Insider Media Limited

The Wolverhampton-based winner of HSBC's Business Thinking competition has spent the company's cash prize on opening an office in Los Angeles, California. Richard North, managing director of toy manufacturer Wow! Stuff, told Insider a 20-second conversation led to a £20m distribution deal in America and the decision to set up shop there.

Wow! Stuff was presented with a cheque for more than £202,000 earlier this year after winning the HSBC competition.

North said the company took part in the competition to help steer the business towards international expansion.

"Before the competition, 95 per cent of our business was domestic. We thought that as part of the competition was geared towards trading internationally it would be a great starting point. We've now secured business in a number of different countries, and have opened an office in LA."

North said the company's expansion in the US was developed through a 20-second conversation on a trip to Turkey.

"I was talking to another business owner on the trip, who said he knew a supplier in North America who was looking for a product like ours – we exchanged details and soon landed a contract worth £20m with them.

"We're growing in North America and definitely want to continue expanding there – but countries in Asia and across Europe are definitely our next targets."

Despite exporting only 5 per cent of its products nine months ago, North said the figure has now risen to 40 per cent.

"The international growth has really taken off – we're concentrating on Hong Kong now. Our main goal at the moment is to quadruple turnover and profits over the next 36 months."

North said he expected profits to and sales to rise 50 per cent year-on-year in 2011.

"Cash is king nowadays – most investors expect a share in equity for any investment. We have been very fortunate with the money from HSBC as it's a great boost

"Retailers are being very cautious about how much to spend on products and marketing these days, but it has definitely improved over the last six months. If you have a good product to deliver and are willing to branch out, you can be successful in any climate."

In the UK, Wow! Stuff manufactures products for retailers including Marks & Spencer, Argos, Debenhams and Boots.