Expand internationally without bumping your head

For many directors and entrepreneurs in SMEs, it is a logical next step: international expansion. Especially in a growth phase when the home market becomes saturated, the border comes into view — literally. The potential lies abroad, but practice often proves more recalcitrant than hoped.

In conversations with entrepreneurs, I notice again and again: internationalization requires more than ambition. It requires adaptation, guts, patience – and the courage to let go of your Dutch reflexes. Because one thing is certain: he who has nothing to lose, also has nothing to gain.

Why entrepreneurs are taking the plunge

The motivation is often clear: risk diversification and exponential growth. The Netherlands has 18 million inhabitants, Germany 83 million, France 68 million. That math speaks for itself. But what is especially striking: companies that internationalize do so out of success, not necessity. They have mastered their home market and are looking for new challenges. Often there are also investors who give a push toward international.

Therefore, it is usually a strategic decision that comes from the management. The commercial director or sales manager may have already picked up signals of interest from abroad, but ultimately the decision to actually take that step sits with the owner-director.

Yet many entrepreneurs treat that international move as an expansion rather than what it really is: a restart in a new playing field.

The biggest pitfall

“What works here will work there.” That thinking costs entrepreneurs time, money and energy. It’s sort of in our DNA, that Dutch commercial spirit of “we’ll do that for a while.” But then the entrepreneur often comes home cold. He feels misunderstood or ignores the cultural differences. These differences are not only in language, but also in trust, decision making and negotiation. The Dutch directness that works so well here can literally slam the door shut abroad.

We’re not going to repeat here what you’ve probably heard many times before: that the French lunch is all about trust, that Germans love structure, or that Brits rarely say what they really mean. Those open doors have been kicked in by now. However, they keep coming back – with good reason: there is a grain of truth in them.

Yet those cultural facts are not the real challenge. The realization that you yourself are looking through Dutch glasses – and the willingness to take them off. Look and listen with a country-specific view. Then you will see how trust really works abroad, and how you as an entrepreneur can connect to that.

Four routes for international sales

The theory is clear, but how do you put it into practice? How do you organize your sales abroad? In practice, I see the same four approaches coming up again and again. The choice you make often determines the success of your entire international adventure.

  • Trading agents – the seemingly risk-free option
    A trading agent seems very attractive on paper: you only pay commission when sales are made. But in practice, this approach rarely leads to growth. The problem: A commercial agent works for several companies at once and mainly picks the low-hanging fruit. There is no real connection to your brand. When the going gets tough, your product is promoted less. After a year, you often find out it didn’t achieve much.
  • Distributors – useful if they already have the network
    A distributor can work, but the network must already exist that suits your target market. The advantage is that you leverage existing relationships. The disadvantage is that you have less control over how your brand is portrayed and you are dependent on their priorities.
  • Remote Dutch sales manager – half the solution
    Many companies start with a Dutch sales manager to do the foreign country. But in practice, this quickly becomes too much. The travel time alone is enormous. In addition, you run into cultural barriers. And as soon as the home market gets busy, the focus on abroad disappears.
  • Local professional on local contract – the serious approach
    This is the most serious way to grow internationally. You put someone who lives locally, speaks the language, knows the network and is completely focused on your market. It costs a salary, but also provides the highest success rate. Such a person truly becomes an ambassador for your company and can create an oil slick effect in the market.
``The real challenge lies in the realization that you yourself are looking through Dutch glasses - and in the willingness to take them off.```

– Roy van Eijk

Structural investment

If you choose a local associate, you have to count on a different kind of investment. You no longer pay per sale, but invest structurally in market building.

You cannot suffice with a Dutch contract – no serious candidate will accept that. There must be a local contract according to the law of that country. There are payroll service providers who arrange this for you – external parties who draw up the payroll and contracts. You pay a service fee for this, but it gives the candidate security.

The big difference with a commercial agent is the time horizon. Whereas you might expect an agent to show results within six months, with an in-house associate you have to count on at least two years. That person has to build a network from scratch, get to know customers and gain trust.

Remote leadership

For many entrepreneurs, this is the biggest challenge: you lose the direct view of what is happening. This requires a different way of management – no more micromanagement, but structural contact combined with trust. You want to stay close without being on top.

Onboarding is crucial. The new sales colleague needs to feel part of your team, not all alone on “the foreign island.” Corona has certainly helped in this: through Teams, WhatsApp and other tools, you can now have much more personal contact than in the past with just a phone call or email.

In addition, physical contact remains important. Make sure there are regular joint client visits, that you explore the market together. This ensures team building and gives you a feel for what is going on.

Don't forget the organization

Once you become active abroad, your entire business has to go along with it. This is often underestimated, but it can train your entire international adventure if you are not prepared for it.

Marketing and communications need to keep up
You need a multilingual website, and that goes beyond translation. Product leaflets, descriptions, presentations – everything must be available in the relevant foreign language. And not only do the words have to be right, the communication style also has to be adapted to the local culture.

Your back office becomes international
That local sales representative promises customer support, but can your Dutch back office deliver? Do you have or will you look for an inside sales colleague who can communicate in the country’s language? Customer support and customer service must be available during local business hours. German customers expect German invoices, French customers want French communication.

Adapt systems and processes
Your Dutch systems must be able to deal with foreign customers. Think about different VAT rates, different payment terms, local contract forms. It sounds like details, but in practice these things often determine whether an international customer remains satisfied.

So foreign growth means much more than just putting someone abroad. Your whole organization has to breathe with that international ambition.

3 actions you can do right now

All of this may sound overwhelming, but you don’t have to wait for the perfect plan to get started. With these 3 actions, you can get started as early as this week to test whether international growth is for you:

  1. Test interest digitally
    Put a simple contact form on your website in German, French or English. Place a few targeted LinkedIn ads aimed at your target audience in Germany or Belgium. Measure how many responses you get. This costs a few hundred euros but gives you an immediate feel for interest from abroad.
  2. Conduct five exploratory conversations
    Find five potential customers in your target country via LinkedIn. Send them a personal message explaining that you are considering entering their market and would like to spend 15 minutes talking about their challenges and needs. Ask these questions: What are your biggest challenges in this area? How are you solving them now? What would be an ideal solution? Who makes the decisions with you?
  3. Contact NBSO
    Call the NBSO of your target country (Dutch Trade Organization Abroad) and ask about their introductory programs. They often organize networking meetings, can help you with market research and know local players. The first meeting is free and will give you immediate insight into the opportunities and pitfalls of that specific market.

Together, these 3 actions will cost you at most a day’s time and a small budget, but will give you concrete data to decide if international growth is worthwhile for your business.

Bottom line

International expansion requires preparation, patience and a willingness to invest before you see results. But companies that get it right – with local people, solid preparation and a willingness to let go of their Dutch reflexes – often write a whole new chapter in their growth.

You build successful international growth not with a noncommittal representative, but with a dedicated force: a local sales or management professional who lives, breathes and carries your story. That takes guts and a longer breath than you might be used to, but it’s exactly what can lay the foundation for sustainable – and sometimes even exponential – growth.

In short: you only truly grow internationally if you dare to think locally.

Roy van Eijk

Senior Consultant

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