Successful U.S. Market Entry Techniques. November 29, 2011

Transcription

1 Successful U.S. Market Entry Techniques November 29, 2011

2 Introductions Jennifer Vessels, CEO Next Step Fred Greguras, Partner K&L Gates Dean (Kip) Witter III, Vice President The Brenner Group Tell us who you are.

3 Top 5 Mistakes in Entering US 1. Underestimate time and budget requirements 2. Limited knowledge of infrastructure requirements 3. Translation of sales marketing approaches 4. Ineffective selection, agreements, use of partners 5. Lack clear, unique value to the market

4 How can you AVOID these Mistakes

5 Recognize the WIIFM Network What s In It For Me

6 Building Value in the US Market Value is the perceived WORTH of benefits received by a buyer in exchange for the total cost of an offering.

7 Unique Value Proposition For the target buyer, your solution brings unique value. Customer Issue Unique Value Your Solution Competition

8 Identify Your Ideal Customer(s) What makes someone an ideal customer for your offering?

9 What You Need to Know What s happening in THEIR market? What are their greatest challenges today? Their What s In It For Me

10 Understanding the Competition What is your ideal customer using today? What other solutions can address their needs? What are your competitors market approaches?

11 Defining your value Your combined solution uniquely solves customer issues and provides value Customer Issue Unique Value Your Solution Competition

12 What ELSE You Need to Know How do customers buy? What else do they buy? Who do they listen to / respect / take advice from? How do they learn about new solutions to problems? Where are they in the US?

13 Go to Market Approach

14 Define the Sales Strategy First Strategy Direct Channels OEM PROS Control Relationships/ Coverage Rapid volume after penetration CONS Lacks scalability Need to gain and retain mindshare Long sales cycle

15 The RIGHT Partners Clarify your objectives for partnership Define your company values and work style Identify companies in complementary market areas Define your value add to partners and the market

16 Hiring Sales Personnel Partner or Direct? Hunter or Farmer? Level of Incentive Compensation? Resources required to manage the salesperson

17 Role of Marketing and Sales

18 Plan Appropriate Time for Success Month 0 Identify Market Opportunity Month 1 Month 2-3 Define and Understand Target Market Build/Validate Value Proposition Conduct Prospective Customer Research Month 4-6 Build Marketing and Sales Recruitment Month 6-12 Month 12 and ongoing Initial Sales Process Revenue Generation

19 Timing is Everything

20 Next Step Delivers Revenue Results Take your company to the Next Step through: Definition of US Marketing / Sales Strategy and Business Plan Business development and contacts in Silicon Valley Creation of marketing materials and lead generation for US market Hiring and development of US Sales Team Thanks to Next Step within one year of launch, Media Analyzer s US operation was profitable and continues to drive our business growth. Steffan Egner, CEO/MD Media Analyzer GmBH

21 Successful U.S. Market Entry Techniques Legal Framework November 29, 2011 Fred Greguras K&L Gates LLP PL v3 Copyright 2010 by K&L Gates LLP. All rights reserved.

22 My Background Partner in K&L Gates Palo Alto office, 25+ years working in Silicon Valley and Globally Clients include global software, clean tech and life sciences companies Founder and CFO of a venture-backed company Have done many U.S. investments for foreign investors and helped many businesses set up operations in the U.S. 22

23 Convention Treaty Framework How Treaties Work Intellectual Property Paris Convention Berne Convention Patent Cooperation Treaty WIPO Copyright Treaty TRIPS Immigration Visa waiver program for up to 90 days with a round trip ticket/b visa E-1 (Treaty Trader) /E-2 (Treaty Investor) visas Tax Treaty 23

24 Sample Treaties IP Tax Immigration China All Yes No Denmark All Yes E-1,VW Germany All Yes E-1, E-2, VW Poland All Yes E-2 Portugal All Yes VW Taiwan TRIPS only No E-1, E-2 24

25 Approaches to Entering the U.S. Market The nature of the product and target customers are key factors in planning your market entry legal framework Web site Sales representative, distributor, VAR, OEM, license Direct U.S. presence (sales and/or support) Combination of approaches Tax planning in all cases 25

26 Selecting the Right U.S. Business Partner Practical considerations Track record in sales Current commercial representations Channel relationships Financial position Technical capability Exclusive/non-exclusive relationship Term of agreement 26

