D-Congress Wrap Up: Experts' do's and don’ts when scaling globally

Expanding globally is an exciting opportunity for companies, but it’s often a complex journey filled with potential pitfalls. To increase your chances of success, it's important to learn from the experiences of others and avoid the most common mistakes. At D-Congress, the expert panel — Samir El-Sabini, CEO and co-founder of Juni; Adeline Sterner, CEO, investor and advisor; and Daniel Djurdjevic, CEO and co-founder of CHIMI — discussed the topic and shared their top advice for successful expansion. Check out the experts’ do’s and don’ts below.

Do’s: What you should do to succeed globally

Lay the foundation with research to understand your global playing field

Thorough research is crucial. When entering a new market, you need to understand the cultural, economic, legal, and logistical differences. It's about understanding how people think, what they value, how business is conducted, and the regulations governing the market. This was a key focus for CHIMI when they built the company in Sweden and later expanded globally.

“What made CHIMI successful in Sweden is local knowhow. And if you look at it from the other point of view, I'd say that local know-how internationally, especially when it comes to logistics, operations and marketing are the main challenges to scale the brand rapidly across new markets,” says Daniel Djurdjevic.

Build a strong and profitable foundation in your home market first

CHIMI also focused on having a strong product in the Swedish market before expanding globally. Just like them, you should ensure your base is solid and your business is thriving locally before going international. Samir El-Sabini emphasise this:

“We see many companies where it’s obvious they haven’t done their homework in Sweden. You should start where you are and make sure to build the most efficient operations and a financial buffer before expanding,” says Samir.

Make detailed financial forecasts to secure cash flow

To avoid cash flow issues during the often costly global expansion, it’s vital to have detailed and realistic financial forecasting — to understand cash flow and plan for increased expenses. As Samir puts it:

“It starts with forecasting. When we at Juni help companies, we put a lot of effort into understanding what their actual reality looks like, what they're planning for and how they are planning. For most companies, that’s where the hard work lies — understanding the cash flow. In many cases, from what I’ve seen, companies underestimate the cost of expansion and how strained their cash flow will become. So forecasting is extremely important,  you need to know your numbers.”

Test and learn continuously

Start small, test various strategies, analyse the results carefully, and adjust your plan based on what works. By continuously collecting and analysing data, you learn what works and what doesn’t, and adjust accordingly. This helps minimise losses and maximise returns.

Adeline Sterner noted that this is much easier today thanks to available tools:

“In the past, internal discussions often focused on which market to choose and how much capital was needed to scale there. But I believe that with today’s capabilities, you can test the waters much more thoroughly before making big decisions.”

Foster an AI positive culture in your organisation

To maximise efficiency and leverage AI in global expansion, it’s important to build a positive attitude toward the technology throughout the company.

“If you’re an existing brand with an existing organisation, you need to kind of foster an AI positive culture. I see many companies where people are afraid of AI, afraid of being replaced. But if you become someone in a company who’s really skilled at AI,  for example, transforming content and automatically translating it into 10 languages — you’ll be invaluable. AI won’t take your job,” says Adeline.

Don’ts: What to Avoid to Minimise Risks

Don’t underestimate the complexity of international expansion

Expanding internationally isn’t just about shipping products abroad and receiving payments. Financial processes become much more complex and require a deeper understanding of international economics.

“It’s very complex, and I think many companies underestimate that. You’re dealing with different currencies depending on the market you’re trying to join and win. There are different languages, payment rails, and customer behaviours. On top of that come different tax rules, and if you’re outside the EU — in our case, outside Sweden — different currencies. All of that creates challenges when investing in a new market. You have to keep all of that in mind,” says Samir.

Don’t scale without unit economics

Avoid trying to expand if your core business model isn’t profitable at the product level. Scaling an unprofitable business will only magnify the losses.

“I’d say the biggest red flag for me is a company without solid unit economics. You’re trying to scale something that will just cost too much. You have to nail the unit economics first,  only then can you look at scaling globally,” says Adeline, and adds:

“You have to look at the entire P&L obviously, but if you don’t have the right gross margin, it’s going to be hard.”

Don’t have unrealistic expectations for fast return on investment

Expanding to a new market isn’t a quick fix for boosting sales. It takes time to build a brand, create awareness, and establish a loyal customer base.

“Entrepreneurs are hopeful and optimistic, and I’m very hopeful and optimistic myself, but it’s extremely important to be efficient and honest about how much you can invest and how long it’ll take. Usually, it takes much longer to win a market than you want it to,” Samir  says.

Don’t spread your resources too thin across too many markets

Trying to enter too many markets at once, without a clear strategy or sufficient resources for each, can lead to diluted efforts, inefficiency, and high costs. Samir warns:

“You should rather do a few tests that you have the patience and cash flow to sustain, rather than spread too thin.”

Adeline agrees and emphasises the importance of not forcing yourself into markets without initial demand or interest in your product or brand.

“Try to see where the traction and the pull comes from. You could, for example, send products to influencers, see where it works and then work with that pull,” says Adeline.

Don’t be afraid to seek help and advice

Expanding globally is an exciting opportunity, but also a complex challenge. It’s wise not to be afraid to seek help and advice. Experienced experts and available resources can guide you through pitfalls and help maximise your chances of success. Their insights on markets, regulations, and strategies are invaluable.

At Juni, we understand the financial aspects of global expansion and are happy to support your international journey. We offer financial products that simplify handling complex transactions and optimise your cash flow, such as business cards and accounts in multiple currencies. Feel free to contact us to discuss how we can support your global journey.