Growing Business Young Gun Christian Arno is urging more small businesses to look at international expansion, after enjoying significant success from taking his company overseas.
Diversification into new territories has proved to be pivotal to growth at Lingo24, the Edinburgh-based translation agency Arno launched from the spare room at his parents’ house in 2001. Since then, he has opened offices in New Zealand, China, Romania and Panama.
Turnover at the agency has increased by 30% to £3.65m over the past 12 months, enabling the business to take on new staff and continue with its international expansion. The number of permanent employees has risen by 25% to over 100, adding to a global network of more than 4000 translators.
Arno, one of this year's Young Guns, attributed much of this growth to Lingo24’s diminishing reliance on the UK market and sterling currency.
“We’ve achieved a very significant increase in our revenue despite the fact that our overall revenue in 2009 from UK clients is actually down on 2008,” he says.
“Overseas sales have not only compensated for this shortfall, but actually driven significant overall growth in turnover and profit. The weakness of the pound has played an important role in this equation too.
“Last month’s GDP figures showed the UK is still in recession, while Germany, France and Japan have returned to growth. This wasn’t surprising news given our experience of operating in these countries. There’s definitely a greater sense of optimism abroad.”
Arno believes that more small and medium-sized businesses should consider building business overseas.
“Traditionally, small and medium-sized businesses have been reluctant to enter foreign markets,” he says. “However, modern communications technologies make it both easier than ever and increasingly attractive, given the preferable economic conditions abroad.”
© Crimson Business Ltd. 2009