Growth At A Mile A Minute

Mike Wright launched Striata in 1999 from his converted garage in Kensington, Johannesburg. He was 30 years old, had limited capital, and had resigned from his job as MD of a leading web design firm to follow his dreams. To get started, he rescheduled his bond and provisional tax payments, and started working on his big idea.

Today, half of Striata’s R120 million+ turnover comes from international business. It hasn’t all been easy. Offices in the US and the UK are soaring, while the company’s foray into Australia and the Far East has been far more challenging.These are his lessons in high-level growth, and the do’s and don’ts of international expansion.

- Nadine Todd

STRIATA is a R120 million+ business that operates across South Africa, the Americas, Europe from a base in the UK, and Asia. Launched in South Africa in 1999, founder Mike Wright reached a point where the only way he could grow the business further was to go offshore.

Expansion in the US has been extremely successful, and Mike moved to the UK with his family to spearhead European growth. The business’s efforts in Australia have been less successful however, and a second office has since opened in Hong Kong to service Asia Pacific. Here are Striata’s lessons on international expansion — what worked for them, what hasn’t worked, and how to approach new territories to guide your business’s success.

LEARNING FROM THE GROUND UP

Mike Wright’s first piece of advice to any entrepreneur looking at international expansion is not to rely on statistics. “In my view, statistics don’t work for the individual,” he explains. “You can be successful and be doing the opposite of what the statistics say should work, or you can do exactly what the stats applaud and still be struggling.

“If you’re thinking of expanding beyond your borders, hopefully you are already successful in your own market. We reached a level of success and maturity in South Africa that led us down this path. Along the way we’ve learnt that when you enter new markets that aren’t in the business landscape you know and understand, all bets are off. Past achievements don’t guarantee future success.

“You need to look at your business, what you offer, your differentiators, strengths and weaknesses, and use those to determine your go-to-market strategy, based on intensive research into the markets you’re entering. You need to know how and why people do business, and who they do it with, in all the territories you’re looking at.”