The prospect of expanding into new markets and reaching consumers abroad is exciting for many startups. However, it can be difficult to know where to start or how to make progress. To help demystify the process, we’ve compiled a few key steps that were covered during the GIST TechConnect, Developing Customers Abroad. 

Drop assumptions and commit to the learning process.

Expanding into a new market requires serious research into what will be different and how it can affect your business. Geographic location isn’t necessarily the only (or most important) changing factor. It is crucial for startups to consider the social, political, economic, and legal environments of any new market. Markets outside of your own can differ dramatically, and it’s essential to understand how these factors can impact your operations and growth. 

Approach this process with an open mindset, and set aside your assumptions and biases. By developing a holistic understanding of a potential new market, you can avoid unnecessary obstacles and unexpected failures. Mapping out your assumptions and hypotheses about market stakeholders on a piece of paper or spreadsheet is a good first step. Test your assumptions and collect information as you conduct research about the new market.

It’s also important to remember that the learning process is a continuous process. As markets evolve, consistently reflecting and building on what you know about your market enables you to adapt as needed.

Fall in love with your customer, not your idea.

New markets come with new customers—with different pain points. While your startup may provide the perfect solution for your home market, it’s possible your idea won’t always translate flawlessly. Flexibility is key: it’s vital to prioritize customer needs over preexisting ideas. Your solution may need to evolve based on the nuances of a new customer’s problems and needs. Focus on the value you are offering, rather than the fixed components of your solution. 

Take the time to hear from customers directly; they’re the only ones who can articulate their problems. During interviews, make sure to phrase your questions to be as open-ended as possible. Instead of, “Would this product/service solve your problem?” try, “How have you solved this problem in the past?” 

By actively listening closely to potential customers, you can develop a deep understanding of how your product or service can address their needs. Sometimes, your solution won’t work for a particular market; while disappointing, it’s important to identify this issue as soon as possible. Learning more about a new market can highlight differing pain points. By focusing on the customer, you can reconfigure your solution accordingly. 

Leverage your network and connect with the ecosystem.

Finding partners, potential customers, investors, and collaborators in foreign markets can be difficult. The best way to make lasting connections is to reach out to key stakeholders and meet in-person as much as possible. In particular, look out for “super-connectors”, people who collaborate with many different kinds of partners. Online resources like Google, LinkedIn, and Angel.co can also be helpful in identifying potential partners. 

Attending conferences in your market is another way to develop relationships in real-time; conferences are packed with potential partners who are also interested in building their networks. Immersing your startup in the ecosystem of any given market takes time and resources; once you do, those connections are integral for success.

For more in-depth information about developing customers abroad, watch the TechConnect webinar!

Many thanks to our TechConnect panelists for sharing their insights on this important topic:

• Kevin Barrow (Moderator): Founder & CEO, Mark Labs
• Jolene Gurevich: Incubator Manager, MTech Ventures and Chesapeake Bay Seed Capital Fund
• Mike Malloy: Program Director, Halcyon Incubator
• Rhonda Shrader: Executive Director, Berkeley-Haas Entrepreneurship Program

Explore more resources from GIST's TechConnect webinar series here.