Dr Jana Matthews, Program Director of the ANZ Innovyz entrepreneurship program and CEO of the Jana Matthews Group, thinks going global isn’t just an option these days, it’s a necessity.
Speaking at TiECON Sydney on Wednesday, Matthews said while it may be neccessary, it’s also easy to get it wrong, as too many companies are unprepared for expansion.
“Going global can be a perfect storm, with different cultures, different markets,” says Matthews.
“Think about going global from the beginning.”
Seven deadly sins of entering global markets
Matthews lists seven mistakes companies can make when entering global markets:
- Bubble mentality. Matthews says you need to watch out for innovation and externalities. Competition is accelerating; someone, somewhere in the world is doing has your idea and they’re executing on it. Having the idea is not good enough, you need to execute effectively, and efficiently;
- Trying to be the Lone Ranger. Startups sometimes aren’t participating in the right networks, or any networks at all. Matthews says networks provide access. Strategic partners are also essential: “partners can be global guides. I wouldn’t go into another country without a local guide.” If you are heading overseas for an initial visit, Matthews suggests organising meetings before going;
- Single-market business mode. When going global, it’s important to have different business models for different markets. Each market has different cultures and ways of doing things;
- Not innovating fast enough. Innovations are happening every day. It’s a mistake to assume you can only have product innovation. You need to think about everything; your systems, marketing and customer service;
- Not having 24/7 service. If you’re going to go global you need 24/7 service, 365 days a year. That could be a phone call-back service, live chat or custom emails. Matthews says going global means you need to cater to customers all over the world;
- Wrong people; poor people systems. Having the right people in the wrong job or the wrong people in the right job is not going to work. When you hire people around the world, you need to spend the time orienting them to the vision of the company. You also need the systems in place, so that your staff can deal with disasters;
- Inadequate data and systems. Getting good data is the first challenge. Knowing how to use it is the second. Matthews says it’s necessary to spend time and money building systems up-front so that when you grow you’re able to keep track of your cash flow, staff turnover, shipping times, and anything else that can affect your business.