Mike Casey :: Random thoughts on Startups

All the guys involved in GradConnection have just finished a big two day work shop to define our strategy for the next financial year. To be honest it was great fun, having a good laugh, with a good bunch of mates. I have never associated business with pleasure nearly as much as I have over the last couple of days.

The big topic of discussion was around when we should look at expanding our technology beyond the current New Zealand and Australian markets that our company operates in. Something I never thought I would be doing a couple of years ago when I was still a graduate myself.

Essentially there is a big carrot. Overseas markets are larger and the budgets are bigger. Here are some key points we came up with

• Brand Penetration - look after the market you are in, they should always come first no matter what. Only expand when your brand is strong enough not to require a founder 100% of the time.
• Business Development, by team members that are not founders of the company only works well when your brand is known and established.
• Overseas markets are hard. Just because you are established in one market does not mean you have a greater chance of success in another market.
• Never use operational budget in one market for expansion into another.
• Companies that operate in different markets are much more valuable to investors and acquirers. This is because your model is proven to work with different establishments, cultures and currencies. It makes the potential for further expansion much more realistic.
• A sale in one market can directly lead to a sale in another market, especially when dealing in B2B sales with international organisations.

If you have ever read Crossing that Chasm you will know about early pragmatists vs conservatives. I would suggest that you would only want to look at overseas expansion once you are well etched into the conservative part of the market.

All in all I am incredibly fond of the market in Australia, and the people I have met during my time on GradConnection. These sorts of decisions are not all about money. They include lifestyle, friends, family and personal growth.