Entering the international market is a necessary condition for Dutch start-ups, but successful international expansion is by no means easy. From the right choice and country/region to the right people and strategy: Please keep seven points in mind.
Compared with traditional entrepreneurial models, technology offers great potential for achieving successful innovative business results.Start-ups benefit from technology solutions agileFlexible and easily expandable functions to meet their changing needs. There is no doubt that start-ups are eager to succeed abroad. 62% of the internationalization scale has expanded to have three or more office locations abroad. 35% of people even have four or more locations. However, only a few companies are able to realize their international potential: in the long run, this situation may undermine all growth and innovation plans, including bringing positive economic value to the Netherlands.
For European start-ups, internationalization is inevitable: to obtain the typical valuation of American start-ups, European companies need to expand early and quickly in many countries. If a European startup wants to target a market the size of the United States, it must enter 28 different countries. European startups should focus on broader internationalization throughout their journey, rather than American startups.The start-up’s website visits show that about 70% of Europeans unicorn You must have a global or partial global footprint to achieve this status, while the U.S. only has 50% unicorn.
As a start-up company, “going global” is usually in its DNA, and entrepreneurs are the driving force and the most important resource in the introduction phase, and are unique intangible assets for scaling up. A study of 600 European start-ups shows that the founders of start-ups should have a firmer international vision from the beginning of their business, and put forward their vision and strategy to improve the economic success rate of their business.
In more than half of the technology startups in Europe and the United States that have received investment in the past 12 months, global growth is the core focus. In 2020, as more and more technology companies struggle to deal with regulatory compliance, recruitment, employee immigration and tax rates will remain a major obstacle.
Internationalization should be carried out as a company-wide process involving all departments. On the contrary, treating them as expansion projects will only underestimate their potential impact on the wider organization. By fully incorporating and understanding the purpose and rationale of international brands in all strategies, start-ups are more likely to achieve international growth and overcome operational and performance challenges. Internationalization is a challenge, but it is also an important part of scaling up. At Techleap, we try to provide founders with as many answers to questions as possible, by opening up our network to founders, sharing knowledge and helping to expand the scale of the company to enhance its internationalization strategy, thereby mystifying the expansion process.
Like Adyen, Messagebird and 3D Hub, it is not easy to develop and expand overseas. The following are seven steps to establish a successful internationalization plan and improve skills within the organization.
The first thing to accept for successful internationalization is that there is not only one final answer that can provide solutions to all problems in the field of internationalization. Accepting various possibilities as “supporting machines” can almost change the concept of start-ups at all levels. Every success has its own story, and it is important to include all the elements that contribute to business development. This is the motivation of the GoGlobal program, which was created for all ambitious entrepreneurs who want to expand their business overseas and become important players in the international business market. It aims to provide a dedicated global expansion guide for Dutch entrepreneurs.
Many companies are opportunistic. They chose a new market because they happened to have established connections there. But this does not mean that this particular country offers the most opportunities. Before committing resources to this, always use data points and thorough research to back up your strategy. From addressable markets, talent and competition, to more practical points such as accessibility, time zone and financial attractiveness: they all increase the chances of success.
It is already difficult to find talent in the Netherlands, but it is becoming more and more complicated abroad. For example, how do you recognize talents from countries like the United States that can show outstanding performance in every country? Most programs or organizations where this type of talent has worked before are usually unknown to your own organization. The first local team members determine the local culture, and the local culture will determine your success. In my previous company, Impraise, we asked all new employees to come to Amsterdam for a few weeks to establish connections and connect them with our culture. good results.
Expansion is expensive. When entering a new market, you want to re-verify whether you can build traction to accelerate at the right time. If you are wrong, it will be difficult to make up for the loss of reputation afterwards. This is especially harmful when the product or service is not transaction-oriented and the buyer checks the reputation of the product with their counterparts in the market. 80% of human resource buyers are colleagues in the market. For us, it has more returns and can focus on side events and dinners around the event, so as to obtain a higher return on investment.
There is no shortcut to internationalization. Building a good reputation abroad takes at least the same amount of time as in the domestic market. The key to success is to focus on cities in major markets and work with well-known alumni to develop reliable accelerator programs. This can improve your business reputation and provide you with a one-stop service. In addition, develop a strong online content strategy so that you can build visibility and appeal before entering a new market.
Since the outbreak of the pandemic, online meetings have become the new norm, but if you are in a foreign branch, you cannot escape virtual work anyway. Due to the lack of physical contact, it is not clear at present the current status of your foreign team and whether the organizational structure is optimal, which is 100% unclear. When working in different time zones, it is important to find a digital balance that can provide enough touch points. When your organization invests in effective communication, you can expect these initiatives to bring positive business results, but what you might not expect is the long-term impact of a learning corporate culture.
Sometimes you can’t help but Reseller, But in the early stages Resale Driving strategies are not recommended, especially when the organization sells products or services that require advisory sales methods. Despite the best intentions, resellers are usually not very good at communicating their vision. They lack the enthusiasm and perspective brought by the founders or key figures to win the first batch of local customers.