Best Practices for Scaling Your Tech Company in International Markets

Best Practices for Scaling Your Tech Company in International Markets

Is it a killer app, a groundbreaking SaaS product, or a platform that is already making waves locally? 

Whatever you’ve built, you must be thinking of taking it to international markets. Taking a tech company international can be a massive step, packed with potential but also loaded with potential pitfalls. 

Going global isn’t just about flipping your site to another language or shipping out a few press releases abroad. It’s a whole strategy—packed with smart decisions, cultural learning curves, and some trial-and-error moments.

Before you start dreaming of selling your products or services in Tokyo or Sao Paulo, let’s walk through what works when taking your tech company global. Ready? Let’s dive in.

#1 Nail Down the Right Market Entry Strategy

You don’t just go global. You choose where, how, and why. Getting this wrong means starting the race with lead boots on.

Don’t pick countries based on gut feelings or GDP charts. You need to dig deep and find your competitors and barriers to entry. 

Let’s say, you’re eyeing Japan. The country ranks at the top of the list of countries with the best technological expertise. However, the country has few English speakers. If you show up with only Google Translate and optimism, you’re toast.

The best move? Start where you already have traction or where the barriers to entry are manageable. 

Once you decide on a market, test the waters. Sell products or services directly to customers abroad or using intermediaries like distributors from the home base in the US. 

Collaborating with local players is another smart move. You could license the technology to a foreign company or form a joint venture to share resources and risks. That way, you can access valuable local market knowledge and speed up market entry, though it typically means sacrificing some operational control. 

#2 Be Available Across Time Zones

Once you go global, the 9-to-5 workday confined to a single US time zone becomes a thing of the past. 

Customers, partners, and team members will be spread across the globe. That will make effective communication and support a significant operational challenge.  

Follow the sun model. For functions requiring round-the-clock coverage, like IT operations, distribute teams across different global time zones. As one team’s workday ends, responsibility is seamlessly handed over to the next team starting their day in another part of the world.

And no, you don’t need brick-and-mortar offices in every country. Virtual offices are a smart, cost-effective alternative.

The Farm Soho explains that virtual offices offer businesses a physical business address and access to many standard office features without the overhead of a traditional office. Besides a prestigious business address, you get mail handling and forwarding, call answering and forwarding services, and a local or toll-free phone number. 

Let’s take an example of domestic expansion first. Suppose you’re planning to expand into the U.S. market before going global. Delaware is one of the best states to start a tech business besides Massachusetts and California. You could open virtual offices in Delaware, Massachusetts, and California and instantly boost credibility and accessibility. Once you master the expansion art locally, you are ready to fly.

#3 Get Your Legal Ducks in a Row

Venturing overseas means entering a whole new legal world. 

While it might not be the most exciting part of expansion, ignoring foreign legal requirements is a shortcut to disaster. That could lead to crippling fines, operational halts, or even losing valuable intellectual property.

For example, if you’re expanding into the EU, you’ll have to become familiar with the General Data Protection Regulation (GDPR). 

It provides specific and thorough guidelines for how companies and organizations must handle personal data, from collection to storage and management. Mess that up and you’ll look at fines that will ruin your bottom line. 

Key legal areas that demand attention include entity structure, data privacy, labor laws, and taxes. Oh, and don’t forget your intellectual property. Patents, trademarks, and copyrights registered in the US generally don’t offer protection abroad. You must protect them in each target country or region. 

Don’t try to navigate the legal landscape yourself—it can be risky. Hire a local legal consultant or law firm in each major market. It’s an expense, sure. But skipping this step could end up being way more expensive. 

Scaling internationally can feel like launching your company all over again. 

You’re taking everything you’ve built and testing it on a whole new level. Of course, it’s a complex undertaking, but breaking into new markets can unlock incredible growth. 

Success hinges on careful planning and execution across several fronts. That is because what works at home might need a significant rethink abroad. So, take your time and do your research.  And don’t worry if you mess things up. You’ll only learn and that is how you win anywhere.