How to Expand Internationally Through the Channel Ecosystem

channelWise Team • September 28, 2023

Replay:

Expanding a business internationally is a coveted goal that brings with it a promise of new markets, diverse customer bases, and heightened profitability. However, the path is littered with challenges and complexities, especially in Asia. 


In our previous episode of Ask the Expert Live, Kathryn Rose, CEO and founder of channelWise, interviewed Ananth Lazarus, founder & president of Partner Plexus, who delved deep into the topic of international expansion, leveraging his extensive experience and profound knowledge of channel ecosystems.

Here, Ananth provided a nuanced understanding of market trends, operational models, and the crucial role of local partnerships in creating sustainable ecosystems in the region.


Highlights:

  • The Asia-Pacific region is a lucrative business market, but successful expansion requires understanding diverse cultures and leveraging local partner ecosystems to navigate varied laws and economic landscapes.

  • Partner Plexus and Managed Service Providers are instrumental in creating sustainable ecosystems and offering cohesive, flexible solutions in the Asia-Pacific, especially in mature markets like Australia, New Zealand, and Singapore.

  • Effective models for expansion include fractional partner leadership and exclusive partnerships, which allow companies to minimize risk and optimize growth while addressing regional trends and maintaining relevance in a rapidly evolving industry.


What Makes the Asia-Pacific Region a Fertile Ground for Channel Businesses?


The Asia-Pacific region is a land of sheer opportunity and a massive market, rendering it a fertile ground for channel businesses. Several countries here have rapidly maturing economies, growing at a pace unprecedented in the West. The prevalent appetite for technology in this region is continuously expanding, and the investments in legacy systems are comparatively minimal. This scenario provides a unique advantage, allowing for the initiation and adoption of a new generation of technology at a much higher pace and scale.


What are the Challenges Encountered When Expanding Internationally, Especially in the Diverse Asia-Pacific Region?


Expanding internationally, particularly in the Asia-Pacific region, presents significant challenges. A prevalent mistake is viewing Asia as homogeneous—it’s far from it. Macroeconomic factors like the political environment, population, GDP, and technology adoption rates vary enormously across different countries in this region. Internet penetration is also notably disparate; some areas boast the fastest internet bandwidths, while others lag significantly. Understanding and respecting each country's cultures, distinct nuances, and languages are crucial when considering an entry into these diverse markets.


How Should Companies Prioritize Specific Areas for International Expansion Within the Asia-Pacific Region?


Beyond considering the challenges I mentioned, it essentially boils down to understanding the foundational cultural differences and navigating each country's complex, varied laws. Evaluating the opportunities and competition level in each country is crucial; in some, the competition is extremely intense, and introducing an international player can face numerous barriers, including trust. Furthermore, acquiring quality talent is invariably challenging as your company might be unknown in this part of the world despite having a brand presence elsewhere.


Is Leveraging the Partner Ecosystem a Viable Route for Companies Aiming to Expand in the Asia-Pacific Region?


Absolutely, leveraging the partner ecosystem is paramount when considering international expansion. Planting your flag internationally poses significant risks, and deciding where and how to do so can be daunting. Leveraging partners closer to customers in the region who have been working with them for years can catalyze quicker market entry. This approach also minimizes risk, reduces costs, and alleviates the challenge of recruiting suitable talent over time, making it a strategically advantageous route.


How Does Partner Plexus Aid Companies in Identifying Suitable Ecosystem Partners in the Asia-Pacific Region, and What is the Role of MSPs in these Markets?


Partner Plexus helps companies create sustainable ecosystems in the Asia-Pacific region by initiating a phase of discovery and foundation. We delve deep into understanding who the ideal customer is and who they currently purchase from, and consequently, determine the ideal partner profile, considering the distinct market needs of various countries in the region.


MSPs, or Managed Service Providers, indeed play a pivotal role in mature markets within the region, where they are not just thriving but accelerating, particularly in countries like Australia, New Zealand, and Singapore. The perception and adoption of MSPs vary across the region, depending on market maturity. In mature markets, companies moving towards the cloud are gravitating towards MSPs, seeking a cohesive and flexible approach to bringing everything together. This trend is evident with the success of big international names like NTT in the region, symbolizing the market’s shift towards integrated and adaptable solutions.


