Launching your MSP software brand in a new region is a project that is packed with challenges. Having expertise and connections on the ground is vital to create success. Richard Tubb has been at the centre of the MSP community in the UK and beyond for decades, and gives his top 3 tips on what vendors should do when crossing the pond.
In my role as an advisor and consultant to vendors in the Managed Service industry, I regularly find myself approached by vendors who are looking to establish a foothold in the UK market.
Over the years, I’ve helped some of the top vendors in our space to hit the ground running in the UK. Well established companies such as Autotask (now Datto/Kaseya), Huntress, Pax8 and many others have gone from being North American giants, to UK (and then European) leaders.
But how do they achieve success when so many other vendors fall down when trying to expand to the UK?
Given my experience advising vendors, here are three pieces of advice for vendors to successfully enter the UK market.
Put Feet On The Ground
I can’t tell you how many vendors I’ve seen who think that establishing a UK presence means asking their overseas sales team to work in a different timezone.
In my experience, if your product or solution is good enough, then you may be surprised to find that you start picking up Managed Service Provider (MSP) and IT Solution Provider clients in the UK, but that doesn’t mean you’re going to establish a strong presence beyond word of mouth.
Like most countries, business owners in the United Kingdom like to do business with people they know, like and trust.
And more often than not, that means you need to put feed on the ground in the UK, with dedicated local teams who can meet UK-based MSPs on the road, at their offices, at conferences.
Now, interestingly, that doesn’t mean you have to hire Brits -- at least, not initially.
For example, the majority of North American vendors I’ve worked with have seconded adventurous people from their Canadian and US-offices to get their UK offices started up.
However, as time rolls on, you should expect to hire Brits in senior positions for your UK establishment. These hires definitely establish you as a global company rather than a British branch office of an overseas business.
Once you have feet on the ground in the UK, it’s time to go and meet MSPs. But where should you start looking for them?
Budget to Attend MSP Conferences
The UK has a thriving Managed Services conference, user group and event scene, with thousands of MSPs getting out to meet their peers and the wider community.
We maintain a List of Awesome Events for MSPs that is regularly updated.
However, a common question that I get asked by new vendors to the UK is “Which events should we attend?”.
For me, a good starting place is by joining the CompTIA UK & Ireland community.
If you’re not familiar with CompTIA, they are something of a trade association for the IT industry, and they have established local communities throughout the world.
In fact, after selling my own MSP business, I was instrumental in setting up the CompTIA UK & Ireland community as it’s first chairperson -- so you can see what I believe in what CompTIA are doing!Be aware that CompTIA isn’t somewhere you go to sell -- per se. CompTIA is vendor neutral, however, their local events are a great way to meet MSPs and start to build relationships.
Plus, the CompTIA EMEA Conference takes place in London every year and is attended by around 500 MSPs. CompTIA opens a vendor members hall & expo area, and chances are, if you’re an established vendor, your head office has probably already joined CompTIA as a vendor member. If not, membership is a bargain -- especially given the exposure you’ll receive.
In addition to CompTIA and other industry events, there are dozens of user groups and peer groups in the UK that you should become familiar with. For some pointers, check out the List of User Groups for Managed Service Providers that my team and I maintain at Tubblog - The Hub for MSPs.
Be Aware of Cultural Differences
Finally, if you’re a vendor looking to establish a UK operation, then there are definitely some cultural differences to be aware of.
For instance, unlike North America, here in the UK it is not the standard practice for MSPs to pay for services and solutions they buy from vendors through credit cards.
While some UK-based MSPs have got savvy to using credit cards to paying for services, racking up rewards through services like American Express, the majority still expect to pay invoices on payment terms.
Therefore, you should offer UK MSPs the ability to pay their bills via Direct Debit or other electronic transfer methods.
Additionally, be prepared to offer your services in Pound Sterling (GBP) rather than US Dollars or other currencies.
While many MSPs are becoming more familiar with overseas transactions thanks to services such as Wise, the majority still prefer to pay in British Pounds.
Oh, and don’t make the mistake of simply converting $1 USD = £1 GBP -- that tends to drive UK-based MSPs bananas!
Instead, look to offer reasonable prices in GBP that take into account currency fluctuations.
Conclusion
For overseas vendors looking to establish a foothold in the UK market (as a base to then start exploring Europe) the rules are simple.
Put feet on the ground in the UK, be prepared to get out to meet UK-based MSPs at events, and be aware of the cultural differences in billing systems.
I’ve personally helped dozens of North American, Australian, South African, European and Asian vendors to find the right people to do business with in the UK, and it’s a very rewarding experience.
Good luck with your UK journey! 🙂