How to build a team abroad: 3 essential steps for founders

The following is adapted from the whitepaper Building Locally, Scaling Globally: A SaaS founders’ 7-step guide for global expansion.

When expanding your startup beyond local borders, the quality of your talent can make or break your success. There are three key factors to consider when building local teams: who to hire, where to find them, and how to create a culture that aligns with your company and sets you up for long-term growth. Below, we dive into each of these to help you build the right team from the start.​​

1. Determine who to hire first

The most important hires in a new market tend to be your GTM team because your primary objective is regional growth. The best practice is to hire a regional head of sales with a handful of sales people below them.

“If you’re a U.S. company going into the U.K. or Europe, your local team is often essentially a sales and marketing arm,” says Vice President Dominic Olszowski.

“If you’re a U.S. company going into the U.K. or Europe, your local team is often essentially a sales and marketing arm.”

“There are some variations,” adds Senior Vice President Richard Sgro. “Sometimes the sales process can be serviced by HQ for a period of time, but to fully validate a market, you’ll need someone on the ground.”

In terms of background, your new hires should have worked for an international business.

“Ideally, they would have experience working at a similar international company,” says Olszowski. “For example, if your home market is Germany, it would be a big advantage if they have previously worked for a Germany-headquartered company and understand the culture.”

2. Commit to attracting top talent

Expanding into a new market isn’t a decision to be taken lightly. That commitment needs to be communicated heavily to potential hires, especially given you likely won’t have the brand recognition that your local competitors do.

“People are risk averse. It’s going to be difficult to get people to join your company unless there’s a clear commitment to the region. Establish your brand by running events, sponsoring other activities, and developing partnerships with local businesses,” says Olszowski.

“People are risk averse. It’s going to be difficult to get people to join your company unless there’s a clear commitment to the region. Establish your brand by running events, sponsoring other activities, and developing partnerships with local businesses.”

To find the right talent, it’s important to build partnerships with local recruiters who understand the market and can tell you what candidates expect in terms of benefits and pay.

“CEOs can fall off their chairs when they learn what execs are paid in different markets — for example, comp is often a fair bit higher in the U.S. than it is in Europe,” says Olszowski. “Recruiters can give you an idea of compensation benchmarks. Investors can also be helpful. For example, Insight captures comp data on every search across our portfolio so we have real life examples of what new hires are being paid.”

Using recruiters is a helpful starting point for hiring, but you should also be building out your own network concurrently.

“By attending industry events, you’ll be likely to get referrals to people who come highly recommended,” says Olszowski. “Most investors also have strong talent networks which you can leverage and use as an access point to top talent.”

A common mistake is hiring executives that aren’t high-caliber enough.

“At first, many European companies will struggle to recruit the same level of talent in the U.S. as what they’ve been able to attract in their home market,” says Managing Director Rebecca Liu-Doyle. “They don’t have the same level of pull, and there’s an overall lack of familiarity.”

But there will always be some element of trial and error.

“Hardly anyone does this perfectly. You learn so much through the process of failing,” says Liu-Doyle. “You have to respond to the signals in front of you and be really self-critical.”

3. Build a thriving global culture

Cultural misalignment can be a significant challenge during global expansions that is often undervalued. Failing to understand and adapt to the local culture and business practices may lead to misunderstandings, strained relationships with customers and partners, and hinder the establishment of trust and credibility in the new market.

Building the right culture is especially important when a geography will become your core market, such as expanding from Europe to the U.S. We recommend having someone who can bridge the gap between your home HQ and your new market.

“You need to bring over what I call ‘founder DNA’ to reach your full potential, quickly – someone who can begin building a foundation of cohesive culture on day one,” says Liu-Doyle.

“You need to bring over what I call ‘founder DNA’ to reach your full potential, quickly – someone who can begin building a foundation of cohesive culture on day one.”

“This should be a strategic, customer-centric role. You will need someone who rolls up their sleeves and knows how to get things done in HQ,” says Senior Vice President Meg Fitzgerald. “Ideally this person speaks the local language and has some level of connection to the country. The goal is to act as a mini in-country General Manager, be the boots on the ground, and sound the alarm if things are moving in the wrong direction.”

As well as building a strong local culture in your new market, you also need to form a well-crafted global culture that spans your entire entity. It should promote a consistent organizational identity, enhance employee engagement, and streamline decision-making processes. There are three high-impact areas to focus on.

Communication

Your new market should have a clear identity of its own. Establish dedicated country updates, sharing milestone achievements, market insights, and localized updates. The new market should also communicate smoothly with your home market. Consider implementing digital tools for seamless collaboration across different offices, and prioritize communication across regions to enhance transparency and connectedness on a global scale.

Collaboration

To avoid creating silos, employees in the new market should also work on projects with other offices. You can achieve this through temporary assignments or job rotations, which promote understanding. Also consider creating informal country teams to encourage knowledge exchange among local and headquarters employees.

Cross-cultural education

Succeeding in a new market means understanding its culture. Training programs and resources can promote understanding and drive awareness. It’s important for employees to understand local nuances, such as communication styles, greeting customs, and holidays. Events to celebrate diverse traditions and customs also foster inclusivity and appreciation.