4 Steps for SaaS Global Expansion

The idea of expanding outside North America is often very daunting for companies — as it should be. There are many external and internal forces to consider. Often, the most paralyzing thought is, “What if I miss something big?” or, “What if I make a bad decision related to where we expand or how?”

The truth is there is no silver bullet when it comes to global expansion. There isn’t a checklist that will make your plan black and white. Every company is different and therefore every strategy is — and should be — unique.

There are, however, some guidelines and questions you can use when planning your global expansion strategy that can set you up for success. Below, let’s review four helpful steps to begin the preparation process for your company.

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1) What to consider when thinking about global expansion

When considering global expansion — whether it be now or years down the road — there are several imperative questions to answer. The first step, however, is to form a team of individuals spanning the company’s various departments that will lead the research and ultimately the execution of this plan. These individuals need to be dedicated to the cause, even if global expansion isn’t their full-time job (and it likely isn’t). Once the team is formed and contains members from departments such as corporate development, marketing, finance, legal, HR, sales, operations, etc., then you should begin putting together key research and answers and identifying gaps.

There are many things to consider, but below are the top five questions your team should answer:

• What outcomes do you want to achieve? What are the motives?
• Is your Board of Directors in approval of global expansion? Why or why not?
• Which market best fits your capabilities and is most viable for your company? Why?
• What is the financial stability and potential of the market you are considering?
• Does the competition already have a presence in that market or do you have to educate the market yourselves? What about existing partners?

2) When to time the market launch

Once you have formed the global expansion team and have begun initial research, your team must determine the proper timeline for your market launch. Timing of a launch is crucial — you must take into consideration seasonality of your company, holidays and “breaks” that the market you are entering observes, as well as general product launch schedules and availability of the team.

When mapping out the schedule, it’s best to create a formal timeline including assignments of activities and owners for each major milestone, ensuring that nothing is overlooked.

A few things to consider when determining the timing of the launch:

• How much time can your team dedicate to global expansion — what is the priority compared to other initiatives?
• How long to allow for planning (take into account Board meetings, product release cycles, and general readiness)?
• When do you need to show revenue — and how much?
• How long before launch should you start marketing in-region and filling the funnel? (Generally speaking, you should start building a solid pipeline of leads no fewer than three months before official launch.)

3) How to construct the all important go-to-market plan

Probably the most crucial, but often overlooked, part of the planning process is orchestrating the go-to-market strategy. The go-to-market plan (or GTM) is incredibly important because it represents the culmination of all your prior research. It should take into account the people, the product(s), the channel(s), the budget/financials, the market conditions, and the timeline. It should be very detailed and each participant in the plan should have full buy-in and be completely aware of their timeline and responsibilities.

Building a GTM plan should be extensive. As a starting point, it should include answers to the following questions, as well as others you have identified in your research unique to your company:

Step 1: Initial decision

• What country/continent should you target and why? Do you start with English speaking to avoid translation or not?
• How will you enter the market: Partnership, acquisition, or organic?
• What product(s) will you go to market with? And how?
• Who should be involved in GTM?
• Will you send an expat or will you hire locally? Or a mixture of both?

Step 2: Planning for execution

• Get operations involved early to identify office space, as well as other miscellaneous but very important tasks. How will you make this office feel like an extension of your HQ?
• How will the team communicate with members of your team at HQ? Do you need to purchase new technologies in order to enable video or call conferencing?
• Do you need translation services for both product and marketing? If so, make sure you work far in advance and have a trusted reviewer for local dialogue.
• Are there local case studies or logos you can use for marketing purposes rather than using just logos from North America?
• What are the legal implications, hiring/firing laws, typical compensation, laws for traveling, visa requirements, etc?
• What are the financial requirements and budget both for new market as well as supporting the new market from HQ, as well as goals and metrics for success?

Review, rework, and revise the plan continually. This is not a one-stop list — there are many, many things to consider when expanding globally and they will vary by company and by industry.

Step 3: Build the demand gen plan

• Plan for aggressive marketing before launch. This marketing could include the following:
  • Local website/SEO
  • Local PR/agencies
  • Tradeshows/events
  • Publications & advertising
  • Associations
  • Co-marketing with partners
  • Social media sites (these can vary by region)
  • What actually works locally? (in some regions, activities will perform and convert much better simply due to local preferences)

4) Ways to spot potential pitfalls and gotchas

Unfortunately, your plan will never be fool proof. No matter how long and how hard you labor over the plan and revise it, many things can throw it off course. The best thing you can do is to prepare as much as possible, but remain flexible and enable your team to be nimble. There are, however, a few very important points worth exploring in depth to minimize the risks of global expansion as much as possible:

• Research local laws and customs and have a local expert talk you through this — it is incredibly important for many countries, especially Asian countries, where you could easily offend or ruin a business relationship, otherwise.
• Many countries have very strict hiring and firing laws — you must know these so you don’t hire someone too soon and have trouble if you realize they are not the right fit.
• Just because it works in North America, does NOT mean it will work or resonate in other countries. Hone in your messaging, get local case studies, and be sure to train the team accordingly.
• Be conscious of time differences and culture — take into consideration local holidays and vacation timeframes.

Expanding globally can clearly be a very daunting and monumental move for your company. As you begin researching your expansion efforts, keep in mind there are many resources designed to help you — and fortunately, many companies that have gone before you that can share knowledge and findings.

Free On-Demand Webinar

Want to get serious about your expansion efforts? Register for our on-demand webinar, Global Expansion for SaaS: What You Need to Know to Start Planning NOW, for more guidance and tactical advice on how to begin planning your global expansion.

 

Photo by: Ben Terrett