Expanding into new markets is an exhilarating yet challenging endeavor for startups and founders alike. Success hinges not only on the commercial viability of products or service but also on the go-to-market (GTM) strategy. For example, one main reason why companies fail in global expansion is because they hire the wrong people, according to research published by Harvard Business Review.
In this blog post series, we take a deep dive into the significance of hiring local talent for a GTM launch. From identifying the right market to understanding the potential pitfalls of cross-border hiring, we shed light on how to build a winning cross-border growth strategy.
Identifying the right market for hiring GTM talent
To embark on a GTM strategy with confidence, startups must identify the right regions for expansion and talent acquisition. For instance, if you are a fintech startup eyeing expansion into Africa, it is important to understand market-specific conditions across countries and cities.
What are the market-specific conditions to consider in a GTM strategy? Read on to find out.
| Market Criteria | Steps to Take |
| Market Size and Target Audience |
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| Supply and Demand of Talent and Compensation Expectations |
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| Competitive Landscape and Market Trends |
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| Local Regulations and Economic Factors |
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Advantages of cross-border hiring
Having the right local talent on your team can be a “make or break” for your GTM strategy.
“Local professionals bring invaluable insights to your company and possess a deep understanding of the target market,” says Harry Dillon, Director of Recruit & Hire at GoGlobal. “Their expertise in navigating the local business landscape, understanding consumer behavior and grasping cultural nuances significantly enhance the effectiveness of a GTM strategy – elevating the prospects for market success.”
While hiring locally brings distinct advantages – such as language fluency, cultural acumen and market intelligence – it also poses challenges that demand attention and resolution. The following are some of the key advantages gained in cross-border hiring.
- Language Proficiency and Cultural Awareness: Hiring local professionals with native or fluent language skills allows for effective communication with prospective customers, partners and stakeholders. This can advance customer engagement and build trust with key stakeholders.
- Familiarity on Regulations: Expanding into a new market means new labor laws, tax regulations and employment practices (e.g., payroll processing and benefits administration. Having a local hire who is familiar with the legal framework can help mitigate the risk of penalties.
- Market Intelligence: Local professionals know the intricacies of the local market, including customer demographics, competitors, distribution channels and regulatory landscape. This empowers startups to make informed decisions and adjust their GTM strategies accordingly.
- Established Networks: Local professionals have established networks and relationships within the industry and the local business community. Leveraging these networks can swiftly connect businesses with potential customers, partners, suppliers and other key stakeholders.
Up next: benchmarking for key GTM functions
Thank you for joining us in this series as we unravel the complexities of GTM strategies and outline how startups can effectively expand their operations internationally.
Stay tuned for our next post, where we will focus on creating a successful GTM team in target markets abroad. We will also offer insights into compensation benchmarking, outlining key takeaways for attracting and retaining top talent.
Watch for our webinar It’s a Small World: International Expansion for Startups or download our comprehensive guide Roadmap to Global Growth for Startups.
Reach out today if your startup is ready to expand into new markets around the world.