Thanks to the miracle that is the internet, businesses aren’t so restricted by the confines of national boundaries. With an overabundance of delivery and communication platforms, doing international business has never been more obtainable.[sg_popup id=42]
However, many businesses and companies see the opportunity potentially limitless growth and are too quick to jump the gun.
Even massive companies such as Best Buy, eBay, and even the mighty Google has failed in attempts to try and get a footing in the international market.
But fear not, because there is most certainly hope!
We had the privilege to attend this year’s Silicon Slopes Tech Summit and got a chance to meet with some of the most powerful executive figures in the state of Utah. Among these people was the Brady Broadbent, with Sorenson Capital.
Brady Broadbent has dedicated himself to studying and understanding why and how businesses succeed. To put it short, he loves to build businesses. Together, Brady and Sorenson Capital manage a powerful fund that invests in hundreds of companies.
Brady has seen hundreds of business rise and fall, and he gave us a few things to watch out for if a company is to successfully penetrate the global market.
Building for the Long Term
Many companies often get too caught up in the immediacy of their work and fail to look forward. This poses a massive roadblock for scalability, expanding into the international market. One of biggest reasons that a company fails, even at the local level, is because they miscalculate the cost of their take off. This is no exception for the international market.
One of the things Brady specifically mentions is to:
“Provide capital for the long-term growth.”
This may come as a simple concept, yet many companies fail to realize it. Sometimes the answer is the most obvious one.
The Company’s Metric
One of the key traits to us human beings is our ability to learn and adapt from our mistakes and our surroundings, this holds true in the business world.
If the company is unwilling to adapt and learn from their mistakes, that company cannot hope to successfully breach the international market. A company may have a bulletproof formula for success domestically, but if they are not willing to adjust their formula, they may not get very far.
“The successful companies will have metrics that are being constantly adjusted.”
The company’s team is the nervous system of a company. All the nerves need to be running in peak condition to ensure stability.
So, it’s important to understand why a company needs to find the right team to work with. This is perhaps one of the most fundamental parts of a company, and its application goes beyond expanding to the international market. The right team will is efficient and decisive, based on good, reliable, data. Failure to execute with data will result in loss of precious time.
“Efficient and decisive based a good data. This is better than waiting for perfect data.”
With the right team, the work will also come more enjoyable. A happy workplace has been shown to improve productivity by nearly 12%. Another thing a company can do to support their expansion to the international market is to hire a team that knows the product, as well as the international market.
When it comes to the product, there are a few things you need to watch out for.
It’s critical that the company’s product is truly a leading product. Obviously, no one is going to go to your company if the product you offer is subpar compared to its competitors. An important idea to highlight here is that the product does not have to be a 100% original idea. What’s important is that whatever it is that your company does, you just need to do it better than the next guy.
Further adding to the importance of product, product leadership is critical. However, if a company fails to understand the market in which they intend to reach, despite the hard work of the team and the solid product, their attempt international expansion may be in vain. To avoid such catastrophe, the company must absolutely take into account the market.
Knowing The Market
Having false starts international choosing can lead to markets that are bad fits for your product.This can be a massive setback for a company, and it happens very, very frequently.
“You can have a great team, a great product, in a small market, it’s going to be hard to have a great outcome.”
It’s detrimental that a company must first understand the market of the country they intend to breach, and they must understand in excruciating detail. For instance, just because China has a big general market, it doesn’t necessarily mean that they have the market for that company’s specific product. It sometimes doesn’t matter the size of the market, but your adoption in a smaller market may be faster.
Check out the video below for more insightful details on our interview with Brady!