For private equity (PE) and venture capital (VC) investors, identifying early whether a business has the potential to scale globally is crucial for maximizing growth and returns. Not every business is destined for international success, but there are clear signs that can reveal whether a company is ready to thrive on the global stage. Here are four key ingredients to assess when evaluating a business’s global potential:

1. Global-Ready Leaders with an International Mindset

Successful international growth depends on leaders with a global vision, ambition, and the ability to attract top talent from diverse markets. These leaders must also possess an international mindset, feel at ease in multicultural environments, and have the ability to forge critical strategic partnerships, close key deals, and manage the complexities of global expansion.

2. Universal Product-Market Fit

For a business to succeed globally, its product or service must provide great value and relevance in different countries. The business’s origin should either be a plus or, at the very least, not a problem for customers in international markets. Being able to adapt the product to local needs or retain its universal appeal is essential for tapping into new geographies.

3. Scalable Business Model

A global business requires a model that can sell, deliver, and support across countries without incurring massive costs or complications. Scalability is key for expanding quickly and efficiently without increasing operational complexity. A business that can replicate its success with minimal adjustments is better equipped to handle the demands of international markets.

4. A Culture of Adaptability, Growth, and Resilience

Going global requires a company culture built on adaptability, resilience, and constant improvement. Teams must be ready to embrace big changes, overcome local complexities, and adapt to the specificities of international markets, all while maintaining momentum and efficiency. The right culture enables businesses to stay agile and resilient during global expansion.