Jeff Weiss is the Chief Revenue Officer at CMiC, a global leader in next-generation construction management software.
Expanding internationally can be exciting for B2B companies. Expansion can mean reaching the next tier of success, getting your product into eager new markets and enormous growth opportunities. Expansion can also be a risk, a high-stakes venture and a potential failure.
I have spent decades leading business growth for a next-gen construction ERP provider, with a focus on global expansion. I’ve experienced firsthand what it takes to build trust across borders and win in international markets. Here are my top eight lessons for driving global growth:
1. Assess Critical Variables In Your Target Market
Before expanding into any new market, it’s important to evaluate three key factors:
• Market Readiness: Does the market need the product you’re selling? How big is the need?
• Competitive White Space: Which firms are entrenched in the area? Is there room for a differentiated player to penetrate the market with the right value prop?
• Ability To Execute: Can you mobilize talent, resources, partners and infrastructure to sell and deliver the product or services?
If all three major variables align, you can enter the market methodically and with a strategic ramp-up period.
2. Look For ‘Land And Expand’ Opportunities To Anchor You
Sometimes finding the right next market takes months of dedicated research, and sometimes opportunity knocks.
If your company gets invited to participate in an evaluation or an RFP in a new geographic location, even if that region isn’t on your strategic road map, it could be worthwhile to pursue. If the opportunity is large enough and if you can deliver effectively, it could serve as an anchor point. Success with the prospect or customer could give you a foothold in the space and an opportunity to learn more about the market, localization and functional requirements through deployment.
We call this a “land and expand” approach. It’s an excellent way to minimize risk while building credibility.
3. Balance Risk Tolerance To Build Consensus
Expansion decisions affect the entire business, so they shouldn’t be made in a silo or by just one leader. It should be a collective decision made after carefully weighing the risks and opportunities.
I’m more risk-ready, eager to explore and jump into new spaces, whereas others in the C-suite are more risk-averse. In my experience, having a balance of risk appetites on the leadership team leads to the most successful outcomes.
4. Adapt To Cultural Buying Differences
Adaptability is the most important trait for any business development professional entering a new market. What works in North America doesn’t always work abroad. You must entrench yourself in the culture and understand how to approach conversations and processes differently depending on where you are and who you’re talking to.
For example, we’ve learned that decision making in the U.K. and Europe can be conservative, with businesses slow to adopt new technology. In the Middle East, however, managers and users are eager for new technology solutions, but they need to get the owners to approve the budget. Success demands tailoring your approach to each cultural context. This includes learning about the key buyers and gaining their trust.
In international sales, there are three types of buyers:
• Economic Buyer: The actual purchaser, the one who signs the contract.
• Technical Buyer: The leader who evaluates the technology stack.
• Cultural Buyer: The person who understands and aims to resolve the day-to-day employee pain points.
Outside of North America, these buyers are rarely the same person. To win the business, you have to align all three, which means building strong relationships and speaking with resonance to each decision maker’s needs.
5. Build Your On-The-Ground Team
Choosing how to build your team is one of the most important decisions you will make when expanding globally. Who is going to sell the product and build relationships with customers and prospects? Who will execute the plan?
There are two paths to staffing teams to penetrate new markets:
• Partner Approach: Work with an established entity to accelerate entry into the market, keeping in mind that your margins will be lower and you may face challenges melding two cultures.
• Land And Expand: Hire locals, instill company culture and grow gradually, understanding that there will be longer timelines and greater risk.
Both paths have challenges and advantages; you will just have to assess which is better based on your specific situation.
6. Set Realistic Runways For Success
Global expansion doesn’t happen quickly—you won’t see success right away. It takes time to establish relationships and gain footing with prospects. I generally give a two-year runway in new markets: one year to build knowledge and pipeline, another year to execute. If you expect overnight results, you’ll fail.
7. Listen More Than You Sell
Listening to prospects is key, especially when expanding internationally. Too often, companies assume their solution is universal and brings immediate value, but that can be a dangerous mindset. Work to deeply understand customer needs, regulations and competitive landscapes in the new region, then tailor your value proposition for that market.
8. Prioritize Customer Retention
Too many companies secure the deal but drop the ball on execution or post-implementation support. In North America, you may be able to hide behind hundreds of customers. In international markets, if you fail, you fail big, and your reputation is tarnished.
Long-term success hinges on building customers for life, and that means maintaining relationships and executing at a high level. Never enter a market or sale without a customer success plan.
Final Takeaway
Success in a new market takes preparation, research, adaptability and time. It takes work and strategy and the right people on the ground. Even if your product is remarkable, even if you feel it will blow competitors out of the water, without cultural fluency and market readiness, your efforts will fall flat.
Follow this playbook and listen to your prospects, and you’ll fuel lasting global growth for your business.
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