Ways How Startups Can Leap Into Mature Markets

In the post-COVID economy, startups in emerging markets are making strides. If you own a startup, the time is ripe for expanding into mature markets. But wait! Here are some things to consider before taking the leap.

Do you have an innovative startup in an emerging market? Congratulations, you have unparalleled potential to make an impact in the post-Covid economy, and here is why. In the past year, the world has realized that people across the globe can access most services digitally, and fast-growing tech startups are headlining this change. Emerging markets are also attractive to foreign investors due to the high return on investment they can provide.

Startups in emerging markets have enough financial backing and winning prospects to broaden their horizons. However, before you make the leap into mature markets in your preferred growth location, there are four key things to consider. 

Wait For the Right Time

Before you expand internationally, you need to evaluate your present conditions to ensure that you enter the market at the right time.

To begin, conduct a thorough analysis of your business performance and review KPIs such as sales, customer retention rates, and net promoter score (NPS) over the past years. Then, see what improvements you can make. For instance, you may discover that you have seen a growth in overall sales but have suffered consistent losses in the past few weeks. In this case, it is best to spend some time and stabilize your numbers before expanding your business across countries.

Along with conducting internal analysis, you should also keep an eye on your competitors' activities. For a competitive analysis, look at the strengths and weaknesses of your rival companies. Observe how many of them are operating in your target market and their performance history. Note the time when they made the leap and their similarities with your company.

Scale Up, but Maintain Consistency

Ask yourself: is my product a good fit for mature markets? One way to gauge this is by observing how your product is performing at home. If it is performing well or dominating the markets, it is your green signal to internationalize. If it is performing poorly, it is best to put a hold on your expansion plans. 

In the customer-centric world, the core focus of your growth strategy should be user experience. Localization based on language, demographics, and prevalent purchase behaviors will influence how international customers experience your product. 

So, conduct ethnographic research, interview the locals, analyze past research reports and speak with industry experts. This step will prepare your company for managing user expectations.

Keep in mind that you do not compromise your consistency in favor of scalability. Maintain the uniformity of your core products across all regions, with minimal differences in messaging, language, and marketing styles. Constantly redesigning your product to cater to individual markets will sap your money and energy, which can harm your expansion plans. 

Expand Your Funding

Bootstrapping your finances might have worked for you when you were operating on a small scale, but it won't work in mature markets. Mature markets require more capital, so you need to gather resources from other avenues, such as:

• Government funding:  Plenty of government-led initiatives offer grants, loans, and other financial help to entrepreneurs trying to expand their operations in foreign countries. For example, the Startup India program by the Government of India provides funding to Indian entrepreneurs. Apart from this, you can also research if the countries where you plan to expand can offer you funding. 

• Venture capitalists: Venture capitalist firms are keenly eyeing emerging markets. Some examples are Valar, Naspers, Capria, and Tiger Global Management.

Form Valuable Connections

The best entrepreneurs understand the power of connections. Here are some ways to start forging strategic partnerships to ensure business growth while expanding your operations globally.  

1. Startup programs: Startup programs in your target nation can help you understand new markets comprehensively. Furthermore, they provide you with awareness about location-specific techniques that can establish a solid business foundation. 
2. Connect with entrepreneurs: Another way to form strategic connections is to communicate with successful entrepreneurs from your home country and similar companies expanding in your target nations. Also, talk to local startups that have made disruptive changes in your field, and see how you can upgrade your business strategies.
3. Connect with decision-makers: If you are a B2B company, make a list of companies that operate in your target market, and request them for introductory meetings. These could be investors, purchase decision-makers, executives, or clients of your target companies.  

In Conclusion

Entrepreneurs in emerging markets are laying out the blueprint for the future of startups everywhere, and their journey can teach valuable lessons to entrepreneurs from any market. They have proven that they can bring a lot to the table when given the opportunity- and so can you. Ultimately, it is worth taking the leap.