While many organizations aspire to scale globally, there are crucial factors that often go unnoticed in the planning stages. To help you avoid these pitfalls, we’ve gathered insights from industry leaders who have successfully expanded their business abroad.
- Tailoring the User Experience
User experience is perhaps among the least recognized of the concerns when expanding a business to foreign territories. The point is that, surely, you might be extremely caught up in logistics, regulations, or marketing strategies, but those very, very subtle cultural nuances shaping how users interact with your brand—those are what actually matter.
My experience with Design Hero was that we initially underestimated how a number of such cultural differences would affect user behavior. For example, customer engagement that works in the UK simply wouldn’t work in Japan or in Brazil.
We realized that even the smallest things needed adjustments—like color palettes, tone of messaging, and website navigation—to appeal to local tastes. When we neglect these differences, it causes a chasm to open between a brand and its audience—reducing the potential impact of your international expansion.
The key lies in the localization of user experience, so each market’s expectations are catered to. This affects not only satisfaction but also relevance to local search results, making your site relevant according to what users are looking for on your site and giving them the best user experience—something aligned with Google’s intention.
Therefore, successful global expansion isn’t about reaching new markets; it’s about really connecting with them.
Nicholas Robb, CEO, Design Hero
- Aligning Company Culture with Global Teams
One often-overlooked consideration when expanding internationally is ensuring a strong cultural fit between the new office and your existing company values. While market potential and operational logistics are crucial, aligning the new team with your company’s culture is essential for maintaining cohesion and productivity across all locations.
For instance, when we opened a new office in Brazil, we recognized the strategic advantages it offered, such as extending our working hours to provide round-the-clock service for our clients, thanks to its alignment with both European and American time zones. However, we also prioritized finding specialized tech talent that not only had the technical expertise we needed but also aligned with our company culture. This focus on cultural fit helped us build a unified, motivated team, ensuring that our global expansion strengthened our overall operations rather than introducing disjointed practices.
Sergiy Fitsak, Managing Director, Fintech Expert, Softjourn
- Complying with Local Labor Laws
It’s not enough to just know the rules; you have to understand how they impact daily operations. For example, when we expanded our recruitment platform in the UK, we underestimated the complexities of their employment contracts and termination processes.
This oversight led to some unexpected legal challenges and created friction with our new team members. We quickly realized that the regulations were much more intricate than we initially thought, which caused delays and complications. Taking the time to thoroughly understand and comply with local labor laws from the start is crucial to avoid these kinds of issues and to ensure a smoother transition into a new market.
Phil McParlane, Founder & CEO, 4DayWeekJobs
- Protecting Intellectual Property Rights Abroad
Since IP rights are typically granted on a country-by-country basis, having a trademark registration in one country does not automatically provide protection in another. In many cases, securing trademark protection in the local language is crucial. It’s also important to ensure that IP rights are registered in the name of the IP owner, not a local manufacturer or distributor.
Sometimes it is the case that someone else has already registered your trademark in another country, either for their own use or for possible future sale. This is something that will need to be addressed, as someone else’s ownership of your company’s mark could hamper its ability to expand. For example, the TARGET brand in Australia is not owned by the U.S. TARGET brand.
Marc Misthal, Principal, Offit Kurman, P.A.
- Integrating with Local Distributors
As a B2B shipment-tracking SaaS company, expanding globally has always been our priority since the first day we started operations. We’ve achieved this with a platform and tracking solution that is accessible worldwide and available for all businesses looking to enhance their shipment tracking.
In our quest to scale globally, we have learned some valuable lessons that we noticed many of our competitors ignored at their own peril. The most crucial lesson is the need to integrate with as many carriers globally as possible.
In each new market we’ve entered, new customers signing up for our shipment tracking services and API are concerned with whether we support the carriers they partner with locally and internationally. Our main advantage has been integration with over 1,200 global carriers, which has ensured the successful expansion of our services globally.
Clooney Wang, CEO, TrackingMore
- Meeting Local Customer Service Expectations
Different markets have unique expectations regarding language preferences, response times, and support channels. Ignoring these nuances can adversely impact customer satisfaction and loyalty.
For instance, when I began selling Beyblades and other products on marketplaces like eBay and Walmart, reaching customers in different countries posed new challenges. Customers in Japan expected rapid responses, often within an hour, and preferred communication in their own language. European customers had varied expectations, with some favoring email support while others leaned towards live chat.
Tailoring your customer service approach is vital. Hiring local customer support representatives or using professional translation services can bridge these gaps. Adapting to each market’s preferred communication style and response time can significantly improve your brand’s presence and customer satisfaction globally.
Brandon Hartman, Founder, BeyWarehouse
- Managing Time-Zone Differences
When scaling Lido.app, we quickly realized the challenges of coordinating across continents. Imagine scheduling a meeting with team members in New York, London, and Sydney. What’s convenient for one might be an odd hour for another.
