Challenges to Anticipate When Expanding Internationally

Entering the US market as an SMB: Lessons from the frontline Expanding to the US is a dream for many global SMBs — but the reality is tougher than most leaders expect. I’ve had the privilege of advising companies entering the US, and one theme stands out: What works at home rarely works here. The first leadership challenge is value proposition localization. What customers care about in the US can be wildly different from Europe, Asia, or South America. Leaders who assume their existing pitch will land flat. Success starts with deep market research — understanding customer pain points, pricing expectations, and even preferred sales channels. Next, leadership must embrace relationship-first sales. In many industries, US buyers want to know you before they buy from you. They expect social proof, credible introductions, and long-term relationship building. Leaders who only focus on transactions struggle. Finally, leaders need to understand that the US is not one market. Selling in California is different from Texas, New York, or the Midwest. Regional regulations, buying preferences, and competition vary dramatically. Successful leaders treat each region as its own mini-market. Entering the US is about leadership adaptability. Global success depends on local humility — learning fast, adjusting faster, and building the right local team to bridge the cultural gap. #USMarketEntry #InternationalBusiness #SMBExpansion #LeadershipTips #GlobalGrowth

Going Global: 10 Questions to Ask Before Expanding Your Business Expanding internationally is an important lever for value creation, but it’s also a complex challenge. Here are 10 questions to consider as you prepare for global expansion: 1️⃣ Is your business ready for international growth? Global expansion demands significant resources—financial, operational, and human. Are your current operations stable & efficient? 2️⃣ Will your product resonate in the new market? Understanding cultural nuances is essential. Does your product align with local tastes, preferences & traditions? What adaptations are needed? 3️⃣ Have you conducted thorough market research? Do you know the demographics, purchasing habits, and behaviors of your consumer? If your product is unfamiliar to them, are you prepared to invest in educating consumers about its value? 4️⃣ Who are the competitors in the market? What sets your product apart? How saturated is the market? What is their customer experience like? 5️⃣ Do you have the team to support your expansion? Whether it’s hiring local talent, creating a JV or selecting a distributor, you need people who understand the language, culture, and business environment (esp. pricing, regulatory, shipping etc.)—and who can work seamlessly with you. 6️⃣ What are your KPIs for success? Is it revenue growth, market penetration, or customer acquisition? When will it be time to establish regional teams? 7️⃣ Which market should you enter first? What criteria makes a market the right choice for your business? Then select a "beta" market to test your strategy before scaling further. 8️⃣ What challenges might you face? Are you prepared for potential legal, cultural, or economic hurdles? From labor laws to tax structures and trademark issues, every country has unique complexities you’ll need to navigate. 9️⃣ How will you balance your U.S. & international business mix? What percentage of your revenue should come from the U.S. vs. global markets? Diversifying across regions can reduce risk, smooth out seasonal demand cycles & position your business for long-term resilience. 🔟 Have you thought about adaptation - so beyond translation? Localization is about more than just language. How might colors, images, scents, or icons be perceived in your new market? A well-adapted product or service creates a seamless experience for consumers. Plan & Execute Thoughtfully International expansion is more than just a growth strategy—it’s a transformation. You’ll need a detailed business plan, financial projections, marketing strategies & a realistic timeline. Even if you start small, the insights you gain from your first market will set the stage for bigger moves down the road. Every time I travel, I’m reminded of the creativity & care businesses put into adapting globally. It’s one of the most fascinating stages in a company’s journey. What’s been your experience with going global? 🌍 #valuecreation #globalexpansion

The international expansion playbook is evolving. In the era of AI, companies are rewriting the traditional rules of GTM operations. 🌍 Reflecting on my experience helping Salesforce Industries 2x our international revenue, I've identified several key trends: 1. Partner-led growth is the new norm. Build a robust domestic partner ecosystem first, then leverage it to enter new markets. Start small with systems integration partners (SIs) and independent software vendors (ISVs) and then scale up. 2. Localization is non-negotiable. Stick to the 70/30 rule: 70% of your product and GTM strategy should be globally consistent and 30% tailored for local markets. While AI can make processes more efficient, it will never replace the need for a customer-centric approach. 3. Commit fully, or not at all. International expansion is expensive. If you're not well-capitalized, focus on developing a detailed strategy and raising funds against that plan. Half-measures won't cut it in the global arena. 4. Leadership is local. While sending an experienced leader to set up a new market may work initially, long-term success requires nurturing local leadership. Hire strategically and consider a "stepping stone" approach for challenging markets. 5. Scalable frameworks are essential. To expand efficiently, you need repeatable models for product maturity, partner engagement, and sales enablement. Ad-hoc strategies simply won't scale. Companies that balance global scale with local relevance and combine strategic patience with decisive action will win internationally in the AI era. 🏆 Though the road is challenging, the rewards for organizations with the right strategy and resources are immense. The world is your oyster – just make sure you have the right tools to open it. What has been your experience going global?

