Q&A with Eric Tracey of the Europe Beachhead

He is a director of a number of United Kingdom companies, including Chloride Group, a listed company specialising in power protection, and Chairman of Yellow Culture, a start-up speciality food company.

After qualifying as a chartered accountant in New Zealand he joined Deloitte (then Touche Ross) in London in 1973, becoming partner in 1980 until he retired from the firm in 2005.

After a period specialising in global construction and engineering, his focus shifted to public sector trading bodies and the privatisation of infrastructure and energy companies.

He was the leader of Deloitte's European Energy, Infrastructure & Utilities Industry Group for several years.

More recently he has taken executive director roles in companies facing various forms of external shock and/or financial distress and successfully steered them to safety.

Do New Zealanders have any advantages when selling to the United Kingdom?

You shouldn’t underestimate the general affection that huge chunks of British society have for New Zealanders, who have a reputation for working hard and a can do attitude.

Despite the challenges of entering a new market, you have certain advantages over virtually any other country by being a Kiwi. Another advantage is the trust in the New Zealand legal and business environment.

Does familiarity with the United Kingdom result in a tendency for New Zealanders to underestimate the differences?

Yes, a lot of New Zealanders blow their advantage by not appreciating that there are differences; particularly in fund raising and new business presentations.

I’ve seen some presentations come over as a bit naïve and I think “You’ve got a great idea this ought to have worked, if only you’d got a local advisor.”

It’s usually people using the wrong terminology, not behaving in a way that would be expected which shows that you are not sensitive enough to the local culture.

While these are small things, they can have a wholly out of proportion impact. They tend to reinforce another stereotype which is that a New Zealand company is a little company.

You need to impress that you are actually bigger than you are, that you have more capability, more substance.

What other lessons are there?

When talking young companies, the driving force of the business has to be prepared to spend time in the United Kingdom.

Small companies have the potential to achieve several times their domestic turnover in a short time but you can’t often realise that by sitting in New Zealand.

Some companies do it successfully by making several trips a year, but that’s pretty tough. You need somebody senior in the United Kingdom who understands what the company is all about and can get across that despite being 12,000 miles away you can take care of any problems.

What common mistakes do you see?

The two biggest single problems are not putting people on the ground who have the depth of knowledge and passion about the business and who are able to make decisions, and trying to do much for the resources they’ve got.

Another surprising mistake is that some companies with really smart IP ludicrously under price - which is to their own disadvantage because you can never push the price back up. They are pricing on what it costs, rather than what it’s worth.

The other common mistake is not taking advice.

New Zealand’s distance from market can be perceived as a negative, how can companies overcome this?

For software companies the question is how do we get support from 12,000 miles away; it’s an issue that can be dealt with by having somebody in the United Kingdom fronting with customers.

You might also need a partner who can provide 24 hour cover. Convince them you can deal with any problem. It’s helpful to show a list of clients.

Food Miles is a barrier and presents a real challenge for government and industry.