Can You Share Examples That Have Worked for Companies Successfully Expanding into the Asia-Pacific Region?


There are primarily two models that we have observed to be most resonant and successful for companies aiming to penetrate the Asia-Pacific market: fractional partner leadership and exclusive partnerships.


Fractional Partner Leadership:

  • In this model, companies, especially those unknown in the region, can leverage seasoned local partners backed by an organization with a systematic approach and their own intellectual property. This allows companies to attract top-notch practitioners and minimize risk. It enables companies to “test before they invest,” helping them make informed decisions without committing extensive resources immediately.

Exclusive Partnerships:

  • Some companies opt to form exclusive partnerships with specific companies in the region. In this arrangement, both parties have clear expectations and mutual benefits (“gives gets”). We assist companies in managing and optimizing these partnerships to ensure sustainable high growth and business development in the region.


These models are especially effective as they consider the region's unique landscape, allowing companies to adapt and grow sustainably.


What are some of the trends you are observing in the Asia-Pacific market?


In the Asia-Pacific market, several discernible trends align with global patterns but with unique regional specifics:


Value and Innovation:

  • Companies in the region are willing to pay for value and innovation. As these companies are evolving and growing at a faster pace than those in other parts of the world, it is crucial for vendors and partners to keep pace and continue to innovate to assist in the transformation of these companies.


Openness to International Competition:

  • Most places are not averse to international competition, especially when companies enter the market in tandem with a partner who understands the local business landscape.


Country Prioritization:

  • While Singapore is seen as the gateway to the Asia-Pacific, planting the flag there alone won’t suffice. It’s important to conduct thorough analyses on where to expand next, considering the strength and local relevance of the solution, scalability, competition, and the pace of innovation.


Relevance and Industry Changes:

  • Given that the industry evolves by the day, maintaining relevance is pivotal. Vendors and partners must be vigilant about the rapid changes in the industry and adjust their strategies accordingly.


Addressing these trends effectively requires a comprehensive understanding of the market, consideration of local nuances, and a tailored, strategic approach to expansion and partnership.


Why did you decide to join channelWise?


I decided to join channelWise because I see it as a fantastic platform. What attracted me is my passion for all things channel ecosystem, and I perceive there's a lack of knowledge on how the channel can be a force multiplier. I believe it's crucial to impart knowledge to companies, be they startups or midsize, to leverage the channel ecosystem and scale. I view the channel as a remarkable route to market and am fervent about helping companies navigate it effectively. It’s significant to work with practitioners who have been there, done that, and know the lay of the land instead of just consultants to ensure companies are not just introduced to partners but are also assisted in the execution of this journey.


For more advice about international expansion, visit Ananth's profile on channelwise.

Check out channelWise.com to find more experts to help you with your business or career.


Note: Transcript is edited for time and clarity.

What free or low-cost tools can help me market my MSP business?

By The ChannelPro Network in Collaboration with the channelWise Team • February 12, 2024
One of the biggest marketing challenges I see with managed services providers is identifying the right marketing channels and tactics. Navigating the maze of marketing tools can be a daunting task for MSPs. Here are some of my favorite tools that won’t have you digging deep into your pockets:  Interview Your Ideal Clients Have you ever thought about simply having a chat with your ideal clients? It’s a classic, cost-effective way to understand what your clients really need and want. Engaging them in interviews can unveil their preferences, needs, and challenges straight from the horse’s mouth. And it’s free. Incorporate Tools Like ChatGPT AI has been making waves in the marketing sphere, and one tool that stands out is ChatGPT. This multipurpose tool can assist with content creation, SEO optimization, email marketing support, and more. Start with a free plan, and if it meets your needs, the paid plans kick off at $20 per month. Google Analytics & Search Console For a deeper dive into your website’s performance, Google Analytics is your go-to tool. It’s a treasure trove of data, offering insights into traffic, user behavior, and the effectiveness of your marketing campaigns – all for zero cost. Alongside it, Google Search Console can be your ally in optimizing your site’s visibility on Google, also without costing a dime. Try Ubersuggest SEO is a linchpin for online visibility, and Ubersuggest is a solid, budget-friendly option for keyword research, site audits, and competitive analysis. It has a free version, but its paid plans are competitively priced starting at $29 per month or a one-time payment of $290. Shore Up on LinkedIn LinkedIn, the haven for B2B marketing, is a social media platform you shouldn’t overlook. It’s a formidable space for networking, sharing insights, and flaunting your MSP services to a professional audience. Basic usage is free, but if you fancy more features, premium plans are available at a cost. Email Marketing Despite being a veteran in the digital marketing arena, email marketing still holds its ground as a cost-effective channel. Platforms like Active Campaign, Mailerlite, Mailchimp, ConvertKit, and Aweber are notable mentions. Their pricing starts at $10 to $20 monthly. Incorporating these tools can serve as a catalyst in refining your marketing operations, understanding your audience better, and fostering a stronger connection with them without burning a hole in your pocket.

