In the second part of our third episode, we discuss in greater depth Kreston’s global business culture research, the Interprenerial mindset, key report takeaways, and how the business landscape has evolved over the years since they’ve both been in business. New guests next week!
Link to the full Kreston Global report can be found here: https://bit.ly/3RAdWhV
Written, hosted, edited & produced by Infinite Global: https://infiniteglobal.com/
Kreston Pod Ep 3 part 2
Hannah Robinson: [00:00:00] Hello. And welcome to Kreston Global's, the International interpreneur Podcast.
Welcome back for episode two, part two, and I'm here again with Jack and Mark to discuss in greater depth c Kreston's Global Business Culture Research, the interpreneurial mindset, key report takeaways, and how the business landscape has evolved over the years since they've both been in business. If you've just joined us as a new listener, I'd recommend going back and listening to last week's part one.
To fully appreciate the context, though I can guarantee you'll still get some great tips and insights from our interpreneurs. If you want to stick with this, [00:01:00] As we've mentioned before, in previous episodes, a big part of Kreston's research and subsequent reports has been around this idea of an interpreneur, uh, coined phrasing for international interpreneur, and it would be great to hear what you take the mindset of a successful interpreneur to be.
What is it that gives them the confidence to take that leap of faith?
Jack Clipsham: The survey, uh, examines what, what an interpreneur's mindset is, what is an interpreneur? What is their mindset? Um, and for me it's all about somebody who is really prepared to explore beyond the bounds of, of their home nation, um, to develop and expand business opportunities.
But that does also include startups. This isn't just about having a, uh, an established business that is just gonna attack a bigger geographic market. Um, again, we've got a, a fantastic example, um, through the D I T G P program of, of a company that was established in Australia. Um, it's a company called snacker, um, and they are [00:02:00] early stage and they basically provide a service within sporting, um, arena.
Where rather than Mark and I having to get up and go and find a pint at one of the bars and perhaps miss the goal or miss the try, or whatever the event was, you can actually get an app on your phone and you can dial it up and they will bring it to your seat. Um, and it's actually the vendor that is paying for that service, so it doesn't cost you as an individual anymore to do that.
They've proven their business model in Australia, um, they've already been talking to, to various arenas in Australia, but they've recognized that actually they've got a much bigger market if they can bring that overseas, and they're likely to grow exponentially quicker than if they were to stay just in a.
So the, the principles, there are three principles have basically moved Lock, Stop, and Barrel to the uk and are now in the process of setting up that business and growing it here in the UK with a view to then expanding into Europe and also into the States. Um, that to me is what an, an interpreneurs mindset is [00:03:00] all about.
Mark Taylor: Yes, I agree. Entirely with Jack. It's about seeing the opportunity and seeing the world as a smaller place than it previously was and where your markets can be for your product or service or whatever it is you're doing. I mean, there are new ways of working, being invented literally every hour at the moment.
And uh, it's crazy to think the way the world is now and how these people. Can trade internationally and do business internationally because there are no, there are no real barriers to that. Um, in the current, in the current world, you know, people can explore overseas countries, their business practices and cultures before actually ever visiting that country.
They can make contacts with people, they can learn more about that country and how it operates and. [00:04:00] They can build networks with overseas stakeholders, whether that be suppliers, customers, recruitment, or finding partners and investors. So I think today's interpreneurs are ambitious. I think, uh, they're keen to learn about the best way to develop their business regardless of the location.
Uh, that for me is an an interpreneur mindset.
Hannah Robinson: Now taking a look at the research findings themselves in some greater depth, can you summarize what for you was the key takeaway from the report and why?
Mark Taylor: For me, the key takeaway from the report is the overriding need amongst both existing. And future interpreneurs to understand the local market, the business culture, and also the tax issues.
And for myself as chair of the global tax group, it was quite good to see that tax issues are somewhere near the [00:05:00] forefront of people's minds when they're expanding overseas because. As we always say, plan to succeed. Um, and it's always good to be consulted before someone does something. So for me, that's where our Kreston Global network can truly excel in providing international solutions to these individuals and their businesses.
