us market entry

  Scientists and engineers define a system as any group of interacting, interrelated, or interdependent parts that form a complex and unified whole with a specific purpose. More simply, all systems: Have a purpose Must contain all parts to perform optimally Are impacted by the order in which these parts are arranged, and Maintain stability through feedback Sound too esoteric? Let’s put this into context. A system versus a collection Are the tools in your toolbox a system? They do have a purpose, but that’s about it. The effectiveness of your hammer in driving a nail is not changed by whether you also have a screwdriver. Nor is it changed by the order in which your tools are arranged in your box. And there aren’t any mechanisms in place to indicate when one of your tools is underperforming. The absence of these features means that your toolbox is not a system, but simply a collection (of tools). Let’s take another example that you probably rely on every morning: your coffee maker. Its purpose is clear, and as anyone who has misplaced their filters knows, achieving that optimal cup of coffee requires that all parts be present. The order in which these parts are arranged does, in fact, impact the result. Additionally, there are built-in mechanisms such as the warming plate and steam valve to ensure optimal results. The presence of all four features means that your coffee maker, unlike your toolbox, is a system. But how does this relate to marketing? With the vast number of high and low-cost marketing tools available today, many firms tend to employ an array of independent modes simultaneously to attempt to attract their target audience, resulting in a series of random exposures that are difficult to track and measure. Part of the reason why this occurs is that too many firms fail to view their marketing strategy as a system. In essence, they think they have a toolbox when in fact they have a coffee maker. Don’t worry, we’ll take this step by step. The purpose of your marketing strategy On the surface, the purpose of investing in marketing modes is to drive sales. Or in the B2B world, to drive meetings that you hope will result in sales. At MEET, we would argue that the purpose of marketing is a bit more refined. The purpose of your initial marketing phase is to build awareness amongst target prospects. These are clearly defined personas with an expressed need, the resources to fulfill that need, and urgency for a solution. Understanding the purpose of marketing, as opposed to the function, helps to optimize your investment of resources. By focusing on your target prospect as the driving force behind your marketing strategy, this investment will be better utilized and deliver stronger ROI. The whole of an integrated strategy is better than its parts In our recent webinar, we discussed the step-by-step process of developing an integrated marketing strategy.  An integrated marketing strategy is one in which all parts are timed and targeted toward funneling your target prospects to convert into customers. The first step to integrating your strategy is to determine which of your marketing modes has the highest conversion rate. Next, you want to nurture prospects toward that marketing mode. Rather than view the array of marketing modes available, e.g. e-news, webinars, website, blog posts, etc., as a collection of techniques at your disposal, do the research to determine how each mode can work to form a stronger, more cohesive, more complete strategy. (Check out this recent post for a simple example of integrated marketing.) Order matters There are three stages to relationship building with a target prospect in B2B marketing: Awareness Intimacy Trust The ultimate goal of B2B marketing is to yield preset meetings with high-quality prospects, which in turn triggers the handoff to your sales team. It is more likely that you will build awareness through your website than your webinars. As such, it is critical that you consider the unique assets of each marketing mode in the context of your relationship stage for the purpose of achieving that goal, and apply them in order. Learning through feedback If you follow our blog posts and webinars, you know we talk a lot about the importance of learning through measurement. Investing resources into a marketing mode without putting in place mechanisms to measure your results is money down the drain. A system has levers in place to let us know when it is off course. A well-functioning marketing strategy should have similar levers, allowing us to consistently measure our results and iterate our process to improve productivity. So tomorrow morning, take a moment to appreciate your coffee maker. Because those same features that deliver a satisfying cup of coffee can also deliver better marketing ROI. To check out all of MEET’s webinar content on how to successfully scale your company in the U.S. market, subscribe to our YouTube Channel. About
 MEET (meetroi.com) helps international B2B growth companies soft-land and scale in the U.S. through trade shows and in-person events. MEET’s processes help its clients ramp-up sales quickly and maintain a steady stream of high-quality prospects going forward.  Contact Bill Kenney for a no-obligation conversation: bill@meetroi.com or +1 (860) 573-4821.

The spaghetti technique of “throw it against the wall to see what sticks” is too often adopted into practice by marketing professionals. With so many low-threshold, low-cost marketing tools out there, it’s increasingly easy to simply flood the market and hope for success. We refer to this “spray and pray.” The first pitfall of the spaghetti technique is that firms begin to rely on an over-exaggerated definition of their target prospect. The second pitfall is that it becomes increasingly difficult for firms to measure marketing ROI, resulting in wasted resources. We recommend an integrated marketing strategy that focuses on a narrowly defined target prospect and pays close attention to the stages of lead nurturing. Here’s how to get started. Start with a clearly defined prospect Like top chefs who are highly selective about the ingredients they use, we recommend being similarly selective when it comes to defining a prospect. At MEET, we’ve identified three criteria to help our clients characterize high-quality prospects—they must have a need, the resources (money) to fulfill that need, and urgency for a solution. For the point of simplification, we like to use the phrase: NEED – MONEY – NOW In essence, these are individuals for whom your product or service solves one of their top three problems at this moment. While someone could have a need and money, without urgency they are not a prospect today—though they could be in the future. Look for what’s keeping your prospects awake at night. In the absence of any one of these criteria, individuals go from prospects to suspects, and therefore should not be the focus of your marketing strategy. An integrated marketing strategy needs to consider the result that you want, and that result (in the B2B world) is meetings with decision-makers. Distinguish marketing modes within the stages of the lead nurturing process At MEET, we like to think of marketing strategy as a funnel. At the top of the funnel, when engaging with contacts or suspects, are marketing awareness activities such as social media, advertisements and event presence. Once a contact has established interest in your product or service, increasing their likelihood of identifying as a prospect, there is movement down the funnel. In the second part of the funnel are lead nurturing activities such as webinars, white papers or hospitality events that demonstrate to this individual precisely how their unique solution can be solved through your product or service. These activities start to build intimacy. The bottom of the funnel is reserved for prospects with initial trust in your solution who are ready to begin the sales process (conversion) by setting a first meeting with the sales team. (For a visual of MEET’s marketing funnel, check out this post or reach out to us directly with questions) Don’t take our word for it We’d be foolish not to offer at least one case example as proof of theory in practice. Picture this scenario drawn from one of our early clients: Company: systems integrator with $10 million in annual sales Target customer: tech and admin executives In our early assessment of the company, they reveal a variety of marketing assets—e-news, website, blogs, webinars, trade shows and a range of fairly active social media—all with good content. While inquiring more about the webinars, we discover they are happening weekly and are attracting 5 to 6 attendees. Before jumping to the conclusion that the issue is frequency, we asked about the conversion rate to sales meetings for these webinars. The answer: 50% With a conversion rate of 50%, it was clear that this content must be better than just good—it must be excellent! It also meant that some aspect of their marketing strategy was effectively attracting high-quality prospects. We decided to start there. Utilizing all of their top-of-the-funnel, awareness-building marketing modes, we drove contacts to their webinars. What happened? Over the course of two years, our integrated marketing strategy increased webinar attendance tenfold. And perhaps more importantly, the conversion rate remained 50%. Imagine going for 2-3 sales meetings per week, to 20-30 in two years—all with minimal additional investment. A marketing strategy for top chefs Similar to top chefs who carefully select the right ingredients to achieve desired results, we recommend closely examining your marketing assets, finding out where the lever is, and driving results through an informed, integrated strategy. For more on how to develop an integrated marketing strategy, check out our recent webinar: Taming the Marketing Funnel and How to Integrate Your Marketing. To check out all of MEET’s webinar content on how to successfully scale your company in the U.S. market, subscribe to our YouTube Channel. About MEET (meetroi.com) helps international B2B growth companies soft-land and scale in the U.S. through trade shows and in-person events. MEET’s processes help its clients ramp-up sales quickly and maintain a steady stream of high-quality prospects going forward.  Contact Bill Kenney for a no-obligation conversation: bill@meetroi.com or +1 (860) 573-4821.

