{"id":129,"date":"2021-02-24T12:52:18","date_gmt":"2021-02-24T12:52:18","guid":{"rendered":"https:\/\/demo.mekshq.com\/typology\/?p=129"},"modified":"2025-04-10T07:35:35","modified_gmt":"2025-04-10T07:35:35","slug":"market-entry","status":"publish","type":"post","link":"https:\/\/insightkraft.com\/index.php\/2021\/02\/24\/market-entry\/","title":{"rendered":"GLobal Expansion: The Importance of having skin in the Game"},"content":{"rendered":"\n<p>For the past two years, I&#8217;ve been working in the private sector, helping foreign businesses enter the Netherlands and assisting those seeking to expand into India through commercial agreements. I&#8217;m writing to share my insights and experiences from these projects.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Key Points Discussed<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/insightkraft.com\/index.php\/2021\/02\/24\/market-entry\/#The_Challenge_of_Global_Expansion\" >The Challenge of Global Expansion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/insightkraft.com\/index.php\/2021\/02\/24\/market-entry\/#The_Three_Foundations_of_International_Growth\" >The Three Foundations of International Growth<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/insightkraft.com\/index.php\/2021\/02\/24\/market-entry\/#1_The_offering_Developing_a_Powerful_Value_Proposition\" >1. The offering: Developing a Powerful Value Proposition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/insightkraft.com\/index.php\/2021\/02\/24\/market-entry\/#2_Marketing_Increasing_Demand_and_Awareness\" >2. Marketing: Increasing Demand and Awareness<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/insightkraft.com\/index.php\/2021\/02\/24\/market-entry\/#3_Sales_Turning_Prospects_into_Clients\" >3. Sales: Turning Prospects into Clients<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/insightkraft.com\/index.php\/2021\/02\/24\/market-entry\/#The_Significance_of_Having_a_Stake_in_the_Outcome\" >The Significance of Having a Stake in the Outcome<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/insightkraft.com\/index.php\/2021\/02\/24\/market-entry\/#Important_Takeaways\" >Important Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/insightkraft.com\/index.php\/2021\/02\/24\/market-entry\/#Concluding_Remarks\" >Concluding Remarks<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<p>The majority of the businesses I&#8217;m discussing here offer software products and related services. They&#8217;ve already generated initial interest in their target markets and are eager to convert leads or generate more. While they continue support from their home base, they prefer a local partner as their front office. However, many struggle with this strategy, either failing to find the right partner or to establish market momentum. A crucial consideration when venturing into a new market is having &#8220;skin in the game.&#8221; I&#8217;ll elaborate on this and its impact on your global growth plan later in this article.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Challenge_of_Global_Expansion\"><\/span><strong>The Challenge of Global Expansion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Finding potential clients is just one aspect of entering foreign markets. It requires a solid plan, strategic timing, and a deep understanding of the target market&#8217;s cultural nuances. Buyer behavior varies significantly by region. For example, a European buyer might approach a purchase differently than a US consumer, and cultural differences between countries like France and the Netherlands can affect business conduct even within Europe.<\/p>\n\n\n\n<p>Additionally, international expansion is costly and time-consuming. Budgeting and preparing for a two-to-three-year timeline are essential. Businesses must approach new markets strategically and with full attention.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Three_Foundations_of_International_Growth\"><\/span><strong>The Three Foundations of International Growth<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p>Based on my experience, any effective go-to-market plan for foreign markets must include these three essential elements:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The Offering:<\/strong> A compelling value proposition for your product or service.<\/li>\n\n\n\n<li><strong>Marketing:<\/strong> Creating demand and raising awareness.<\/li>\n\n\n\n<li><strong>Sales:<\/strong> Turning prospects into clients.<\/li>\n<\/ul>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<h6 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_The_offering_Developing_a_Powerful_Value_Proposition\"><\/span><strong>1. The offering: Developing a Powerful Value Proposition<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n\n\n\n<p>If your product doesn&#8217;t address a genuine need in your target market, it won&#8217;t sell. Starting with a Minimum Viable Product (MVP) and focusing on ruthless exclusion\u2014prioritizing critical features and excluding the rest\u2014are crucial, as Eric Ries emphasizes in &#8220;The Lean Startup.