And the white paper showed that, that, you know, there is a real need for what the question network can offer, both in terms. , uh, that, that, uh, personal network, knowing people around the world and also having that in-country, local knowledge of the business, practice, the culture, and, you know, the tax regulations and what people need to do to move into another market.
Jack Clipsham: Yeah, I think the key takeaway for me is, is, is very much in agreement with markets. It's the support does [00:06:00] exist. Um, it is there. Uh, admittedly it changes maybe from one country to another, but certainly in the UK and certainly there are many other countries. That already have that support network in place.
We just don't market it as well as we should have done. We don't communicate maybe as well as we should have done, um, because it's clear from the survey that people are struggling to find it. So, uh, we need to do better. And that, that's one of the key takeaways for me out of this, certainly for the Kreston Global Organization, is how do we make sure that those potential interpreneurs know exactly who to go to in which countries and what support they.
Hannah Robinson: the most important question for a few of our listeners, do you have any advice or insights you can offer to aspiring interpreneurs looking to expand or move their business into a different cultural environment?
Jack Clipsham: The outlook for interpreneurs at the moment, I think is, is quite challenging. Uh, we have a market where there is a lot of uncertainty.
Um, whether it's about global supply chains, whether it's about, uh, what's happening in in [00:07:00] Ukraine, unfortunately, whether it's about redundancies and employments and interest rates and everything else that is going on at the moment is creating uncertainty in the marketplace. And investors don't like uncertainty.
Um, and what we are seeing in the uk, I don't, I can't say for for certain whether this is mirrored elsewhere, but certainly in the UK we are. A bit of a slowdown in the capital markets and it's being driven, not because there aren't companies that want to list because there. There are sponsors in Noma who would be very happy to take them to the market.
But the problem is that institutional investors, because of that uncertainty, are stepping back and just saying, Well, we wanna see what's gonna happen over the next six months, 12 months, two years. Um, but also we want to understand. How all of this, this uncertainty may impact on the value of the businesses and the value at which we may invest.
So it is creating that layer of, of uncertainty within the institutional investors and therefore, uh, a little bit of caution about whether they're gonna invest at the moment. And, and if so, what [00:08:00] value? And we're also beginning to see that translate into, or transmit through to the private equity, um, firms funds and, and the family offices as well.
I think in terms of the outlook, I'm, I certainly am not saying to people, don't do it. Don't go there. Um, but what I am saying is, uh, you need to think ahead and if the market may not be right now, what can you do to make sure that you are deal ready so that when the market does come back and the market is perhaps more positive, you're in a position to move and take advantage of that.
Mark Taylor: Yeah, and I would say that that's our experience as well. . One of the key challenges for startups in particular is funding. And if there's uncertainty in the market that is affecting the funders, you know, that's going, that is definitely going to make that more challenging. Having said that, you know, the interpreneurs that we come across are extremely driven people with great [00:09:00] ideas who often bring different ways of doing business.
For those individuals, I think the future always looks bright. So the advice I would give to future interpreneurs is to get the right team around you. I think this is a very important aspect. I think a lot of people will have that great idea. I'll have that business proposal, but in order to formulate that into a.
they do need to get the right team around them so that they're getting the correct advice. People with experience, maybe of interpreneurs who've already done that and gone down that road. You know, the obstacles to look out for, the challenges that might lie ahead, how best to structure, uh, the way your business is operating.
So for me, my advice would be to get that, [00:10:00] to get that team, get that team together. Uh, so that you are getting the right advice as you move forward with your, with your project. .
Jack Clipsham: Yeah. Key advice, uh, would be seek advice early, get that team together, but seek advice early. Um, the support does exist. We keep saying this, it does exist, you know, you've gotta find it.
Um, but prepare, be prepared not only for when the market. Does become more positive. Uh, and, and there are, again, lots of people out there saying, We have money to invest. Uh, we just need to invest it in the right opportunity. So be ready for when the market is, is back and, and, and open for business, but also be ready for that opportunity when you get a chance to sell your business, when you get a chance to pitch to somebody, because you may only get that opportunity once.
So you need to make sure you've got a pitch deck in place. You need to understand, you need to make sure that you can. Uh, demonstrate to somebody what your business proposal is and what the business [00:11:00] model is and how it's gonna work and what the impact of that is gonna be. And quite often it's, they, they talk about elevated pitches and 32nd pitches, but it, it can be a very brief moment in time when you get to speak to the right person.
