Your board wants you in Germany. Sales found one customer in France. Marketing sees search volume in Japan. Everyone has opinions about which markets to enter and when.
But no one is asking the critical question: Are these markets actually ready for us?
Market readiness isn't about market size or growth rates. It's about whether you can win today with what you have. Enter too early, you burn cash teaching a market that isn't ready to buy. Enter too late, competitors own it.
Here's the framework I use to assess market readiness and time entry.
The Market Readiness Framework
Market readiness = Market factors × Product fit × Operational capacity
All three must be green before entry. One red flag means delay.
Dimension 1: Market Factors (Is the market ready for any solution?)
Problem awareness: Do buyers know they have the problem you solve?
Green: Active searches, buyers asking for solutions, existing market for similar products
Yellow: Problem exists but buyers don't recognize it yet
Red: You need to educate market on problem before you can sell
Example: Project management software in US (green—everyone knows they need it) vs project management SaaS in rural India 2010 (red—still using spreadsheets, don't see problem).
Buying sophistication: Are buyers ready to buy software solutions?
Green: Market has adopted SaaS, comfortable buying online, credit cards common
Yellow: Traditional procurement, prefer on-premise, need education
Red: Pre-digital, cash-based, high tech skepticism
Competitive validation: Have others proven market viability?
Green: 3+ funded competitors, growing successfully
Yellow: 1-2 competitors, unclear if sustainable
Red: No competitors (could mean opportunity, could mean no market)
Assessment tool:
- Search volume for problem keywords (Google Trends)
- Competitor presence and funding (Crunchbase)
- SaaS adoption rates (industry reports)
- Customer interviews (5-10 prospects in market)
Dimension 2: Product Fit (Is the market ready for YOUR solution?)
Localization completeness: Can customers actually use your product?
Minimum viable localization:
- UI translated to local language
- Currency support (billing in local currency)
- Compliance met (GDPR, data localization)
- Payment methods (local options like SEPA, UPI)
- Customer support (local language, reasonable hours)
Not required for entry but needed for scale:
- Local data residency
- Local partnerships
- Market-specific features
Red flag: Launching with English-only product in non-English market.
Competitive differentiation: Do you win against local alternatives?
Test through: Customer interviews, competitive analysis, demo comparisons
Green: Clear differentiation, buyers choose you over local options
Yellow: Comparable to locals, win on some dimensions
Red: Local alternatives better/cheaper, no clear reason to choose you
Value proposition resonance: Does your message work in this market?
Test through: Message testing with 10-15 local prospects
Green: "This solves my exact problem"
Yellow: "Interesting but not urgent"
Red: "Don't see how this helps"
Dimension 3: Operational Capacity (Are you ready to enter?)
Resource commitment: Can you dedicate enough to win?
Minimum resources for market entry:
- $250K-500K budget (first year)
- 1-2 dedicated team members (sales/marketing)
- Executive sponsor (someone accountable)
- 6-12 month commitment (can't quit after 3 months)
Red flag: "We'll test it with no dedicated resources."
Go-to-market channel: Can you reach and sell to customers?
Green: Clear path to customers (direct sales works, or strong partner identified)
Yellow: Hypothesis about how to reach customers, needs testing
Red: No idea how to find or close customers in this market
Local expertise: Do you have local market knowledge?
Options:
- Hire local team member
- Work with local advisor/consultant
- Partner with local company
- Remote team with market experience
Red flag: No local expertise, making decisions from HQ in different market.
The Readiness Scorecard
Score each dimension 1-5:
Market Factors:
- Problem awareness: ___
- Buying sophistication: ___
- Competitive validation: ___
Product Fit:
- Localization completeness: ___
- Competitive differentiation: ___
- Value proposition resonance: ___
Operational Capacity:
- Resource commitment: ___
- GTM channel clarity: ___
- Local expertise: ___
Total: ___/45
Decision framework:
- 35-45: Market is ready, enter now
- 25-34: Market has potential, validate further before committing
- Below 25: Market not ready, delay entry
The Market Entry Timing Decision
Too early indicators:
- Scoring below 25 on readiness scorecard
- Less than 50 organic signups per month from market
- No local competitors (might mean no market)
- Can't afford minimum viable resources
- Core market not yet saturated
Enter anyway if: True first-mover advantage, strategic importance, willing to invest in market creation.
Perfect timing indicators:
- Scoring 35+ on readiness scorecard
- 100+ organic signups monthly
- 2-3 growing competitors (validates market)
- Clear customer demand and willingness to pay
- Resources available without harming core market
Too late indicators:
- 5+ entrenched competitors
- Market leader has >50% share
- High customer acquisition costs
- Customers have already chosen solutions
Enter anyway if: Differentiated enough to win despite competition, large enough market for multiple winners.
Practical Application: Real Example
Company: B2B SaaS analytics tool, successful in US
Evaluating: Germany entry, 2024
Market Factors:
- Problem awareness: 4/5 (analytics understood, active searches)
- Buying sophistication: 4/5 (German companies buy SaaS)
- Competitive validation: 3/5 (2 local competitors growing)
- Subtotal: 11/15
Product Fit:
- Localization: 4/5 (German UI, EUR pricing, GDPR compliant)
- Differentiation: 4/5 (AI features competitors lack)
- Message resonance: 3/5 (tested with 10 prospects, positive)
- Subtotal: 11/15
Operational Capacity:
- Resources: 4/5 ($400K budget, 2 German team members)
- GTM channel: 3/5 (direct sales worked in US, testing in Germany)
- Local expertise: 4/5 (hired German sales rep, PMM consultant)
- Subtotal: 11/15
Total: 33/45 → Proceed with market entry
Common Readiness Mistakes
Mistake 1: Confusing market size with market readiness
"Germany is the largest European economy" ≠ "Germany is ready for our product"
Large market + unready buyers = expensive failure.
Mistake 2: Entering with partial localization
English product, USD pricing, no local support = "We're testing Germany"
Half-measures signal you're not serious. Customers choose local alternatives.
Mistake 3: No resource commitment
"US team will handle Germany" = failure.
Markets need dedicated focus. Half-hearted entry wastes money.
Mistake 4: Ignoring operational capacity
Perfect market, great product fit, but no local team or GTM plan.
Can't execute = can't win.
Making It Work
Quarter 1: Assess market readiness
- Score all dimensions
- Interview 10-15 local prospects
- Analyze competitors
- Calculate required resources
Quarter 2: If scoring 25+, validate further
- Run small paid marketing test ($10-20K)
- Close 3-5 paying customers
- Measure unit economics
- Confirm assumptions
Quarter 3: If validation successful, commit
- Hire local team
- Full localization
- Launch go-to-market
- Dedicated budget and resources
If scoring below 25: Delay. Revisit in 6 months. Test criteria again.
Market readiness determines success. Assess honestly. Enter when ready. Don't rush into unready markets just because they're big or everyone else is there.
The best market entry is the one you're actually ready to win.