# Market Entry Playbook

Step-by-step framework for entering a new international market.

## Phase 0: Validation (4-8 weeks)

Before committing resources, validate demand:

### Signal Assessment
| Signal | Strength | Action |
|--------|----------|--------|
| Inbound inquiries from the market | Strong | Fast-track evaluation |
| Existing customers using from that market | Strong | Interview them, understand needs |
| Competitor succeeding there | Medium | Market exists, but competition too |
| Partner referral | Medium | Validate independently |
| Market research says it's big | Weak | Research ≠ demand |
| Board says "we should be in X" | Weakest | Push back with data |

### Lightweight Validation
1. **Landing page test** — localized landing page with waitlist
2. **Ad spend test** — $2-5K in targeted ads, measure conversion
3. **Sales outreach** — 20 calls to potential customers in market
4. **Partner conversations** — 3-5 potential local partners
5. **Competitor analysis** — who's there, what they charge, customer reviews

**Pass criteria:** At least 2 of: qualified pipeline > $50K, waitlist > 100, partner willing to co-sell.

## Phase 1: Planning (4-6 weeks)

### Market-Specific GTM
| Element | Home Market | New Market | Notes |
|---------|------------|------------|-------|
| ICP | [your ICP] | [adapted ICP] | May be different segment |
| Pricing | [home price] | [local price] | Value-based, not conversion |
| Channels | [home channels] | [local channels] | Research what works locally |
| Sales model | [home model] | [adapted model] | Self-serve may not work everywhere |
| Support | [home support] | [local support] | Language, hours, expectations |

### Pricing Strategy by Market
- **Developed markets (US, UK, DACH, Nordics):** Price for value, premium positioning
- **Growth markets (Southern Europe, Eastern Europe):** 20-40% discount from core market
- **Emerging markets (LATAM, SEA):** 40-60% discount or different packaging
- **Enterprise everywhere:** Don't discount — add local value instead

### Regulatory Pre-Work
1. Data residency requirements (where must data live?)
2. Industry-specific regulations (healthcare, finance, education)
3. Tax obligations (VAT, withholding, nexus)
4. Employment law basics (if hiring)
5. Import/export restrictions (if applicable)
6. Timeline to compliance (weeks, months, years?)

## Phase 2: Entry (8-12 weeks)

### Minimum Viable Presence
| Element | MVP | Full | When to Upgrade |
|---------|-----|------|-----------------|
| Legal entity | None (sell cross-border) | Local subsidiary | Revenue > $500K/year |
| Team | Remote sales + support | Local office | > 5 local employees |
| Product | English + key translations | Full localization | Customer feedback demands it |
| Payments | International card processing | Local payment methods | Conversion drops |
| Support | Home team covers (extended hours) | Local support team | Volume requires it |

### Launch Sequence
1. **Week 1-2:** Product localization (minimum viable)
2. **Week 3-4:** Local pricing and payment setup
3. **Week 5-6:** Marketing launch (content, ads, PR)
4. **Week 7-8:** Sales activation (outreach, partner launch)
5. **Week 9-12:** Iterate based on first customers

### First 10 Customers
These are your foundation. Over-invest in their success:
- Weekly check-ins for first 90 days
- Dedicated support contact
- Feedback loop to product team
- Case study development
- Referral program

## Phase 3: Scale (6-12 months)

### When to Invest More
| Signal | Action |
|--------|--------|
| Pipeline > 3x capacity | Hire more sales |
| Support tickets in local language > 30% | Hire local support |
| Regulatory requirement for local entity | Establish subsidiary |
| Revenue > $500K ARR from market | Appoint country manager |
| 3+ enterprise deals require local presence | Open local office |

### Country Manager Profile
First local hire matters enormously:
- **Must have:** Domain expertise, local network, startup mentality
- **Nice to have:** Experience with your type of product
- **Red flag:** Wants to build a big team immediately
- **Ideal:** Someone who can sell, support, and partner — a generalist

### Common Scaling Mistakes
1. **Hiring a country manager too early** — Before product-market fit in that market
2. **Building a full local team before proving the model** — Expensive and hard to unwind
3. **Letting the local team operate independently** — They need to integrate, not isolate
4. **Ignoring local competition** — They know the market better than you
5. **Applying home-market playbook** — What works in the US may fail in Germany

## Market Type Playbooks

### Expanding Within Europe (DACH → EU)
- Regulatory: GDPR already covers you, but check industry-specific
- Languages: English works for Nordics/Netherlands, but not for France/Spain/Italy
- Pricing: PPP varies less within EU, but willingness to pay differs
- Sales: Direct works for DACH/Nordics, partner-heavy for Southern Europe
- Fastest path: UK → Nordics → Benelux → France → Spain → Italy

### Entering the US from Europe
- Legal: Delaware C-Corp for investment compatibility
- Sales: Everything is bigger — territories, deal sizes, expectations
- Pricing: Usually 20-30% higher than Europe
- Support: US customers expect fast response, US business hours
- Competition: More competitors, but also more budget
- Entry: Start with coast (NYC or SF), not middle America

### Entering APAC
- Diversity: APAC is not one market — it's 20+
- Start: Singapore (English, business-friendly) or Australia
- Japan/Korea: Need local partner, high localization bar
- India: Large market, price-sensitive, relationship-driven
- China: Separate strategy entirely, regulatory complexity extreme

## Measuring Success

| Metric | Month 3 Target | Month 6 Target | Month 12 Target |
|--------|---------------|----------------|-----------------|
| Pipeline | 10x of revenue target | 5x of revenue target | 3x of revenue target |
| Customers | 5-10 | 20-50 | 50-100+ |
| ARR | $50-100K | $200-500K | $500K-1M |
| NPS | > 30 | > 40 | > 50 |
| Churn | < 5% monthly | < 3% monthly | < 2% monthly |

Metrics should improve each quarter. If they flatten, something's wrong with product-market fit in that specific market.