Expanding internationally is an exciting milestone for any business, yet it’s also where many ambitious strategies unravel. Why? The challenges of scaling to new markets are often underestimated.
Lisa-Miles Heal, CEO of Silverfin, has decades of experience working with international B2B SaaS companies, witnessing firsthand the hurdles that arise during global expansion. Based on her insights, here are the five main reasons international scaling efforts often stumble and, more importantly, how to sidestep these potential pitfalls.
1. Thinking “international” without transforming your business’s DNA
Success in a new market requires a shift, not just in strategy but in your entire business approach. Going global isn’t just an expansion; it’s about becoming a genuinely international company. This might mean rethinking your leadership, adapting your culture, and realigning teams to fit a global mindset.
Lisa put it succinctly: “Going global isn’t just a geographical move; it’s a transformation in how we operate. We have to evolve internally to understand and serve each new market with the same dedication and understanding as our home market.”
Are there signs of resistance?
If your leadership views expansion as secondary or employees feel disconnected from the new vision, it’s a sign the shift might not be deep enough. The solution? Structure your organization so that each target market has a team with the autonomy and resources to feel like it’s running its own mini-business within the larger company.
2. Letting success in the home market cloud your vision
Often, companies expanding abroad rely too heavily on their home market success, assuming it’ll translate seamlessly. This “success bias” can result in teams that are unprepared for the inevitable challenges of new markets. It’s not uncommon to see top talent sticking with the tried-and-true markets, leaving newer regions with less support.
Lisa shared, “Relying on home market success as a blueprint can be risky. Each market requires a tailored approach, and sometimes that means facing unexpected obstacles head-on.”
What’s the fix?
Embrace failure as part of the journey. This might mean fostering a culture where employees can take risks and learn from mistakes, cultivating resilience and grit. Encourage team members who thrive in uncertainty to spearhead your expansion, empowering them to bring fresh perspectives.
3. Confusing physical presence with market insight
Establishing a physical presence in a new market may seem like an obvious first step, but it can backfire if not executed thoughtfully. Expanding teams to a new country before establishing a cohesive strategy can result in new hires feeling isolated from the broader organization. This early disconnection can lead to challenges in integrating local teams with the company’s core values and objectives, impacting productivity and brand cohesion.
How to approach it wisely?
Consider an “on-market” approach that builds alignment and insight before launching a physical presence. Set up a dedicated team at headquarters that focuses entirely on the target market, investing time to understand regional nuances, market demands, and cultural preferences. By embedding themselves in the nuances of the target market from home base, they can develop foundational knowledge and gain insights that allow for more seamless future expansion.
4. Trying to conquer multiple markets at once
Expanding into multiple markets simultaneously is a tempting prospect for many growing companies, promising rapid growth and increased visibility. However, attempting to tackle too many markets at once often leads to strategic dilution and operational strain. Each market has its own unique challenges, customer behaviors, and competitive landscapes. Spreading resources thinly across several new locations can stretch teams beyond capacity and make it difficult to maintain a consistent brand message, leading to burnout and lost opportunities. As Lisa Miles-Heal notes, “When you try to do too much too soon, you lose the focus that’s necessary to be successful.”
How can companies focus effectively?
Start by selecting one high-potential market. Dedicate ample time and resources to research, build relationships, and tailor strategies to that specific environment. By focusing deeply, companies can create a successful, repeatable playbook for expansion. Once a foothold is established, the insights and efficiencies gained in this market can guide and streamline future expansions, ensuring that each new entry is built on a foundation of understanding and preparedness.
5. Viewing GTM strategy as just a sales push
When it comes to launching in a new market, it’s easy to think it’s all about the sales pitch. But let’s get real, success is way more complex than that. As Lisa Miles-Heal points out, “It’s not just about sales; it’s about how your product fits into the market.” A thoughtful go-to-market strategy is essential for connecting with local customers, and it’s about much more than just making the numbers.
Is your product a fit for the market?
Before jumping in, it’s crucial to reflect on some important questions: Who exactly is your ideal customer in this new landscape? Do they prioritize the same features as your home market? By developing a flexible GTM strategy, you can adapt to local nuances and better meet customer needs. This isn’t just about pushing your product; it’s about genuinely understanding what the market craves.
So, how do you set yourself up for success? Think of your GTM strategy as a roadmap, guiding you through the terrain of a new market. Focus on aligning sales with a broader strategy that covers everything from acquisition to retention and expansion. This alignment is key to making sure your product truly resonates with local customers.
International expansion is an exciting journey filled with potential. But let’s not sugarcoat it, it’s also a tricky path that can leave companies stumbling if they’re not careful.
Remember, it’s all about transforming your business DNA, staying grounded despite home market success, being patient with your physical presence, focusing on one market at a time, and crafting a GTM strategy that speaks to local needs. Each of these steps is not just a box to tick but a commitment to understanding the new landscape. With this mindset, companies can navigate the complexities of global markets with confidence, building lasting relationships and securing their place on the international stage. So, gear up, adapt, and make your mark.