People don’t pay to hear the New York Philharmonic get on stage and make a lot of noise. They pay to hear music—beautiful music that is performed with precision and expert guidance. And then they pay to hear it again. In our recent webinar on October 17th titled: Taming the Marketing Funnel and How to Integrate Your Marketing, we offered up an analogy between a poorly conducted orchestra and a common B2B marketing pitfall. Both result in a highly disenchanted audience. Common B2B marketing (dis)function With the full spectrum of high and low-cost marketing tools available today, it is not uncommon to see firms employ an array of modes simultaneously at their target audience. The result is a series of random exposures that are difficult to track and measure. In the absence of an integrated, results-driven marketing strategy, two negative outcomes typically emerge: • Poor results (minimal ROI) • Little opportunity to improve (nothing to leverage for the future) Whether it’s e-news, events, social media, or paid advertising, the goal is not to make a lot of noise in the market simply because you can. The goal is to make music—the type of music that will keep people coming back for more. Here’s what we recommend. Prioritize learning The saying that 50% of our marketing dollars are wasted, we just don’t know which 50%, is often true. Using a variety of marketing tools to attract B2B customers through randomly sequenced exposures makes matters worse. At MEET, we focus on in-person events as a B2B marketing strategy for targeting high-quality prospects. But whether you are putting money into events, print advertising or social media, something vital can be learned and leveraged from every marketing endeavor. The first step is to integrate learning through measurement into your marketing strategy. (See this post for an introduction to the variety of ways to introduce learning at trade shows and in-person events). The second step is to convert that learning into positive change by actively evolving your marketing strategy. While 50% of your marketing budget may still be wasted in the short term, the key is to figure out which 50% is bearing fruit and leverage it. Leverage each stage of your marketing strategy Back to our orchestral analogy, what would it sound like if the conductor raised her baton and invited every musician to play at once? Pure chaos. Instead, conductors control the pace and composition of the music by introducing new instruments at precisely the right time. A good marketing strategy does the same. Rather than look at the different modes of marketing, e.g. digital, interactive, events, websites, etc., as equals in terms of the value they provide in attracting prospects, we recommend that you set them in context with each stage of the relationship-building process. When and how you transition to the next marketing tool should be informed by the level of your relationship with a target prospect. The three stages of B2B marketing There are three stages to relationship building with a target prospect in B2B marketing: Awareness Intimacy Trust The ultimate goal of B2B marketing is to yield preset meetings with high-quality prospects, which in turn triggers the marketing handoff to your sales team. As such, it is critical that you consider the unique assets of each marketing mode in the context of your relationship stage for the purpose of achieving that goal. Using a trade show strategy as an example, your first marketing mode should aim to build awareness among target prospects. Think of this as a gateway opportunity for them to see alignment between their urgent need and the resources you provide. Drawing prospects to your website to build initial awareness is a low-cost, low-threshold marketing tool to build a positive first impression. Converting prospects from awareness to intimacy comes from introducing them to additional marketing modes that more directly address their urgent needs. Webinars, white papers and e-news are great tools to help newly aware prospects become more intimate with your industry competence. Finally, because trust is where relationships convert to meetings (i.e. our ultimate goal in B2B marketing) this is where one-on-one contact, needs assessment, and a warm handover to the sales team takes place. For a visual display of a marketing funnel broken down into three stages, check out this post. In a crowded market, it’s easy to simply add to the racket. But while making music may take a bit more planning, your audience will appreciate the effort. So will your sales team. For more on how to develop an integrated marketing strategy, check out our entire webinar here. To check out all of MEET’s webinar content on how to successfully scale your company in the U.S. market, subscribe to our YouTube Channel. About MEET (meetroi.com) helps international B2B growth companies soft-land and scale in the U.S. through trade shows and in-person events. MEET’s processes help its clients ramp-up sales quickly and maintain a steady stream of high-quality prospects going forward.  Contact Bill Kenney for a no-obligation conversation: bill@meetroi.com or +1 (860) 573-4821.

  The business world is full of metaphors and famous quotes invoking the importance of finding the right partners and team members to drive success. Whether it’s “get the right people on the bus” or “it’s better to be alone than in bad company,” the point is clear: surrounding yourself with the best people to get the job done is critical. This is especially true for international scaling firms. Identifying the right partners to help you launch at a local or regional scale in a foreign market can be tricky, particularly when it comes to something as important as offshore manufacturing. For some perspective on the art of partnership vetting as an international scaling firm, we spoke with American manufacturing market-entry guru Lance Scott of Alliance Technologies. We asked Lance for a recommendation on the best tools international scaling firms could use to validate the capability of new partners, starting with the example of offshore manufacturing. Quality certifications mean more than you might think Lance recommends looking at ISO 9000 and TQM (Total Quality Management) as a place to start the vetting process. “It’s not only as a measure of quality but a measure of how the quality system is managed. Whether it’s ISO or TQM, it’s expected in the U.S. that you have some basic quality assurance in place.” And that requires good management. Lance also recommends asking to see a manufacturing partner’s quality manual and to ask questions. For example, do they have the latest ISO certification and if not, why? Depending on the market, there are additional certifications that can help you assess the quality of a potential partner. Meeting FDA manufacturing practices, for example, is another standard to look for—depending on the market. Advice to international scaling firms: don’t be afraid to look internally If your company is successful enough to consider international scaling then you’re clearly doing something right. And while we’d never recommend simply replicating your marketing or customer acquisition strategy in a foreign market, it’s likely that your existing methodology for identifying high-quality partners can be used as a model. Lance recommends that international scaling firms look internally at their own supplier audits and use them as a guide to developing future partnership vetting strategies. “There’s no reason you can’t do a lot of that legwork upfront by sending potential partners your supplier quality audits.” Using these supplier audits as a format, scaling firms can begin to look at layers of compliance both with international standards and other U.S. regulatory bodies such as the Equal Employment Opportunity Commission (EEOC) and the U.S. Department of Labor. For more advice on navigating the U.S. regulatory system, check out this post. It all comes down to good management Ultimately, the best partners will be attracted to a well-managed company, and vice versa. From Lance’s standpoint, great technology, great customer service, and a great corporate culture are the key ingredients to a successful company. All vetting strategies require a strong foundation, not only when comes to identifying partners, but particularly when it comes to all the potential political and economic risks and barriers beyond your control. Whether it’s currency fluctuation, tariffs, or political unknowns like Brexit, almost any issue can be mitigated through skillful management and strong partnerships. That’s why before embarking on an international scaling endeavor, we always recommend testing your company’s financial readiness as well as your management team’s readiness to enter a new market. The results of these tests will both inform your partnership vetting strategy and ensure greater resilience overall. For more expert advice on overcoming the challenges of U.S. market-entry, check out our interview with Lance Scott titled: Navigating the Challenges of the American Market: The Impact of a Vast Geographic Territory. To check out all of MEET’s webinar content on how to successfully scale your company in the U.S. market, subscribe to our YouTube Channel. About
 MEET (meetroi.com) helps international B2B growth companies soft-land and scale in the U.S. through trade shows and in-person events. MEET’s processes help its clients ramp-up sales quickly and maintain a steady stream of high-quality prospects going forward.  Contact Bill Kenney for a no-obligation conversation: bill@meetroi.com or +1 (860) 573-4821.

