How to prepare your leadership team for international expansion


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It is an exciting global economy where those who are able to master navigation international clientele they may find themselves competing more effectively.

International business trends show some surprising changes. E-commerce – not only from within US borders, but around the world – continues to be favored by consumers. It has never been easier for consumers to buy products directly from companies. By 2026, global e-commerce sales will reach $8.1 trillion, according to explorative.

At the same time, geopolitical tensions and regulatory changes are also affecting the global economy. It is hard to overlook the reshaping of Asia's capital markets or the shift in North America and Europe to create more balance in goods and services. The world's largest companies continue to expand and the number of businesses that will have an international clientele has increased, according to reportsin 359 million businesses.

With all of this in mind, it is essential to consider how well your company's leadership is capable and willing to become an international company with customers around the globe.

As a German-born CEO of an 8-figure US company that operates as a subsidiary of a publicly traded parent company based in Europe, I know firsthand the importance of spreading your reach. Not only is it necessary to grow on a global scale, but to do so, organizations must understand the nuances between different cultures and places and how those intricate details affect how they work.

It is a learning curve that is vital and difficult to learn, especially for new entrepreneurs. How do you overcome an international curve like this?

Related: Is your business ready for international expansion? Here's what you need to know.

Creating opportunities in international business

To become or sustain a global company, whether you're fresh out of school or have years under your belt, you need to focus on several critical areas – some of which I believe no one talks about but are critical to building success.

Think, for a moment, about how you are intercultural workers and international clientele perceive you and your business. How can you improve these areas? Here are my recommendations, which are applicable to most industries.

1. Provide internal training

This training is not just about speaking a second language. It's also about teaching cultural expectations. For example, understanding Portuguese business etiquette and cultural sensitivity when entering the Brazilian market is very different from what would apply in Germany or the US

Additionally, you should invest time in understanding the economic climate, inflation rates, currency exchange rates, and general regulations for doing your type of business in that country. This takes time, as does navigation legal aspects of this, from contracts to handshake agreements. We provide in-house training for our staff to understand the nuances of their market and cultivate stronger connection points with their constituents.

2. Cut the conversation

The language barrier is one thing, but small talk is very different. I have been responsible, at one point in my career, for 15 countries, from Finland to South Africa, from Portugal to Israel. “Small talk” in each of these areas is very different from discussing Formula 1 or football in the UK. In Israel, you will have to stop talking completely as it is not normal and people are much more direct. Germany and the Netherlands also have a very direct kind of experience.

In some areas, such as the Nordic areas, relationships are much less important as people are all about investing based on the product. Conversely, if you go to Italy or Spain, you will be in social selling. Even in the US, building social connections is important. If you want to be successful, understand nuances of communication for your target market.

Related: 6 Obstacles to expanding your company internationally – and how to overcome them.

3. To tip or not to tip

Consider tipping as an example. In the US, you tip for some services. In Japan, you never leave a tip and you might even insult someone by leaving one.

If you don't know this and try to go to a place for a business conversation, and you haven't studied these areas, you can insult that person long before they consider your product.

It's beyond tipping, though. International business it means getting to know the people and professionals you want to do business with and doing so with a whole new perspective. This is not easy, but it is critical and helpful for change makers.

4. Team building

So the question I see often is this. How can you teach people who are already busy how to interact with culturally diverse people around the globe? Whether you're looking to build relationships through remote experiences or in-person events, you need to get people working together.

Find meaningful ways to build a team that is centered around a mission bigger than you or your company. For example, at tec5USA, we orchestrate a team-wide walk to donate in partnership with organizations such as Habitat for Humanity. Consider what community-based programs exist to facilitate culture-building conversations and foster deeper relationships on your team.

Apply the same strategy on an international and cultural scale. For example, organize holiday parties that are related to other people's celebrations and not just your own. Find out what another culture does, eats or eats.

Related: Successful Leaders Think Globally – How to Expand Your Business Abroad for Maximum Success

5. Hire internally and locally

Another valuable component of this process is to build your international business carefully. If you have the resources, hire someone who is local to the area you're planning to expand to help you with these nuances. If you are planning one market expansion without the biggest budget, you'll want to advocate for team members to learn those nuances from within your company.

It helps to have a channel partner, someone who has already expanded to another country or can help you expand with confidence. At tec5USA, we have worked to build an international business through our people, relationships and commitment to truly being a global companynot an American company providing services in Europe, South America or beyond. As you expand, these principles will make the difference in success for your organization.



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