Top 3 Business Mistakes in the UK (and Solutions) Mark Dyer is frequently seen in the US, and Denver is one of his hot spots. Mark lives in the UK but works with organizations interested in expanding operations into Europe. He co-authored a book, “Succeed in Britain” and it is considered “the” reference book of its type. Mark shares the 3 most common mistakes. June 2004

Mark Dyer is Chief Executive of The Dyer Partnership, a business consulting and accounting firm based in the United Kingdom. The company has special expertise in helping US companies expand into Europe. Mark visits the US frequently to provide corporations with strategic advice on establishing offices in the UK. Mark has more than 20 years of experience in leading positions in his field. He has worked with a "Big 6" firm of Chartered Accountants. He later he served as CFO for a software publishing company and Financial Controller for a London investment bank before joining The Dyer Partnership in 1989. He is a member of the Institute of Chartered Accountants of Scotland. mark.dyer@netaccountants.com

"SUCCEED in BRITAIN: How to Comply with the UK's Business Law and Practices" is a free manual for companies wanting to open an office in the United Kingdom. The book is available from The Dyer Partnership by e-mailing author Mark Dyer at mark.dyer@netaccountants.com To read more about the guide, Click here

SpectraLink, a wireless telephone maker based in Boulder Colorado, decided to expand into the European market in 1999 and opened its first office in the UK with the help of The Dyer Partnership. Click here to read the case study.

Several Colorado companies have made the transatlantic hop! Their experiences and the support they found in making the jump were related in the January 2003 article, "Expansion into Europe a good move for many Colorado companies" in the Colorado Magazine Strictly Biz.
Click here to read this article.

Doing Business in the UK + Tips on the Tricks & Traps Mark Dyer, responded to the concern of cultural challenges of a US company expanding into Europe. The first stop for most companies is the United Kingdom. Whilst there are fewer cultural differences with the UK than other “Euro” countries, there is some handholding necessary…even with market research. 5/3/04

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The United Kingdom is a popular choice for US companies wanting to establish a European headquarters. About 5,500 US companies, including 70 from Colorado, have set up a base in the UK, where the common language and culture create a welcoming environment. Nevertheless, opening an office in a foreign country can be a daunting task. There are many differences in business methods, legal issues and accounting systems that can be pitfalls for the unwary.

SUCCEED IN BRITAIN
How to Comply with the UK's Business Law and Practices" by Mark Dyer acquaints readers with key UK rules for opening and running a successful business. The guide is directed to CFOS, CEOs and managers responsible for a UK office. The guide includes sections on:

Alastair Newton, Director Investment, UK Trade & Invest USA, says the book "gives you much of the information you will need to navigate the UK business world without undue delays, missteps or expenditure. It's a guide to read before you get started, and one you will consult again and again as you organize your business, set up an office, sell your products or services, hire employees, plan their benefits and pay your taxes. It also points out legal issues you need to understand, such as those revolving around intellectual property and money laundering."

John Maguire, formerly the British Consul in Denver, says, "The new publication by The Dyer Partnership is a comprehensive guide to doing business in the UK and is an essential read for Coloradan companies interested in setting up or expanding an operation in the UK. The information contained in the publication will help answer many questions for companies new to the UK, and is certainly complementary to the advice and assistance available from the British Consulate office in Denver."

Order "SUCCEED in BRITAIN" free by e-mailing author Mark Dyer at mark.dyer@netaccountants.com Mark is a frequent visitor to Colorado, where he advises many clients in the high technology and IT sectors, including eBags and Voyant Technologies.

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How The Dyer Partnership helped SpectraLink expand into Europe - cost-effectively and with less risk

SpectraLink Corporation (NASDAQ: SLNK), headquartered in Boulder, makes wireless telephones that free workers from desks and workstations. A dominant provider in the market, SpectraLink has installed more systems than any other competitor and wanted to expand sales in Europe. SpectraLink's controller, Carolyn Smyth, knew The Dyer Partnership from her previous company, Osmotics, a Dyer Partnership client. When Ms. Smyth moved to SpectraLink in 1999 she contacted us to set up a UK branch for them.

Key UK administration duties
The Dyer Partnership undertook key administrative duties in compliance, accounting and human resources. We handle payroll, remittance of payroll taxes, accounts payable, employee expense accounts, VAT reporting, and administration of fringe benefits such as life insurance, health insurance and the a pension plan. We team with Andersen (now Deloitte) when they are performing international tax work.

An affordable and trusted source of services
Ms. Smyth considered hiring a staff person in the UK to handle this work but felt The Dyer Partnership was a more affordable and safer choice. It would take two employees to do all the work The Dyer Partnership does, according to Smyth, and the service saves SpectraLink the cost of do-over jobs and fines that result from non-compliance with UK corporate and tax law.

One of The Dyer Partnership's key daily functions is serving as Spectralink's UK "checkbook." As signatories on SpectraLink's UK bank account, we can make timely payments to employees and suppliers. Vendors in the UK send invoices to SpectraLink's US office, which forwards them to The Dyer Partnership for payment. We make the payments and send Spectralink reports and reconciliation statements each month. These reports comply with UK corporate law while integrating smoothly with SpectraLink's US accounting systems.

Helping employees
In the area of human resources, The Dyer Partnership handles the UK payroll and remits payroll taxes to the UK tax authorities. We helped SpectraLink choose providers for life and health insurance and a pension plan, and we handle benefits paperwork for new hires.

The Success
The UK office has grown from one to nine employees, and The Dyer Partnership continues to provide services to SpectraLink in its quest for international growth, while providing them the peace of mind that comes from full compliance with local regulations.

If you require help in setting up a UK or European operation please contact Mark Dyer on 303 564 6560 or 011 44 1420 473473 or mark.dyer@netaccountants.com

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Expansion into Europe a good move for many Colorado companies

Reprinted from "Strictly Biz"                      
By Mary Ann Lemon

Question: Besides having their headquarters in Colorado, what do Coors, C H 2 M Hill, J.D. Edwards, SpectraLink and Decisioneering all have in common?

Answer: they all have offices in the United Kingdom to help them sell their products and services in Europe. These are just a handful of the local companies that are making the United Kingdom a business hub for the state.

At least 70 companies headquartered in Colorado have offices or operations in the UK and between five and ten more have plans to open offices there in 2004, according to Barrett Stillings, Vice Consul for Trade and Investment with the British Consulate in Denver. The British Consulate offers free, confidential services aimed at giving companies the information they need to set up or expand an operation in the UK.

"The UK continues to attract about 40% of all US investment in the European Union, and more than 5,600 US companies have already found the UK to be the most competitive operations base in Europe," Stillings said.

The UK, comprised of England, Scotland, Wales and Northern Ireland, is the place most companies start out when expanding into Europe, due to the similarities in language, legal systems and culture.

The allure of a London office stems from the size of the European market, according to Mark Dyer, president of The Dyer Partnership, Ltd. a UK business advisory and accounting firm.

Reaching a huge market
"There are 300 million people in Europe," Dyer said. "It's an enormous market for US products. Two-thirds of all US companies that move into Europe open an office in the UK, because we speak the same language. There are a lot of cultural differences, however, so the key to success is getting together a team of advisers who know a lot about the UK. You need people who understand how to market and sell overseas, lawyers who understand UK law and excellent accountants who know UK tax rules and employment regulations."

Based in the UK, Dyer visits Denver frequently to meet with clients who have opened offices in his home country, including high tech companies Decisioneering, SpectraLink and Requisite Technology. He has advised about 25 US companies who have considered opening or opened offices in the UK and counts many of them as on-going clients for consulting, accounting, tax preparation and administrative services.

