€500,000 lost in 5 Years: the real cost of unprepared
market entry.
You might think you're “just testing the market”: sending samples, translating a brochure, joining trade fairs occasionaly.
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But the hidden truth? Even a “light” test often becomes a quiet six-figure investment, without anyone noticing. Without a strategic frame, a project silently burns internal time, travel costs, budgets and focus.
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Years later, costs add up, traction rarely does.
If you've been testing a market with no momentum, it's time to step back and calculate what it already cost and what it really takes to succeed.
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A structured plan won’t make you spend more. It simply shows where you already are and helps you focus resources where they truly count.
Step-by-step: Method to estimate your true
market entry costs
​​​​​1. People Cost – Internal Time
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Start by estimating how many hours per month each key person is spending on this new market:
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Role / Hours per month/ Hourly Cost / Annual Total (EUR or USD)
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Example
​​​​​CEO or founder : 12h *150 € per hour = 21,600 €
Sales lead & marketing : 15h *100 € per hour = 18,000 €
Ops / admin : 10h * 60 € per hour = 7,200 €
Total internal time per year : 46,800 €
​
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Now multiply that by the number of years you've already been trying
or planning to try.​ Even modest involvement adds up to 6 figures over 3–5 years, just in internal energy.
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Example
Total internal time per year : 46,800 € * 5 years
= 234 000 €
​
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2. External Cost – Execution & Activation
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Add all your out-of-pocket costs linked to the market:
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Travel & trade fairs
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Local consultants or agents
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Translation & legal support
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Marketing material & sample production
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Product adaptation or compliance work
Make a list.
​Typical spend for an SME:
€30,000 to €70,000/year even with “limited” ambition.
​
Now multiply that by the number of years you've already been trying
or planning to try.​
​
Example
Total internal time per year : 30,000 € * 5 years
= 150 000 €
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3. Opportunity Cost – What you’re not Doing elsewhere
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This one is harder to measure, but more dangerous to ignore.
Ask yourself:
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What did we delay, abandon, or neglect in other (core) markets because of this focus?
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What % of sales growth has been lost elsewhere?
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What was the cost of spreading our team too thin?
Estimate this conservatively many companies lose €50k to €150k/year in indirect opportunity cost without realizing it.
​
Now multiply that by the number of years you've already been trying
or planning to try.​
​​
Example
Total internal time per year : 50,000 € * 5 years
= 250 000 €
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​4. What’s your exposure?
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Take your estimates from the 3 areas above and build your 5-year projection.
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In the example, we took :
People cost internal time € 234,000
+
External Cost – Execution & Activation €150,000
+
Opportunity cost €250,000
​
Total cost of Country Development,
calculated on 5 years
= € 634,000
​​​​​​
​Conclusion : It’s not about spending more.
It’s about knowing what you’re already spending.
Most companies underestimate their real exposure, not out of negligence, but because international development often unfolds informally, without being framed as a structured project.
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Costs are rarely missing, they’re just impossible to isolate. They’re diluted across internal time, travel, trade shows and marketing materials, almost never tracked as one dedicated investment. This makes it easy to stay somewhat active on a market without truly measuring what is being spent or achieved.
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Yes, some break through fast with the right product, timing, or partner. But for most, progress remains slow and unclear, not for lack of effort, but for lack of structure.
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Before going further, it’s worth asking:
What’s the real potential of this market?
What will it take in effort, margin and positioning?
And how do we make sure investment becomes visible and productive?
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This is exactly where clear market analysis and a Go-To-Market plan add value, helping companies make informed decisions early and focus resources where they truly count.
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A structured diagnosis is not a cost, it’s a way to secure and accelerate progress. It turns scattered efforts into a clear, productive roadmap.
Practical details
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" A fresh perspective can make the difference.
I bring a new pair of eyes, a clear method, and a real action plan.
Get in touch, and let’s see what we can build together."
Elodie Colin-Petit
Your French partner
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