The international business community is a cosmopolitan landscape with endless possibilities for growth. Europe is one of the most important markets for American tech companies to choose when looking to launch their businesses internationally. But what are the keys to a successful establishment within Europe?
To increase your chance at succeeding, we have identified four of the most common mistakes American tech companies make and how to avoid these:
1. Choosing the wrong market
One of the more common pitfall companies make when expanding their businesses globally is not researching the target market ahead of launching their service. Consumer environments differ drastically and failure to recognize how a new region conducts businesses is a serious misjudgment that can source disastrous results. The business plan that was successful in the host country might not work for the new location due to different demographics and consumer needs. Instead of opportunistically chasing leads all over the region, conducting a feasibility study looking at the European market where your product has the highest potential and then adapting VP to local culture and language is one suggested solution to help eliminate the chances of this happening. The success of your business will primarily rely on your competitors, customers, and suppliers so in-depth research is necessary for understanding the market you want to enter and how your business will fair against them. Direct contact with customers works as the best conducer of their wants and needs, however, analyzing electronic reports also helps in gauging their interests as well. Researching your competitor’s will also give you a good sense of direction and how to check the receptibility your business will attract in the new market.
2. Not adapting your Value Proposition
New clients require their own unique approach compared to that of the original client base. A complete translation of the original business plan is key to surviving in the new market. Begin restructuring by researching potential markets before entering them. This will save time, money, and disappointment later down the road. Defining your value proposition from the beginning will addresses any problems that need to be addressed before moving forward. When you address the issues, make sure to state how your businesses is the solution for these issues. Evolving your value proposition not only outlines the customer adoption, but also creates a niche for your business to settle into. It´s important to also factor in how easy it will be for customers to use. If your product isn´t unique, heeding a solution, or is difficult to understand, the chances of your product being embraced are slim.
3. Invest in the wrong channel/partner
Apart from not adequately organizing enough research into a new target market, failing to optimize company channels and partner networks will also cause serious issues for companies’ expansion projects. Different markets may need different channels to optimize sales. Take use of local knowledge and experience within your sector to ensure you build the optimal channel structure. Utilizing talent from the region not only brings new business ideas to the table but it also helps the company to better understand the target and rapidly build a local network.
Download our whitepaper Go-To-Market for Tech companies
4. Not paying attention to local laws and regulation
Tech companies are also facing different legal issues upon expansion. Not paying attention to local laws and regulations are blindsiding unsuspecting companies who haven´t conducted their fair share of research. Failing to comply with the General Data Protection Regulation (GDPR) or not becoming EU certified are just two examples of legal barriers companies must climb over before becoming successful. Failing to meet these basic requirements can leave businesses with heavy fines while also creating a negative image in the public eye for not complying with data safety regulations.
Are you looking to scale your tech sales in Europe?
IVC has rendered over 2,000 company services for those interested in expanding business operations to Europe. By employing local knowledge such as IVC, original business channels can evolve to better accommodate the target market for this area. By growing channels to fit the new consumer market, chances of accelerating sales greatly increase with it.
IVC applies detailed business solutions allowing companies the luxury of being well informed from the inception stages, starting with their business concept design. Identifying high revenue segments using advanced account analysis provides insight into desired target markets. Validation for our propositions come from interviews conducted by our sales team that tests and identifies a potential client list, buying criteria, and growth expectations. Thanks to proper research analysis, conducting adequate research into a target market greatly increases the survival rate of companies.
IVC also offers services that help with the legalities of growing businesses. For example, tax and legal compliance/advice are offered to help structure a growing company. Keeping up to date with the newest forms of government tax payments and compliance regulations as well as various options that support your business in any situation you encounter are just one of the other ways IVC supports your company.
We encourage you to get into contact with us today to learn more on how IVC can help you in expanding your business throughout Spain.
Written by Mackenzie Ferguson