For most CEOs of scaling firms, U.S. market-entry isn’t their first rodeo. The majority have withstood the bucking bronco at home—maybe even won the blue ribbon. A handful has had the opportunity to test their skills in other venues (foreign markets) for that added layer of certainty. Still, no matter how much success a scaling firm has experienced in the home market, much remains unknown about the process of U.S. market-entry. Unknown but not unknowable. During our September 12th conversation with American manufacturing market-entry guru Lance Scott of Alliance Technologies, we discussed a range of strategies for navigating the challenges of U.S. market-entry. Among them, we discussed how to understand the relative strengths and weaknesses of different regions or clusters in the U.S. market, and whether this knowledge comes at a high price. The value of market research Investing in market research can be costly, but not necessarily from a cash perspective. While market research certainly can be expensive, Lance pointed to an array of resources that are available for free, or through low-cost monthly subscriptions. The true cost in market research comes from making the time to gather these insights. For competitive landscape research, Alliance Technologies utilizes D&B Hoovers. Through this site, Lance can get a glimpse of the main players in the market and their key accounts. For U.S. market-entry firms looking for key clusters to inform their decision on where to geographically locate, these insights are highly valuable. “It doesn’t typically matter where the firm is based on the distribution side because many have a massive facility in one location that ships everywhere in the world. But on the key account side, you’ll want to look for these industry clusters.” Lance even recommends testing this cluster identification strategy in the home market to see if it works for your industry. “I think you’ll find that if you look at your own key accounts in your home market and where their parent companies are located, it’s a good indicator of where these industries are concentrated.” Free resources Lance’s team has spent years collecting links to websites and reports that provide valuable (free) insight into market data. “Whether it’s KPMG’s 2018 Global Manufacturing Outlook, links to U.S. government initiatives like SelectUSA, or industry-specific reports, we aim to make sure an array of resources are available.” Lance also recommends reaching out to Consulates for foreign connections and useful data. How to maximize ROI With all the free and low-cost market research websites and publications out there, it’s clear that making a large financial investment in cluster analysis may not always be necessary. However, it’s important to recognize that these are only assumptions, and assumptions must be tested. That’s where partners like MEET come in. At MEET, we help clients engage and enroll quality prospects through trade shows and in-person events. We focus on trade shows and in-person events because we believe they are the most effective way of getting face-to-face with high-quality executive prospects. Successful execution and continuous improvement of event participation ROI is how MEET solves the budgetary challenge that scaling firms face in determining the most cost-effective way to gain traction and find early success in a new market. Firms seeking U.S. market-entry can partner with companies like MEET, Alliance Technologies, and other service providers to test their assumptions while gaining early traction, hence maximizing ROI. For more on the theory of soft-landing your scaling venture, see this post. While the high risk, high reward reputation of the U.S. market may make it seem like the Wild West, there’s no reason to jump in like a reckless cowboy (or cowgirl). High-quality, low-cost market research, coupled with the array of soft-landing partners makes it possible for U.S. market-entry firms to make well-calculated decisions without having to sacrifice valuable (sometimes scarce) resources. So, come earn your spurs in the U.S. market. Flankmen are standing by to help. For more expert advice on overcoming the challenges of U.S. market-entry, check out our interview with Lance Scott titled: Navigating the Challenges of the American Market: The Impact of a Vast Geographic Territory. To check out all of MEET’s webinar content on how to successfully scale your company in the U.S. market, subscribe to our YouTube Channel. About
 MEET (meetroi.com) helps international B2B growth companies soft-land and scale in the U.S. through trade shows and in-person events. MEET’s processes help its clients ramp-up sales quickly and maintain a steady stream of high-quality prospects going forward.  Contact Bill Kenney for a no-obligation conversation: bill@meetroi.com or +1 (860) 573-4821.

