How to start business in america final


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  • Personal note: 400 switches with Thomson-CSF
  • Would you be willing to buy from a Russian Start-up with a guy with a strong accent?My VP Marketing used to tell me: 1st I sell the company, then the productReassure them = Your web site. Example Sequans
  • CIO: lot of constrainsWorking with a startup is a risk compare to working with IBMProduct is not perfect, risk about the company, risk about the supportExample: Brixlogic and Diebold. Very conservative in Finance. Trust take time and need to understand the culture
  • Personal example: failure to recruit a SE to be Sales at Thomson. He was not able to sellDo not trust your sales: example with Thomson sales guy selling to channel with no paymentSales & Marketing: Cisco a killer S&M. Linkedin 1200 sales persons for 2600 employees
  • Recommended lecture
  • You need to quantify the valueHow much people are savingHow much revenue you bringExample Netcentrex: starting selling ports, then selling per user, then selling business model
  • Bad example: NetCentrex at Verizon
  • Typical error VIE, micro-management
  • Talend:Management in Silicon Valley, Funding, France, UK, US, No Flip
  • How to start business in america final

    1. 1. How to do business in America Lessons learned Xavier Wartelle 14 Mai 2012
    2. 2. About the Presenter• 27 years dealing with the US• 17 years living in Silicon Valley• French American Citizen• Background: Xavier Wartelle – CEO Subsidiary Thomson-CSF – Started 5 start-ups in high tech – VP Sales, Marketing, CEO, COO… – 15 acquisitions or funding events
    3. 3. Agenda• Size matters• Marketing• Sales• Pricing• Quality• Management• Strategy• Funding
    4. 4. Size matters France USA MarketPopulation 60 m 300 m X5Company over 500 1,824 17,509 X 10employeesNumber of 2,7 m 58 m X 20employeesNumber of 1,1 m X 50?establishmentsCapacity of X 100 ?investment
    5. 5. Why Marketing is importantSize of country makes face- Be clear by emails, web to-face meetings difficult site, confcall People don’t have time Stick to the essentialsLots of competition means better customer service Explain your value prop.Nobody wants to deal with Reassure them foreign startups
    6. 6. Crossing the chasm Geoffrey Moore Technology Adoption CycleHow to pass it: – Vertical focus (attention niche size) – Build trust with key customers – Reassure them with top- notch support – Start by selling non-mission critical components
    7. 7. Sales• Typical Sales person – $200K+ – Needs strong support from Marketing and SE – Not a business developer – East/West Coast – 50% of sales recruitment are failure – Watch out for pipe dream Cost $ Impact on Business Model
    8. 8. Sales• No Product Dump!• Start with an agenda• Establish a dialogue• Find the needs, never let go of the needs• Ask questions• Time check• Be ready for objections
    9. 9. Pricing• Bring value = show me the• Typically price = 15% of the value• Top line or bottom line?• Can you make money selling directly a $20K product?
    10. 10. QualityEmails, web site, brochureProduct qualityCustomer services and tech support
    11. 11. Management• Scaling the company means scaling the management and its board• Stock options is a key issue• Could mean stepping down• Remote management is difficult. You need trust.
    12. 12. StrategyComing to the US is not just opening a new sales office• High potential• High cost• High risk• Stronger competition• Redefine value prop• Redefine go-to-market• Impact on product management Revisit Global Strategy
    13. 13. Funding• Silicon Valley VCs – invest $25m in a company – to build a $100m revenue company – that will exit at $250m• Minimum Market $1B• Bring a differentiated solution to a repetitive and important problem• Founder background• Management background• Barrier to entry and IP