Navigating Global Expansion
In a rapidly evolving global market, companies from around the world are looking to expand their operations, and the United States remains a top destination for international growth. However, venturing into the US market can be a daunting task filled with challenges.
In our latest interview, we had the privilege of speaking with Joyce Zhang Gray, the founder and CEO of Alariss, a premier global expansion platform. Joyce’s unique journey and extensive experience in international business make her the ideal person to shed light on the intricacies of expanding your business to the United States of America (USA) and other global markets.
Introduction
Joyce was born in the US to immigrant parents, she developed a deep appreciation for cross-border connections. Her international relations and economics studies at Harvard led her to work at the Federal Reserve Bank of New York during the global financial crisis. Subsequently, she ventured into the tech industry, working with US tech companies launching in Asia and growing sales teams.
This extensive experience in cross-border expansion and the challenges faced by entrepreneurs led her to create Alariss. Alariss is a premier global expansion platform that assists Indian companies in building their Go-to-Market (GTM) teams in the US through a network of highly vetted sales and marketing professionals.
While working extensively on cross-border ventures, including launching companies and scaling sales teams in the U.S., Joyce came up with 3 major insights:
1. The landscape of global expansion is evolving, and it’s no longer just about American companies expanding into Asia. Instead, we’re witnessing a growing trend where unique and innovative tech firms from Asia are making their mark in the U.S. market.
2. Regardless of your global ambitions, the key to success lies in cultivating a highly localized team that can cater to the unique demands of your local customer base.
3. This endeavour is undeniably challenging, whether you’re an American entrepreneur, an Indian visionary, or an Israeli trailblazer. Everyone faces the formidable hurdles of building a startup and penetrating a new market. What amplifies the difficulty is that you’re not merely launching a startup, an already daunting task; you’re doing it in a foreign country or culture where you may not have your roots. Consequently, you lack the deep-seated customer insights that propelled your success in your home market.
The Scale of Global Expansion
Vinay
How many companies worldwide are trying to expand to the US or other countries?
Joyce
The scale of global expansion is substantial. While many focus on American companies expanding into Asia, there are tech-enabled businesses in over 100 countries globally. India, in particular, leads in fields like Software as a service (SaaS) and Information technology (IT). The potential market size for global expansion is vast and continuously growing.
Significance of Local Presence for IT Companies
Vinay
Should IT companies consider establishing a local presence?
Joyce
In the world of IT, having a local presence can make a significant difference. This is especially true because standing out in this industry can be quite challenging. The key lies in building local connections. Business, after all, thrives on relationships, and this principle holds even more weight in the IT sector.
People prefer doing business with those they like and trust. Sometimes, it’s the result of repeated interactions, or it could be as simple as discovering that a salesperson hails from your hometown. Naturally, you’re more inclined to work with someone you have a connection with rather than a stranger who sent you a cold email from a distant land.
While some business-to-business (B2B) focused IT companies may rely on product-led growth (PLG) and virtual sales, many can benefit from having a local presence. IT services companies, in particular, stand to gain immensely from this approach. While not every SaaS company may require a physical presence, the advantages of establishing one can’t be underestimated in the competitive IT landscape.
Building a Base In The US and Initial Hiring Strategy
Vinay
When should international companies consider building a base in the US, and what should the initial hiring strategy be?
Joyce
Expanding to the US is an ambitious move, and building a local team that understands the market is crucial. It’s not about cutting costs but investing in revenue growth. Companies should consider allocating at least $250,000 for this endeavor. The hiring strategy should involve appointing a local representative who can adapt, learn, and grow with the company.
Challenges Faced by Sales Representatives
Vinay
How do sales representatives, especially those new to a company’s product, adapt to the culture and domain?
Joyce
Sales representatives need time and training to adapt to a new product and culture. It’s essential to have a mutual understanding between the founder and the salesperson. Open communication, training, and mentorship help bridge the knowledge gap. Additionally, hiring two salespeople can foster healthy competition and accountability.
Preparing Employees for International Assignments
Vinay
What skills or training should companies provide to employees sent from other countries for international assignments?
Joyce
The preparation for international assignments varies depending on the individual’s role. Founders should emphasize adaptability and open-mindedness. Training on management, communication, and time management in a global context can be valuable for junior employees. Expectation setting is crucial to ensure a smooth transition.
Conclusion
Expanding a business to the US or any international market is a complex undertaking that requires careful planning and investment. Joyce Zhang Gray’s insights from her experience at Alariss provide valuable guidance for businesses seeking to thrive in new territories. It’s a journey that demands adaptability, cultural awareness, and strategic hiring decisions. With the right approach and resources, companies can successfully navigate global expansion.
