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Instead of hiring locally and hoping for revenue, validate a new international market by having your central HQ team close initial enterprise deals remotely. Only deploy a team on the ground once you've proven you can generate enough revenue to make the local operation profitable from day one.
McCain Foods de-risked international expansion with a three-step playbook. First, export product from an existing operation to test the market at low cost. Second, hire local salespeople to build volume. Only after proving the market would they commit capital to build or buy a local factory.
Instead of concentrating its sales force in one region, Deel hired individual salespeople in various countries early in its journey. This counterintuitive move, often criticized as defocusing, allowed the company to quickly test and understand multiple markets in parallel. This strategy was key to rapidly ramping up a global go-to-market motion with localized insights.
Don't hire more reps until your current team hits its productivity target (e.g., generating 3x their OTE). Scaling headcount before proving the unit economics of your sales motion is a recipe for inefficient growth, missed forecasts, and a bloated cost structure.
Before hiring a full-time specialist (e.g., for events or SEO), the existing team should first test and prove the channel's effectiveness. Hiring a dedicated owner for an unproven function is a high-risk bet. Validating the strategy first ensures the new hire is set up for success and the investment is justified.
European firm Permira successfully entered the US not by just opening an office, but by relocating its top talent, empowering local decision-making, and accepting years of minimal activity to build relationships and market knowledge before scaling.
When expanding his law firm, John Morgan uses a 'bullets before bombs' strategy. He first enters a new city with a small, low-cost team and ad budget (the 'bullets') to test viability. Only after seeing positive traction does he commit significant capital and resources (the 'bombs'), de-risking growth.
European founders can de-risk US expansion by proving they can sell to and serve top-tier American enterprise clients from abroad. Legora's CEO set a goal to sign two 'AMLA 200' law firms from Europe first. Achieving this validated their GTM strategy and gave them the confidence to invest in a physical US presence.
The founder of Maple Roo is getting international interest in his first year, but the advice is to resist the temptation to "go fast." Startups should first build a solid local base, learn from mistakes on a smaller scale, and wait until revenues are in the millions before tackling complex expansion.
To avoid premature scaling, Nubank required three conditions before entering a new country: 1) Profitability in its core market (Brazil), 2) Secure banking licenses and funding, and 3) A tech platform that could launch a new market as a "call option," not an "all-in" bet.
Joe Tsai's advice for building a global company is counterintuitive: don't focus on global from day one. Instead, concentrate on winning your local market. The challenges and small wins from dominating a home turf are what train a team and develop the talent necessary for successful international expansion.