Sales traction, ideally early sales traction, is requisite for every scaling firm. Therefore, if given the choice, wouldn’t all firms devote the necessary resources to achieving sales traction as quickly as possible? The answer, strangely enough, is no. Each internationally scaling firm takes a slightly different approach to new market entry based on unique industry, economic and budgetary factors as well as customer demands. At MEET, we believe that despite these differences there exists a set of best practices for international scaling which take into account the sensitive factor of time. Like sand in an hourglass, time does run out for scaling firms, especially those exploring U.S. market entry.  Money, investor support, and co-founder and employee retention: all are limited resources during a high stakes expansion. For some additional insight into the critical factor of time in U.S. market-entry and the element of choice for scaling firms, we spoke with American manufacturing market-entry guru Lance Scott of Alliance Technologies. Lance founded Alliance Technologies with a mission to help international advanced manufacturing companies accelerate strategic growth in the American market through direct operational management and expert guidance. Sales traction and the element of choice Internationally scaling firms have two options when it comes to achieving sales traction in a new market: Commit resources to partners like Alliance or MEET to soft-land the company and deliver early sales traction. (For more on the theory of soft-landing U.S. market-entry, see this post.) Budget for a 12-18 month (i.e. realistic) gestation period for first orders to come to revenue recognition. How scaling firms choose between these two options comes down to comfort level, but more importantly, it comes down to maximize speed and the probability of success while at the same time managing risk and operating expenses.  “If you have a certain number, you can pretty easily say what sort of revenue and profitability is needed to be at reasonable operation for a set period of time,” shared Lance. How important is the time factor? Back to our hourglass analogy, time is perhaps the least talked about factor to U.S. market entry and also one of the most critical. In the absence of sales traction and early wins, scaling firms begin to lose two of their most highly valued assets: Co-founders and team members: the best and brightest will begin to look for better opportunities as they suspect the ship is about to sink Investment interest: those previously interested will start to drop off when signs of success do not present themselves. Making the best use of your time We couldn’t agree more with Lance’s assessment that the best approach requires a network of pre-launch market researchers and on the ground reps that can help firms identify key account targets and audience trends. Implementing layers of support that can both gather information and act on it without an over-investment of time and money will deliver the early traction to keep both investors and valuable team members on board. Can you choose how long it takes to get traction in a new market? To some degree, yes. Because while you may not always be able to predict success, understanding the critical factor of time and the importance of early sales traction in the precarious process of international scaling will clarify the decision of whether to seek support or go it alone. And while early sales traction can still take seemingly forever to materialize, putting in place the right mechanisms to measure and analyze every point of data that comes back from the new market will be the best predictor of all. For more expert advice on overcoming the challenges of U.S. market-entry, check out our interview with Lance Scott: Navigating the Challenges of the American Market: The Impact of a Vast Geographic Territory. To check out all of MEET’s webinar content on how to successfully scale your company in the U.S. market, subscribe to our YouTube Channel. About MEET (meetroi.com) helps international B2B growth companies soft-land and scale in the U.S. through trade shows and in-person events. MEET’s processes help its clients ramp-up sales quickly and maintain a steady stream of high-quality prospects going forward.  Contact Bill Kenney for a no-obligation conversation: bill@meetroi.com or +1 (860) 573-4821.