Many companies struggle to push the button on international expansion. They equate localizing their product with guaranteed success then stare at failing metrics a year later. Choosing the right market to start expanding to is fraught with complications. In today's FishmanAF Newsletter I'm joined by Scott Coleman who has spent 20 years thinking about this problem across over 50 countries. He provides us with a structured approach to international expansion. With lessons he's learned from Google, Pinterest, Omaze and more. 1. Create a baseline approach based on the stage of your company 2. Create a data frame to capture relevant ranking criteria 3. Use macro data sources for understanding the country 4. Find PMF proxy metrics that inform your operating environment 5. Add risk factors using a risk matrix 6. Adjust your criteria 7. Add qualitative insight into your decision-making 🌍 Start with who you are 🌱 Small companies (seed, series A/B) are still establishing PMF. Their goal should be to crack the next 1-2 markets outside their home turf. 🚗 Mid-sized companies (series C/D/E) need to find PMF in *multiple* countries, typically 3-10 at once. 🏢 Large companies (you know who they are) can't wait for a product to slowly creep across the glope. They need to be everywhere and scale quickly. 🗒 Develop your country list Write down the countries that come to mind where you think you should go next. Think about *why* you're choosing them. Although Fiji is an amazing place, it's probably not the first place you should expand to. 🔺 Leverage a simple framework Use a three-part prioritization framework organized by macro factors, PMF, and risk. You can leverage datasets from Worldbank, Data.ai, and even... 🕵♀️ the CIA. 😬 Adjust for risk You've got a few types here - how easy it is to do business in a country, regulatory risk, IP risk and currency risk. To bring it all together, Scott shares a spreadsheet template he uses with a real example, the weights he applies to the different parts of the framework, and how to apply some intuition and qualitative factors to the output. Check it out at the link below in today's FishmanAF Newsletter.

Expanding to Developing Markets? 6 Critical Challenges you Can't ignore As an entrepreneur when you are eyeing the developing markets, you're stepping into a realm filled with potential... and pitfalls. Here are six key challenges you must navigate: 1. Foreign Exchange Controls: The Invisible Barrier It's one thing to invest in a developing country, quite another to bring your profits home. African nations, for e.g, may allow easy investment but repatriating funds can be a maze. Imagine having profits in local currency but facing a wall converting and transferring it back. Especially if you have debts in foreign currency at the parent – it's a financial quagmire. 2. Local Representation Mandate: A Trust Test Many countries require a local resident director for foreign businesses. This isn't just about finding someone for the role; it's about ensuring they're reliable and empowered appropriately. Without trustworthy service providers, you risk significant operational and legal challenges. 3. Withholding Taxes: Margin Eroder In developing markets, improper transaction documentation can lead to withholding taxes ranging from 10% to a whopping 30% of the gross amount. This can wipe out your margins completely. The key? Meticulous documentation and demonstration of transactions and substance. 4. Opening Functional Bank Accounts: Test of Patience A simple, yet critical challenge is the time it takes to open functional bank accounts in developing countries. This process can take anywhere from three weeks to six months, a timeframe that must be factored into your business plan. We have experienced account opening delayed for months for want for an attestation or apostle etc. 5 Bureaucratic Delays: Accept it Bureaucratic procedures and regulatory approvals often take longer than expected, posing significant delays in setting up operations. Prepare for extensive paperwork and time-intensive processes. 6 Opaque Laws and Regulations: Ambiguities Galore Rules in developing markets can be unclear and open to varied interpretations. Be prepared to be continuously challenged atleast in the initial years, till you get immune and adept at dealing with consequences. Remember, every problem has a solution.. Navigate with Knowledge These challenges underscore the importance of thorough preparation and expertise when expanding globally. Don't let these hurdles dampen your global ambitions, but rather, let them guide your strategy for a successful and profitable expansion. Seek Professional Guidance If you're planning an international expansion and these points resonate with you, let's connect. We have nearly two decades of experience in guiding businesses through the complexities of global market entry. Comment "Expand" to receive my hand book on "7 Effective Structures for expanding globally from India". DM me for tailored advice on your international expansion journey. #GlobalExpansion #BusinessStrategy #DevelopingMarkets #InternationalBusiness

