A recipe for building a global software company

Cin7 is an Auckland-based software company that offers a fully integrated, cloud-based inventory management product – and it does it for 8,500 customers in 100 countries. With 300 staff spread across eight countries, Cin7 is a New Zealand success story – an example of what’s possible for Kiwi startups with a vision for going global. So successful, it won the PwC New Zealand Hi-Tech Company of the Year at the recent 2023 NZ Hi-Tech Awards.

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David Leach, Cin7’s global CEO, came onboard in 2019, just after the company was acquired by Colorado-based Rubicon Technology Partners. Backed by the deep pockets of the private equity firm and stewarded by Leach, Cin7 has since grown 4x as a company, with an executive team split between New Zealand and the US.

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I sat down with Leach to learn more about what it takes to turn a Kiwi startup into a global company, and here’s his recipe for success.

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BHAG – a Big, Hairy, Audacious Goal

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“If you want to take over the world and be world-leading, you have to have big goals,” says Leach. “If you have small goals, you will achieve small things.”

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As a CEO, Leach’s own goal is to one day leave behind a legacy of building a world-class software company. And that means more than financial success. It means creating software that competes and wins on a global stage, offering top-tier customer experiences and support services, and building a company culture that makes people proud to show up for work.

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Capital, but with a purpose

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If you’re going to scale beyond New Zealand, getting enough capital to grow and hire local teams is essential. But Leach says to avoid settling for the biggest cheque in the room – regardless of whether that cheque comes from your local Kiwi investor or a hotshot US VC.

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“What you want is their expertise, their time and their network,” says Leach. “If someone’s investing in your business, they obviously are going to be your support. They win if you win. But if it’s just money, you’re not getting much else for that.”

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The lesson here is that if Option A is writing a big fat cheque but offers nothing but cash, and Option B’s cheque is slightly smaller, but they give you access to their network and advisors, go with Option B.

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Hire people who have previously worked at a global company

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People who’ve worked at global companies are used to the rhythm of working across time zones, says Leach. They also understand that with those hours comes flexibility.

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“If they’re willing to jump on 9pm calls at night, they get flexibility in return where they can be with their kids and drop them off at school, for example,” he says. “This is not for everybody, but if you hire people who’ve done it before, they’re kind of used to it, and they can help you adopt some rituals and communication methods that really set the company up for operating as a global operation.”

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Be intentional with hiring and strategy as you expand

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“You need a strategy towards your vision and stepping stones, so don’t say, ‘In 2024, I want to go and win in 50 countries,’” says Leach. “Pick one country, and go hire in that location. Go and study that location and make sure you understand the culture, the customs, how business is done.”

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The strategy Rubicon and Cin7 set up together was very intentional. It involved writing a 12-month recruitment plan that was broken down into quarterly goals.

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First on the list? Hiring senior leadership in the US – specifically a chief revenue officer and chief operating officer.

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“A main part of the formula to expand into a foreign country is to get the leadership right,” says Leach. “Get the right people on the ground and scale it with them.”

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One thing Leach says to keep in mind as you scale is that you’ll have to pay market rate for top talent. You can’t pay a New Zealand salary to someone based in the US or UK, and you have to be willing to make that investment in quality leadership.

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Implement shift work if you don’t have the funds yet to hire locally

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Before Rubicon acquired Cin7, the company was still global, with customers in 25 countries. But back then, 100 percent of Cin7’s 140-person team were based in Auckland. In order to cater to customers around the globe, Cin7 hired staff who would do shift work, clocking in at odd hours across time zones.

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“If you pay them a little extra in return for the shift work, there are people who are willing to do it,” says Leach. “And it served the company rather well. It meant we could cover the globe, all out of New Zealand.”

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Prioritise an inclusive culture

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Leach says you need to double down on inclusivity if you truly want to take your company global.

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“You’ll have a globally diverse team where sometimes English is not the first language and there are lots of cultural differences, so you have to work hard on culture and making it a great place to work,” he says.

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What’s your rally cry?

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Company-wide communication is a big deal at Cin7. The company hosts a monthly all-hands meeting to keep everyone in the loop, energise the team, and explain the momentum Cin7 is driving across departments and countries.

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To that end, having a rally cry – a company-wide challenge, a call to action – is vital.

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“It gets the whole company aligned behind a common goal and shifts the company forward,” says Leach. “It’s how you improve a company and take it in a direction so that you don’t get stuck.”