Key indicators for expanding your business internationally

Each stage of your international business expansion — whether it’s making your first export, establishing a local presence or scaling operations — requires a specific strategy. But which metrics matter most? And how does your approach shape your company’s structure and organisation? 

Explore these questions and more with insights from Arnaud Caudoux, Deputy CEO at Bpifrance, Marie Crevoisier, CFO at Baudoin Engines, Ivo Mertens, Chief Revenue Officer at iBanFirst, and Xavier Lazarus, Co-founder of the investment firm Elaia.

Looking to expand internationally? Now’s a good time! 

“Now is a good time to start exporting”, says Arnaud Caudoux, kicking off the roundtable discussion. “Despite a complex global and geopolitical landscape, certain factors remain favourable. There are markets growing at a faster pace than Europe and there are financial advantages to this — interest rates have come down and the euro remains relatively weak. Businesses should take advantage of these conditions." 

Moving from one-time exporter to consistent market player 

Many small and medium-sized businesses start exporting based on one-off opportunities but fail to build on that initial step. And yet, the first sale is often the hardest. Chances are, there’s untapped potential just waiting to be explored. The key is to capitalise on it. 

So how can you build on this momentum? Start by developing long-term structures and strategies. This is where Bpifrance can support you. Consider exporting through your network and leveraging dedicated expertise and resources, such as those provided by the Chamber of Commerce and Business France. 

Beyond that, it’s about consistency; Investing in sales efforts, understanding how guarantees, insurance and financing can work in your favour, and finding ways to manage risk as effectively as possible.

Managing currency risk and cash flow volatility 

"Foreign exchange market volatility is back, and at unprecedented levels," warns Ivo Mertens. Businesses must get a handle on this risk by maintaining cash flow visibility — both overall trends and the types of cash flow being generated. Another key approach is netting, a method of offsetting incoming and outgoing foreign currency transactions to reduce both the number and volume of currency exchanges required. 

Marie Crevoisier, whose company conducts 90% of its business through export, emphasises that: "FX risk exposure is one of the top priorities to manage — not just to mitigate it, but to optimise it." This requires both strong internal expertise and strategic partnerships to achieve better outcomes and avoid costly missteps. Xavier Lazarus reinforced this point: "If currency conversion is done too early, or if payments arrive too late, the resulting cash flow fluctuation can exceed the equivalent of two years’ salary for a top-tier CFO — or the cost of using a service like iBanFirst." 

The CEO and CFO: Pilot and co-pilot of international expansion 

When it comes to crafting an export strategy, Xavier Lazarus compares the CEO and CFO to a pilot and co-pilot: The CEO sets the course, the CFO focuses on key indicators tied to the company’s business model. 

For businesses that rely on subscriptions and repeat customers, the two most crucial metrics to consider are: 

• The cost of acquiring new customers relative to their lifetime value 

• The repeat purchase rate of existing customers, which drives sustainable growth 

Together, these indicators provide insight into profitability (EBITDA), the effectiveness of investments, and long-term growth potential

Export disrupts traditional performance metrics 

Businesses often expand internationally once their domestic market reaches saturation. However, entering new markets — especially without launching new products — can distort key performance indicators. Initial sales costs tend to be higher and product adaptation may be necessary. But export remains one of the best ways to unlock future growth. Business leaders must factor customer acquisition costs and the risks of non-payment into their strategies. Two elements are crucial here: Know your country and know your customer. On both fronts, businesses have a lot to gain from external expertise, such as credit insurers.

Cultural differences matter: Insights from China and India 

Depending on the country and product strategy, a business may need to choose between simply exporting, setting up a local presence or entering into joint ventures — a practical but risky option, as we’ve seen in China. 

"Understanding local business culture is often a key success factor," notes Ivo Mertens. In India, for example, signing a contract doesn’t necessarily indicate a firm commitment. "Until payment is made, the contract is merely the beginning of a process," explains Xavier Lazarus, who encourages businesses to secure deposits before investing in sales efforts or sharing sensitive assets like software code. “This isn’t an issue of currency or financial systems — it’s a matter of cultural understanding.” 

And for markets that are culturally easier to navigate, businesses should differentiate between short-term currency fluctuations and long-term economic conditions. A favourable exchange rate may lower a product’s cost but doesn’t inherently make it more competitive.

Aligning your strategy with local tax and regulatory frameworks

When expanding internationally, tax considerations play a key role. Companies must decide whether to bill clients from their home country or through a local subsidiary, as this can impact transfer costs, VAT and overall tax obligations. 

"These are critical factors when expanding global operations," notes Marie Crevoisier. Ensuring compliance while identifying potential tax advantages requires strategic planning. 

Monitoring and managing country risk 

Political, economic and diplomatic events can have ripple effects across markets. From US-China trade relations to EU regulatory changes, businesses must track developments that could impact their operations.

"This means structuring market intelligence efforts across finance, credit management and sales teams responsible for key markets," says Marie Crevoisier. While monitoring doesn’t require immediate strategic shifts, it enables businesses to anticipate and mitigate risks. Beyond internal expertise, consider partnering with credit insurers and financial institutions and adopting the right digital tools. 

Talent acquisition: Building the right team for international success 

Going global doesn’t always mean setting up a physical presence abroad but does require local expertise. Hiring professionals who understand the target market’s business culture, regulations and payment systems is crucial, even for nearby countries like Italy. 

When it comes to international recruitment, make it clear when there are specific language requirements. English is an obvious example, as it’s a necessity for interactions between various nationalities. New hires should be open-minded and respectful to people from other cultures. So look out for multilingual profiles! 

A multicultural team shouldn’t be seen as an obstacle but as an asset that enhances your global operations.

These discussions took place during a roundtable event at the iBanFirst Summit 2024 in Paris. To catch the conversation and the Q&A session in full, watch a replay of the iBanFirst Summit 2024 here.