This is the second in a series of articles designed to help aspiring international businesses succeed in their first forays into global markets.
Expanding your business internationally is a bold move, especially for your first global expansion. Choosing the right country to enter first can make or break your momentum. Too often, companies fixate on proximity or headline growth stats, but the reality is more nuanced. The most innovative businesses weigh several factors before committing. Here are three that should shape your thinking:
Proximity vs. Potential
There’s undeniable comfort in expanding into a nearby market. A short flight means you can be on the ground quickly if something needs fixing, meet key partners face-to-face more often, and build local relationships with less time zone stress. It also affects how you build your team—issues like response time and staff independence matter far more when you’re 12,000 kilometres away.
But don’t let proximity blind you. Sometimes, the most exciting opportunities lie farther afield. South America, Africa, or Southeast Asia may feel remote, but they could offer greater long-term upside, less competition, or stronger market need. The key is to weigh operational convenience against strategic potential, not just pick the country that’s “easiest.”
Market Receptiveness
Cultural fit is underrated. How your home country is perceived abroad can impact everything from product positioning to customer trust. British education, for instance, is highly respected in Vietnam, and Scotch whisky enjoys prestige across much of Asia. These cultural perceptions can work in your favour—if you understand them.
Do your research. How does the local market perceive your industry, your brand’s origin, and your product category? Are there local norms or sensitivities that might impact how your offering is received? Receptiveness isn’t just about economics but also perception, trust, and cultural alignment.
Personal Preference
It may sound unscientific, but your personal connection to a place can’t be ignored. If you enjoy the environment and culture of the country you're expanding into, you’re more likely to persevere when challenges arise—and there will be challenges. A genuine appreciation for a place fosters resilience and strengthens relationships. Locals are also far more open and supportive when they feel you truly respect and understand their country.
Your instincts and personal energy matter. They affect how you lead, sell, and build trust.
In Summary
There’s no one-size-fits-all answer to choosing your first international market. The best choice balances strategic potential with operational viability, cultural fit with business logic. And don’t underestimate the power of personal affinity, it often keeps you going when the novelty fades and the real work begins.
So, before you draw lines on a map, ask yourself:
- Can I support and manage this market effectively?
- Will the local market welcome what I’m offering?
- Do I feel personally motivated and connected to this place?
Want to know more about taking your business abroad? Drop me a DM at jeremy@business-in-asia.org. Or even better, let’s talk: use this link to set up a 30-minute call with me.
Choose well, and you’ll set the tone for long-term success abroad. Use this checklist to help you assess your readiness:
1. Proximity vs. Potential
□ Have I considered both nearby and distant markets?
□ Have I weighed the benefits of proximity (travel time, time zones, management ease)?
□ Have I evaluated more distant markets for strategic potential, unmet demand, or higher margins?
□ Have I assessed operational requirements (e.g., how autonomous local teams must be)?
2. Market Receptiveness
□ Do I understand how my home country is perceived in the target market?
□ Have I researched how my product or service category is received locally?
□ Have I explored consumer preferences and local competitors?
□ Have I consulted any local experts or partners for insights into cultural fit?
3. Business Environment
□ Have I reviewed the ease of doing business (e.g., World Bank rankings)?
□ Do I understand local regulations, taxes, and incentives for foreign companies?
□ Have I assessed the legal and IP protection frameworks?
□ Have I identified key risks (currency volatility, bureaucracy, corruption, etc.)?
4. Personal Affinity and Readiness
□ Am I personally comfortable with the country’s culture and lifestyle?
□ Do I enjoy being there enough to visit often if needed?
□ Can I see myself building long-term relationships and trust on the ground?
□ Am I motivated enough to push through the inevitable challenges?
5. Overall Strategic Fit
□ Does this market align with my long-term vision?
□ Can I realistically fund and support operations here?
□ Does the market offer a good balance of demand, receptiveness, and scalability?
□ Am I choosing this market intentionally, not just because it’s familiar or easy?
How to use it:
✅ Tick off the boxes as you go, and don’t rush.
🛑 If too many areas remain unchecked, it may not be the right market, yet!
In my next article, I will examine the question of assessing market demand. Will there be enough market demand for your product or service to justify the investment in time and money?
By Jeremy Gray,
SBN Ambassador