Diversity matters to me, but there isn’t a lot of it on our team. Is that going to hurt us with customers?

By The ChannelPro Network in Collaboration with channelWise • February 12, 2024
Today’s customers want to see themselves reflected in the companies they support. Research has shown that a lack of diversity within teams is detrimental to business development and customer relationships, especially when your customer base is diverse.  The primary reason that diverse teams are critical to the success of client engagement is due to the unique experiences and intersectionality of the varied perspectives each team member brings to the table. This opens the door to more creativity and improved problem solving that your customers expect from you, which leads to greater customer satisfaction. Your ability to connect with customers thrives on your capacity to deliver fresh perspectives and how well you anticipate and respond to their needs. The more your team is representative of the markets they serve, the more valuable their insights become – and you can create better solutions for your client. Lack of Diversity Stifles Progress Consider the backlash experienced by big brands that create racially or culturally insensitive ads or products. Chances are no one with a varied perspective was present in strategy meetings to challenge the status quo. Perhaps you have personally experienced a client interaction where you or a peer unwittingly disregarded the position and authority of the primary decision maker based on their race, age, gender, or other misguided assumptions due to a lack of cultural competence. It happens all the time but it doesn’t have to. Diversity is less about how a person looks or where they come from; it’s more about valuing different points of view and being open to exploring new ways of thinking. It’s about integrating diversity of thought, which comes from the unique backgrounds and experiences of diverse individuals. By contrast, homogeneous teams are composed of individuals with similar backgrounds, perspectives, and experiences, which often subjects them to groupthink, blinds them to new opportunities, and hinders exploration of unconventional approaches. Thus, you’ve inadvertently stifled the very progress you aim to achieve. Create Your DEI Strategy As you plan your next client interaction or strategy meeting, ask yourself these questions: How well do we understand the unique needs, preferences, and challenges of diverse customer segments and/or buyers? Which team members’ perspectives are missing? Why are they not in the room? How can we adjust our thinking to better connect with our clients and their needs? The responses to these questions position you to address the gaps, better relate to your customers and their unique challenges, and help them innovate. A diverse team is better equipped to do just that.

We are too small for an operations manager. How do we streamline inefficient workflows with limited time?

