Market Expansion
Step 3: Business Setup
Four mayor steps in expanding your company abroad –
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Market Expansion:
Step 3: Business Setup
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Step 3: Business Setup
Setting Up Your Local Business Operations
Once your legal and administrative foundations are in place, it’s time to build your actual presence in the new market. Setting up business operations is where your market entry becomes real: the office, the team, the people who will represent your brand on the ground.
However, this is also where companies face unexpected challenges. Because beyond the logistics of setting up an office, there are cultural and human factors that can determine whether your operations will thrive — or stumble.
Finding the Right Location and Business Setup
Every market has its commercial hotspots and hidden gems. Finding the right city, the right neighborhood, and the right office space or operational setup can influence your visibility, hiring prospects, and operational efficiency.
For some, a physical office is key. For others, a hybrid or remote-first setup might be more effective. We help businesses assess what fits both their needs and the local market.
Hiring and Onboarding Local Talent
Local talent brings local insight. Building a capable and motivated team on the ground ensures your business adapts faster. This includes:
- Recruitment tailored to local labor markets
- Onboarding that integrates employees into your company culture
- Competitive compensation aligned with local standards
Additionally, companies often need to navigate probation periods, local benefits expectations, and different working styles.
Integrating Expat Employees
When companies send key people from HQ — such as General Managers — integration support is essential. This ranges from finding housing to navigating local bureaucracy for work permits and schooling options for families.
But it’s not just logistics — understanding local culture, business etiquette, and social norms is just as critical.
“Sending someone from HQ might seem like a shortcut, but cultural missteps can have lasting consequences,” notes Magnus Johansson, Partner at Senzor.
Consulting for International Expansion
The Pitfalls
Common Pitfalls in Setting Up Local Operations
- Assuming a top-performing HQ executive will easily adapt abroad
- Underestimating cultural and social integration needs for expats
- Choosing the wrong office location for visibility or accessibility
- Failing to establish a competitive employer brand in the new market
A Company’s Cultural Miscalculation in Austria
An international production company expanded into Austria and appointed a senior executive from HQ as General Manager. Confident that Vienna’s reputation as a highly livable city would ensure a smooth transition, they overlooked the deeper cultural nuances of Austrian business life.
The expat GM struggled with local negotiation styles, relationship-building expectations, and an indirect communication culture unfamiliar to them. These gaps led to strained partnerships and slow decision-making.
Only after engaging a local consultancy to support cultural adaptation and business etiquette did the company regain its footing — but precious time and momentum had already been lost.
Read more about our services for the production & manufacturing industry here.
Build with Confidence – Locally and Effectively
At Senzor, we help companies not just set up operations, but do so in a way that integrates seamlessly with the local environment. From office selection to executive integration, our support ensures your new presence is built to last.
Ready to build your presence in a new market?
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International Market Expansion:
Read More About the 4 Steps
Step 1: Preparation and Evaluation
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