The prospect of drowning in a sea of U.S. regulation is scary, particularly if you’re not an experienced swimmer. Yet scaling firms must come to terms with the fact that part and parcel to reaping the rewards of U.S. market entry is mastering the depth and breadth of its regulatory system. Or at the very least, hiring a tugboat that can lead you out of the harbor. For insight into how scaling firms should best manage the regulatory landscape of the U.S. market, we spoke with American manufacturing market-entry guru Lance Scott of Alliance Technologies. Lance founded Alliance Technologies with a mission to help international advanced manufacturing companies accelerate strategic growth in the American market through direct operational management and expert guidance. During our September 12th interview, we asked Lance a number of questions to help demystify U.S. regulatory and tax systems for firms endeavoring to scale to the U.S. market. Regulation in layers Because of its federal and state government structure, the U.S. has layers of policies and legal structures designed to regulate how businesses operate. Lance raised the example of OSHA, the U.S.’s Occupational Safety and Health Administration that oversees these standards on the national level. OSHA also operates at the state level, for example in our home state through Connecticut OSHA. Scaling firms must be cognizant of federal as well as state-level regulation and make sure they are in compliance on both levels—a unique challenge to U.S. market entry. On the state level, scaling firms that operate regionally must pay special attention to state-by-state differences, particularly when it comes to taxation. Placing taxation in the regulatory bucket is an area requiring detailed knowledge and professional oversight. Tax laws are dynamic so having the support of legal and tax experts is fundamental to US market-entry. To further complicate U.S. scaling endeavors, each U.S. state may have slightly different income, property, and payroll tax regulations, as well as workers compensation. At a national level, Lance used the example of import/export compliance. While it may not matter whether you’re bringing a product into California or New York from an import regulation standpoint, export compliance rules are extremely strict. Finally, at a global level, we see quality standards that (fortunately in recent years) have become more synchronized across regions. Whether it’s ISO in Europe, CCC in China or SEA in the United States, the good news is that more linkages are being made to ensure that, from a quality perspective, scaling firms can operate with a shared recognition of customer values. When to look for help Lance recommends that every scaling firm seek professional tax and regulatory guidance before entering the U.S. market. For 30 years he has worked on building a model that provides strategic sales advice, operational, financial and regulatory navigation support. “It’s hard to find these services all in one place and we’re proud to be able to offer that to our clients.” But assuming that not everybody will become a client of Alliance Technologies, Lance stresses the importance of seeking support in key areas. This is particularly the case with export compliance, where there’s very little room for error. “Export compliance laws have changed dramatically and are incredibly stringent. The penalties for noncompliance are mind-boggling—you’re looking at a $1 million penalty per occurrence. While it’s less the case with importation, when it comes to export compliance, scaling firms must have a policy in place from day one.” All this discussion of regulatory minefields is not to imply that U.S. market entry isn’t worth the hassle. Rather, in the interest of supporting the success of scaling firms, we aim to make clear that regulatory compliance at the state and national levels should be taken seriously and monitored closely. For all the investments required to ensure U.S. market entry success, it’s simply not worth the risk of overlooking the fine print in the U.S. regulatory system. Fortunately, you don’t have to do it alone. For more expert advice on overcoming the challenges of U.S. market-entry, check out our interview with Lance Scott titled: Navigating the Challenges of the American Market: The Impact of a Vast Geographic Territory. To check out all of MEET’s webinar content on how to successfully scale your company in the U.S. market, subscribe to our YouTube Channel. About
 MEET (meetroi.com) helps international B2B growth companies soft-land and scale in the U.S. through trade shows and in-person events. MEET’s processes help its clients ramp-up sales quickly and maintain a steady stream of high-quality prospects going forward.  Contact Bill Kenney for a no-obligation conversation: bill@meetroi.com or +1 (860) 573-4821.

Perhaps the hardest waters to navigate in a U.S market entry expedition are developing sales channels. With tight timelines and even tighter budgets at stake, understanding how to leverage U.S. manufacturing, distribution and sales networks in the most efficient way possible is both challenging and necessary for scaling firms. For insight and guidance into how scaling firms should approach U.S. sales channels from a budgetary, logistical and management perspective, we spoke with American manufacturing market-entry guru Lance Scott of Alliance Technologies. Lance founded Alliance Technologies with a mission to help international advanced manufacturing companies accelerate strategic growth in the American market through direct operational management and expert guidance. During our September 12th interview, we asked Lance how he supports scaling firms in navigating the U.S. market’s unique landscape. Saving money by hiring out “In the U.S., we have a sales structure that is quite mature and on the surface to those less familiar, seems crazy.” Lance was referring to the role that independent reps play in manufacturing, distribution, and sales in the U.S. market. He also recognized scaling firms’ natural inclination to hire a direct sales force to avoid engaging (and compensating) a third party. “The geographic size of the U.S. has many implications for how we do sales. Firms that are able to hire their own direct sales team must already be quite large to successfully manage such an operation and get results.” According to Lance, what helps to guarantee the success of a layered distribution model is payment structure. “These representatives have a defined territory and work on commission, i.e. get paid on their success.” And as Lance points out, while they take some margin, it’s worth gaining access to new product introductions and key accounts that would otherwise cost thousands of dollars to