Going Global at Launch:
The Playbook
by Thomas Rodrigues
In our hyper-competitive global economy, startups are just as likely to find their first customers in Paris, France, as in Paris, Texas. The international marketplace continues to shrink at a dazzling pace, paving the way for the rise of what Anita Campbell calls the "micromultinational."
Until recently, the designation "multinational" was reserved for multi-million dollar, decades-old corporations. This is simply no longer the case.
A 2007 USA Today survey revealed that, "of venture-backed software startups created since 1999, nearly 40 percent have employees outside the United States." More importantly, "the global firms received more than twice as much funding from venture capitalists as firms with U.S.-only operations."
In addition to exposing a wider customer base, internationalizing your startup can actually give you a competitive edge when it comes to securing essential funding. Of course, the novice global entrepreneur can easily run his or her startup into the ground in a matter of weeks if he or she isn't careful. Launching a micro-multinational is a complex endeavor, but if you incorporate the following tips into your plan, you'll be well on your way to running a viable business.
Internationalize Your Website
In all likelihood, your company's website will be the primary point of contact between you and potential customers. While a reliable translator is indispensible, there are elements other than a "Language" setting which ensure that customers around the world are comfortable doing business with you.
Payment Flexibility
In the United States, most online purchases are made with a debit or credit card. Global entrepreneurs must understand that this is not necessarily the case in other regions of the world. Allowing customers to pay with a variety of tenders is a surefire way to bolster your site's conversion. Consider accepting payments via PayPal, American Express' FX International, Xoom, Western Union, or Moneybookers.
Local Support
Ideally, you will be able to hire at least one employee in each country or region where you hope to conduct business. If your budget doesn't have room for a bevy of full-time local employees, make sure to forge strong partnerships with your suppliers and agents on the ground. Providing your customers with contact information for someone in their own neighborhood lets them know that their concerns will be attended to swiftly and appropriately. If the nature of your startup is such that you don't have employees or third-party representatives in the target market, make sure that you offer telephone or online chat support both in the local language and during local business hours.
Go 'Glocal'
Beyond guaranteeing the most efficient resolution of customer issues, having employees "in the field" allows you to gain valuable insights into your target market's cultural idiosyncrasies. As Jake Ludington suggests, "Go local in each new global region by focusing on the full picture. Marketing communications need to be consistent with the region." More often than not, your domestic marketing strategy will not translate to the international stage. Entrepreneurs should tailor their product, and especially the presentation of their product, to the target market.
This is more difficult than one would think. You may conduct extensive research and discover that in Malaysia, English-speakers say "yes" to indicate that they heard you, not that they agree with you; that in Japan, discount pricing is seen as a sign of an inferior product; or that in a number of cultures worldwide, comparative advertising is viewed as offensive. These tidbits are helpful, no doubt, but they fail to capture the ethos of the culture.
"Cultural fluency," if you will, is not easily acquired. A native German will always understand German culture better than a research-informed American. Consequently, the best way to "go local in each new global region" is to partner with an expert, that is, a "market native." Working with these cultural ambassadors provides access to your target customers' deepest wants and desires, which in turn enables finely-honed marketing.
Do Your Research
Of course, before attempting to tap into a foreign market, you should assess whether doing so is economically prudent. Again, locals will have the most accurate perceptions of existing demand for your product or service, but in the early stages of a startup, you may not have access to abundant foreign input. In such instances, fellow entrepreneurs are an excellent alternative. Talk to your friends and contacts and learn from their experiences in the international marketplace.
It is also worth consulting the black-letter experts. Attorneys specializing in international trade, intellectual property protection, and foreign tax law, international accountants, and export officials are all valuable resources. Indeed, the federal government has an entire site dedicated to "helping U.S. companies export" (its market research tool is especially useful).
Ultimately, no amount of research is going to supplant your drive and innovation. As an entrepreneur, you just plant your nose on the grindstone and keep it there. But with a little luck and a well-informed strategy, you're as likely to deliver your first units to India as to Indiana.