Every business leader dreams of growth. But choosing the correct route for growth is a critical decision that leaders shouldn’t make in isolation. For some, creating a new product or service may be a natural fit. For others, international expansion could be a better option to meet overseas demand. Investment in new technology is another potential avenue.
Once leaders have nailed down the best approach, each journey has its own sub-set of decisions. Which markets are both accessible and lucrative? Which products or services are likely to attract new customers? And what are the technology or skill gaps within the business that, if filled, could propel it to growth and a profitable future?
It can be an exhausting process. That’s why HSBC UK hosted a series of ‘Strategies for Growth’ events in the UK. The aim was to bring together some of the sharpest and most ambitious minds at UK SMEs to learn from those who have already been there and done it. Raconteur attended the St Albans event in November, which featured speakers from organisations such as HSBC UK, UK Export Finance and Microsoft. By the end of the event, leaders were armed with the fresh insights and wisdom they needed to choose their route and design conscious, thoughtful growth strategies.
The role of digitisation
Every sector has undergone some level of digital transformation in recent years. But this has created a problem for leaders. The sheer volume of digital tools available to businesses makes it difficult for them to choose the right solution. It also creates another challenge – digital debt. This was a term used by Microsoft UK’s Alison Wright, the company’s SMB director. She explained to leaders how staff can become overwhelmed by the amount of notifications and actions required to operate digital tools that do little to achieve growth.
Wright advised leaders to only use technology that solves a specific business problem or empowers employees to do their jobs. Roland Emmans, HSBC UK’s head of technology and growth lending, was similarly cautious about SMEs’ adoption of artificial intelligence. He advised leaders to start by using generative AI to maximise the potential of technology and processes already being used by businesses, for example, Microsoft Excel or email marketing software.
Tapping into a new market of international customers can diversify risk, build new supply chains and attract top talent
International growth
Overseas expansion was the goal of many SMEs in St Albans and for good reason. Tapping into a new market of international customers can diversify risk, build new supply chains and attract top talent. But navigating cross-border trade isn’t always straightforward. Barry Millar, head of global trade solutions for HSBC Business Banking UK, and Craig Green from UK Export Finance were on hand to advise on the funding options available to SMEs looking to finance exporting and the role of their overseas agents in exploring the validity of potential markets on behalf of SMEs.
Leaders also heard from Mayuri Lakhani, the managing director of Hydrotec Group, a Wycombe-based firm that designs and manufactures world-leading water treatment technology to prevent the spread of infectious diseases. She revealed the lessons of her business’s successful expansion into the Middle East, particularly the benefits of hiring local talent to gain an in-depth understanding of new markets and cultures.
Workforce planning
Growth has a big impact on workforce planning. Leaders must consider the potential skill gaps that could hinder their growth aspirations. They should think carefully about whether to operate internationally on a remote basis, move core staff overseas or hire local talent. Ollie Whiting, CEO of technology recruitment specialists La Fosse, and Matt Bloch, managing director of Boss Motor Company, took part in a discussion around their approaches to identifying talent and hiring people that are both a good character and talent fit for their respective businesses.
Whiting, who was an internal appointment as CEO, spoke about the need for diversity of thought when building a senior leadership team. He also said leaders should consider hiring outside the industry when looking for talent, stating that while their integration could be slower, their insights from other industries could provide long-term business benefits. Bloch then revealed the need for leaders to communicate their growth goals to their workforce and provide staff with the ongoing training they need to grow with the business.
Key takeaways
The state of the UK economy may be unsettling, but optimism around growth is high among SMEs. Leaders who can access the funding to finance growth, choose the right technologies to solve bottlenecks, locate accessible and lucrative markets and use an innovative approach to workforce planning can achieve their growth ambitions.
Discover more growth insights in the SME success: strategies for growth report
