"Then, of course, they can strike a different kind of problem because they have to find people who want the things that they've chosen to be a specialist in. So it isn't necessarily an easy road to go down, but when companies do it well they can own a market even from a small country like ours."
One such company that's 'owning it' is International Volunteer HQ, which is the world's largest volunteer travel firm. The firm's founder and executive director, Dan Radcliffe, started the company in 2007 when he was just 23 and the New Plymouth-based firm now has 23 staff based in New Zealand, and around 300 working with programmes under its brand worldwide.
Despite starting at the dawn of the global financial crisis, Radcliffe says his business has been able to ride a number of growing trends, including the increasing popularity of volunteer travel, the rise of online businesses and the popularity of social media.
One of the biggest challenges in growing an international business from New Zealand, though, has been building trust and convincing potential customers you're legitimate, says Radcliffe - especially when you're sending people to far-flung destinations like Kenya.
Crucial to overcoming that challenge has been building a social media community of authentic 'voices' endorsing their experiences with the company.
"At the heart of our marketing is a really strong social media campaign that fosters our community, creating thousands of ambassadors for our brand," he says. "I have no doubt that without social media we wouldn't be as successful as we are now."
I think companies are far more likely to buy your product if a US company has endorsed it, as opposed to a New Zealand-based company endorsing it.
To build credibility in offshore markets, employee communications software firm SnapComms targeted large US-based companies early in the piece, says Sarah Perry, the company's chief operating officer and half owner.
"In our case, we had to take our software solution to the US market in order to gain market credibility," says Perry. "I think companies are far more likely to buy your product if a US company has endorsed it, as opposed to a New Zealand-based company endorsing it. If you appear to be a US-based company and/or have offices in the US then I think this also helps."
Among other strategies that she says have worked well for gaining a foothold in offshore markets has been establishing physical offices in the US and UK, allowing the firm to get a local view and on top of dealing with time differences. "This was quite a big upfront cost, but I think it's certainly paid itself off over time," says Perry.
That there's no substitute for getting in-market is a common theme among the company leaders interviewed.
Will Palmer is chief executive of Movio, which produces analytics and campaign management software for the film industry. Palmer co-founded the firm with Peter Beguely in 2010, and it's now a company of Vista Group International.
Movio is in 11 countries, including the epicentre of the global film industry - the US, which Palmer has travelled to 25 times in the past two years, and where the firm also has a physical presence.
Palmer says one of the biggest challenges he's faced internationalising the business has been breaking into industry cliques and building relationships.
"Now that I've been to lots of trade shows and industry events you see there's always a new technology company arriving and trying to break into these circles, and while everybody is relatively receptive, they all think 'I don't know if you're going to be at the next show'," he says.
"So it's about being there all the time. Once they see you are there a lot and that you're consistent in your message, the trust starts to build over time. That's probably the biggest lesson I've learnt is you can't accelerate trust; you've got to earn it and it takes time."
David Downs, NZTE
David Downs is New Zealand Trade and Enterprise's general manager of services, and convenor of judges for the 2015 New Zealand International Business Awards.
What are some of the commonalities you're seeing amongst the Kiwi companies doing well offshore?
There's definitely a trend towards high technology, high IP-type businesses. They're companies that are adding value and creating value in different ways. So for example there are firms like Movio and SnapComms, which have come up with ways to use technology to solve problems that people didn't realise could be solved.
There's also a niche aspect, which we see in organisations like International Volunteer HQ. This is an incredibly successful company out of New Plymouth, which is a world leader in the very small niche of volunteer travel. We see this time and again - the companies that do well are the ones that know what they're good at and do it relentlessly well. Then, of course, they can strike a different kind of problem because they have to find people who want the things that they've chosen to be a specialist in. So it isn't necessarily an easy road to go down, but when companies do it well they can own a market even from a small country like ours.
Overall there's a real optimism among these companies, and all of them are on a serious growth curve. They've all got their own challenges to get there, but it's amazing to see these incredibly innovative small businesses that are growing so aggressively and optimistically.
Are you also seeing commonalities in the strategies companies are taking when they tackle international markets?
Another big commonality we see, and it's playing to New Zealanders' natural skill with people, is a real customer and user focus with the product or service. When you're doing business in New Zealand you're typically doing it person to person, and when you apply that in an international context it can help you gain a real understanding of the end consumer or customer, which allows you to arrange your product or service around them.
So does that mean spending a lot of time in-market?
One of the things we ask all the entrants is how they approach the market and establish themselves. And the answer tends to be that it takes lots of travel. One of the chief executives I was reading about visits an international market every six weeks for at least a week at a time, so that's a substantial portion of his life that he's spending on a plane. I guess that's a price of doing business from this part of the world.
An alternative strategy - or perhaps one that companies adopt when they get a bit bigger - is to hire in-market experts to work for them. Locally engaged staff reduces the travel strain, but also brings a wealth of knowledge about the market and customers, with on-the-ground cultural and business knowledge.
Are there some things Kiwi companies could be doing better to establish themselves in international markets?
There's definitely one thing, and that's the ability for organisations to market themselves - to talk about their story and portray themselves in a compelling light. When we've been going through the judging you've almost got to battle your way through some of the entries to find out what is the core value proposition for the customer. It's there - the companies definitely have one and it's fantastic - but often companies are shy, or aren't very good at portraying it.
I think it comes in part from the fact that Kiwis aren't so good at blowing their own trumpets. But I also think it comes from the fact that most Kiwi business leaders are multidisciplinary, so they come at it from a product or a sales perspective, without necessarily seeing the value of other disciplines they might not be as familiar with, like marketing, which is a bit of a specialist skill.
There's also an opportunity for more companies to take a collaborative approach to their product innovation, development and commercialisation by working with partners - someone like Callaghan Innovation, for example - then taking that niche solution to market with a compelling story. One of NZTE's core strategies at the moment is to foster this kind of coalition approach because it's not a natural habit for Kiwis. Typically we want to own an entire problem, rather than picking off a bit of it we're really good at and then working with others who have complementary skills.
Coming up in Your Business: What are some of the challenges of developing new products when you're running a small business? How have some business owners managed to do this - and fund it - while still keeping their day to day operations going? If you've got a story to tell drop me a note: nzhsmallbusiness@gmail.com
