As you enter new markets, you must localize to get traction. Global opportunities became more apparent with the recent shifts in business, so speed and agility are more important than ever. Yet most companies fail to address the complexities that go into successful localization.

Why? International expansion is complex. Legacy-minded business leaders often don’t see localization going much beyond language translation. They assume what works at home will translate to new markets. This leaves their businesses failing to achieve company-market fit in a new market. 

However, in our research for our book Global Class, we discovered a new subset of “Global Class Companies” who run into the same problems but have adoapted certain best practices. These Global Class companies leverage a set of tactics and best practices to build a business at global scale. 

The Business Model Localization Canvas

Global Class companies use an internationalized agile methodology to structure the localization process and find the right model for a new market. 

To further assist in this process, we have created the Business Model Localization Canvas (BMLC), a framework that helps companies facilitate localization discovery, market identification, and identify potential localizations for new markets. 

Referencing the image, you can choose categories from the Business Model Canvas, created by Alex Osterwalder and Yves Pigneur, used by many start-ups as they navigated initial product-market fit, or you can design your own list of elements in the BMLC. 

The goal is to compile a comprehensive list of elements of your business and operating model and run them through the government regulation and culture filters to develop a new set of hypotheses for how your business will operate in the new market. By nature, this will highlight the required localization needed to find traction as well. 

Market Readiness

After determining that your company is well-positioned and resource-ready for international growth, the next step is to enter an information-gathering phase with the goal of figuring out where to expand.

This involves a two-step market analysis process that results in a rounded evaluation of target countries. The two steps of the market analysis are:

1. Conducted at HQ 

2. Conducted by traveling to the target country and conducting on-the-ground research (Also known as “Localization Discovery”)

The final aspect of the market readiness step is to establish a preliminary indication of pivots (“localizations”) to be made to your initial market product-market fit to get traction in the new market. This step is important because if you don’t conduct a thorough market readiness assessment, you might focus on the wrong markets, lowering the return on investment and wasting time.

How should the results of the Localization Discovery be utilized?

There should be established lines of communication that allow for a transparent, multi-directional exchange of ideas and information. We call these, “Feedback Loops.”

Without feedback loops, for example, the local team won’t be able to communicate which changes are required according to what they learned from first-hand experience in the local market, then HQ won’t support these pivots and thereby won’t dedicate resources to adapting.

In summary, localization is a core vehicle for companies to gain traction in a new market through pivots and iterations. To help with this, the BMLC framework we developed helps by coming up with hypotheses for models in a new market by giving estimations of localizations required. 

Troy Malone, fmr VP of International Operations at Drata, has a video on the topic of localization discovery in our master class library. Watch it here.

About Global Class

The Global Class team has developed THE playbook that teaches organizations the right mindset, culture, and strategies to successfully build global businesses. Through consulting engagements and practical tools (+ case studies built from conversations with over 400 executives from the world’s fastest-growing companies), we help executives with companies valued at $1B to $100B reach global scale. From market entry to global scale, we help companies build the foundation for successful global growth through management consulting services, customized platforms, and more.