After a good idea grows into a business, it’s natural to have a desire to expand the operation to an entirely new audience. However, much like forging an idea into a full-fledged (and, most importantly
, successful) company, establishing a bigger market share, let alone an international presence, is easier said than done. From international business protocols to the customs and cultures of each nation’s consumers themselves, each respective region has its own unique challenges and benefits.
As a European founder, here are six lessons that I learned when I sought to expand my company to the United States. These lessons can apply to any founder, regardless of where they might be headed.
Pitching is different
Regardless of however you’ve sold your business previously, when entering a new market in a new location, the pitch needs to be adjusted to meet local standards. That could mean tweaking either content or format and beyond. In some cases, a massive overhaul might even be required to make your presentation successful.
In the US, for example, speaking from my own experience, new businesses must have a precise pitch, getting the message across quickly and efficiently. While Europeans reserve 60 to 90 minutes for meetings, only 30 minutes are provided in the US to pitch a product or service. Also, meetings start on time and, more importantly, end on time.
It’s important to look at the market you’re hoping to broaden to. Research potential changes early to set expectations and avoid surprises.
Embrace your existing record
Don’t run away from your success in other markets. Just because your product wasn’t born in the market you’re entering, doesn’t mean it won’t or can’t be successful. In fact, it’s quite the opposite. Your prior success breeds new success. Oddly, though, some seem to think this is the case and I’ve seen it firsthand.
When I first considered venturing into the US, several web entrepreneurs in Europe told me that digital products outside the US are labelled as “not invented here.” Some said it gives off an inferior value. But I quickly discovered that’s largely a myth.
If you can show a track record in a significant market, regardless of locality, results aren’t guaranteed, but it makes your pitch a lot stronger. My company’s success overseas has only helped me market our services more effectively and build trust among key audiences.
“It’s great” doesn’t mean “yes”
You can prepare as much as possible but, in the end, there will be some cultural communication issues in whatever market you extend into. Whether you’re a US company venturing into Germany or vice versa, local markets have their own established way of saying and doing things.
As an example, with my company’s existing international track record, it was easier to set up initial biz dev meetings with larger companies in the US. However, first impressions were a bit misleading. I quickly learned that in the US, positive feedback was common and, in some cases, was actually constructive criticism. Phrases like “it’s great” or “we like it” are often used in a meeting but they didn’t necessarily mean that we were close to a deal.
This is a cultural communication issue. In Europe, it can take a fair amount of time before you get a “this is great.” When it’s said, it generally means that your talks have really evolved.
Remember to keep in mind cultural and language differences when having conversations with third parties. Don’t get tripped up by preconceived meanings and don’t make any assumptions on the status of a conversation. Be prepared to track down real decision makers.
Picking headquarters
Where your expansion market headquarters reside is an important question. Many factors contribute to selecting the ideal location for a corporation’s local headquarters. Is your business product or sales related? Where you find the talent you need is hugely important when entering a new market.
When my business came to the states, I quickly discovered that Silicon Valley, New York and most of the well-known cities for European technology companies entering the US just weren’t the best options. Our business goals didn’t align with those areas. In the end, I chose Chicago because of its history as a major retail hub. Its central location also made it easier for our team to travel throughout the US.
Make up your mind and choose one primary headquarters location based on the need of the business to flourish. Don’t make a decision based on what you think you know given trends or general biases.
, successful) company, establishing a bigger market share, let alone an international presence, is easier said than done. From international business protocols to the customs and cultures of each nation’s consumers themselves, each respective region has its own unique challenges and benefits.
As a European founder, here are six lessons that I learned when I sought to expand my company to the United States. These lessons can apply to any founder, regardless of where they might be headed.
Pitching is different
Regardless of however you’ve sold your business previously, when entering a new market in a new location, the pitch needs to be adjusted to meet local standards. That could mean tweaking either content or format and beyond. In some cases, a massive overhaul might even be required to make your presentation successful.
In the US, for example, speaking from my own experience, new businesses must have a precise pitch, getting the message across quickly and efficiently. While Europeans reserve 60 to 90 minutes for meetings, only 30 minutes are provided in the US to pitch a product or service. Also, meetings start on time and, more importantly, end on time.
It’s important to look at the market you’re hoping to broaden to. Research potential changes early to set expectations and avoid surprises.
Embrace your existing record
Don’t run away from your success in other markets. Just because your product wasn’t born in the market you’re entering, doesn’t mean it won’t or can’t be successful. In fact, it’s quite the opposite. Your prior success breeds new success. Oddly, though, some seem to think this is the case and I’ve seen it firsthand.
When I first considered venturing into the US, several web entrepreneurs in Europe told me that digital products outside the US are labelled as “not invented here.” Some said it gives off an inferior value. But I quickly discovered that’s largely a myth.
If you can show a track record in a significant market, regardless of locality, results aren’t guaranteed, but it makes your pitch a lot stronger. My company’s success overseas has only helped me market our services more effectively and build trust among key audiences.
“It’s great” doesn’t mean “yes”
You can prepare as much as possible but, in the end, there will be some cultural communication issues in whatever market you extend into. Whether you’re a US company venturing into Germany or vice versa, local markets have their own established way of saying and doing things.
As an example, with my company’s existing international track record, it was easier to set up initial biz dev meetings with larger companies in the US. However, first impressions were a bit misleading. I quickly learned that in the US, positive feedback was common and, in some cases, was actually constructive criticism. Phrases like “it’s great” or “we like it” are often used in a meeting but they didn’t necessarily mean that we were close to a deal.
This is a cultural communication issue. In Europe, it can take a fair amount of time before you get a “this is great.” When it’s said, it generally means that your talks have really evolved.
Remember to keep in mind cultural and language differences when having conversations with third parties. Don’t get tripped up by preconceived meanings and don’t make any assumptions on the status of a conversation. Be prepared to track down real decision makers.
Picking headquarters
Where your expansion market headquarters reside is an important question. Many factors contribute to selecting the ideal location for a corporation’s local headquarters. Is your business product or sales related? Where you find the talent you need is hugely important when entering a new market.
When my business came to the states, I quickly discovered that Silicon Valley, New York and most of the well-known cities for European technology companies entering the US just weren’t the best options. Our business goals didn’t align with those areas. In the end, I chose Chicago because of its history as a major retail hub. Its central location also made it easier for our team to travel throughout the US.
Make up your mind and choose one primary headquarters location based on the need of the business to flourish. Don’t make a decision based on what you think you know given trends or general biases.
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