By The ChannelPro Network in Collaboration with channelWise • February 12, 2024
I see this problem all the time: You’re overworked, can’t keep up with tickets, the phone is ringing, and there is no time for anything other than fighting to keep your head above water. However, if you don’t change anything, you will never break free. Even hiring an office manager won’t help because if you haven’t taken the steps to create a business machine, they’ll end up increasing your workload rather than reducing it. So, how do you create a machine? Here are some recommendations. Focus Your Operations Start by streamlining workflows through repeatable processes, then document them as you work. The most common source of inefficiency is solving many problems for many kinds of customers. You will be spread very thin and will never catch up if you work with accountants who have issues with Thomson Reuters, QuickBooks, and Liscio; doctors who struggle with Epic; and architects who need to make Papercut and AutoCAD work. The key to mechanization is focus. Get spectacular at solving a few critical problems for very specific markets. Focus cuts work out of your process and reduces work throughout the business. Make Time to Document A lack of time is a problem for many businesses, but you don’t have time to not document. Undocumented processes take two to three times longer to complete – sometimes much more – because you figure it out each time. A lack of documentation is why hiring an office manager won’t help. One of my clients passionately resisted documentation. They were drowning in tickets, unsatisfied customers, and unfinished projects. They also suffered from a lack of sleep. Documenting the first process was hard, but now, they have 5,000 processes documented. Trailing tickets were reduced by 93%, revenue tripled, they hired a team that delivers impressive results, and they take vacations without their phones. Use Automation Tools The third piece is automation. But you cannot automate a process you haven’t defined. That creates a mess and endless work. Once you have something defined, automate it. PSAs and RMMs have self-healing scripts and scripts for common problems that can save oodles of time. Ensure you set proper thresholds so you can detect issues before they escalate. This takes out randomness. Automate ticket assignments and responses, and create canned answers for the top 50 things your techs respond to. Plus, with open APIs, compatible tools, and tools like Zapier, you can automate an almost endless list of routine office tasks: Proposal creation and delivery Follow-up processes QBR (SBR) scheduling Sending birthday cards  By incorporating these strategies, even time-strapped small companies can reduce burdensome workloads.

When should I upgrade my website?

By The ChannelPro Network in Collaboration with channelWise • February 12, 2024
When you’re trying to determine if it’s time to upgrade your company’s website, it’s important to first understand if your website works for you. Is it driving leads? More importantly, are those leads turning into clients? If so, then you are probably good. But if you’re like most of the 400-plus MSPs’ websites I reviewed over the last two years, then you probably are not getting the results you should be getting. But before you go near a keyboard or mouse – or worse, hire someone to redo your site – the fundamental questions around proposition, direction, and target market need to be answered. Making the decision to rebuild a site is so much more than a design exercise. It’s an exercise in figuring out what your business is all about and where it’s headed. Think of your site as a storefront window. It’s where potential clients first encounter your brand, learn about your services, and, most importantly, decide whether they want to engage with your business. An outdated or ineffective website can have a significant impact on your ability to start those new conversations. So, when do you know it’s time for a new website? Here are some overall thoughts: Outdated Design  The visual appeal of your site plays a crucial role in attracting and retaining visitors. An outdated design can turn potential clients away. You only have one chance to make a first impression. If your site looks like it hasn’t seen an update in years, it’s probably time for a refresh. I’ve seen too many sites that look like they were designed when we were still sending faxes or are a barely customized template. It’s almost 2024. Don’t let that be yours. Ineffective Content, No SEO Your site’s content should be informative, engaging, and relevant to your target audience. It should be personal, too. It should tell stories about your business and how you’ve helped your clients. In addition, is your site getting traffic for local geographic search terms? Are you missing out on organic visitors? If SEO is non-existent. It’s time for a refresh. Low Conversion Rates If you’re getting visitors, but those contact forms are not coming through, then your calls to action aren’t doing their job. Make them clear and always sell your credibility on relevant landing pages. Talk to me if you’re not sure how to make that happen. Domain or Business Name You are what you are online. If your business can’t be found easily, change it. It’s that simple. Be unique. Be found. If you’ve noticed any of the signs flagged above, it likely is time to consider investing in a refresh.

Our Lead Engineer Says He’s Burned Out. Is There Anything I Can Do to Make Things Better?