27 Protecting Your Intellectual Property Think both practically and legally Convention memberships/timing Trademarks first exposure in the U.S. Copyright - statutory Patent - statutory Trade secret - contract There is no opportunity without some risk 27

28 Commercial Law Requirements Sales paper should look and feel like U.S. paper to a potential customer Web site terms of use Privacy policies Sales approach needs to be feasible in the channel Uniform commercial code Limitation of liability Warranties commercial and consumer Consumer protection laws 28

29 Direct Presence: Subsidiary or Branch Office May need a U.S. presence to demonstrate commitment to the market and to support your channels Tax planning Locating your initial office Formalities of incorporation complete the paperwork Capitalizing the subsidiary debt and equity Limited liability if formalities observed Intercompany agreements to define the business relationship tax planning 29

30 Finding the Right People Work visas treaty? Hiring local people: employment laws vary from state to state Lead time for staffing U.S. operations Combination of personnel from parent and U.S. Management scope of authority 30

31 Summary Tax considerations need to be part of planning for all approaches Study the market so you understand how products are sold in the U.S. Protect your IP both legally and practically A direct presence may be needed in the U.S. to demonstrate a commitment to the market and to support channels Hire people who understand your product and its market The window of opportunity may be narrow so operate at near Silicon Valley speed 31

32 K&L Gates LLP Over 2000 lawyers in 39 offices throughout the U.S., Asia, Europe, the Middle East and South America We have many business lawyers who assist companies entering U.S. markets from basic corporate formation to immigration to taxation in a practical and timely manner Our lawyers are highly experienced in cross-border transactions Fred Greguras K&L Gates LLP fred.greguras@klgates.com

33 The Brenner Group, Inc. Presents Successful U.S. Market Entry Techniques Important Finance & Reporting Considerations November 29, , The Brenner Group, Inc. All rights reserved

34 Core services Interim Financial Management Consulting CFOs & Controllers Business Valuations; e.g., 409A Financial Advisory Services; e.g., M&As, asset sales, wind-downs Routinely referred by well known VCs & law firms 1,500 clients in all leading tech sectors Celebrating 25 years in Silicon Valley , The Brenner Group, Inc. All rights reserved

35 Kip Witter, Vice President and CFO professional Executive financial positions at Amdahl Corp., Eeonyx Corp., The Capstone Group, Hello Direct, Inc. & William D. Witter Inc. MBA, Stanford University Graduate School of Business BA, Applied Mathematics, Harvard College (magna cum laude) , The Brenner Group, Inc. All rights reserved

36 Accounting and tax considerations IP in U.S. vs. elsewhere funding challenge Financing alternatives Due diligence , The Brenner Group, Inc. All rights reserved

37 Accounting standards U.S.? Parent company s? Consolidation Reports to Shareholders, Board Exit strategies Income tax issues Other taxes Doing business , The Brenner Group, Inc. All rights reserved

38 Who owns the main patents, trademarks, know-how? Where are you seeking financing? , The Brenner Group, Inc. All rights reserved

39 Parent company Direct investment (stock, loan) Trade credit Bank guarantee Joint venture Equity on your own Government grants Venture debt/venture leasing , The Brenner Group, Inc. All rights reserved

40 360 view of your business Entrepreneur s ability to assess own strengths, weaknesses, opportunities Validate target market Build foundation of trust with investors Forces entrepreneur to look critically at all aspects of the business , The Brenner Group, Inc. All rights reserved

41 Reduces uncertainty about investing Helps investors persuade their own partners to invest Helps persuade other syndicate members to invest Applies to a prospective buyer or strategic partner , The Brenner Group, Inc. All rights reserved

42 Critical path between term sheet and funding Term sheet: 20% - 50% of the way to funding Hire a quarterback to manage the process , The Brenner Group, Inc. All rights reserved

43 The Technology The Market The Team Financial, administrative and legal information The unexpected , The Brenner Group, Inc. All rights reserved

44 , The Brenner Group, Inc. All rights reserved

45 Action Plan I commit to the completing the following actions: Action Completed By

46 Questions? Jennifer Vessels Fred Greguras Dean (Kip) Witter III

47 Successful U.S. Market Entry Techniques Jennifer Vessels Fred Greguras Dean (Kip) Witter III