In my past I’ve seen businesses based in other countries that wanted to enter the German speaking markets (aka D-A-CH). The risks, efforts and cost where prohibitive for start-ups and smaller companies. But, that is simply not the case anymore.
For emerging companies, particularly technology oriented businesses (High tech, IT, software), the real “brain-power” inside the organizations is usually dedicated to product development and servicing existing local clients. There simply isn’t the bandwidth, expertise or budgets available to build an entirely new business development and sales force to penetrate this new market.
Companies in this situation struggle with concerns like:
- Market potential / competitors.
- Local business customs and culture.
- Different value proposition.
- Recruiting and local management.
- Time zone challenges / travel expenses.
- Language barriers.
- Local business regulations (legislation, taxes).
For companies that want to expand into the German speaking markets there is an alternative to building a remote business development and sales organization.
Outsourcing the Business Development Function:
Companies today are choosing to outsource the business development function to a sales partner based in D-A-CH with experience bringing new products and technologies to the market for their clients. Some of the advantages of outsourcing the sales and business development functions to a local company are obvious:
- Quick start – often in just a couple of weeks a business developer can be up and running.
- Local expertise – a professional firm will have established business networks and expertise that they can leverage immediately.
- Turn-key operation – leverage existing resources.
- Skilled sales force/management – An experienced sales force that is locally managed and driven to meet your business goal and objectives.
- Flexibility – An outsourced sales partner offers the ability to “turn-up, turn-down or turn-off” the program if business circumstances change.
- Efficiency – language and proximity facilitates new customer acquisition.
- Scalability – especially in the beginning you want to have your operational costs as low as possible. Perhaps you don’t even need a full time business developer for acquiring your first 5 local customers…
If you have a business based outside the German speaking region and you are planning to enter these economically strong markets, consider outsourcing the sales and business development function to an established and experienced partner while you keep your focus on product development and growing your business in your established markets.