&#8221; For instance, Slack began as a simple internal team communication platform and evolved into a global enterprise solution by focusing on usability and incorporating user feedback.<\/p>\n\n\n\n<h6 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Marketing_Increasing_Demand_and_Awareness\"><\/span><strong>2. Marketing: Increasing Demand and Awareness<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n\n\n\n<p>Marketing bridges product development and sales. Here are some tactics to raise awareness and create demand:<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<ul class=\"wp-block-list\">\n<li>Invest in a High-Quality Website: Ensure it&#8217;s cross-browser compatible, bilingual, and user-friendly.<\/li>\n\n\n\n<li>Make Use of Marketing Automation Tools: Streamline lead generation with tools like Marketo and HubSpot.<\/li>\n\n\n\n<li>Attend Industry-Specific Events: Gain exposure and networking opportunities at events like the Amsterdam AI Summit.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p>For example, Salesforce&#8217;s Dreamforce event has become a key part of their marketing strategy, building a user base and generating significant buzz.<\/p>\n\n\n\n<h6 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Sales_Turning_Prospects_into_Clients\"><\/span><strong>3. Sales: Turning Prospects into Clients<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n\n\n\n<p>Sales are essential for business operations. Key characteristics of a successful sales team include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Employ for Consultative and Grit Skills: Seek self-starters who can engage clients with stories.<\/li>\n\n\n\n<li>Structured Sales Process: Effective teams maintain accountability and follow a set procedure.<\/li>\n\n\n\n<li>Relationships are important in business-to-business (B2B) sales. Create a trust map with stakeholders.<\/li>\n<\/ul>\n\n\n\n<p>For instance, Zoom&#8217;s consultative sales approach, which helped businesses adapt to remote work, was key to its success during the pandemic.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Significance_of_Having_a_Stake_in_the_Outcome\"><\/span><strong>The Significance of Having a Stake in the Outcome<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Let&#8217;s revisit the importance of businesses having &#8220;skin in the game&#8221; in their international growth. This involves sharing the cost of resources provided by external parties, like regional partners or consultants.<\/p>\n\n\n\n<p>Why does this matter?<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Sharing expenses shows market commitment.<\/li>\n\n\n\n<li>Alignment of Interests: Financial stakes align interests, fostering teamwork and shared objectives.<\/li>\n\n\n\n<li>Risk Mitigation: Sharing costs reduces your business&#8217;s financial burden.<\/li>\n<\/ul>\n\n\n\n<p>For example, a Dutch business development consultant who consistently finds good leads and closes deals always asks their clients to share the costs of resources. Such an arrangement lowers the client&#8217;s financial risk and ensures the consultant&#8217;s commitment.<\/p>\n\n\n\n<p><strong>Case Study: Breaking Into the Dutch Market<\/strong><\/p>\n\n\n\n<div class=\"wp-block-cover\"><span aria-hidden=\"true\" class=\"wp-block-cover__background has-background-dim\"><\/span><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" class=\"wp-block-cover__image-background wp-image-704\" alt=\"\" src=\"https:\/\/insightkraft.com\/wp-content\/uploads\/2020\/02\/DALL\u00b7E-2025-03-01-13.36.35-A-professional-business-setting-showing-an-international-company-expanding-into-the-Netherlands.-The-image-features-a-diverse-group-of-business-profes-1.webp\" data-object-fit=\"cover\" srcset=\"https:\/\/insightkraft.com\/wp-content\/uploads\/2020\/02\/DALL\u00b7E-2025-03-01-13.36.35-A-professional-business-setting-showing-an-international-company-expanding-into-the-Netherlands.-The-image-features-a-diverse-group-of-business-profes-1.webp 1024w, https:\/\/insightkraft.com\/wp-content\/uploads\/2020\/02\/DALL\u00b7E-2025-03-01-13.36.35-A-professional-business-setting-showing-an-international-company-expanding-into-the-Netherlands.-The-image-features-a-diverse-group-of-business-profes-1-300x300.webp 300w, https:\/\/insightkraft.com\/wp-content\/uploads\/2020\/02\/DALL\u00b7E-2025-03-01-13.36.35-A-professional-business-setting-showing-an-international-company-expanding-into-the-Netherlands.-The-image-features-a-diverse-group-of-business-profes-1-150x150.webp 150w, https:\/\/insightkraft.com\/wp-content\/uploads\/2020\/02\/DALL\u00b7E-2025-03-01-13.36.35-A-professional-business-setting-showing-an-international-company-expanding-into-the-Netherlands.-The-image-features-a-diverse-group-of-business-profes-1-768x768.webp 768w, https:\/\/insightkraft.com\/wp-content\/uploads\/2020\/02\/DALL\u00b7E-2025-03-01-13.36.35-A-professional-business-setting-showing-an-international-company-expanding-into-the-Netherlands.