By The ChannelPro Network in Collaboration with channelWise • February 12, 2024
As a leadership and coaching expert, my primary focus is on supporting individuals who experience burnout. Burnout is especially common in high-stress roles like engineering. However, there are several steps I recommend to make things better for your lead engineer . Foster Open Communication  It’s crucial to create a safe, nonjudgmental space where your lead engineer feels comfortable discussing their burnout and its underlying causes. By actively listening and showing empathy, you can help them feel heard and understood. Manage Expectations It’s important to review their workload and expectations. Burnout often stems from an overwhelming amount of work. Take the time to assess their responsibilities and workload, and identify areas where improvements can be made. This might involve redistributing tasks, delegating when possible, or even considering hiring additional resources to lighten the load. Work/Life Balance Encouraging work/life balance is another vital aspect. Help your lead engineer establish healthy boundaries by promoting regular breaks, time off, and the ability to disconnect from work during non-working hours. Demonstrating the importance of personal time and well-being through your own actions is key. Tools and Support Providing resources and support also is crucial. Ensure your lead engineer has the necessary tools and resources to perform their job effectively. Consider offering additional training, mentoring, or coaching to enhance their skills and boost their confidence. Employee assistance programs, counseling services, or wellness initiatives can also provide valuable support. The Culture Criteria Cultivating a positive work culture is essential in preventing burnout. Encourage collaboration, recognition, and appreciation among team members. Celebrate successes, share achievements, and foster an environment where everyone supports one another. Recognizing your lead engineer’s contributions and offering regular constructive feedback will contribute to a positive work environment. Empowerment Through Autonomy Promoting autonomy and flexibility can help combat burnout. Grant your lead engineer more control over their work whenever possible. Empowering them with decision-making authority and exploring flexible work arrangements, such as remote work or flexible hours, can improve their well-being and job satisfaction. Check In Often Regularly monitoring goals and revisiting them is crucial. Check in with your lead engineer frequently to assess their progress and adjust goals as needed. Collaboratively setting realistic and achievable targets, considering their workload and well-being, will help reduce overwhelm and increase motivation. Truly Listen to Feedback Seek feedback and be open to iteration. Ask your lead engineer for their insights, challenges, and suggestions for improvement. Involve them in finding solutions and implementing changes. Continuously assessing the effectiveness of the strategies you’ve implemented and adapting as needed is key to addressing burnout successfully. By implementing these strategies and demonstrating genuine care and support, you can create a healthier work environment that fosters well-being, productivity, and job satisfaction for your lead engineer and the entire team.

How do I attract more customers to my MSP?

By The ChannelPro Network in Collaboration with channelWise • February 12, 2024
There are two reasons why MSPs fail to attract prospects: Potential prospects don’t know you exist. Those who do know don’t understand that you solve a problem they have. Spending time, money, or resources on Point 1 is a waste without Point 2, so start there. The problem is that most MSPs sell something nobody wants to buy: IT services. Potential prospects have IT issues but are unaware that they are IT issues, aren’t interested in IT, and/or don’t speak tech. They don’t know how your IT services solve their problems. This leads to confusion and not buying. Overcoming Confusion So, how do you get uninterested potential customers attracted to your offerings? Answering these three questions can help you: Who is your target market? This can be a vertical, but a vertical often is too broad. So, it more likely will be a sub-part of a vertical. What problem do you solve for your target market using technology? This is an objective your target market has and a reason they can’t achieve it. They have business problems, not IT problems. How will you talk about it in their language? Use prescriptive sales: Start with the problem in their language, then accentuate the pain of the problem, present a solution, discuss the transformation, and make an offer. Without clear, tested, and optimized answers to these questions, you shouldn’t spend any money on advertising. It doesn’t work. So, answer the questions first. The good news is the answers make connecting with prospects easier. Instead of talking to everybody about something no one cares about, you speak to a specific audience about a problem vital to them. Right Place, Right Time The next step is to find prospective customers by going to where they are: Attend conferences and shows. If you solve a problem for dentists, go to dentistry conferences, not MSP conferences. Use social media. Identify 100 attractive prospects on LinkedIn, and target them with customized outreach through social media, mail, email, phone calls, and office visits. Add to the list as you close clients or eliminate someone as a prospect. If you spend money on awareness, spend money here. Network. Identify your top 250 contacts, make them aware of your target market and the problems you solve for them. Since what you do is no longer confusing, they can make introductions. Create content: Write for publications, newsletters, blogs, and whatever else you can find that your target market reads. Evolve into Marketing If you’ve answered the first three questions above and followed the next steps, you will attract customers. Once you’ve perfected your sales process, you can consider marketing. There are no silver bullets; there isn’t one thing you can do that magically works. I’ve tried it all; this is the strategy that works.
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