Expanding internationally sounds exciting—until you hit regulations, logistics, and cultural challenges. Are you ready for what it takes to succeed? Taking your wellness or plant-medicine brand global can unlock new revenue streams, but careful planning is essential. Here are six key points to consider:  1. 𝗞𝗻𝗼𝘄 𝘁𝗵𝗲 𝗠𝗮𝗿𝗸𝗲𝘁 – Understand local demand, trends, and competition to see if your product fits.   2. 𝗙𝗼𝗹𝗹𝗼𝘄 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗶𝗼𝗻𝘀 – Each country has different rules on ingredients, product claims, and imports.   3. 𝗔𝗱𝗮𝗽𝘁 𝗬𝗼𝘂𝗿 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 – Tailor products and marketing to align with local culture and preferences.   4. 𝗠𝗮𝗻𝗮𝗴𝗲 𝗟𝗼𝗴𝗶𝘀𝘁𝗶𝗰𝘀 – Build a solid supply chain and partner with reliable local distributors.   5. 𝗣𝗹𝗮𝗻 𝗳𝗼𝗿 𝗖𝘂𝗿𝗿𝗲𝗻𝗰𝘆 𝗦𝗵𝗶𝗳𝘁𝘀 – Prepare for exchange rate changes, taxes, and tariffs to protect profits.   6. 𝗗𝗲𝗹𝗶𝘃𝗲𝗿 𝗚𝗿𝗲𝗮𝘁 𝗦𝘂𝗽𝗽𝗼𝗿𝘁 – Set up local customer service to handle questions, returns, and feedback smoothly.  And ask yourself these two questions: • Am I committed to making this happen?  Don't tiptoe in and/or insufficiently resource.    • Do I have trusted experts navigating the waters for me?  Without this you are highly unlikely to succeed. Likely to get ripped off.  And potentially run into legal problems. Expanding into other countries can be an incredible opportunity to increase revenues and reach.  #scalingwellness

My 6 key tips for navigating tariffs, global expansion, and compliance: Many people have approached me with deeply thought-out, comprehensive plans to mitigate their risk (especially China related) as the landscape continues to change every week, or even every day After spending my day yesterday speaking with 30+ UK businesses with global expansion on the cards this year, the most important thing is to put the challenges in context: Are you a first-time exporter? A long-standing enterprise level company? An entrepreneur just getting started? Given that the rules appear to be able to shift at the drop of a dime right now, you need to be able to move fast. So, my tips? 1. Right now is not a season for the “perfect strategy” but rather, it is a season of preparedness and agility. Being ready to shift strategies at a moment’s notice is what will make you ready for each incremental change 2. While the US tariffs on China, Mexico, and Canada may present a profitability challenge, especially for some commodities more than others, they are not a definitive death sentence In fact, I’ve seen that many are simply changing their financial modeling and adjusting to the new total landed cost, balancing it against the cost of adjusting their supply chain 3. Trade barriers, like tariffs and highly-regulated environments, may sound complicated, but can be overcome with the right controls in place. Data is really at the root of this. Garbage in, garbage out. 4. New markets are not a one-step process. You first need to evaluate your readiness to enter the market (compliance, network, distribution, final-mile partners, and post-purchase CX) and decide what your capacity and internal capabilities are. Many people assume that the only way to take on rapid international growth is to hire a big-4 consulting firm, but this could not be farther from the truth 5. Complex solutions are powerful, but likely should not be the first step. SMEs, this is particularly true for you. Setting up a vast and complicated manufacturing, logistics, or fulfillment network requires immense upfront capital, understanding of regulations, and significant long term investment. It is not for the faint of heart, and it should not be the go-to strategy unless you’ve looked at higher leverage strategies first, like data. Speaking of data: 6. Own your data = win on a global scale. Scope out the minimum product and supply chain data requirements to be able to scale and expand globally, and you’ll be ready to win in each market without the headaches that come with unrestrained growth. Thank you to Santander UK for inviting me to your London office to speak on an important and relevant topic this week Thanks to Will and Brandon from TAG CPG for sharing in this panel with Tru Identity, we make a good team. Operations is hard and it takes a lot of callouses to be willing to dive into supply chain problems first hand. #supplychain #customscompliance #tariffs #trump

