Advise Against Global from Day 1 • The world is complex. • Need to focus. • Maximize Leverage. • Pick one market to dominate.
Phase • Product/Market Fit? • Should be on track to dominating your local market. • Example: 10M downloads where the break down is 20% USA, 10% Japan, and 10 other countries with less than 5% is not dominating a market. • BUT! if they are all engineers than you are dominating.
Phase (Scoring) • (5 points) - Product/Market fit with clear path to dominating your local market. • (3 points) - Product/Market fit no clear path yet. • (0 points) - no Product/Market fit
Language / Culture • Do you speak their language? • Do you understand culture and nuances?
Language / Culture (scoring) • (5 points) - Native Speaker, lived in the country. • (3 points) - Speaks well enough, immersed in the culture • (2 points) - Me No Understand
Talent • Need to be able to hire the best talent in the market you enter. • Execution is everything. • Not enough due diligence on the country manager. • Need to treat it liking adding a cofounder. • They need to live and breath your company culture. • They need to be share the same passion, mission, vision. • need a lot of coaching
Talent (scoring) • (5 points) - We have the A-Team, The Furious 5, The Avengers. • (3 points) - Subpar team. • (0 points) - meh.
Landscape • Competitive • Is there competition? • Need to assess the competition rigorously. Can you really win? • Funding Environment (IE. Grab Taxi ($250M), Didi Kuaidi ($1.5B), Delivery Hero ($110M) • Market & Cultural Landscape • Alternative solutions, cultural fit.
Landscape (scoring) • (5 points) - We can beat competitor, out execute, out capitalize, and there is market and cultural fit for your product. • (3 points) - There is market and cultural fit, but beating competitor might be a challenge. • (0 points) - no market and cultural fit.
Network Effects • Definition: “Effect that a single person using a good or a service has on the total perceived value of that product or service for others. The more who use the product or service, the higher it's value becomes to the group” • Is it a “Cross Border Network Effect?” Meaning, Does the network effects from one country, affect users to the other country? • Examples with services with cross border network effect (Instagram, AirBnB. • Example with little or no cross border effect (Food Delivery, content sites)
Network Effects (scoring) • (5 points) - Very strong cross border network effects. Every additional user or content will benefit the users from anywhere in the world. • (3 points) - Some or little cross border network effect. • (2 points) - no network effects.