-The-image-features-a-diverse-group-of-business-profes-1-720x720.webp 720w, https:\/\/insightkraft.com\/wp-content\/uploads\/2020\/02\/DALL\u00b7E-2025-03-01-13.36.35-A-professional-business-setting-showing-an-international-company-expanding-into-the-Netherlands.-The-image-features-a-diverse-group-of-business-profes-1-580x580.webp 580w, https:\/\/insightkraft.com\/wp-content\/uploads\/2020\/02\/DALL\u00b7E-2025-03-01-13.36.35-A-professional-business-setting-showing-an-international-company-expanding-into-the-Netherlands.-The-image-features-a-diverse-group-of-business-profes-1-320x320.webp 320w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><div class=\"wp-block-cover__inner-container is-layout-flow wp-block-cover-is-layout-flow\">\n<p><\/p>\n\n\n\n<p>Let&#8217;s examine a case study on entering the Netherlands market. My client, an IT company in Dubai, targets the Netherlands.<br><strong>Understanding the Dutch Environment<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Tech-Forward: The Dutch are tech-savvy and open to new ideas. They embrace digital solutions and new technology.<\/li>\n\n\n\n<li>International: English is widely spoken, facilitating communication.<\/li>\n\n\n\n<li>Direct: Expect candid and straightforward feedback.<\/li>\n\n\n\n<li>Sustainable: Eco-friendly and ethical solutions are highly valued.<\/li>\n<\/ul>\n\n\n\n<p><strong>The Three Foundations of Your Success<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The Offering:<\/strong> The product&#8217;s value must be clear and easy to understand.<br>Prioritise speed and continuous development.<br>Ensure ease of use and address GDPR privacy concerns.<\/li>\n\n\n\n<li><strong>Marketing:<\/strong> A strong, locally relevant website is your first impression.<br>Attend industry events and use online marketing tools.<br>Form alliances with local businesses.<\/li>\n\n\n\n<li><strong>Sales:<\/strong> Employ tenacious and methodical salespeople.<br>Focus on building rapport and understanding client needs.<br>Please bear in mind that it takes time and money, so scheduling appropriately is crucial.<\/li>\n\n\n\n<li><strong>Using the Dutch Business Language<\/strong><br>Be straightforward and punctual.<br>Respect work-life balance.<br>Be ready to collaborate and reach agreements<\/li>\n<\/ul>\n\n\n\n<p><strong>Fast Sales Advice<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Logistics and cybersecurity solutions are in high demand.<\/li>\n\n\n\n<li>Provide demonstrable ROI: &#8220;Our solution cuts costs by X% and improves efficiency by Y%.&#8221;<\/li>\n\n\n\n<li>Emphasise how you meet their needs.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n<\/div>\n<\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Important_Takeaways\"><\/span><strong>Important Takeaways<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Invest in Sales and Marketing: Don&#8217;t underestimate the resources needed for international growth.<\/li>\n\n\n\n<li>Recognise Cultural Nuances: Research and flexibility are essential due to varying buyer behaviours.<\/li>\n\n\n\n<li>Have Skin in the Game: To show commitment and align interests, share costs with third parties.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concluding_Remarks\"><\/span><strong>Concluding Remarks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>International expansion is a process, not a quick fix. It requires long-term planning, flexibility, and continuous adaptation of your go-to-market approach. Sharing expenses is one aspect of having skin in the game; other aspects include proving dedication, coordinating interests, and reducing risk. By doing this, you position yourself for success in the competitive world of international business.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For the past two years, I&#8217;ve been working in the private sector, helping foreign businesses enter the Netherlands and assisting those seeking to expand into India through commercial agreements. I&#8217;m writing to share my insights and experiences from these projects. The majority of the businesses I&#8217;m discussing here offer software products and related services. They&#8217;ve [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,2],"tags":[34,8],"class_list":["post-129","post","type-post","status-publish","format-standard","hentry","category-market-entry","category-worknotes","tag-international-business","tag-market-entry"],"views":229,"_links":{"self":[{"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/posts\/129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/comments?post=129"}],"version-history":[{"count":11,"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/posts\/129\/revisions"}],"predecessor-version":[{"id":1095,"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/posts\/129\/revisions\/1095"}],"wp:attachment":[{"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/media?parent=129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/categories?post=129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/tags?post=129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}