Tips for Navigating Global Business Expansion

Many companies struggle to push the button on international expansion. They equate localizing their product with guaranteed success then stare at failing metrics a year later. Choosing the right market to start expanding to is fraught with complications. In today's FishmanAF Newsletter I'm joined by Scott Coleman who has spent 20 years thinking about this problem across over 50 countries. He provides us with a structured approach to international expansion. With lessons he's learned from Google, Pinterest, Omaze and more. 1. Create a baseline approach based on the stage of your company 2. Create a data frame to capture relevant ranking criteria 3. Use macro data sources for understanding the country 4. Find PMF proxy metrics that inform your operating environment 5. Add risk factors using a risk matrix 6. Adjust your criteria 7. Add qualitative insight into your decision-making 🌍 Start with who you are 🌱 Small companies (seed, series A/B) are still establishing PMF. Their goal should be to crack the next 1-2 markets outside their home turf. 🚗 Mid-sized companies (series C/D/E) need to find PMF in *multiple* countries, typically 3-10 at once. 🏢 Large companies (you know who they are) can't wait for a product to slowly creep across the glope. They need to be everywhere and scale quickly. 🗒 Develop your country list Write down the countries that come to mind where you think you should go next. Think about *why* you're choosing them. Although Fiji is an amazing place, it's probably not the first place you should expand to. 🔺 Leverage a simple framework Use a three-part prioritization framework organized by macro factors, PMF, and risk. You can leverage datasets from Worldbank, Data.ai, and even... 🕵♀️ the CIA. 😬 Adjust for risk You've got a few types here - how easy it is to do business in a country, regulatory risk, IP risk and currency risk. To bring it all together, Scott shares a spreadsheet template he uses with a real example, the weights he applies to the different parts of the framework, and how to apply some intuition and qualitative factors to the output. Check it out at the link below in today's FishmanAF Newsletter.

Amazon finally launched in South Africa (over 1 year later than planned) Is Amazon adopting a slower approach to global expansion? Amazon has just made its debut in sub-Saharan Africa. This brings their total active marketplaces to 22. Seems like although Amazon is pausing its rapid expansion, it remains committed to its global ambitions. They are simply adopting a slower and more strategic approach (Their journey to dominance in Australia took over 5 years, so perhaps a similar long-term strategy for South Africa?) Why? They are more focused than ever on localization. They have repeatedly expressed their ambition to ship faster by 2024. One way to do this is to build a local logistics system that ships more products from locations closer to customers. So, what does this mean for sellers? Focus on your localization strategies first. Go global later. First, ensure your process adapts to Amazon and customers' expectations. Closely manage your inventory. Avoid out-of-stock or overstock situations to guarantee the fastest delivery to customers and avoid Amazon's new storage fees. Then, take a strategic approach to global expansion. 𝐀𝐥𝐰𝐚𝐲𝐬 𝐬𝐭𝐚𝐫𝐭 𝐛𝐲 𝐫𝐞𝐬𝐞𝐚𝐫𝐜𝐡𝐢𝐧𝐠 𝐭𝐡𝐞 𝐦𝐚𝐫𝐤𝐞𝐭. Is the market already saturated? (Are there many competitors selling your product? What are the sales figures?) How supportive are Amazon's programs in that market? What are your competitors' pricing and marketing strategies in that market? What is important to customers there? (user pain points, motivations, shopping behaviors) Then, set up your fulfillment processes, payment gateways, and localization plans accordingly. If you're considering taking your store global and want to know if you're ready,  just DM me or leave a comment below. We offer a specialized Global Expansion Analysis Report (GNAR) to anyone interested here. #amazon #fba #ecommerce Image credit: Marketplace Pulse

Is your international market growth plan and expansion exceeding expectations? If no (or maybe), you aren’t alone. Let’s focus on the unique landscape faced by CEOs of tech companies, especially those with revenues around $200M and a team of 250 or more employees to help identify key initiatives. One of the critical challenges you might be facing is international market expansion. It’s common for tech companies at your scale to find overseas resources not meeting expectations, hindering growth and market penetration. Here’s the opportunity: Strategic partnerships can be a game-changer in such scenarios. By aligning with the right partners, you can bridge the gap in international markets, ensuring that your expansion efforts are backed by local expertise and insights. Tip one: Identify partners who deeply understand the local market nuances. This knowledge is invaluable for navigating regulatory environments and cultural dynamics. Tip two: Seek partners who complement your technology and business model. This synergy can create a robust presence in new markets and enhance your technological edge. Third tip: Ensure alignment in vision and goals. A partnership that shares your long-term vision can help mitigate the risks associated with international expansion. A key industry insight: Many CEOs find that partnerships with local entities can significantly outperform in-house overseas teams, especially when cultural and market understanding is crucial. I encourage CEOs watching this to like, comment, and share your experiences (particularly those experiences that others can learn from). Your engagement helps this message reach tech leaders beyond our networks, who might be grappling with similar challenges in international expansion. #revenue #revenuegrowth #partnerships #internationalbusiness

I'm coining a new term - Internationalization Theater - when a company talks a big talk about going international without actually doing any meaningful work to get there. Let's face it, executives everywhere are quick to fall in love with the possibility of the international markets solving all of their growth problems. Oh, the alluring potential of significantly expanding TAM, outflanking competitors, and diversifying against market risks … all by just adding a few new target geos! So companies create a lot of internal buzz and enthusiasm around internationalization as an exciting new initiative, set international revenue goals, assign it to some poor unsuspecting individual, and maybe even execute all of their rollout plans — only to see a disappointing lack of impact from all the effort they’ve put in. Womp womp. I wrote on my blog about four ways to actually give global growth the attention it deserves and avoid the dreaded Internationalization Theater: #1 Shift your mindset. International expansion is a strategy, not a quick tactic: this change represents an evolution of your whole growth strategy. #2 Build the right team. The owner of the Internationalization strategy should be someone who owns multiple levers and resources behind the user journey across Acquisition, Monetization, and Retention. Not some poor unsuspecting 'International Marketing Manager'... #3 Create tiers and set reasonable expectations. What does international mean for your business? Is it all of 200+ countries? That sounds overwhelming. Instead, break the world into 3 tiers of regions. #4 Do your homework. Validate your hypotheses as much as possible before launching with the handy worksheet across Product/GTM/Operations. And big thanks to Paddle for providing great data points for the blog! CHECK. IT. OUT: https://lnkd.in/e9dC7dDM #growth #international #strategy