Wow, is this opening a can of worms or what? There are probably too many theories of making this move but many companies face this challenge and it is real. In this scenario you have probably found some initial customers, some are in the US and you may have tried to finesse the issue with a US mail drop, phone number or maybe even and executive office but now you need to get serious about it. You see the US market as the next big step and this is the chance to put the company on the map as it were.
Firstly WHY?
· We sense that some of our potential customers want to buy from a US firm
· Some are demanding local sales and service
· Too much hassle with work visas, duty on parts and other shipments, etc.
What are your options?
1. Hire half a dozen sale people as account managers to close business, manage the relationship and direct service into the account - one for each major territory (North East, West coast, South West, etc.) - depending on the comp package this could be the cheapest solution but does not have a high success rate. The reps are tough find and to train comprehensively on you offerings from afar. While they may have lots of contacts in your industry they may not have been selling to your precise target customer. Very hard to manage them remotely and ensure your getting a true picture of the situation they face. Employment issues (401k’s, healthcare, etc.) can be economically handled by 3 rd party HR firms who can act as co-employers to provide all HR functions.
2. You can transplant one of two of your own best people and build a team around them. Better chance of success but very slow on the ramp up as you still have to build a customer base to become credible.
3. Buy a small company with several offices covering a significant portion of your target geographies. This is possibly the most expensive but has a much better chance of success as there is an establish management structure and customer base and an instant US presence. The ideal company is in a complementary product/service space (or has an offering up scale or downscale from ours), has great customer satisfaction and our offering would be accepted as just another addition to the product/service line. Ideally the company is depressed in valuation at this time and looking for an updated offering which we provide.
What options would you add to this? If #3 is not feasible then what strategy would you employ?