Entering new international markets means numerous challenges for startups, from cultural barriers to regulatory complexities. An outsourced sales team for startups emerges as a strategic solution, offering expertise and local insights that are crucial for global expansion. We explore how leveraging an outsourced sales team can give a boost to your startup’s growth internationally.
- Scale quickly in new territories
- Growth Experts
- Cost-efficient & low risk
How does an outsourced sales team work for startups?
The global market offers vast opportunities for growth and innovation. Statistics show that startups that expand internationally can accelerate their growth and diversify their market presence.
5 challenges startups face when expanding and growing their business
Expanding and growing a startup is an exciting yet challenging journey. As startups look to scale their operations, especially into new markets, they encounter various hurdles. Understanding these challenges can help founders and business leaders prepare and strategize effectively.
- Market entry barriers: Entering a new market involves understanding local regulations, cultural nuances, and market dynamics. This process can be time-consuming and requires thorough research. Missteps in this phase can lead to costly delays or even failure. Each region has its own set of rules and practices that need to be navigated carefully.
- Resource constraints: Startups often operate with limited resources, both in terms of finances and manpower. Scaling operations requires significant investment in infrastructure, marketing, and sales. Allocating resources effectively while maintaining daily operations can strain a startup’s capabilities.
- Building local networks: Having a strong network is crucial for market penetration. Establishing relationships with local partners, customers, and influencers can take time. Without these connections, gaining traction and trust in a new market becomes much more difficult.
- Sales and marketing challenges: Effectively marketing and selling products in a new market can be daunting. Startups need to adapt their messaging to resonate with the local audience, which may differ significantly from their home market. Additionally, setting up a local sales team or outsourcing sales functions can be a strategic decision, but finding the right partners or talent is a challenge.
- Cultural differences: Cultural differences can impact everything from marketing campaigns to customer interactions. Understanding and respecting these differences is essential for building a positive brand image and customer relationships in the new market.
The role of an outsourced sales team in internationalization
Outsourced sales teams specialize in understanding local markets, which is invaluable for startups looking to expand globally. This section discusses the benefits of outsourcing sales, such as cost efficiency, scalability, and rapid market entry, and how these factors contribute to successful internationalization. Choosing an outsourced sales team that aligns with a startup’s needs is critical.
Case studies
“A leading European FinTech company, partnered with Aexus to expand its market presence. Initially focused on the Dutch agri-food segment, UnifiedPost needed a strategic rebranding to enter new sectors. Aexus played a pivotal role in repositioning the company (rebranded as ZET Solutions) and implementing a successful go-to-market strategy targeting the construction industry.”
“Aexus was able to arrange the first meetings and organize the first roadshows very quickly. We found it very exciting that our offering was so well-received internationally, even by large enterprises and brands!” – Karelo of giosg
KPI’s for startups with outsourced sales teams
Aexus tailors its sales outsourcing approach to fit each company’s unique needs, ensuring an effective entry into international markets. Here are the steps we take:
- Determine the approach for each prospect: we develop a customized plan based on our deep industry knowledge and the specific challenges faced by the prospect.
- Shortlist target companies: we identify and prioritize companies that match our typical customer profile, enhancing efficiency and effectiveness.
- Initiate sales cycles with shortlisted prospects: this involves presentations and discussions to assess technical and commercial feasibility.
- Create and agree upon a mutual work document: Such as a Letter of Intent (LOI) or Memorandum of Understanding (MoU), which may include a trial or Proof of Concept (PoC).
- Start trials and deliver final proposals: we conduct small-scale projects to demonstrate the capabilities of the vendor’s solutions.
- Sign the framework agreement and build a long-term relationship: our goal is to maintain and expand strategic relationships, leveraging our familiarity with internal customer procedures.
Together with our partners, we define specific KPIs based on the vendor’s needs, the market’s maturity, and other factors. These KPIs help us monitor and measure our success effectively. While initial deals may close within the first few months, it typically takes 6-8 months to build a steady revenue stream through our collaborative efforts.
“Aexus’ local presence, understanding of the market and strong and experienced local team helped us to extend our business here much more rapidly than we would have been able to manage on our own.”
Communication is key while having an outsourced sales team
Effective communication and collaboration are key to integrating outsourced teams. We recommend:
- Weekly online meetings: preferably on Mondays or Fridays to discuss ongoing activities and strategies.
- Daily communication: through a private Slack channel, ensuring continuous, seamless interactions.
Sales tooling for tech startups
Aexus uses various tools to optimize and monitor its activities, including Pipedrive for CRM, Reply.io and Salesloft for marketing automation, and LinkedIn Navigator among others for lead identification. We ensure these tools are integrated smoothly with our clients’ systems.
We aim for long-term partnerships but offer flexibility with a 30-day notice period for discontinuation, ensuring minimum risk for all parties involved. Insights into our sales pipeline and activities are provided through a real-time updated URL and bi-weekly reports, allowing for full transparency and alignment with our partners’ goals.
“We build business, accelerate sales and fearlessly guide them into new, uncharted territories. Driving innovation, expediting change.”
Chris Gerretsen, Aexus CEO
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Why local expertise in market expansion is so important
Expanding into new markets is exciting but can be tricky. Each country has its own unique way of doing things, from how people shop to what they value in a product. This is where a local expert becomes invaluable. An outsourced sales team provides the insights and connections you need to understand and fit into these new markets.
They know the local trends, behaviors, and competitors, helping you avoid common mistakes and seize opportunities faster. This local knowledge ensures that your products or services resonate with the target audience, making your entry smoother and more successful.
Adapting to regulatory requirements
Every country has different rules and regulations for businesses. These can cover everything from how you advertise to how you protect customer data. Navigating these regulations can be daunting for any startup. An outsourced sales team familiar with these local laws can guide you through the process, ensuring that you comply with all necessary regulations.
This not only helps you avoid legal troubles but also builds trust with local customers. Compliance shows that you respect the local market and are serious about doing business there, which can significantly boost your credibility and customer base.
How does an outsourced sales team integrate with our existing processes?
We begin with an in-depth training session to understand your offerings. Using tools like Pipedrive for CRM, we log all activities and provide real-time updates. Regular weekly meetings and daily Slack updates ensure seamless integration and communication.
How do you ensure alignment with our brand values?
We conduct detailed onboarding sessions to grasp your brand ethos and integrate this into our outreach and sales activities. We adapt your messaging to resonate locally while maintaining your core brand identity.
What specific parts of the sales process do you handle?
We handle everything from lead generation and initial contact to closing deals and post-sale follow-up. This includes market research, prospecting, meetings, presentations, and negotiations. We keep you updated with regular reports and communications.