Global Expansion Remote Presence for Scale-Ups: Guidelines for Creating a Local Team during the initial Phase of International Expansion

Preface

After conducting a feasibility study, prioritizing specific countries and regions, and considering the Route-to-Market strategy, the next key decision must be made: ‘Will the expansion be managed by the headquarters or executed by local resources?’

This single question brings with it many more considerations. Throughout this book, several of these questions are addressed and practical directions provided. This book introduces practical rules-of-thumb to help kick-start decisions on the number of resources needed and where to allocate them.

When collaborating between regions, cultural differences will quickly become apparent. These differences will manifest not only in the chosen Route-to-Market strategy but also in interactions with new local resources. Understanding these differences is essential for success—not to conform entirely to one side, but to appreciate the nuances that allow each party to work effectively within their comfort zones.

Even after making all the important decisions, this part of the Global Expansion Go-to-Market strategy could become the tiebreaker.

International expansion involves many facets, with risk mitigation influencing many of the decisions. These may include starting with external resources, fully committing by establishing a local entity, or even opting for an acquisition.

By the end of this book, the decision should become clearer. If there is still uncertainty, it may be advisable to hold off on building a local presence and consider managing the expansion from headquarters initially. While this approach may slow revenue growth, it provides an opportunity to reassess prior decisions. This book can serve as a tiebreaker in the overall expansion strategy.

For personalized guidance through the process—whether through training, strategy development, or full implementation—please visit www.jbtd.nl or contact us at [email protected] to request an offer.

Contents

ARE YOU A SCALE-UP?

THE DEFINITION OF A SCALE-UP

REMOTE PRESENCE – WHY?

CASE STUDY 1: FIRST RESOURCES ABROAD

REMOTE PRESENCE – HOW?

EXTERNAL OR INTERNAL RESOURCES

COMPETENCES & RESPONSIBILITY

$500K SCALE-UP RULE-OF-THUMB

20M INHABITANTS THRESHOLD

ROUTE-TO-MARKET

DIRECT SALES

INDIRECT SALES

ALTERNATIVE SALES

EXTERNAL RESOURCES

INDEPENDENT LOCAL CONSULTANTS.

REPRESENTATIVES/AGENTS

SALES OUTSOURCING

EMPLOYER OF RECORD (EOR)

SHARED HEAD

COOPERATION LEGALLY

ACQUISITION OF EXTERNAL SUPPORT

INTERNAL RESOURCES

LOCAL ACCOUNTANCY SERVICES

LEGAL ENTITIES

MERGER & ACQUISITION

GOVERNMENTAL FOREIGN BUSINESS SERVICES.

SUPPORT BY THE HEADQUARTERS.

HIRING

CASE STUDY 2: PAYROLL SERVICES IN NEIGHBORING COUNTRIES

REMOTE TEAM CAPABILITIES

SALES MANAGER

CHANNEL MANAGER

SALES ENGINEER

BUSINESS DEVELOPMENT

SALES OPERATIONS

MARKETING MANAGER

GENERAL MANAGEMENT / COUNTRY MANAGER

OVERVIEW OF ROLES AND CONTRIBUTION

BUSINESS TITLES

OTHER CAPABILITIES

TALENT POOL

CASE STUDY 3: PREPARING FUTURE REGIONAL LEADERSHIP

CULTURAL CONTEXT

REMOTE IS REMOTE

HIERARCHY

NATIONAL HOLIDAYS / VACATION

FINAL WORDS

REFERENCES AND FURTHER READING

Table of Figures & Tables

Figure 1: Sales competence spiderweb

Figure 2: Cultural country comparison for internal cooperation

Table 1: roles and contribution

Are you a Scale-Up?

As this book, along with the others in the series, focus on scale-ups, a valid question arises: what exactly is a scale-up? While the first book addressed this question, here we only provide a summary. For a comprehensive understanding, including the underlying concepts, please refer to Global Expansion Feasibility Framework for Scale-Ups.

Without a doubt, there is a significant gap between the extremes of a Start-Up and an Enterprise. Generally speaking, every Enterprise was once a Start-Up-or at least one of its predecessors was. This leads to the simple conclusion that every business organization, particularly those that are technology-driven, begins its journey as a Start-Up.

A Scale-Up either recently transitioned from the Start-Up phase or has remained stagnant for multiple decades, poised for growth.

The Definition of a Scale-Up

To identify a Scale-Up, it’s useful to highlight its characteristics:

•Growth is central to most Scale-Ups. It is not a modest Compound Annual Growth Rate (CAGR) of a few percentage points. Scale-Ups often target sustainable double-digit growth.

•Expansion of market presence is a key driver for creating growth.

•Process improvement and operational optimization are powerful indicators that a company is scaling.

•The product portfolio has proven itself in certain markets and is ready for expansion into new ones.

•Often, Scale-Ups are funding their growth through new investment or transitioning to another investment