Achieving Scale Through International Expansion, Part 1: When Is a Microsoft Dynamics ISV Ready?

If your company's business is the development, sales, and support of packaged software on Microsoft Dynamics platforms, then your growth and profitability are highly dependent on one thing: scale. 

Once your packaged software is built and the major costs have already been recouped, every additional sale is almost pure profit. This is because the cost of goods and the cost of sales can be very low - especially when software is sold online or through a partner channel. To achieve real scale, your company needs to expand its reach internationally - but knowing when, where and how can mean the difference between success and failure.

This three part series of articles will examine:

• When is a software company ready to expand internationally?
• Where should it expand to maximize near and long term success?
• How should it undertake its new market entry and expansion?

When Are You Ready To Expand Internationally?

To be able to better assess when your company is ready for international expansion, consider how you would answer the following questions.

Has your product been proven in your domestic market?

Expanding internationally begins at home. It is more complex and more expensive to sell internationally; therefore your product should first be proven in your domestic market. At home, your customers and partners are in close proximity to you and your offer can be presented in the best possible way. The two indicators that demonstrate you having a proven product are: