60 minutes to success in the usa"


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60 minutes to success in the usa"

  1. 1. • Jan og hans team i Atlanta har siden 2005 lavet over 800 projekter for over 200 danske virksomheder, fokuseret på at forøge deres salg i USA. • Kontoret i Atlanta huser idag 24 virksomheder i Inkubatoren og har siden 2001 hjulpet over 45 virksomheder med fysisk at starte datterselskab. • Jan Sauer tiltrådte som leder af Handelskontoret i Atlanta, Juni 2005. Forud for denne stilling arbejdede Jan Sauer som konsulent ved Kunde & Co, Nordens største reklamebureau. • Forinden arbejdede Jan Sauer for The Conrad Group i USA i 5 år, hvor fokus var international strategiplanlægning. • Jan Sauer er Cand.Merc. i Marketing fra Copenhagen Business School, har taget MBA kurser ved Georgia Tech, samt læst strategi, ledelse og innovation ved Harvard Business School.
  2. 2. • Hvad kræver det for at få succes i USA. Organisation, Produkt, Kapital og Tid. • Hvor er det bedst at starte? Hvad med produkt ansvarsforsikring? • Er der en Best Practices metode for succes? • Er det bedst at ansætte en Amerikaner eller en Dansker? • Hvor lang tid går der inden jeg lukker min første ordre og hvor lang tid til break even? • Hvordan kommer jeg egentlig i gang, og hvad koster det? • Hvordan kan Eksportrådet hjælpe mig?
  3. 3. • Organisation and team: – US entry is the idea of c-level and board – Sr. Mgt. From DK, typically VP level to head the US initiative – 24/7 attitude with an ability to execute on the plan – Recurring communications and evaluation on progress based on plan • Capital: – Well funded, allowing operations for 24 - 36 months before cash flow positive • Products: – Focus on selling the one product where they are truly unique – Product ROI is clearly understood and significant in US$ • Time: – Sees the US market as a marathon, not a sprint
  4. 4. • 6 critical parameters to consider when locating your US HQ: – Customer and partners locations? How important are personal relationships? – Cost of doing business (index numbers readily available). NY 172 vs. Atlanta 98. – Communications requirements with Denmark. Locate on the East coast if this is important. – Logistics and transportation network and availability of connections to Denmark? – Available and affordable access to talent? Cluster? Universities, etc. – Quality of life. Attraction and retention of employees.
  5. 5. The answer: Take it seriously but don’t overestimate it….and do not believe the urban legend horror stories. The TCD recommended solution includes: 1. Evaluating the needs with a US attorney to identify the need and coverage 2. Setting up a US subsidiary to shield the HQ 3. Getting an umbrella policy that includes liability as well as a myriad of other very important but oftentimes overlooked coverage
  6. 6. Step 1: Get back to basics: • What is your core capability? • What problem does your product solve? • What do you do that is unique and different? • Why exactly are your customers buying from you? • Quantify your ROI Step 2: Concept test the market before jumping in – validate step 1 • Do a Pre-entry market test with 5-10 potential customers to get answers to your questions. This is more realistic, more efficient and less costly than a full blown market study…and it often produces a number of leads that can be followed up on Step 3: Iterate your offering based on input from step 2 Step 4: Launch the initiative virtually using the TCD as your sales staff . This further provides input before final launch. Support from HQ is essential here. Step 5: With a pipeline in place, lauch staffed with a C-level person from DK and support from the TCD, with a well defined plan that lays out the goals, timelines, activity levels and types of activities, budgets, timelines and communications processes and frequency Step 6 - ongoing: Keep close to the market. Evaluate 1 time per month and together with DK and the TCD Client Manager, as a team. Iterate plan if necessary. Repeat as necessary.
  7. 7. • To optimize cost while leveraging the TCD brand and experience: Start with TCD as your salesforce • Optimal setup: C-level from DK, supported by local american hire. • The more sales oriented the role is, the more an American can fill the job
  8. 8. Understand that it takes 2 times as long as expected, but that you typically grow 3 times as fast once you have traction. 100 90 80 70 60 50 Expecation 40 Reality 30 20 10 0 6 mths 12 mths 18 mths 24 mths 30 mths 36 mths
  9. 9. Generic 1 year cost budget based on L1A visa type (mgt transfer) and using best practices process DKR Salary to DK staff (start 6 months post virtual start) 300,000 Health insurance 12,500 Complete startup cost, using TCD's startup preparation package 50,000 US legal documents such as contracts, etc 5,000 Umbrella policy coverage incl. liability 25,000 Copyright and trademarks registration 10,000 US website, brochures, biz cards, letterhead 20,000 Office, phone mgt, fax and mail handling at the TCD Accelerator in Atlanta 84,000 Monthly book keeping and payroll, incl. annual Accounting revision 30,000 Office supplies, phone, and other flexible expenses 10,000 Travel and entertainment (flexible, low due to local market) 50,000 Using TCD to kickstart the the US market 240,000 Other expenses 50,000 Estimated total investment required to enter and grow the market using best practices approach 836,500
  10. 10. TCD has a very strong brand that can kick in doors otherwise closed. TCD Atlanta consists of dedicated sales and marketing people desiring to take an operational partnering role with our clients. We are the process experts, you are the product experts, lets work together for maximum benefit.
  11. 11. • Startup Preparation Package: The soup to nuts package for getting you started in the USA. We help you with all aspects of starting up, using our network of service providers that offer you negotiated rates. You can be up an running (less immigrations) in 4 weeks. Investment: 10,000 (after export subsidies)plus direct cost to services providers. • Concept test: Pre-entry market test: 5-10 potential customer meetings, pitch coaching and final feedback from TCD. Investment: 14,000DKR (if export subsidies of 50%, otherwise 28,000dkr) • Virtual solution: US address at TCD office, Phone and Fax answering, Mail handling, Access to in-house accounting firm solely focused on DK clients. Per month: 3200DKR • Full service solution: Virtual solution but with physical dedicated office. Access to community and networking events, plus monthly coaching by TCD staff. Per month, starting at 10,000DKR. • Virtual+ Local Hire: Full Service solution where TCD recruits a US person to work on behalf of the company, oversight and strategic coaching by TCD staff. Per month, starting at 20,000DKR.
  12. 12. • 1 customer segment • 1 metro area • 1 product
  13. 13. • US office address, phone number and fax • US phone number NOT answered by the CEO • Support payments with checks and American Express • Customer service department • Americanized website – Website in english, with lots of pictures – About Us with exec bios – Customer Service number (Vanity number) – Online FAQ – Payments with Amex and checks, forget Diners Club • Make local networking a priority – join your chamber and local trade groups
  14. 14. • Outsource non critical tasks to trusted advisors to ensure quality while keeping low cost…you dont want your sales person being responsible for the accouting, accounts receivables, phone management, etc.
  15. 15. • What if we have not sold anything in 12 months? • How much total capital is available to the US before we pull the plug? (what is the magic number??)
  16. 16. • +40 companies served since 2001 • Currently 24 active firms in the Atlanta office • Leverages the UM brand and UM network nationwide to kick start the company in the US market • Safe environment with control mechanisms by market entry experts from the TCD Bottom line: Saves DK firms on average 3-6 months when starting up
  17. 17. Exit process Own Full time Virtual + Dependency of Virtual TCD Startup prep process Concept testing and iterations
  18. 18. Startup Preparatio Company Market n B Physical developm Package and virtual ent infrastruct services ure (core) Company Accountin c Company partners Admin g and Company with TCD – TCD assistanc d CFO maintains e services coordination and quality control aspects Company e Marketing Company Legal f and sales Other HR services (recruiting Company f as and needed benefits)