Going Global? Lessons Learned from A Startup

Starting Up
Going Global
Lessons Learned
From
A Startup
Andy Harjanto
andy@guppers.com
Wish you were here

Agenda
We Have Launched,
What’s Next?
New Global
Opportunities
For All of Us
Lessons Learned
From Starting up Globally

What We Learn From Starting UP Globally - Guppers.COM

Start with Observations
Billions of Texting DeliveredEveryday, Everywhere in the world!

Why Texting Is Always P2P?
Would Group Texting Be Better?
How About Directory Services for SMS?
How about Premium Content?
Exclusive Membership?

Prototypes, Hypothesis Validation
Cloud Services
People in a few pilot countries really like the service

But What’s Wrong?
Dealing with local telephone provider was hard for a startup.
They protect their cash cow. They’d ratherbuild services internally, as opposed to form a partnership.
Lesson #1
Dependency on large companies is the kiss of death for many startups*
*unless you know the key players inside the company

But What’s Wrong? (Cont’d)
End consumers in many countries arevery cost-conscious
Credit card is not usedto pay bills in many countries. Mobile payment is not as easy to integrate
Lesson #2
Think thru end-to-end customer experience
for each region

One Door Closes, Another Opens..
Businesses are using our service!
High stickiness
Many usages that we’ve never thoughtbefore
Less issue on payment and prices. Credit cards and invoice are common
Lesson #3
Do not resist opportunities, even if your
product is not design that way
Each region presents unique opportunities

Unexpected Shift Happens
Global Economy
Meltdown 2008-?
Promise of
Cloud Computing
(Cost Elasticity)
The Rise Of
Social Computing
(Productivity)
Lesson #4
Mobility
Accelerated
Ride the global wave early,
offer compelling solutions

…Back to Drawing Board
The new Guppers.com was born…
Cloud Computing Ready
The Use of Social Computing
Heavily Focus on Mobility
Effortless Collaboration, just use your daily tool (SMS, Email, Browser)
Social Media Ready
Does this work?
It’s early to tell, but we’re hopeful
from looking at the data

OK, Let’s Find Beta Customers..
Easy, Right? Not really.

In Asia, especially, often personal

trust is pre-requisite to using your service

In Europe, it has much higher expectation on your services, even it is in beta/alpha form.
Tight hand-holding is required

Lesson #5
Expect to spend more time and resource
with customers in different parts of the world. US is not the barometer

Understand Their Daily Life
Work Day
Evening Hours
Social Engagement
continues well into the night

Guppers Usage By Region
Mostly
SMS
Online and Email dominated
Mix SMS and Online

Does Social Media Work Outside US?
Although Asia has the highest Internet population and growth, US companies have little tractions. Online services are dominated by local online services (CyWorld, Baidu, Mixi)
Lesson #6
In Asia and Europe, co-workers’,
friends’ recommendations are much more important

Distribution Channel: What Work For Us Outside US?
Lesson #8
Partner or hire
local connectors
Local Connectors, Influencers

Why Is Hiring Local Very Important?

They know the local market heartbeat: what sells and what’s not
Business is very personal in many different countries; without body, you’re nobody
They know local laws and regulations
Do not under-estimate the cultural differences between regions, such as business ethics, deal making process

How To Find Local Connectors,Influencers?
Your ex-university classmates
Your ex co-workers
Best to find them at prestigious, highly diversified universities and companies

How To Find Local Connectors and Influencers? (Cont’d)
Secondary Option:
Issue: Unknown personal quality

Getting Your Business Funded
Global organic growth is possible, but it’s unlikely in the first year
VC Funding dries up in the US, Why not outside US?

Money Waiting To Be Invested
In Asia, unprecedented amount of savings ready to be invested.
However, they’re wary of US recent economy meltdown

Your Customers Are PotentialInvestors

A few of our loyal customers approach us for investment opportunities in the company
In Asia, personal trust is especially important

Lesson #7
Earntrust, Customers will
come, they might be your
best investors

Other Source of Funding:Government Grants

Many foreign governments (Europe, Asia) have grant programs to encourage entrepreneurship and create jobs
Establish local a company with your local member and hire local.
It’s a win-win situation

OK, We’ve Launched– What’s Next?

Does Localization Matter?

US, UK, and Scandinavian Countries : English
French, German, Italy, Spain: Localize it
Asia: It depends -
Business App, High Tech, Highly Educated: English Acceptable
End-Consumers: Must be localized

Lesson #8
Localization matters, but not for all countries and
not for all customer segment . Keep your cost low

Single or Multiple Hosting?

Connections to US frequently are

not reliable in a few countries

If you build an online service,

consider for hosting servers
in a few countries.

Europe requires some data toreside in Europeancountries.

