can prevent problems down the line.  Also, be very clear on the differences between countries, even neighbouring countries, as market conditions and expectations can vary wildly.”   

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However, he said that Brexit was an added complication which firms could not afford to ignore.   

He said: “We support artisan businesses, most of which are solo entrepreneurs. The added complexity of dealing with customs made it almost impossible for a UK based business to support entrepreneurs in mainland Europe.   

“The plus side, with hindsight, is that we probably would not have opened our Dutch business had Brexit not happened. We originally saw opening the Dutch business as a defensive thrust, but quickly realised that it was an excellent offensive move into early-stage markets.”