Efficient time-zone management can make or break global operations. We’ve implemented tools that sync calendars across regions and set clear expectations for response times. This approach helps maintain productivity and ensures real-time customer support without burning out our team. Tackling time-zone differences isn’t just about logistics—it’s about fostering a global mindset where your team feels connected, no matter where they are.
Mary Tung, Founder & CEO, Lido.app
- Navigating International Data Regulations
It’s not just about selling products or services; it’s also about understanding and adhering to the unique laws and regulations of each country you enter.
Non-compliance can lead to costly legal issues, fines, and damage to your business reputation. It’s like trying to navigate a maze blindfolded. What works in one country might be strictly forbidden in another.
For instance, when you expand into Europe, you have to significantly adjust your data handling practices to adhere to the stringent GDPR regulations, something many businesses don’t consider initially. It has a steep learning curve, but it is undoubtedly a necessary one. The key is to do thorough research and understand the regulatory landscape before taking the leap. Embrace local expertise if needed; it’s an investment worth making.
Tim Hanson, Co-Founder & CCO, PenFriend
- Localizing the Brand Message
Going global isn’t just about crossing borders; it’s about crossing into new cultures with your brand intact.
When you’re gearing up to take your business global, there’s one crucial factor that often slips under the radar: making sure your brand message truly resonates with the local culture.
It’s a common mistake to think that what works in one country will automatically work everywhere. But cultural nuances can turn a hit campaign into a flop if you’re not careful. It’s not just about translating words—it’s about translating meaning, tone, and values. The way you connect with your audience in the U.S. might not fly in Japan, Brazil, or Germany.
From my time leading global campaigns for brands like Nintendo and Xbox, I’ve seen firsthand that success abroad means localizing more than just your product—you’ve got to localize the entire brand experience. A catchy tagline that wins hearts in one market might leave people scratching their heads in another. Humor, for instance, can be a game-changer in one place but might fall completely flat or even offend in another. It’s not just about avoiding blunders; it’s about building a real connection that feels authentic and respectful to the local culture.
So, before you plunge into a new market, take the time to deeply understand the local culture. Bring in local experts, do your homework with market research, and be ready to tweak your brand in ways that might surprise you. Take it from a 40-year-old exec; expanding globally isn’t about imposing your brand on new markets—it’s about discovering how your brand can become a part of their world.
Steve Rock, Chief Creative Officer, Good Kids
- Planning for Local Holidays and Cultural Events
The impact of local holidays and cultural events on operations and sales cycles is something to consider. We learned this lesson firsthand when scaling my software company to Southeast Asia.
We initially struggled to maintain productivity and meet client expectations during extended holiday periods like Lunar New Year. Our sales forecasts were also thrown off by seasonal fluctuations we hadn’t anticipated. To address this, we developed a comprehensive cultural calendar for each new market. This allowed us to plan staffing, adjust revenue projections, and set realistic deadlines. We also implemented flexible work arrangements to accommodate local customs while maintaining consistent service levels. By respecting and adapting to cultural differences, we strengthened relationships with employees and customers, ultimately driving our success in these new markets.
Kyle Gier, Marketing Director, Conexwest
- Researching Cultural Differences Thoroughly
I’m with a global workforce solutions provider that connects employers with top talent from all over the world. One of the most consistent oversights we see companies making when they first expand into international markets is failing to fully research and understand the cultural differences between their home country and their new markets, and the ways those impact the best ways for them to engage with customers and convey their brand messaging.
I particularly see this mistake being made when people are expanding into markets that speak the same language as their home country—for example, an American company establishing a presence in the UK or Australia. Just because the new markets also speak English doesn’t necessarily mean the people there have the same worldview, or that marketing or messaging that’s successful in the United States will work as well in other English-speaking markets.
There are multiple strategies businesses can employ to correct this oversight. In my opinion, the best way to go about it is to hire team members from that market. You can bring these individuals on as remote contractors or freelancers if you don’t have an office in the new market. Having that first-hand perspective on the culture of your new market can be invaluable in ensuring your expansion is successful.
Rob Boyle, Marketing Operations Director, Airswift
- Localizing Core Expertise
One often-overlooked consideration when expanding internationally is the need to adapt your core expertise to local ecological conditions and regulations. When we expanded GoTreeQuotes from Australia to the United States, we initially assumed our arboricultural knowledge would transfer seamlessly. However, we quickly realized that tree species, climate zones, and local regulations varied significantly between the two countries. For instance, our Australian-based risk assessment algorithms needed substantial recalibration to account for different storm patterns and soil conditions in various U.S. regions.
We also had to navigate a complex web of state and municipal tree protection laws that didn’t exist in Australia. To address this, we invested in partnerships with local arborists and universities to develop region-specific content and services.
This localization effort was time-consuming and costly, but it proved crucial for establishing credibility and ensuring the relevance of our services in the new market. The lesson learned was that even in a seemingly universal field like tree care, local nuances can significantly impact your business model and value proposition when expanding globally.
Ben McInerney, Founder, GoTreeQuotes
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