And if you're not prepared for it, you may well miss that opportunity.
Mark Taylor: I think that's right. And as Jack will know only too well, you know, if you. Considering a sale of your business, you might have to start planning for that years in advance to make sure that it's something that's attractive to a purchaser.
It's got the right structures in place, it's got the right systems in place. But, and also, you know, from a, from a tax planning point of view, that you are going to. You know, take, take the correct advice to pay the minimum amount of taxes as late as possible, uh, within the spirit and, uh, written, uh, legislation that we have.
Hannah Robinson: And finally, given how much experience there is between [00:12:00] you both, it'd be really interesting to know how has the interpreneur landscape evolved since you entered the workplace. Has technology been the biggest influencing factor, or is there anything else that's changed dramatically over the years?
Mark Taylor: We've got computers now.
Jack Clipsham: I can't help but laughing because unfortunately I've been in the game quite a long time now. So I've got 30 years plus of experience in corporate finance and, and, and I think even in the early stages of my career when I was, uh, recently qualified with Earnst and Young, um, there was still a lot of, lot of talk about cross-border deals, but.
Inevitably, Yes. I think over, over time, I've seen an increase in, in cross-border probably for the reasons that, that Mark talked about very early on in this process about the world's becoming a smaller place, or it seems to be becoming a smaller place, and, and people are less inclined to think, Oh my God, it's far too much work or aggravation.
I'm never gonna get to grips with this. It, it's, it's seen as a, a lot simpler to go overseas nowadays than it was, [00:13:00] frankly, even 10 years ago, let alone 30 years ago. So definitely seeing the interpreneurship, um, mindset growing and expanding as we see the opportunities expanding. And I think the other thing we're seeing over the years is that the world is becoming a, a more demanding place.
Um, and, and people aren't happy to be on one side of the world thinking well. Everyone in the other side have all these wonderful facilities, wonderful products, services, We want them here and, and we want them to be, we want them to be available to all of us. So all of that has generated a wonderful marketplace where, yeah, that expansion has been possible and it's definitely happening.
Mark Taylor: Yeah, and I, and I think I've probably been doing this kind of a role, a similar amount of time to Jack has been doing, doing his role, and uh, you know, I would say, Probably when I started out in my career, the international aspects of business were almost [00:14:00] entirely the domain of already large established companies.
So you had these very large companies who were, had a global presence, um, because they could, they could afford to have systems in place, which by today's standards, Wouldn't be acceptable. Everything now is almost instant. And you know, I, I replied to my clients pretty much the same day every time I get a reply from them, you know, back in the day that would not have been the case.
And business I think, moved more slowly. And therefore, international was pretty much the domain of the, of the larger businesses. I think what's been the biggest change is that there are. Those barriers are not there now. So that's why we're seeing the younger interpreneurs come through, particularly with, [00:15:00] you know, startup businesses, new ideas, new ways of doing business.
And for me that's, that's the biggest change that I've seen during my.
Jack Clipsham: I think as well, Mark, we're seeing all those, those leaps in technology, uh, and the advancements. Even just in the last couple of years during the Covid environment, everybody now is, is used to working either on teams or Zoom or other platforms and there isn't that same.
Yes, you have to be, uh, careful about time zones, but there isn't the same. Difficulty of, of trying to communicate from one side of the world to the other. It's nowadays you get the time slot and you're immediately face to face with somebody over teams. It makes it a lot simpler to do that work. Um, there is no substitute for, in my opinion, for, for personal relationships.
And I think there is always a need to have that, that meeting face to face at some stage. But the way that we have technologies today, the technology advances just means that that international cross border [00:16:00] transaction is just a lot easier today than it was even 10 years ago. Yeah,
Mark Taylor: absolutely.
Hannah Robinson: And that's it for episode two.
A huge thank you to Jack and Mark for your time. It's been an absolute pleasure talking to you both. And next week we've got three new guests to introduce you to, who will be representing the Latin American arm of Kreston. Until then, a link to the report is, as always in this episode's description if you'd like read and if not, We'll see you again next week.