One of the biggest challenges an Israeli company has is trying to expand past the very limited geography of Israel. A company that starts to sell a service or product in foreign markets has to take into account cultural differences, languages and added capital for investment.
First rule: Give it time and space. I have seen Israeli companies that pull the plug too fast, even when the business is headed in the right direction. Instead the management changes the personnel ruining what has already been done and effectively starting over.
Second rule: Hire good people. This may sound strange, but instead of following through on the dollars that are already to committed to the expansion, the executives cut the most important asset - the people that will run the new geography.
Third rule: Do not manage from afar. Though you do not want to smother the new operation, you do need to make sure that as a senior manager, you visit the new business. This accomplishes two things. One, it allows you to see firsthand what is really going on. Two, the fact that you are spending money and time to travel to the new business shows the level of commitment to the employees at the home office and to the newly hired remote workers.
Expansion is critical to any business and the limited resources of Israel dictate that global expansion is vital to any company. Just ensure you are managing the new business appropriately.
More to come next week.
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