2023-11-21 10:01:51
On August 31, 2023, the French government announced its new export support plan “Dare to export!” “. This plan, which is carried out within the framework of the “ Team France Export », which notably brings together the Chambers of Commerce and Industry (CCI) and Bpifrance, also strengthens the means available to Business France to support SMEs and VSEs beyond our borders.
“With the Export Plan, we are expanding the range of tools that Business France makes available to exporting SMEs and mid-sized companies”says Laurent Saint-Martin, general director of Business France. “In addition, the ‘France 2030’ plan is enriched with a resolutely international component to project the gems of tomorrow on the international scene. Our objective is twofold: to effectively support companies that have already integrated export into their strategy and to encourage those who have not yet taken the plunge to engage in this dynamic.”
Beyond exporting, internationalization is a real source of growth. Opening up to new markets, confronting new competitors, the legal structuring of the operation, etc. are all important steps that must be prepared in advance. To find out the 5 best practices in this area, Maddyness interviewed Jérôme Bonnet, general manager of Pramex International, who supports companies in their internationalization projectEric Morand, Director of the B2B events department at Business France, as well as Laith Jubair, founder of Axelor, present in India, Morocco and more recently in Toronto.
1 – Consider internationalization as an opportunity, never as an obligation
Opening up to new markets, developing turnover, the possibility of buying or collaborating with a player already present on the market… If internationalization is in no way an obligation for startups, the numerous opportunities it offers weigh in the balance.
“Internationalization is not an obligation, obviously, and depends on many factors! »recalls Jérôme Bonnet, general manager of Pramex International. “We notice, however, particularly in the projects of startups in second or third fundraising, that internationalization is part of the development plan as a growth lever: growth in turnover by conquering several markets , skills recruitment. The world of startups is evolving quickly, the same ideas can be born at the same time in several countries. To succeed, therefore, growing faster than your competitors and mastering several markets is a key success factor. »
Indeed, internationalization can be considered from the first years of development, or at a more mature stage, especially if the French market does not allow the startup to express its full potential.
“Ambitious startups must think internationally from the start, the famous ‘Born Global’, because the French market, of medium size, is too narrow to allow sufficient growth”says Eric Morand. “Fortunately, most French startups have integrated this factor well, with the rise of French Tech, whether in their workforce or their organization. But, in all cases, internationalization results from a real desire and strategy of the business leader. »
2 – Analyze your market and prepare as best as possible
Any successful internationalization must start with thorough preparation and analysis. Both from a commercial, social and legal point of view. Indeed, the product or service may not be adapted to market expectations, and therefore not find the customers it wanted to reach. A market test upstream of internationalization should then be considered, to understand the interest of locals. It will thus be possible, if necessary, to adapt its product to make it compatible with the needs of the country. This study and test phase will avoid generating unnecessary costs in a market that is not suitable.
“When you plan to open a subsidiary, it is essential to choose the target market carefully, because the latter must allow a rapid return on investment”says Laith Jubair, founder of Axelor. “To do this, several indicators must be taken into account, and even certain weak signals: incoming requests from abroad, barriers specific to this market such as language, installation arrangements, emigration procedures for companies, local constraints linked to this product category, etc. It is important to feel an interest from local prospects: in our case, we had already had contact with interested prospects as soon as a site was put online. web in English dedicated to the geographic areas that interested us.”
“Having an economic model that is already at least established on the national market is essential: going international without having tested it in your own country would be imprudent”adds Jérôme Bonnet. “Acquire a good knowledge of neighboring markets: an economic model in one country may not work in another. It is therefore necessary to know consumption habits. And, above all, we must not confuse speed with haste, taking the time to analyze the risks of the operation and their implications: market potential, local regulations, cultural differences…”
3 – Have sufficient financial resources
The cost of internationalization is an easily underestimated cost, which nevertheless requires writing a business plan in order to plan for appropriate cash flow. On this subject, Jérôme Bonnet recommends that startups budget for future costs while investing in efficient management tools, to avoid cash burn.
“We estimate for a subsidiary in Europe with 3 employees an annual cost of €600,000 over three years before reaching break-evenspecifies Jérôme Bonnet. Financial and commercial management tools will also be necessary: certain startups may have a tendency to overestimate the business value of their model on the target market. We have many examples of startups that have had to fold up following a poor approach to the market. »
4 – Be supported by suitable systems or organizations
A startup wishing to internationalize will have a lot to gain from receiving support and taking advice from organizations specializing in the matter, both public and private. As the government’s current desire is to support the internationalization of businesses, organizations such as Team Export are developing more and more support possibilities. Business France, for its part, is the national agency responsible for the internationalization of French companies and their attractiveness.
In addition, numerous aids also exist to develop, whether through trade fairs, the use of VIE or even with the establishment of subsidized acceleration programs, boosters for the most promising companies such as the nuggets of French Tech 2030.
“Developing and succeeding internationally cannot be improvised and requires preparing and building a strategy, prioritizing the markets on which a startup wants to project itself even if it benefits from traction in several markets”concludes Laith Jubair, founder of Axelor. “For this, the France Export Team brings together the best international experts with Business France, CCI France, Bpifrance and the Regions to answer the essential questions: where to start? with what funding? to which markets? how ? »
5 – Develop an adapted and coherent HR policy
The HR policy of the group and the subsidiary must be the subject of particular attention, both for the selection of the first employees present on the new market, but also to facilitate their integration into the group. Recruiting local talent in favor of creating a mixed team (local resources and expatriates) is crucial to understanding and quickly adapting to the local market.
If the human resources available in the new market are not sufficient, additional training costs will need to be provided. The mix of premises and resources from the parent company makes it possible to benefit from local market expertise to adapt as quickly as possible to demand. This allows us not to reinvent the company’s strategy, which has proven itself (innovation, know-how and methods) but rather to adapt to the specificities of the market, with a strong cultural understanding.
“It’s regarding building a team on site and making it efficient, and this requires combining local recruitment and bringing expertise from the parent company”recalls Laith Jubair, founder of Axelor. “When the Axelor subsidiary opened in Canada, I offered two people to work on site, a manager and a product expert. The interest is to export the company culture, while recruiting local teams who are immersed in the culture of their country. It is also important to harmonize its processes and HR policy on a global scale, to ensure perfect integration of the subsidiary’s employees into the group. Creating a principle of equality from the start for all group employees is one of the keys to lasting international success. »
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