RICARDO RUIZ COULDN'T fall asleep. It was his third trip to Singaporehe'd initially come to scout locations for the first Asian outpost of his climbing-gym chain, Ascendancy; had returned for the grand opening a year ago; and was there now to check on operations. But the 23-hour flight from Raleigh, North Carolina, via San Francisco hadn't gotten any easier, and the founder and CEO still found the jet lag brutal. He had just given up and gotten dressed when his phone rang. It was Margo Little, Ascendancy's COO. "You remember I'm in Singapore, right? And it's the middle of the night here?" Ricardo said in a teasing tone. The two were not only colleagues but old friends and climbing partners.

"I wouldn't have called if it weren't serious." Ricardo snapped out of his fog. "What's wrong?" he asked, his heart racing. Had something happened to his family? Was there a company crisis? "It's Ascendancy Liverpool," Margo said, referring to the company's second UK location, which had opened three months earlier. "A novice climber didn't tie in correctly, fell from 15 feet, hurt his back, and is suing us for 4 million." "Didn't he sign the waiver?" "Of course he did. Our lawyers say it's a ridiculous claim and will be thrown out. But it's all over the press. He says we didn't adequately warn him of the danger or give him enough instruction." marketing campaigns worked as well as the U.S. ones? Why aren't sales doubling month to month like they're doing in Singapore? Why aren't we getting the same influencer traction we have everywhere else?2 And why on earth would any reporter think that a guy who fell because of his own carelessness deserves a story? I don't understand this market." Ricardo ran a callused hand through his hair. He'd been worried about the UK gyms too. That's why he hadn't slept on the plane: P&L review. "Let's focus on the problem at handdamage control," he said. "Send me the statement, and I'll review it ASAP. I'll also book a flight to Liverpool. It sounds like I should be on the ground there. You too. We'll discuss the bigger picture then." Ricardo ended the call. He felt sick, and it had nothing to do with jet lag. After all of Ascendancy's domestic success and the recent win in Singapore, had the team grown overconfident about its ability to conquer new markets? A HEATED DISAGREEMENT Ricardo was still in Liverpool a week later. The climber had withdrawn his lawsuit following reports that he had previously injured his back in a nightclub brawl and had tried to sue on that occasion, too. But the gym still wasn't attracting the crowds the team had counted on.

Ricardo had called a meeting at the gym with Margo, who was also still on-site; Charlie Saperstein, the head of business development, who was Skyping in between visits to potential locations in Amsterdam; and Kian Chambers, whom they'd hired to oversee Ascendancy Liverpool. Ricardo turned to the local manager first. "Kian, you know this market best. What do you think is going on?" He sensed the young man's hesitation and gave him an encouraging nod. "Please speak frankly." "Well, like I said when we started, climbing is just catching on here.3 My mates and I have been doing it for years, but most lads my age do footie or rugby or cricket for sport, and the fitness people are used to just treadmills and machines. We've got to educate them, right? Plus, it's winter; when it's dark by afternoon, people don't get out as much. Even the athletic ones settle down for a pint at home or at the pub. And I know the lawsuit is over, but I think it created a bit of a scare and maybe some worries that this big American company was more interested in making a few quid than providing a quality experience. We get lots more questions about safety now, especially from mums. It's gotten even harder to fill the youth classes." Ricardo grimaced. Young adults, teenagers, kidsthey were Ascendancy's bread and butter.

Charlie jumped in. "We knew there would be challenges. But we picked Liverpool precisely because climbing gyms are new there, because it's not saturated with competitors, because we could start and lead the trend just like we did in our U.S. cities." When the executive team had begun its international push, the criteria for site selection had been simple: The company looked for markets with English as the primary or the dominant secondary language and with city-plus-suburb populations of more than 2 million and two or fewer existing climbing gyms; populations of more than 1 million and just one existing gym; or more than 400,000 people and no gyms.4 Liverpool, with more than 2 million residents in the metropolitan area and only two small climbing centers, had fit the bill. "That strategy is working in Singapore," Charlie continued.