Lesson #9
As you design the system,
take into account the possibilities
that you have to host your services
in a few countries. Cloud Computing will help in the future

The “Digital Divide”

The prevailing view: “The Have vs Have Not”

access to digital and information technology

This view becomes less and less accurate
Cell phones are very affordablein many countries.
It is also common to seea person carries more thanone cell phone

Our View Of “Digital Divide”
Next interesting problems to solve
How to Bridge the Digital Divide?
SMS

Global Team? Good Idea?
Guppers team members span over 5 different time zones

Working Globally: Communication

Time and Space are virtually compressed with today’s communication tools
Tools are effectively free or inexpensive
Nothing beats human face to face meetings; but today’s tools are good enough

What we’re using….
Live Meeting
Conversation via
SMS, Email, Online
Personal Status
Group
Conference
Call
Email
Hosting
Screen Sharing

Lesson #10
Take Advantage Of Cloud Computing

Cloud Computing is perfect for startup
The cost of building and maintaining data center is too expensive for startups
Cloud Computing offers “Pay As You Go” model, which works well for us

What we’re using
(pilot)

Eat Your Own Dog Food!
Lesson #11

Use your product daily
At Guppers,
We’re THE #1 customer
We heavily depend on this product

to run our business

Catch core scenario bugs, regression before our customers

24/7 Customer Support?
Lesson #12

If you have team across the world, why don’t turn them into the 24/7 Customer Support Team?
Skype allows online users to talk directly to you

Go After Countries in Phases
Lesson #13

As a startup, don’t spread too thin
Pick only a few countries
Ensure the end-to-end scenarios work first
Expand to the other regions slowly
Go after the simpler region first

Go After Countries in Phases(Cont’d)

US, Canada, UK, Ireland, Scandinavian Countries
Early Adopters, they adopt new US services quickly.For examples,Twitter, FB, Skype

Go After Countries in Phases (Cont’d)

Southeast Asia: Indonesia, Thailand, Malaysia, Singapore,Philippine, etc
Eastern Europe: Romania, Ukraine, Poland
Germany, French, Spain, ItalyThey’re more of Followers. Once the service is proven to be excellent in US, they’re more receptive

Go After Countries in Phases (Cont’d)

China, Japan, South Korea
Huge Market Potential
Hardest to penetrate
Best bet is to workwith local company
Main issue: Generation saving attitudes

Far-East

The Dragon and Elephant

China and India: home to 37% of world population. That’s 2 for every 5 people.
China web users alone, outnumber US population
Have to visit to understand the magnitude of opportunities, threats, and progress.
Think of mass resources and market

The Opportunities 2009-201?

Layoffs Hit US and Europe
Some best and brightest
are forced to start their
own business

Re-Migration

Many US foreign graduates decide to return back to home countries, instead of looking for a job in the US
Some of layoff workers are H1B holders. They have to return to home country if they can’t find other job

Global Economic MeltdownAffects Countries Differently

Asia Market recovers early
Some countries still grow, even at slower pace
Competition to produce cheaper goods & service become fiercer
Still huge appetite forsavings andinvesting

Putting All of Them Together
Funding
possibilities
outside US
Work with
Connectors,
Influencers
around the world
Get brightest
around the world
for ideas, prototype

The Investment Model

The cost of building product/services is dramatically reduced compared to10 years ago, thanks to open source, much better tools, cloud computing.
The cost could be further reduced by outsourcing to certain parts of the world who have the expertise.
Investors no longer need to come up with a large fund.

All Great, But…It’s Easier Said Than Done

How do we find others?
How can I trust this person?
How do I know if this person is real expert?
How do I know I could work well with this

person who is 12,000 miles away
But we have to start somewhere!

For Entrepreneur

The hardest hurdle is

to start - “Just do it”

Presenting your ideas is no longer good enough.
You must have a working prototype,and ideally customers

For Connectors, Influencers

Global opportunities

are as good as it gets

Build connections, relationship to entrepreneurs, investors where they live online (Twitter, Linked-in, Facebook)

For (Individual) Investors

Some of best and brightest are behind startups
Typically, requires no heavy investment
Allows to diversify to many different startups
Still high risk, but it could be high reward

Global Business is Personal
Focus more on quality, instead of quantity

My Personal Experience

Incredibly rewarding to work with people all over the world
At personal level, regardless of countries, the pattern is consistent : many good apples, couple bad ones.
Appreciate many cultures so much more. Always expect the unexpected
Love to learn more and connect many more people

Going Global - Yes, You Can
Finally

The World is Flat – Thomas L. Friedman.
Playing field has been leveled
Time and Space have been compressed
The cost of going global is a possibility even for a startup and a small business.
The biggest challenge remains
Building and maintaining relationships to your partners and customers
Cultural gaps; law, regulations and ethics.

Call To Actions

Expect more updates to this presentation as we learn more
If you would like to contribute, please share your experience; we’ll update & credit your contributions
Join discussions in a Linked-in new group. Click here
We hope we can network entrepreneurs, connectors, investors, influencer from all over the world.
Spread the words, let’s network
If I can be of any help, please contact me andy@guppers.com and twitter:@harjanto

Credits
Pictures – Creative Commons License
Maps - Microsoft Maps (maps.live.com)