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Starting local or global?


#1

Hi guys,

We’re working on a new startup that will aim to be a sort of marketplace of services (similar to Freelancer.com). Our home market is quite good and rich, but we were wondering whether we should start locally or go global from day 1.

We offer a brokerage service (the platform, basically) and services are sellable online or through the phone. So we don’t really need to be physically anywhere for client meetings or raise investment - we will self fund.

What’s the risk of going global straight away? What would you do?


#2

If it’s dependent in any way on the geographical density of users, start local.

The reason for this is that the pervasiveness of your marketing efforts affects the ratio at which people hear about and become interested in using your stuff. If you spread that all over the world then spread adoption all over the world, the user density is ~0 for most people. If you focus it on something small like a neighborhood or a college campus…it’s much easier to reach useful user density.


#3

@grayj, I agree with you. There is this classic book on the subject: Crossing the Chasm of Geoffrey Moore.


#4

Thanks guys for your opinion. @grayj we might startoff with a regional domain just to test the market out, and once we get decent traction go global.

@fredguth That sounds an interesting book