"We've maxed out our home market. Time to go global!
The founder's spreadsheet was beautiful. Compelling, even. UK market share: 2%. US market size: 5x bigger. Therefore: 10x the revenue opportunity.
This maths has seduced thousands of founders. It's also complete fantasy.
After guiding 70+ international expansions—from London to São Paulo, Berlin to San Francisco—I've seen every possible way to balls up going global. But I've also seen the patterns that separate spectacular successes from expensive failures.
This is what actually works.
Your UK product-market fit means precisely nothing in New York. Your German efficiency won't impress São Paulo. Your Silicon Valley swagger will alienate Singapore.
Every market is a new business with:
The companies that succeed treat expansion like a startup within a startup. The ones that fail? They copy-paste their home market playbook and wonder why it doesn't translate.
Here's when companies typically want to expand:
Here's when companies should actually expand:
See the gap?
Everyone wants to crack America. It's the biggest market! The most sophisticated buyers! The venture capital mecca!
It's also where B2B startups go to die.
I've seen UK fintechs flourish in Brazil while failing in France. German SaaS companies dominate in Japan while getting destroyed in Italy. Israeli cybersecurity firms crush it in Singapore while struggling in Sydney.
Market selection isn't about size. It's about fit.
Before you book that flight to New York, answer these questions honestly:
Operational Readiness:
Financial Readiness:
Market Readiness:
Team Readiness:
Your Score will determine if you're not ready. Fix your house before building another one.
What it is: Start with one city, dominate it, expand from there.
When it works:
Example: UK payments company started with just São Paulo. Ignored Rio, ignored Brasília. Spent 12 months understanding Brazilian payment regulations, banking relationships, and business culture. Year 2: Expanded to 5 cities. Year 3: Multi-State Market leader.
What it is: Sell from home market, no local presence initially.
When it works:
Example: Edinburgh SaaS company sold into US East Coast from Scotland. 5am starts, evening calls, quarterly visits. Built to $2M ARR before hiring locally. Saved £500K in early costs.
What it is: Leverage local partners for distribution and credibility.
When it works:
Example: UK regtech partnered with Big 4 consultancy in Singapore. Instant credibility, local implementation support, regulatory navigation. 0 to $5M in 18 months.
What it is: Buy your way in through strategic acquisition.
When it works:
Example: London martech bought struggling German competitor for €2M. Kept their team, migrated their customers, leveraged their relationships. Profitable in month 6.
Stop picking markets based on GDP. Here's what actually matters:
Market Attractiveness Score:
Demand Indicators (40%)
Operational Feasibility (30%)
Economic Viability (30%)
I've seen UK companies succeed wildly in "small" markets like Netherlands while failing spectacularly in "massive" markets like China. Size doesn't matter if you can't execute.
Your UK messaging won't work in Miami just because it's in American English. Your German efficiency pitch will bore Brazilians. Your American enthusiasm will terrify Japanese buyers.
Real example: British "queue management" software failed in Italy until they repositioned as "customer experience optimisation." Same product, different psychology.
£1,000/month in UK ≠ $1,300/month in US ≠ €1,200/month in Germany.
Each market has different:
The fix: Price based on local value, not currency conversion.
UK: Quick decision if ROI is clear US: Multiple stakeholders, legal review, vendor assessments Germany: Detailed technical evaluation, lengthy pilots Brazil: Relationship first, business second Japan: Consensus building, risk mitigation, long-term view
Forcing your sales process onto their buying process = failure.
GDPR was just the beginning. Every market has hidden regulatory bombs:
The lesson: Budget 2x for legal/compliance. You'll need it.
Forget vanity metrics. Track these:
Months to First Revenue: Not pipeline, not prospects. Actual money.
Local CAC vs Home CAC: If it's more than 2x, something's wrong.
Time to Ramen Profitable: When does the market pay for itself?
Cultural NPS: Would local customers recommend you to local peers?
Team Stability: Are local hires staying and thriving?
Competitive Win Rate: Are you taking share or just finding scraps?
UK fintech expanded to Brazil because "it's the biggest LATAM market." Nearly died until they discovered:
Pivoted approach, embraced local methods, now 40% of global revenue comes from Brazil.
British regtech chose Singapore as Asian HQ. Smart choice because:
Used Singapore success to expand across APAC. Now 60% of revenue from region.
US martech thought Germany would be easy. "They love efficiency and our product saves time!"
Reality check:
Retreated after 18 months and $3M losses.
Green lights (proceed aggressively):
Yellow lights (proceed cautiously):
Red lights (stop immediately):
Small markets often beat large ones. Dominating Netherlands beats struggling in Germany.
Closer isn't always easier. UK companies sometimes find more success in Dubai than Dublin.
Language doesn't equal culture. US and UK are "two countries separated by a common language" for good reason.
Failure is data, not defeat. My most successful expansions often followed failed attempts that taught crucial lessons.
Speed kills in international expansion. The patient players win.
Before you book that flight:
Missing any? Fix them first.
International expansion isn't about planting flags or impressing investors. It's about building sustainable businesses in new markets.
The companies that succeed approach expansion with humility, patience, and deep preparation. The ones that fail? They assume what worked in Wandsworth will work in Washington.
After 70+ expansions, I can tell you this: The market doesn't care about your home country success. It only cares about solving local problems with local relevance.
Respect that, and you might just build a global empire.
Ignore it, and you'll join the graveyard of startups who thought expansion was just translation.
Planning international expansion?
I help B2B companies successfully enter new markets without the usual casualties. From market selection to local execution, let's build your expansion strategy on data, not assumptions.
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Want to assess your expansion readiness? Try my International Expansion Scorecard and see if you're truly ready to go global. Try it here.
Ian Spencer, The Revenue Nomad, has guided 70+ successful international expansions across UK, European, US, and Brazilian markets. Based between the UK and Brazil, he helps B2B companies expand strategically, not desperately.