Consistent growth: it’s the ultimate marker of business success. It can energise staff, elate investors and determine future success. In the face of global uncertainty, market challenges and rising costs, achieving growth goals can be tricky. Whether your business is pushing into new territory or conquering the current market, there are a few key ideas to keep in mind for growth success.
Every market throws up its own unique challenges, from pandemic restrictions and local laws, to market saturation and product viability. Two businesses who have excelled in new markets in recent years, global fintech Airwallex and one of its customers, the procurement platform VendorPanel, credit their international success down to one lesson: to grow in a new market, you must understand it.
“Airwallex reduces the barriers for entry abroad by helping businesses of all sizes to accept payments, move money globally, and simplify their financial operations,” says Sam Kothari, Head of Growth in ANZ at Airwallex. “While our product seeks to resolve the universal challenges of going global, our approach in each market is bespoke. Market environments are very different – in the US and Europe for example, it’s more competitive, crowded, and the customer profile can vary significantly.”
For Airwallex, attracting local talent has been imperative to successfully growing in a region like the US. While breaking into new locations can be tough, Kothari knows the value of hiring a local team with native understanding of the market.
“Establishing a core team in a new market can really amplify your growth,” Kothari says. Recruiting local talent helps in curating your product or service for that market, rather than assuming that what works in one location will work elsewhere. “Often you have product managers in one country, say Australia, building for an audience elsewhere, say America. When teams are removed from the end customer, you can lose the local nuances needed to create a magical and personalised customer experience,” says Kothari.
For VendorPanel, growing in a new market – the US – their approach has been similar. Like Airwallex, success has come from establishing a local presence and connection. “When entering the US, the first thing we did was hire a local team with deep experience and connections,” says Damien Williams, Finance Director at VendorPanel. “As this was all done remotely due to COVID travel restrictions and meant the business could test the waters while still being capital efficient.”
The next step was to combine local expertise with HQ experts. “As soon as we could, we sent our Chief Revenue Officer (CRO) to Los Angeles for six months,” says Williams. “He lives and breathes the business, with a deep understanding of how the tech has worked to solve big challenges in Australia.”
With a global CRO on the ground in the States making inroads, VendorPanel established hundreds of US Government Agencies on the platform, demonstrating the end-to-end value proposition and commercial model. VendorPanel is now focused on scaling, most recently securing a big win in the ultra-competitive Texas market, as well as signing a number of partnership deals.
Regardless of whether you’re like VendorPanel and Airwallex growing into new markets, or looking to build a presence in Australia, it’s important to look inwards. “As you scale, you may outgrow the ways of working that have served you well to this point,” says Kothari. “What processes or tools do you need to build or deploy to get you into that next phase of growth?”
For Airwallex, reviewing operational tools involves a process of self-reflection that identifies what’s working and what could impede growth. “We use a framework we call band aids, duct tapes and bolts,” Kothari says. With a spreadsheet to capture the assessment data, Kothari and the team analyse the processes that are temporary fixes (band aids), medium-term solutions (duct tape) and the permanent fixtures that will successfully scale (bolts). “We know where the gaps are in the business, and consequently where the issues are that could halt our growth in its tracks. Every quarter we try to rip off a few band aids, duct tape challenges that are down the line, and put in a few bolts to change our modus operandi if we have the confidence and conviction to do so.”
As a finance director, Williams from VendorPanel knows the value of getting the cash flow right if your business is going to grow. “In a small startup that’s growing fast internationally, cash management will make or break you,” says Williams.
One simple, actionable tip VendorPanel attributes its success to is simplifying finance across multiple markets. Using products such as Airwallex’s multi-currency borderless cards has helped to streamline transactions across borders. “Airwallex borderless cards means that anywhere, anytime, 24/7, I’m in control of our finances with a live view of our global cash position,” Williams says.
Looking inward, Williams recommends growing in a way that’s self-sustainable and doesn’t sacrifice, stability for growth. “For VendorPanel, the one thing I keep an eye on is the relationship between our ARR – the annual value we have under contract that recurs – versus the annual value of our salaries,” says Williams. “Keeping these two figures close to parity means there is a reduced chance that finances can spiral out of control if the business encounters difficulties.
“Your cash flow should allow your business to support itself,” Williams says. “If you can’t support yourself, then have enough runway to stay within arm’s reach. It’s okay to invest ahead and create opportunities for growth, but if you can’t reach out and grab them then you’re going to lose out.”
Airwallex is a global fintech payment platform with a mission to empower businesses of all sizes to grow without borders, and by doing so, contribute to the global economy. With technology at its core, Airwallex has built a global financial infrastructure and platform to help businesses to manage payments, treasury and expenses internationally, without the constraints of the traditional financial system. Today, the business operates with a team of over 800 employees across 12 global offices.