Building a US Business from Afar: Lessons from My First Few Months When I decided to expand my business to the US, I knew it wouldn't be easy—especially since I was managing the transition from Canada for the first few months. Here are some of the biggest lessons I’ve learned from building a local team and navigating this new market remotely: Find the Right Local Talent: Building a strong local team was my top priority, but doing it from another country added a layer of complexity. I focused on hiring people who not only had the right skills but also understood the local market and culture. Establish Clear Communication Channels: Managing a team from a distance requires rock-solid communication. My Canadian team is already remote, so we have invested in tools and platforms that make it easy to stay connected and transparent. Daily check-ins, clear objectives, and regular feedback helped ensure everyone was aligned and moving in the same direction. Trust Your Team’s Local Insights: I quickly realized the value of trusting my team’s local insights. They had a pulse on the latest trends, consumer behavior, and competitive landscape. By empowering them to make decisions and take ownership, I was able to adapt my strategies more effectively. Stay Agile and Patient: The first few months were a mix of excitement and unpredictability. Some things took longer than expected, while others moved surprisingly fast. Staying agile, keeping a flexible mindset, and being patient with the process were crucial. I focused on celebrating small wins and learning from every challenge that came my way. Navigating the complexities of launching in a new country while still being based in another was a challenge, but it’s also been incredibly rewarding. #usagency #entrepreneurship #movingtoUS #toronto #businesstips

When expanding internationally, many companies go about it with the wrong mindset, and this often leads to poor international expansion results. Here are some of my insights from the 3 years I spent in London leading Tipalti's expansion into the UK and EU: - Go into the initiative with the mindset of building a start-up within a start-up: creating a local strategy and identity to optimize growth for the regional business, while integrating with the key values of the corporate organisation and building on top of its core assets and strengths -  Intentionally building out a strong local leadership team: Creating a regional team that is self-sufficient, positive and solution-focused, accountable, can attract and retain excellent talent, and that can guide, evolve and execute on that regional strategy, while also working with their partners from around the global business - Balancing short and long term: International expansion is a long term endeavor and commitment, so only optimising for the short term without an eye to the long term value can lead you off track. You can read more of my insights in this Management Today article on "What Leaders Get Wrong with Localisation". Link posted in the comments below.

There is a silent obstacle that often blindsides founders when expanding to new states or countries… Expanding your business is an exhilarating milestone. You’ve got the proof of concept, a clear product market fit, and you’re seeing momentum. But here's what many founders don't realize until they're in the thick of it: geographic expansion comes with a host of hidden challenges that can catch you off guard. When you venture into new territories, you're not just dealing with market differences. You're stepping into a maze of compliance laws, entity setup headaches, and cultural nuances that can make your head spin. Each new location brings its own set of rules and regulations, from labor laws to tax requirements, that you need to navigate carefully. The excitement of growth can quickly turn into overwhelm as you try to juggle these complexities while still focusing on your core business. It's easy to get bogged down in the details and struggle to find time to focus on the big picture. This is where fractional HR can be a game-changer for founders. By bringing in experienced HR professionals on a part-time or project basis, you can tap into the expertise needed to navigate these challenges without the overhead of a full-time hire. Fractional HR partners can help you: 1. Understand and comply with local labor laws 2. Set up efficient payroll and benefits systems across locations 3. Navigate cultural differences in hiring and management practices 4. Develop scalable HR processes that work across multiple regions The best part? You get this support without slowing down your growth trajectory. You can focus on expanding your business while knowing the critical HR aspects are being handled by experts. If you're a founder considering multi-state or international expansion, don't underestimate the value of fractional HR. It could be the key to scaling smoothly and avoiding costly mistakes along the way.