United Kingdom Global Expansion Playbook

Introduction

The United Kingdom has been a global hub for industries like finance, manufacturing, and technology for many years. With a strong economy, favorable regulations, and a skilled workforce, it has become an attractive destination for companies looking to expand internationally. Expanding to a new country requires a well-thought-out strategy to ensure success. Companies planning to expand to the United Kingdom should establish a global expansion playbook to guide their execution and growth.

Research & Budget

The first step in any global expansion plan is to determine why the United Kingdom is the right choice. Companies should consider macroeconomic factors, target customer base, regulatory analysis, cost of expansion, and go-to-market strategy. Once the reason has been established, the company should conduct research into technical steps, including company incorporation requirements, tax regimes, and government agencies. For instance, in the United Kingdom, companies must register with Companies House, adhere to VAT regulations, and follow employment law. After completing the initial research, the finance team should create a budget, including revenue targets, human resource costs, professional vendor fees, office space, and marketing.

Legal Operations

The United Kingdom has a well-developed legal system, making it easier for companies to conduct business. However, it is important to assess potential partners carefully. The country has a diverse range of service providers, but not all of them may be suitable. Companies should look for reliable local partners who understand the local regulations and business practices. If a company decides to establish a local entity instead of using an International Employer of Record (EOR) solution, they will need to complete the corporate establishment process before hiring a local team and commencing sales.

Go To Market

When planning a go-to-market strategy, companies should determine whether to use a single-country, regional, or global approach from day one. Companies often treat the United Kingdom as a single country strategy due to its size and complexity. However, it is important to note that the UK’s relation with the EU and its neighbors, such as Ireland, can be complex. Therefore, it may not always serve as the best launching pad for a cross-European hub. Launching a minimum viable product (MVP) is an effective way to gain insights from local customers and establish product-market fit.

Hire A Team

The United Kingdom has a highly skilled workforce, which includes a mix of local and international talent. To ramp up sales and operations, it is recommended to hire a team with as many local nationals as feasible. During the budget phase, companies planning their UK global expansion playbook should map out the first 10 hires. Employers should be aware of the mandatory employer social contribution levels, termination protections, intellectual property protection, and benefit programs in the country. This can be mitigated through a combination of research and working with local partners.

Build, Measure, Learn

Once a team has been hired and the go-to-market strategy is established, operators should begin the lean cycle of Build, Measure, Learn. It is essential to treat the local operation as a startup within the company. This requires re-establishing product-market fit through MVP launches, data gathering, and iterations. Companies who attempt to use their current product or service in the United Kingdom may find that it does not meet local customer expectations. Therefore, on-the-ground research is highly recommended to identify and solve the right problem. Building a global expansion playbook tailored to the United Kingdom can help companies achieve commercial growth.