Software Sauna – Growing global from day one

Software Sauna, founded in 2018, is a software development and data consultancy. Our headquarters are in Croatia, with subsidiaries in North Macedonia and Finland, and we’ve recently launched a sales operation in Denmark.

Operating on a remote-first principle, we provide nearshore services from the countries of the Western Balkans, combining high quality, availability of talent, and cost efficiency. The company was established with a vision to grow into a leading nearshore partner for Finnish and Nordic companies.

Our main market has always been Finland, but over time, we’ve expanded our projects to Scandinavia, Germany, the Netherlands, Italy, the UAE, and Nigeria.

Software Sauna has been “born global” from day one. As we celebrate our 7th anniversary in April, we look back at the milestones that have helped us grow.

Our market research has always been conducted independently, leveraging our own networks.

“With over 10 years of international experience in Poland, I’ve learned and navigated most of the challenges of operating in Eastern and Southern Central Europe.” – Ilkka-Cristian

A good lawyer and accountant have been key allies in establishing a presence in new countries.

Every country comes with its own bureaucracy and way of doing business.

While Finland’s regulations may seem strict, we’ve encountered even more complex procedures abroad. Armed with the advice of local experts, we’ve navigated these challenges with determination.

“Interestingly, we’ve not faced any major roadblocks on our internationalization journey.”

The biggest setback was changing our marketing agency in Denmark after a few initial engagements.

Software Sauna’s operations kicked off in Croatia while I was living in Poland, but I relocated to Zagreb on day one.

Later, we established subsidiaries in North Macedonia in the spring of 2022 and Finland in the summer of the same year.

“I had never visited North Macedonia before signing contracts with the notary and the bank.”

The key to success in any new market is research: understand its specific characteristics and identify what you’re looking for. Once everything is clear on paper, you just have to take the leap. Otherwise, you’ll never move forward.

In summary, lessons learned:

1. Identify the markets where you want to establish a presence and research their unique characteristics.
2. Find local experts who can provide insights into the business environment.
3. Partner with a good lawyer and accountant—these professionals will be crucial when navigating local regulations.
4. Spend time in the new country, both with customers and employees, to fully understand the culture and operations.

Our first customer came after a couple of months of slow progress (and the valuable advice to secure a customer before starting the business). Establishing subsidiaries and hiring our business director in Finland were major milestones. Every time our consultant numbers increase, it feels like a celebration.

Our customer portfolio now includes names like Suunto, Efecte (Matrix42), Fondion, Auntie, and Varjo. We’re proud to have built strong relationships with these clients, and they continue to grow alongside us.

Looking ahead, our primary goal is to establish a foothold in the Danish market and increase our sales operations there. If the market responds well, we plan to hire a local salesperson and potentially open a subsidiary if necessary.

The demand for nearshoring has clearly grown in the last 1.5 years, especially among larger Finnish companies. Although they may be a bit behind compared to the rest of Europe, we see a huge potential in both direct customer engagements and partnerships with our network.

“Born global is the new black.”

Expanding internationally is essential for growth, and it’s something every entrepreneur should consider from the very start of their business journey.

Visit us at softwaresauna.com for more information.