We can't open another gym there soon enough. I've also found two amazing sites in Amsterdam. There's a huge advantage to being a first mover5making sure people get to know climbing through our walls and equipment and classes. We just need to give Liverpool more time." "Cardiff too?" Margo chimed in. "The numbers there are just as bad." "They're not badthey're just not quite as good as we typically see," Charlie replied. Ricardo frowned. "Not quite as good" was unlikely to satisfy the chain's private equity investors. "With the growth we're seeing in Singapore, and with the success of the new Providence and Nashville gymsand maybe Amsterdam, Manchester, and Dublin next yearwe can make up for the slow start in Liverpool and Cardiff," Charlie said, his enthusiasm undimmed.

"That's not how we operate," Margo said, bristling. "Each gym needs to recoup 20% of its initial capital investment within a year and cover its operating costs within two.6 We're not on pace to do that here." She gestured at the three-story expanse of undulating gray across from the table where the group sat. Only two climbers were on it, gripping Ascendancy's signature neon holds. "That's how we've done it in the past," Charlie answered. "But we've gotten some bad press here. When you're working in new countries, different issues crop up. Maybe we need to be more flexible with our overseas operationsshift the goals and the model to a portfolio approach."7 "Or maybe we should hit pause on our international expansiontake a little more time to understand the markets we're entering," Margo retorted. "Perhaps consider more factors than language, population, and competitors, and start way earlier on the education and outreach that Kian talked about. This is a $50 million company now. Why would we change the model that's gotten us to this point? It's the aggressive growth plan we should be rethinking." "And let rivals like Kilimanjaro and Triple Peaks pass us?8 They're looking at Europe too." "I get the urgency, Charlie," Margo said. "But I don't think we need to move quite as fast as you're suggesting." Ricardo had never minded having his team engage in heated debates, but he saw that Kian was starting to look uncomfortable. "OK, you two," he said. "It's clear where you stand. Charlie, go ahead to your next meeting. Margo, we have a plane to catch. And Kian, let's get you back out on the floor." As Margo took calls from various local managers on the way to the airport, Ricardo replayed the earlier discussion. He couldn't imagine telling the board that he wanted to change the company's accounting practices to allow for more-modest single-gym targets, nor could he see suggesting that the global strategy they'd approved the previous year needed to be completely revamped. Neither was a good option.

KIDS ON THE WALL What Ricardo loved most about climbing was that it required so much focus you couldn't think about anything else. Toe on this foothold, hand on that jug, find another hold, stretch for the next grip. He was on one of the toughest routes at Ascendancy Raleigh and was almost to the top. If it was a choice between climbing and lunch, he always chose the former and ate a few energy bars at his desk. Suddenly he heard cheering from below. It was the first day of his kids' December school break, and his wife, Emilywho was also Ascendancy's head of programming9had brought them in for an afternoon of climbing. "Just in time!" he shouted as he grasped the final hold and slapped the top of the wall. The kids continued cheering as he rappelled down and high-fived him on the ground. "Can you stay and watch for a bit?" Emily asked. "Sure." Ricardo smiled; his enthusiasm for the sport had rubbed off on the family long ago. "Fifteen minutes here, a quick shower, then on to my next call." Once the kids were tied in and climbing, Emily turned to business. She had taken the day off, but the company's UK challenges were worrying her, too.

"What's the latest on Liver - pool? The last I heard from Kian, classes were still at 50% capacity." "It's slow," Ricardo answered. "Is it fallout from the lawsuit? Or are the English less into climb - ing than we thought?" Ricardo hesitated. "I'm really not sure. We've upped the market - ing. Kian is working his connec - tions. But it's just not picking up." "And Cardiff?" "Slightly stronger. But not like here or Singapore." "What's going on with Amsterdam?" "Charlie just emailed. He's negotiated two potential con - tracts. He wants me to visit this week, sign one this month, prep the site this winter, and start construction in the spring." "Are you comfortable moving that quickly?" Ricardo looked at his sevenyear-old son, who was already high up on the wall. Mateo was a risk-taker, trusting his gut and usually ascending in record time. Maya, 10, was more cautious. She climbed at about half Mateo's pace but never slipped or fell. In climbing and in business, Ricardo had always been like Mateo. But he was starting to won - der if under Ascendancy's current circumstances, Maya's strategy made more sense.