Dyer has noticed an increase in business optimism in the United States and is seeing a resultant increase in his own business this year. He said the kinds of companies most likely to succeed in the European market have established products or services that they have already tested in the US. Furthermore the products are wanted by business people worldwide. The company may already have sales leads coming in from the UK or some customers there who say they love the product or service.

"Once you have acceptance in your native market you can roll out worldwide," Dyer said.

SpectraLink, a local company that makes wireless telephones, is a good example, Dyer said. SpectraLink is a leader in the "Wi-Fi" revolution, which is providing wireless Internet access to workers. A dominant provider in the market, SpectraLink has installed more systems than any other competitor. They wanted to expand sales in Europe and in 1999 began working with The Dyer Partnership to help them set up their UK office with one employee. They have since grown their Europe operations significantly, Dyer said.

"SpectraLink's products are desirable to business people anywhere in the world," Dyer said. "It makes sense for them to put some sales people and support staff wherever their customers have their offices. This puts them in the same time zone as their customers. They can take customer calls in a timely fashion and offer better service."

Negotiating UK business rules
The UK is Europe's leading business center and has the least restricted business environment within the European Union. Still, there are enough differences that a company trying to open up shop without local advisers is in for a few surprises.

Strict UK regulations regarding monetary transfers pose the first obstacle. "Trying to open a bank account will drive you bananas," Dyer said. "It takes ages and lots of paper going back and forth across the Atlantic, and the reason why is UK money laundering rules."

Other differences to prepare for, Dyer said, include employee rights. Speaking at a recent Trade and Investment seminar hosted by the British Consulate in Denver, Dyer explained that UK employees are entitled to four weeks annual vacation and have more protection against unfair dismissal, discrimination and long hours. For instance, an employee in the UK cannot be obliged to work more than 48 hours a week on average over a 17-week time span, Dyer said. Another perk for high level employees is a car allowance or company car. While it isn't written into law, most managers in the UK expect to be offered this benefit.

Planning and filing for European VAT taxes (Value Added Taxes) is another pitfall for the unwary, Dyer said, but with proper planning there are many ways to minimize these taxes. For instance, companies should try to classify as many expenses as possible as advertising, which is not taxed under VAT rules.

Start small, seek support services
Kathy Cunningham, a former Chief Financial Officer of Requisite Technology, gave a few more tips at the British Consulate's seminar, based on her experience opening an office for Requisite in London. She said referrals for support services in the UK are crucial to getting started and running a new operation smoothly. "Ask your lawyer or CPA firm for an introduction to companies over there that can help you," she said.

Cunningham suggested asking a local real estate agent to pre-select locations for an office and photograph top contenders with a digital camera to help you narrow down your list before you visit. Plan on three months to negotiate the lease, she suggested. Older buildings and a legal system that favors land lords means buyer beware. "You need to inspect roofs and elevators because you may be obliged to pay for repairs."

Experts agreed that starting small is part of the formula for success. Open the office with just one or two sales and marketing staff people, then add service and support people as the need grows. Outsource support services at first. Kathy Cunningham recommended outsourcing administrative and accounting functions as long as the office has less than about 50 employees.

"I am seeing companies from Colorado have more success if they know there is a market for their products or services in Western Europe," adds Barrett Stillings. "The more thoroughly a company plans its expansion the more likely it will be successful"

Echoing Mark Dyer, Stillings said the rewards are in the numbers to be reached in Europe. "If a company is looking at global expansion and they know there is a market in Europe for their products, the UK is the simplest place to start," Stillings said. "We have the least restrictive labor laws and a large population packed into a small place. The UK is physically about the size of Colorado but it has 60 million people - that's about 10 times the size of our population. The European Union is adding six new countries and when that happens the size of the market will be about a half a billion people. When companies are smart about starting up their operations I have seen them increase their sales and revenue."

Author bio:
Mary Ann Lemon is president of Citrus Communications, LLC, a public relations and business communications firm in the Denver area. She is also a free-lance writer who contributes to regional and national business magazines, and formerly was an award-winning newspaper business and features reporter.

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