launching startup: locally vs international
I have a site I am launching within the next couple of weeks. The site will be providing a service to connect people locally within there region (city,state etc..).
The question is, should I launch a US only service vs Internationally? Why or why not? I am leaning to launch locally, aka within the US, and not globally. It seams like a lot of US start-ups work this way as well, getting feedback from there very local launches that are confined to a city or state, or the US in General.
For product based businesses I understand the reasoning behind this as they have a physical product to ship and logistics quickly become an issue.
Though for a online software service is there any reason why I should just confine my self to the USA?
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Interesting question. Of course, it depends what it is, but you may not be able to extrapolate your USA experience overseas, due to differing cultures, expectations, etc. The real issue you'll face is the "Empty Site", where you have no users, because you have no users. This is why people tend to launch locally at first, so that they can concentrate marketing on a small city, then the nearby ones, then a state, then a country and finally expand overseas. – Steve Jones 11 years ago
2 Answers
a service to connect people locally within there regionYou should launch with a narrow focus. That may be a narrow geographical scope (one smaller city), or perhaps just a narrow vertical (a segment with a shared interest or occupation).
When launching a startup like that, you're looking for a specific aspect of network effects : You're looking for new users to be drawn into the service because the network value of the already existing user base is large enough. When done correctly, this can lead to a self-reinforcing virtuous cycle -- but it requires a certain critical initial mass.
Therefore you should start with a narrow focus, on a specific segment of users to whom you can provide real value, in order to obtain critical mass.
It's a worn metaphor, but still true: Think of how Facebook initially concentrated on college kids, and since expanded outside that initial segment.
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Yeah, very good point. I feel there is a draw try move toward a larger market when starting as to get feedback quicker but most likely this will just dilute efforts to hone the core of the business. – Justin 11 years ago
I would say there are two reasons for staying local. Business and logistics.
Business: You do not know if this site is going to be a success. You don't know what the best/worst features are and you don't know if there is a proven market for your product. Even if you have done research in the US I doubt you have much global market data. You can always expand if the market is there or the site takes off.
Logistically: Will your site be as valuable to non English speakers? Do you have the resources to support a global customer/visitor base? Do you have the time to spend making it global?
You can always expand and your new markets will thank you but give them a bad product the first time around and they'll never forgive you.
