Growing pains: How to conquer the French market

You’re conducting more and more of your business internationally, but physically taking your digital business abroad remains a tough feat. Sure, it’s the golden age of digital media, but starting a company or branching into Europe is a whole new ball game. Don’t get me wrong, it’s a fantastic idea and it could likely be the key to your business’ rapid growth. With so many digital start-ups blazing the way and backed by large European VCs, the European market definitely shouldn’t be overlooked. 

France, Germany, The Netherlands, Denmark, Sweden, Norway and Finland. These are just some of the European countries leading great digital infrastructure. In France, over 80% of the population are digitally connected. Emerging countries in Eastern Europe like Hungary or Slovenia are also breaking new ground, with success stories like Works.io and Pinegrow, a web-editing app that has recently sprouted up in Ljubljana and is now, for many, an indispensable tool for creating and managing their business’ website. 

With both JP Morgan opening recently in Paris and international frontrunners like Bank of America having bases in the centre of Paris, Amsterdam, Berlin, this European market is primed and ready for driven entrepreneurs who want to crack their way into Europe. Historically, the City of Light has always been seen as the gateway to Europe, and it’s no different for today’s dynamic business market. The French government is supporting accelerators like Guesswork, Airbus and many others by facilitating work visas and providing financial support to organisations like Station F, a startup campus in central Paris. 

Paris Charles de Gaulle Airport connects the French capital to over 319 cities around the globe, and with the Eurostar running right out of central Paris, the city boasts great connections to the rest of Europe. For international brands like Slack, Accenture or Salesforce, Paris is an unmissable step to move their business forward in the European market. But here comes the tricky part. Paris is the land of snails, croissants and being despised by waitstaff. People do things differently here. And it’s these cultural differences that are so crucial to understand if you want to succeed in a market like this. For most countries, these cultural divides aren't the be-all or end-all of doing business, but as Erin Myers explains in The Culture Map, to do business in Europe, you need to understand how a country’s particular culture might affect the management style that’s required to effectively run a business. 

Working with local teams is key. These should be teams that understand French culture on an entrepreneurial level, but also who people who get your business and who understand what you need to do to succeed. But this is easier said than done. Of course, there’s the language barrier, but it’s easy enough to find recruits that speak the local language. What’s perhaps more crucial to understand is the local competition, legal and fiscal issues and the pace of the local market - not every market is created equal. You might have to hire a few frogs before you find your perfect team. That being said, you can save up the stories of how you hired and fired 6 different managers before you finally found the right person - they make for great conversation at work Christmas parties. 

Maybe I’m just too Dutch and practical, but I think it’s important to really get to know the market before you throw yourself, and your business, into the deep end. I’d rather avoid holes in the road than just plow on over them. My goal is to get to my destination without using a spare tyre. 

There are huge monetary incentives to expand into foreign markets. For instance, in France, the Government provides fiscal support to independent SMEs and start-ups, exempting them from personal and corporate income tax in their first financial year. Other new businesses may be entitled to tax relief on their profit in their first year of operation, or if your business spends money on research you may be entitled to Government tax credits. Part of what we do at Finest People is help companies, like yours, find their feet in this highly competitive market. We have a global perspective and are based right in the centre of Paris, in the heart of the city’s digital start-up culture. 

We work alongside VCs, tech founders, start-ups, analyst CTOs, VPs of sales and lots of driven young talents. We’ve done Paris and we’re ready to help you in your ventures. Feel free to reach out and I’ll forward you a PDF with my advice, and my own mistakes that I’ve gathered in my research of accountants, offices, lawyers, establishing a legal entity, job contracts and the good restaurants that I’ve discovered along the way. 

It’s definitely not going to be easy, but expanding into a new market is an exciting new chapter in your business’ life. We’re excited to help you grow your team in Paris, and we hope you are too. 

Please feel free to connect with me on Linkedin.

Karel-Oscar