Post date: May 19, 2011 2:48:8 PM
Why should your company be interested in the international market?
For the same reason that Apple, Starbucks, FedEx, Caterpillar, Microsoft, Walmart, McDonalds and others are, most of their future growth will come from that market. In small to medium size companies, it may come as revenue growth or as an opportunity to increase the value of your company, if you and your investors decide to exit.
There are right ways and wrong ways to approach international business development.
Some of the wrong ways include – trying to sell and support directly, lack of understanding of the local culture and laws, failure to meet local requirements, underestimating localization, and failure to determine which selling techniques works best – top down or bottom up?
Very important to form agreements with integrators and distributors based on USD and USA laws, and then let your in-country partners deal with their clients based on in-country laws, currency, and cultural requirements. Even companies as large as Wal-Mart have run into legal problems attempting to sell direct (e.g. Mexico).Smaller companies can’t afford that mistake.
My experience as a “hands on” executive includes selling systems into over 50 countries in a short period of time.
My base includes several years in a technology company that provided customer care and billing for smaller US cable TV companies. My strategy and conclusions will save companies considering entering the international market much in time and money.
I established the value of my company’s expertise by showing the system could handle small and large systems, could pass large company audits, and was easily modified to handle specialized requests. Show that system works and handles all the interfaces (API’s) to all the necessary equipment including set top boxes, video on demand, etc. We always demonstrated a full functioning system with limited data to eliminate the appearance of vaporware. Remember you are selling your expertise in the vertical market as well as the technology.
My strategy is to work with international company contacts who were expanding their global market, establish relationships with equipment companies who needed software from my company (Motorola, S/A now Cisco), and potential in-country hardware, software, and IT integrator distributors. Trade shows are good ways to exhibit systems, make media contacts, and speak on the expert panels.
Since many of the larger technology companies focus on bigger opportunities there are niche markets that are accessible for the smaller market solution.
I saw it with PC based technology, today it can be done via social media, Internet SAAS, and the Cloud.
Having experience with small to medium size companies is very beneficial and transferable to global business development. Swiss Army Knife approach where many people are cross trained and can perform multiple duties – operations, training, sales presentations, marketing, finance, contract negotiations, R&D, and HR. No need for an entourage of people. Smaller companies are more equipped to do top down selling, better at establishing long term relationships, and provide greater flexibility and efficiency in meeting the needs.
The opportunity to maximize the value of my company and product came when the largest player in the industry ran across my system in Taiwan – if it had been only in the US the company would have had considerable less value, and may not have ever had a buyer with all the consolidations.
Today many of the same ideas and concepts will still work. Updated suggestions would come via social media and LinkedIn, in particular. Joining Internet groups under Linkedin or blogs with an interest in your solutions is critical, as well as making timely comments.
If you are considering global opportunities, and how to cost effectively approach those opportunities, please give me a call and we’ll discuss
Herb Lair
870-365-5436
https://sites.google.com/site/cuoirent/home
About CUO, Inc.
Founded in 1973 by Herb Lair, CUO developed the first in-house subscriber management and billing system for the then emerging cable television industry. Throughout his career in the cable industry, he has developed, sold and installed billing systems in over 50 countries with 13 different languages. With over 35 years of consulting and entrepreneurial business development, Lair has worked in retail, utilities, government, petroleum and natural gas industry, telecommunications, and financial services.
Sid Shreeve joined CUO in 1995 as Executive Vice President. He has 35 years of experience in international business activities. Prior to joining CUO, Shreeve was an executive with Hewlett-Packard and participated in the formation of HP subsidiaries in Argentina, Brazil, Venezuela, Mexico, and Singapore. Shreeve has founded several international companies serving markets primarily in Latin America and Asia.