“Going global” represents more than just a business trend; it’s a key opportunity for companies looking to unlock new markets and achieve sustainable growth. While small is beautiful, becoming a large company often requires going international. With the exception of US or Chinese companies that benefit from a large domestic market, expanding abroad allows organisations to achieve sustainable growth, broaden their customer base, increase revenue streams, and build a diverse global footprint. Many start-ups are built with this goal in mind, leveraging upfront investments in technology to support scalability and offset high investment in technology.
While the appeal of new markets is clear, the process of international expansion is far from simple. Success requires more than just a desire to be present in multiple countries. It demands deep cultural understanding, some planning, and, most and foremost, adaptability. From navigating local regulations to building cross-border teams, expanding into new territories is both an art and a science.
Though there isn’t a one-size-fits-all strategy, five key principles can guide companies through the complexities of global growth.
The role of local expertise in operations and communication
Local knowledge is crucial to any international expansion strategy. It requires a deep understanding of the target market’s cultural nuances, legal landscape, and consumer behaviour. Local talent not only bridges the language gap but also serves as a cultural interpreter, helping the company integrate into the socio-economic fabric of the region.
Hiring local employees in Talent Acquisition or HR, for example, can provide invaluable insights into recruitment practices, academic systems, and the unspoken rules of the job market in each region. Local recruiters will read faster through resumes and will know how to conduct first interviews. It’s often long and costly to hire local talents permanently from day one, so I suggest starting with self-employed team members who can be up and running in a couple of days.
Even though English is often used in global business, cultural and linguistic differences can still affect communication. Word-for-word translations can distort the intended meaning, and subtle non-verbal cues can lead to misunderstandings. Tailoring communication styles to each market and investing in language training or hiring multilingual team members can help bridge these gaps.
Legal and regulatory differences also pose challenges. Each country has its own set of rules concerning labour laws, taxation, corporate governance, and data privacy. Freelancing, for instance, is treated differently in the UK compared to other European nations, thanks to IR35 regulations. To avoid legal pitfalls, international teams must stay informed and seek the guidance of local legal experts.
The importance of cultural integration
Cultural integration goes beyond speaking the local language – it’s about embracing the entire ethos of a region. Different countries have varied approaches to communication, hierarchy, and decision-making. For example, Spain tends to have a hierarchical corporate structure, meaning decision-makers at the top need to be convinced before changes can be made. Meanwhile, France often favours a “test and learn” approach where you can work for some time “under the radar”, while Germany is known for its thorough analysis (laws, processes, regulations) before committing to any implementation.
Understanding these differences and adapting to them requires a hands-on approach. Rather than attempting to create a comprehensive strategy in a boardroom, companies need to learn by engaging with local teams and confronting real-world challenges. Launching abroad requires some planning, but most and foremost, adaptability.
It’s also important to consider time zone differences on top of cultural differences that might further complicate cross-border collaboration. For example, each market needs to stop planning meetings at times that don’t suit others (early morning starts or lunch breaks). To this end, using more asynchronous communication is highly recommended, which can help keep projects moving despite time zone challenges.
Offer international mobility to your best employees
While remote meetings and detailed go-to-market playbooks are important, nothing beats the power of face-to-face interaction when entering a new market. One effective strategy is to relocate experienced employees to other markets to help establish the company’s presence. These “culture champions” can provide guidance, share knowledge, and embody the company’s values, helping new hires adjust to the organisation’s culture.
A common mistake in international expansion is starting by hiring a country manager and then building a team around that person. Instead, companies should focus on filling key roles as they find suitable candidates rather than waiting months for the right senior hire. This pragmatic approach can prevent delays in the expansion process.
Leaders can also create a dedicated team of “country launchers” to launch countries faster and more efficiently as time passes. It’s usually a team of versatile individuals able to work on any position required when launching (sales, marketing, operations) who should be able to spend six to 18 months in a country before moving on to the next market.
Trust local leadership
Successful global expansion goes beyond translating content or adapting products. The strategies that work in a company’s home country often need significant adjustments for new markets. Businesses must empower local teams to create tailored go-to-market strategies that resonate with regional customers.
Building a workplace culture that values diversity and empowers local decision-making is essential. Employees need clear guidelines on what aspects of the business are non-negotiable, such as pricing or HR policies, and which areas they can adapt to fit the local market.
Turning setbacks into learning opportunities
Global expansion is fraught with risks, and setbacks are inevitable. However, these challenges often present valuable learning opportunities. When a market entry doesn’t go as planned, it’s crucial to analyse what went wrong and use those insights to refine future strategies.
We often hear the quote ‘fail fast’ – companies that embrace a culture of experimentation and learning are better positioned to succeed in the long run. By turning failures into opportunities for growth, businesses can optimise their international expansion strategies and achieve better outcomes in subsequent markets.
Unlocking global markets requires a careful blend of strategic planning, cultural sensitivity, and operational flexibility. By focusing on local expertise, fostering cultural integration, and empowering teams with the necessary tools, businesses can turn the global growth challenge into an opportunity for long-term success.
