A. Joe Cohen writes:
Tackling expansion one country at a time is always a more measured approach to tackling the challenge of international expansion. Although a softer property market sounds
enticing, a ‘big bang’ approach could find you with major long-term obligations in a fairly volatile market. Taking one country at a time, backed by proper and careful preparation, will establish a much stronger foundation for future growth.
A thorough analysis of the market you’re intending to enter is critical. Make sure you understand the barriers to entry, competitive landscape and demand. Good groundwork will ensure you’re entering markets where profitability is an achievable goal within a defined timeframe. To supplement the on-paper analysis, some simple fact-finding fieldwork will really help. Visit the market, meet the players and get a feel for what is happening on the ground.
Establishing a partnership with an existing industry player in your target market can help provide a strong stepping stone. They’ll know the market better than you could in the early stages and their established network will help you hit the ground running. The partnership will also provide endorsement to your new presence.
Make one hire at the start and ensure it’s a local, commercial role, with business development as the main aim. If you can, run operations from your UK office at the start. The organisational knowledge of your more established operation will carry your expansion through its teething phase, allowing for a concentrated effort on building capacity and sharing this knowledge with your new territories before spinning them off into independent satellite offices.
Finally, good luck and have fun. This is an exciting time for your business, with thrilling – albeit exhausting – times ahead.
Joe Cohen
is founder and chief executive of market-leading online ticket exchange Seatwave. He previously occupied pivotal roles at Match.com and Ticketmaster.
www.seatwave.com