72% of businesses are forging ahead with international expansion plans despite economic concerns and supply chain challenges, according to Equinix, Inc. [1] Setting up in any new market will require strategic planning. This, unfortunately, is where many go wrong. We share our advice on creating a winning strategy to guarantee a successful market entry.
1 in 12 businesses close every year because of low sales and cash flow. 42% of businesses said they failed because they had no market fit. 23% didn’t have the right team and 19% failed because they were outcompeted. [2]
So, where do you start? How can you guarantee a successful market entry?
BEFORE creating sales and marketing plans, before setting up an office or hiring people – you should develop a Go-To-Market strategy.
What is a go-to-market (GTM) strategy and why do you need one?
Every successful market entry starts with one.
A GTM strategy is an action plan setting out how you will sell your product or service to reach your target customers and gain competitive advantage. It will enable you to accelerate entry into your new market, establish a clear presence and quickly generate income streams. For further reading on GTM strategies, check out this blog.
It sounds simple, yet so many fail. Make sure to follow my top tips for a successful market entry.
Tips for entering a new market successfully
International expansion doesn’t have to be a leap of faith. Follow our advice to increase your chances of success.
- Do your research
Research allows you to make informed decisions. It enables you to gain a deep understanding of your target market and how your potential customers are likely to receive your product or service.
- Focus on sales
Don’t get distracted at the early stages by other things on the to-do list, such as appointing lawyers and accountants, it isn’t necessary, yet. ‘Put the horse before the cart’ as we call it, and generate a pipeline.
- Establish a differentiated position
Your offering needs to solve a problem, and solve it better than the substitutes and alternatives. What’s your unique value proposition, to this specific audience in this specific market?
- Local and cultural differences matter
Many underestimate the resources required to navigate language and cultural barriers. Be mindful that even when countries share the same language, it doesn’t mean that there aren’t cultural variations between these countries or even regions!
- Create a Go-To-Market strategy
Prepare a detailed strategy outlining your how you will sell your product or service to reach your target customers and gain competitive advantage with your unique value proposition. To win big your strategy must be innovative, different, and very compelling.
- Get help
If asked about any regrets, most successful business owners will tell you they wish they had gotten help sooner. So seek advice and get help. Whether that’s using your connection that has ‘the in,’ or working with a local agency that has the knowledge and network for rapid results – you don’t have to do it alone.
- Be prepared to invest
A worthy strategy will take time and expertise to put together. Business owners should be prepared to invest sufficient funds into entering new markets, this includes market research, localisation costs and marketing.
By creating and implementing go-to-market plans, we help startups and scaleups enter new markets in the UK, Europe and North America. We can assist you if you are considering international expansion but don’t know where to begin. Let’s start a conversation today.
