As a startup founder in Canada, I observed a common consensus: build and test domestically, then expand to the U.S. This approach underpinned almost every startup’s fundraising strategy. Typically, a Series A or B investment round would be raised for “Market Expansion,” establishing a branch in the States, setting up the legal framework, and then diving into action. My experience, rooted in health tech, certainly had its market-specific intricacies, requiring a physical presence to navigate regulatory and payer landscapes. But this pattern was not unique to health tech; it was a trend across various sectors.
Arguably, maintaining healthy growth is the biggest task of a startup. The U.S. market is undeniably vast and alluring for any startup or business. However, an event in 2018 radically shifted my perspective on business growth: the CPHI event in Madrid. Post-exit from my startup, TranQool, I was indulging in long-overdue travel, often using work-related events as a pretext. The CPHI pharma conference, where I was part of the delegation from Canada, was eye-opening. There, I encountered large North American and European companies, unknown to me despite their thousands of employees. Many were not even present in North America, focusing instead on markets like the Philippines, Bangladesh, and surrounding regions. It was a revelation — there’s a vast world out there with diverse needs and opportunities, often overlooked due to geographical and cultural familiarity.
Since 2018, I’ve made it a point to travel and understand different markets. The (Euro) EU, with its complexities, the Middle East’s promising landscape, the vibrant energy of Latin America (LATAM), and the still-underestimated potential of Asia. While I haven’t yet explored Africa, its burgeoning market is undoubtedly full of opportunities. Traveling and interacting with business people worldwide reaffirms that ambition and challenges are universal. Every business wants to grow and create opportunities for their own advantage.
Just to set an example, the business landscape in regions like LATAM, Asia, and the Middle East is not only recovering post-COVID but also showing signs of robust growth. In LATAM, increased demand for food exports from countries like Brazil and Argentina, and a significant rise in e-commerce, especially in tech and durable goods, highlight growing market potentials. Similarly, in Asia, countries like China, Thailand, and Malaysia are experiencing economic resilience, with China’s reopening expected to boost regional economies. In the Middle East and North Africa (MENA) region, a majority of SMEs are projecting increased revenues for 2023, with a significant shift towards digital payment solutions, indicating a thriving business environment. These regions exemplify the untapped potential that lies beyond traditional markets, underscoring the importance for startups and businesses to think globally.
This mindset isn’t limited to one region. The point is to have a global mindset and don’t be limited to a specific market. Whether you’re in North America, MENA, EU, LATAM, Asia, or Africa, consider expanding beyond your local market.
Evaluate the return on investment (ROI) of market expansion, considering both costs and potential gains. Ask yourself: Do I hold a competitive advantage in my current market, and how do I stack up in the new market I’m considering? Accessing a new market is a complex task, one I hope to explore in future articles. The fundamental question is: How can I outperform everyone else in the target market?
Considerations extend to accessing talent and the costs involved. Assess the size and potential of the new market. Despite current trends towards de-globalization and friend sharing, in my humble view, success in the coming decades requires a nuanced understanding of different markets and strategic resource allocation to maximize the impact of your technology or innovation.
Opportunities abound globally. As business people, expanding our horizons beyond immediate geographical confines can unveil paths to uncharted success.