The True Cost of Launching a French Entity for Foreign Companies

updated on 29 November 2024

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Establishing a french subsidiary with two sales representatives can set you back €25,000 per month for the first 4-5 months.
However, SteadyGTM offers a cost-effective alternative that can reduce this cost by 50%.
Our flexible 2-week sprint model allows you to pause and resume operations as needed, reducing expenses during this critical seeding phase.
We charge a day rate (minimum 5 days).


This approach enables you to maintain focus on your core business while strategically entering the French market.
Importantly, while SteadyGTM works on your market entry, you can simultaneously proceed with hiring processes and legal preparations, ensuring no time is lost in your expansion efforts.

Are you considering expanding your business into France? As a hub for innovation and technology in Europe, France offers exciting opportunities for foreign companies, especially in the data marketing and SaaS sectors. However, understanding the costs involved in setting up a French entity is crucial for proper planning and budgeting. Let's break down the expenses and explore a cost-effective approach to testing the French market.

What Needs to Be Done?

Launching a French entity involves several key steps:

1. Legal formation of the company

2. Hiring key personnel

3. Setting up administrative and legal processes

4. Developing a local marketing strategy

Key Personnel: Focus on Sales Roles

As the primary mission is to test the French market, the recruitment focus is centered on sales roles. This lean approach allows for maximum efficiency in testing market potential, with minimal initial investment.

We've identified two key positions that combine sales expertise with basic marketing and administrative skills:

1. A senior profile with a strong sales background, capable of handling some marketing and administrative tasks

2. A junior sales representative to support lead generation and day-to-day operations

This strategic staffing approach ensures that you have the necessary skills to test the market effectively, while maintaining operational flexibility.

Let's look at the detailed job descriptions for these crucial roles:

1. Sales Director (Account Director)

Job Description:

  • Lead and execute the company's sales strategy in the French market
  • Set and achieve sales targets and revenue goals
  • Develop and maintain relationships with key clients and partners
  • Analyze market trends and competitor activities
  • Oversee basic marketing initiatives and administrative tasks
  • Provide regular reports on sales performance and market insights
  • Represent the company at industry events and conferences
  • Mentor and guide the junior sales representative

Requirements:

  • 5+ years of experience in a senior sales role, preferably in the data marketing/SaaS sector
  • Proven track record of achieving and exceeding sales targets
  • Excellent networking and relationship-building skills
  • Strong understanding of the French B2B market
  • Basic marketing and administrative skills
  • Fluency in French and English

2. Junior Sales Representative

Job Description:

  • Support the Sales Director in implementing sales strategies
  • Conduct market research and identify potential leads
  • Engage in prospecting activities and initial client outreach
  • Prepare and deliver sales presentations
  • Prepare and deliver sales presentations
  • Assist in the preparation of proposals and contracts
  •  Assist in the preparation of proposals and contracts
  • Maintain accurate records in the company's CRM system
  • Participate in client meetings and industry events
  • Contribute to the achievement of team sales targets
  • Assist with basic marketing and administrative tasks as needed

Requirements:

  • 2-3 years of experience in B2B sales, preferably in tech or SaaS
  • Strong communication and interpersonal skills
  • Ability to quickly learn and articulate complex product offerings
  • Proficiency with CRM systems and sales tools
  • Proficiency with CRM systems and sales tools
  • Self-motivated with a results-oriented approach
  • Basic understanding of marketing principles and administrative processes
  • Fluency in French and English
  • Bachelor's degree in Business, Marketing, or related field

By focusing on these two sales-oriented roles with additional capabilities in marketing and administration, we create a versatile team capable of effectively testing the market while keeping operational costs lean. This approach allows for maximum flexibility and efficiency in the crucial early stages of entering the French market.

The Cost for One Year

Based on this set up, here's an estimate of what it might cost to run a small team in France for a year:

-Sales Director: 115,000 € / year

-Junior Sales Representative: 45,000 € / year

Total Personnel costs (including employer contributions of approx.. 43%): ~€340,000

-Legal and administrative expenses: ~€15,000

-Marketing budget: ~€48,000

-One-time setup costs (company formation, website): ~€14,500

Total estimated cost for the first year: €417,500

This budget assumes a lean team consisting of the seasoned Sales Director and Junior Sales Representative described above, along with essential marketing and administrative support.

A Smart Approach: The 4-Month Test

While a year-long commitment might seem daunting, many companies opt for a shorter test period to test the market. A 4-month trial (1 month setup + A full Quarter) can provide valuable insights without requiring a full-year investment. Here's how the costs break down for a 4-month period:

cost-4i9k4

This 4-month test period would require an investment of approximately €104,733, or an average of €26,183 per month. This approach allows companies to:

1. Test the market with minimal long-term commitment

2. Generate initial leads and assess market potential

3. Refine their strategy before scaling up

It's important to note that the first month will be more expensive due to one-time setup costs, while subsequent months will have more consistent expenses.

Remember, these figures are estimates and can vary based on factors such as location, and individual salary negotiations. 

What if you could quickly assess the French market potential and secure initial leads with a streamlined, cost-effective approach?

That's exactly what STEADY Go To Market offers: a method built on weekly sprints, designed to help you test and validate the traction of your offer.

CONTACT US or BOOK A CALL to assess opportunities in France.

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