Before a startup company begins to strategize a plan for future global expansion, its leaders must fully understand home market advantages, and then they can develop a clear business outline that will put the business on the right path for continued success in other target markets they may have their eyes on.
Below, eight Forbes Business Development Council experts weigh in on some of the traps company leaders fall into when conducting inbound and outbound outreach between countries for fundraising purposes and building a go-to-market strategy.
1. Failing To Consider Strategic Value-Add From Investors
Some startups raise international capital due to favorable valuations and the availability of venture capital. For example, the founders are in the U.S. but are building for emerging markets, or the founders are in an emerging market but are building for the U.S. market. One common mistake is not considering the strategic value-add the investors can provide and just focusing on maximizing valuation. – Michelle Tan, Quilt
2. Being Unable To Clearly Define Or Understand Your Target Markets
For fundraising, startups must demonstrate demand in the market for their product and must very thoughtfully define their product’s addressable market. Too often, startups take a very lenient approach to defining addressable markets, which signals to investors the lack of understanding of the market on the part of the management team. – Raj Sharma, ITOCHU
3. Ignoring Localized Messaging To Address Cultural Nuances
In my experience, startup companies tend to ignore localized messaging and the importance of understanding cultural nuances in each target market. This includes language, tone, communication styles, and even preferred platforms. Neglecting these factors can hinder connection and trust-building, which are crucial for fundraising and GTM success. -Anoop Anthore, Cadalys Inc.
4. Resisting Engagement On Each Region’s Communication Platforms
When expanding internationally, startups often overlook how communication preferences vary between markets. For instance, while professionals in the U.S. heavily engage on LinkedIn, entrepreneurs elsewhere might find greater success using WhatsApp or WeChat. Success in cross-border business development hinges on adapting your outreach to match each region’s dominant communication platforms. – Thasha Batts, Pinnacle Global Network
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5. Missing The Mark On Strategic Product Offerings And Sales Motion
Some of the most common mistakes that startup businesses make are not understanding their ICP (ideal customer profile) and also not translating that into a product offering and sales motion that is repeatable and predictable. Analyzing the go-to-market strategy is about understanding your clients, why they buy from you and what you need to do to retain those clients. – Angeley Mullins, Resourcify
6. Overlooking Regulatory And Tax Laws
Common mistakes include ignoring local nuances, overlooking regulatory and tax laws, using one-size-fits-all proposals, underestimating local competition and neglecting IP protection laws. Startups should also prioritize cultural awareness to navigate international outreach more effectively, boosting their chances for successful fundraising and market entry. – Kiran Yelamaneni, TCS
7. Getting Too Far Ahead Of Solidifying Your Primary Bread And Butter
A key mistake is treating international expansion as a checklist rather than a strategic journey. Before pursuing global funding or markets, startups must establish clear proof points in their home market and develop a detailed roadmap that aligns capital needs with specific market entry milestones. – Sidharth Ramsinghaney, Twilio
8. Forgetting To Leverage Partnerships
When entering a new country, startups may often forget to leverage their partners in their go-to-market strategy. Your strategic and integration partnerships can offer a critical benefit when getting started in a new region or market, whether it’s making introductions to important communities, serving as a reference to prospects or providing insight into local business etiquette and culture. – Hayden Stafford, Seismic
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