This is a particular challenge for European startupfounders who want to make it big.
Gernot Schwendtner, co-founder of weGrow International explained:
In Europe, international expansion is key to growth.
At weGrow International, weve worked with more than 1,000 founders on 200+ expansion projects.
If you find that unique hook that gets you excited, its a very good sign.
International expansion can be your key to growth, but the path to world domination is long and winding.
There are many roads to success, but failures tend to have a lot in common.
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You dont choose the right target market
This is KEY.
Your product wont sell in a market where there is no demand.
While that may seem obvious, there are plenty of ways to make a mistake.
A Scandinavian company providing warm, catered lunches for offices was looking for a new market.
Except.The Dutch dont eat warm lunches.Which they didnt find out until after the expansion began.
You dont know your markets nuances
There are actually quite a few ways to get this wrong.
Danish company X had a completely flat hierarchy, meaning interns get an equal vote alongside founders.
But, in Germany, its a very different story.
Decision-makers want to hear from their equals.
This requires more than just interviews.
American company Z needed to source a senior manager for their soon-to-launch French office.
What they didnt realize is that, in France, the notice period can be months.
Their expansion was delayed almost a year.
Map your timelinesand dont let this happen to you!
OurScaleup Resilience Reportdives deep into this.
One of the biggest missed opportunities we saw was when companies sidelined international expansion due to market disruption.
Loss aversion can be powerful when contemplating expansion.
Being internationally present during market disruption pays off.
But as you grow, its harder to be nimble.
They hired a country manager before establishing a good product/market fit, and invested heavily in local media.
Moral of the story:pace your scaling strategyandstay flexible.
Treat your strategy as a living, breathing document, even as you grow.
But, in Spanish, no va means doesnt go, so not a single car was sold.
A new market is an opportunity to redefine yourself while aligning with the needs of your new local customers.
Youve likely already had to adjust your product/market fit, so do the same with your brand!
Of course, its easy to point out what not to do, and hindsight is 20/20.
But if you flip these stories on their head, you might see some major takeaways.
Strategizing and doing your homework are critical success factors in expansion planning.
Maintaining the flexibility that got you where you are today will always be an asset.
Planning for an international expansion can be intimidating.
The best place to start is at the beginning.
How ready are you really?
Take a look and give us a ring.
We also recommend readingThe Culture Map by Erin Meyerbefore any international expansion.
Its a great guide for navigating cultural differences, both in business and personal life.
Keep an eye on ouropportunities pagefor the next editions or our Singapore Travel Accelerator program and more.
