The Distribution Partner Trap
While everyone warns about choosing the wrong partner few discuss the danger of selecting one too quickly. We recently worked with a Canadian tech firm that almost locked itself into an exclusivity agreement that would have limited its market potential by 60%.
What Actually Works:
• Start with multiple smaller non-exclusive partnerships.
• Test different partner types in parallel (distributors, agents, resellers).
• Maintain direct sales channels alongside partnerships.
• Build performance metrics into partnership agreements.Real Example:
One of our clients initially wanted to sign an exclusive distribution deal covering Benelux. Instead, we helped them implement a hybrid approach with three specialised partners resulting in 2.5x the projected revenue within eight months.
The Brussels Bubble Misconception
Many companies believe establishing a Brussels presence will automatically open EU doors. We have found that a strategic presence in smaller markets often yields better results. Case in point: Our client’s decision to start in Estonia provided unexpected advantages in EU digital market access.
Strategic Alternative:
• Identify regulatory-friendly testing grounds.
• Build credibility through smaller market success.
• Use regional expansion as proof points.
• Leverage local success for EU-wide credibility.
The Over-Localisation Trap
Companies often swing between minimal and excessive localisation. We have seen firms spend hundreds of thousands on unnecessary localisation while missing crucial adaptations.
Smart Localisation Strategy:
• Identify critical localisation points through data
• Start with minimum viable localisation
• Test localisation elements separately
• Scale what works drop what does notSuccess Story:
A US software company saved €180,000 by testing localisation elements incrementally. They discovered that translating their UI was less critical than localising their sales approach and customer support.
The Regulatory Timing Mistake
Many companies either rush into compliance or delay it too long. Both approaches can be costly.
Optimal Approach:
• Map regulatory requirements against growth stages.
• Build compliance in phases aligned with expansion.
• Create regulatory buffers for future requirements.
• Use compliance as a competitive advantage.
Case Study:
We helped a fintech company build a phased compliance roadmap that saved them 40% in legal costs while accelerating their market entry by three months.
The Market Research Paradox
Companies either over-rely on market research or dismiss it entirely. We have developed a more nuanced approach.
Effective Research Strategy:
• Combine desk research with micro-testing.
• Use paid campaigns to test market response.
• Conduct small-scale pilot programmes.
• Gather real-time feedback through soft launches.
Practical Example: One of our clients invested in a series of small-scale tests across three markets rather than on extensive market research. This approach revealed opportunities that traditional research had missed leading to a successful pivot in their entry strategy.
Moving Forward: The Smart Entry Framework Based on our experience here is what works:
tart Small Scale Fast
• Begin with focused manageable entry points.
• Build systems for rapid scaling.
• Use early wins to fuel expansion.
Test and Validate
• Run small-scale market tests.
• Validate assumptions quickly.
• Adjust strategies based on accurate data.
Build Strategic Flexibility
• Keep multiple options open.
• Create adaptable partnerships.
• Maintain strategic control.
Action Steps
Audit Your Entry Plan
• Review current assumptions.
• Identify potential trap areas.
• Build in flexibility points.
Create Testing Framework
• Develop small-scale tests.
• Set clear validation metrics.
• Plan rapid iteration cycles.
Build Support Network
• Identify key partners.
• Create advisory relationships.
• Establish local connections.
