What It Cost to Enter the Nordic Markets?

Last Updated on August 26, 2025 by Victoria Silber

When foreign companies prepare to enter the Nordic markets, one of the most difficult questions to answer is the budget.

Everyone wants to know how much it will cost, but very few have done the calculation.

Mik Lokdam from VAEKST is direct about this.

He always starts with one number: customer lifetime value. How much is one client really worth to you over the full relationship? If that number is a million euros, then investing three hundred thousand euros to acquire them is not unreasonable. In fact, it is smart business.

This way of thinking is often new to companies.

Many approach market entry with a mindset of keeping costs low and seeing what happens. They want quick wins and short-term returns. But in Scandinavia, that mindset usually leads to disappointment.

Entering Denmark, Sweden, Norway, or Finland is not about testing cheaply.

It is about committing to the long term, understanding the time it will take to close deals, and investing enough resources to sustain the process.

Why customer lifetime value matters

Budgeting begins with a clear understanding of how much you earn from each customer.

Mik explains that most companies he talks to do not actually know this number. It may sound surprising, but when asked what the average lifetime value of a client is, many cannot answer. Some have never calculated it, and others only have rough estimates.

The calculation is not complex.

Export your revenue data, divide it by the number of customers, and you will see what an average client is worth. More important is to look at gross profit, not just revenue.

If a client is worth one million euros in lifetime value, then the budget to acquire that client should be seen in relation to this number. Spending three hundred thousand euros to secure a customer worth a million is a good trade.

The acquisition cost is paid back with a margin.

The role of time

The challenge is not just how much, but how long.

In Scandinavia, deals take time. Mik advises that for complex B2B sales, companies should expect seven to twelve months from first contact to signed contract. That means you need liquidity to fund nine months or more before seeing revenue.

If you run out of resources before that, the market entry fails, no matter how good the product is.

This is why budgeting is not only about money, but also about patience. You are building a pipeline, testing messages, meeting stakeholders, and slowly building credibility. Those months cost money, but they are not wasted.

They are the foundation for long-term success.

Benchmarks for agency support

Not all companies want to hire their own staff immediately.

Many work with agencies to reduce risk and gain local expertise. Mik says a good benchmark is between three and five thousand euros per month if you want a local agency to support your entry in one country.

That may cover half a full-time resource or a team executing outreach, building lists, and generating leads.

Compared to the alternative cost of hiring, training, and managing your own staff, this can be very cost-effective. Recruiting a salesperson in Denmark or Sweden is expensive. Salaries are high, competition for talent is strong, and finding someone who combines sales skills, language skills, and cultural understanding is not easy.

An agency can provide the expertise immediately at a predictable cost.

The hidden costs of going alone

If you choose to set up shop yourself, you need to consider all the hidden costs.

Hiring one person is rarely enough. They need management, office space, tools, and support. If they resign after six months, you have to start again. If they struggle to generate leads, the investment of time and money is lost.

Agencies are not perfect either, but they remove much of the initial risk.

They already have systems, lists, and processes. They understand the cultural nuances. They can represent your company while you build brand awareness.

For many international businesses, this is a more cost-effective way to enter.

Marketing and sales together

Mik warns against budgeting for only one side.

Some companies want to rely only on marketing. Others invest only in sales. In the Nordics, both are needed. Marketing builds the brand and awareness. Sales capitalizes on that awareness through personal conversations and trust-building.

If you only do one, you will waste resources. A balanced budget allocates money to both.

For example, if you spend on advertising but do not have a sales process to follow up, leads go cold. If you make cold calls but have no marketing presence, prospects will not take you seriously.

Aligning the two functions is not an extra cost, but a necessity.

Thinking in scenarios

Budgeting is not about guessing one number.

Mik recommends building scenarios. What is the cost if you set up your own office, hire staff, and go all in? What is the cost if you partner with an agency? What is the best-case return, and what is the worst case?

Comparing these scenarios gives clarity.

One exercise is to benchmark against what it costs to employ a sales development representative or account executive locally. Include salary, onboarding, office, benefits, and risk. Then compare that to the cost of outsourcing. Often, the outsourced model is more efficient in the first phase.

Later, once you have revenue and a proven strategy, it may make sense to hire internally.

Short-term vs long-term thinking

The biggest mistake Mik sees is short-term thinking.

Companies want to press a button, scale outreach, and close deals within months. When that does not happen, they conclude that the market is too difficult. In reality, they did not budget correctly for the long term.

Market entry should always be viewed as a multi-year investment.

The first year is about building the foundation. Revenue may come in the second or third year. If you are not ready for that, it may be better to wait until you have the resources.

Entering too early with too little budget is often worse than waiting.

Why the Nordics are worth the investment

The Nordic markets are expensive to enter.

Salaries are high, patience is required, and budgets must be realistic. But the rewards justify it. Scandinavia has high GDP per capita, strong profit margins, and buyers willing to pay for quality. Once you succeed, clients tend to stay loyal for years.

On top of that, success in the Nordics carries brand value globally.

If you can show references from Sweden or Denmark, it signals quality to other markets. Many companies use their Nordic clients as leverage to expand into new regions.

The credibility is worth the cost.

Final thoughts

Budgeting for the Nordic markets starts with customer lifetime value.

If your clients are worth millions, do not be afraid to invest hundreds of thousands to acquire them. Plan for nine to twelve months before revenue, and budget for both marketing and sales.

Consider agency support to reduce risk, and always compare scenarios before deciding.

Most importantly, adopt a long-term mindset.

Entering Scandinavia is not cheap, but if you budget correctly and stay the course, the market will reward you with loyal customers and a strong global reputation.