acquire. “It’s a complex matrix but, after 30 years of defending the model, I’ve come to believe it is the best strategy for U.S. market entry given our unique geographic size and existing sales structure.” The advantage of sailing through charted territory In addition to the budgetary pressures on a scaling venture, timing is also a factor. Specifically, with regards to sales channels, Lance points out major advantages to contracting out from a timeline perspective. Capitalizing on existing networks and relationships in a new market can significantly shorten the amount of time that prospects spend in the sales funnel. As Lance points out, using third-party distributors and manufacturers also creates up and cross-sell capabilities that would otherwise not exist. How to select the right third-party rep for your company As someone whose success is measured by his ability to design and deliver highly effective sales channels for his customers, we asked Lance which criteria he uses to select manufacturing and distribution representatives. “Over the years I’ve developed a ranking system similar to a report card for reps to make sure that expectations are managed. To evaluate them, I look at things like technical competence, familiarity with the product and, when necessary, the larger systems involved. I also look at the firm’s operational capacity, specifically their infrastructure, internal technology, staff and customer service.” In addition to these criteria, Lance looks at soft factors like whether they are easy to work with and do they truly understand what it means to operate on behalf of an international parent company. Again, the key is to be able to manage and measure expectations. Who do you want at the helm of your scaling venture? Companies and trade folks quite often debate whether to hire a local U.S. salesperson as their first employee versus transplant someone from the parent company. Each has its own benefits, risks, and trade-offs. For example: Do you prioritize company experience or marketplace experience? Which skills/attributes are most important for that first hire in the new market? While it’s always possible to find that perfect individual from the home market who is worldly and experienced enough to execute a foreign scaling venture, they may not exist within your company. In selecting the right person to lead a scaling venture, many companies focus on industry-specific experience. From Lance’s perspective, this is a mistake. “Personally I focus more on skillset. If somebody’s a great Key Account Manager, I believe that they can learn a new industry or a new vertical.” In an ideal world, you have a leadership team with innate cultural knowledge of the U.S. market and substantive knowledge of the parent company. That may look like an American lead supported by an applications or sales engineer from the home market. However you decide to formulate your leadership team, make sure they are adept at understanding and responding to differences in business culture. This, according to Lance, will be your most critical navigation tool. For more expert advice on overcoming the challenges of U.S. market-entry, check out our interview with Lance Scott titled: Navigating the Challenges of the American Market: The Impact of a Vast Geographic Territory. To check out all of MEET’s webinar content on how to successfully scale your company in the U.S. market, subscribe to our YouTube Channel. About
 MEET (meetroi.com) helps international B2B growth companies soft-land and scale in the U.S. through trade shows and in-person events. MEET’s processes help its clients ramp-up sales quickly and maintain a steady stream of high-quality prospects going forward.  Contact Bill Kenney for a no-obligation conversation: bill@meetroi.com or +1 (860) 573-4821.

  In weighing the risks and rewards of U.S. market-entry, the golden rule of financial investing holds true: “never invest money you can’t afford to lose.” Scaling too early, before you have the proper reserves and stability in your home market, is a serious gamble. The major difference between financial investing and scaling however is that with financial investing you’re encouraged to dip your toes in the water to test your comfort level. Investing in U.S. market-entry, on the other hand, comes with a set of minimum costs. And while it may not be necessary to invest millions in staffing, marketing, and offshore manufacturing, it is critical that target prospects feel you are 100% committed to serving their market. In other words, dipping your toes and showing mild commitment is not an option. One of the most challenging tasks for U.S. market-entry firms is determining what level of staffing is required to gain enough traction to not only stay afloat but successfully sail past the competition. For insight into formulating a staffing budget for U.S. market-entry, we spoke with American manufacturing market-entry guru Lance Scott of Alliance Technologies. Lance founded Alliance Technologies with a mission to help international advanced manufacturing companies accelerate strategic growth in the American market through direct operational management and expert guidance. Can one person alone open a U.S. office? Hiring (or sending over) just one person to open a U.S. office is a bit like trying to run a restaurant on your own. Sure you could seat people, take their orders, cook the food and serve it up by yourself, but would your diners ever return if there’s a better-managed restaurant down the road? Even if you make great food, there are a number of factors that go into creating a pleasant dining experience. And chances are, you’re not succeeding at all of them if you’re understaffed. In the most competitive market in the world, it’s critical that scaling firms offer comparable if not better products and customer service. Lance recommends that scaling firms take a step back before embarking on U.S. market-entry and create a budget that strategically allocates resources to areas most critical for success. “A lot of time companies think that they will just hire one rep here and that’s all they need for their initial expenses. Competing in the U.S. market requires much more.” The theory of soft-landing At MEET, it is our mission to help international B2B growth companies soft-land and scale in the U.S. through trade shows and in-person events. We focus on trade shows and in-person events because we believe they are the most effective way of getting face-to-face with high-quality executive prospects. Our business model is designed to solve the precise budgetary challenge that scaling firms face in determining the most cost-effective way to gain traction and find early success in a new market without over-investing resources at the onset The theory of soft-landing is that firms seeking U.S. market-entry can partner with companies like MEET, Alliance Technologies and other service providers who make up an entire ecosystem specializing in helping companies successfully enter new countries and scale. Formulating a strengths-based staffing budget for U.S. market-entry Lance advises that if you’re bringing someone over from the home office to lead your scaling venture you want them to be focused on selling and growing the business.  “It’s very easy to underestimate all the other things like finance, legal, regulatory and human resources that come with U.S. market-entry growth.” In essence, you want to create a budget that allows your sales team the bandwidth to achieve their goals without over-extending your investment capacity. In other words, allow each team (or individual) to capitalize on their strengths. This is where a soft-landing partner can be very useful. In the case of Alliance Technologies, Lance’s team offers a fractional share C-level management team expertly trained in scaling ventures in the U.S. market to cover non-specialized areas of the business. This model allows the salesperson, customer service agent or engineer to focus on their strengths and showcase the unique feature of their product or service that makes them competitive. Whether you choose to do business with Alliance Technologies, MEET or another soft- landing partner, there’s no reason to go it alone. The alternative, according to Lance, is a staffing budget that could be up to four times that of a single person, not to mention the upfront one-time capital expenses. When you’ve saved enough to invest big but dipping your toe is not an option, a soft-landing partnership can make all the difference in a new market. For more expert advice on overcoming the challenges of U.S. market-entry, check out our interview with Lance Scott titled: Navigating the Challenges of the American Market: The Impact of a Vast Geographic Territory.  To check out all of MEET’s webinar content on how to successfully scale your company in the U.S. market, subscribe to our YouTube Channel. About 
 MEET (meetroi.com) helps international B2B growth companies soft-land and scale in the U.S. through trade shows and in-person events. MEET’s processes help its clients ramp-up sales quickly and maintain a steady stream of high-quality prospects going forward.  Contact Bill Kenney for a no-obligation conversation: bill@meetroi.com or +1 (860) 573-4821.

U.S. market entry is a rite of passage for many international scaling firms—particularly those in advanced technology. An outcome of globalization and the rapid pace of technological advancement, entrepreneurs and manufacturing businesses of all sizes from around the world see extraordinary opportunity here. Such trends have also fueled increased competition, in turn creating new (and exacerbating old) challenges for international firms vying for economic prosperity. For insight into how these, and other U.S. market entry pioneers capitalize on new opportunities while navigating the challenges of the North American marketplace, we spoke with American manufacturing market-entry guru Lance Scott of Alliance Technologies. Lance founded Alliance Technologies with a mission to help international advanced manufacturing companies accelerate strategic growth in the American market through direct operational management and expert guidance. With 30 years of experience supporting international companies in their efforts to establish, enhance or accelerate growth in the Americas, we asked Lance about the challenges these firms face. Misjudging the geography Misjudging the geographic landscape, scale and scope of the U.S. market is the first challenge faced by international scaling firms. Specifically, Lance described how many firms underestimate the size and diversity of the U.S. due to our shared language. Additionally, because certain geographic areas are renown for concentrations of particular industries, scaling firms tend to overlook other highly viable regions for doing business. “Everyone knows that California has a tremendous market in Silicon Valley but in fact, out of all the R&D spending in the U.S., about two-thirds come from eleven states. While California is the largest, seven states in the Northeast account for $75 billion. That’s not insignificant.” This is not meant to imply that the middle of the country is a barren wasteland. As Lance points out, there are a number of key markets with major players and influencers throughout the U.S. and all of North America. Finding your first home in the U.S. market In light of these challenges, we asked Lance about the primary variables he uses to help scaling firms make their first location decision. For manufacturing firms, Lance emphasized the importance of region-specific industry knowledge. In other words, where are the key accounts and influencers located? Specifically, he works with clients to unpack cluster trends. “The medical device industry is a great example. While the U.S. has clusters in Connecticut, Boston and throughout New England, Minnesota is a critical region for this industry that people might not think of at first.” How much of a concern is the high cost of doing business in the U.S.? Firms often cite the high cost of doing business in the U.S. as a major challenge to U.S. market entry. Lance doesn’t discount this challenge but encourages his clients to take a more nuanced perspective. “I try to help our manufacturing clients understand that over the past 20 or 30 years there’s been a massive shift of high-volume manufacturing to low-cost regions. It’s critical that high-volume manufacturers know that even though a lot of the decision-making happens in the U.S., high-volume production does not.” That said, Lance discourages his manufacturing clients from basing their scaling decisions on where they can find the lowest upfront costs. “I don’t want to discount the cost of doing business but I think it’s dangerous to choose your location simply based on where you can find the lowest entry costs such as building leases or salary rates. Sure, these might be lower somewhere else, but if you’re not close to your customers, there will be other, potentially higher startup costs like travel. Lance recommends considering factors like time zone—ensuring there is some overlap with your target customers and the availability of a skilled workforce in weighing the U.S. market entry decision. One U.S. market entry hurdle not to worry about Ensuring a readily available, skilled labor pool is a critical factor for any scaling firm. From Lance’s perspective, this is one hurdle that U.S. market entrants need not worry about. “I know people complain, but in helping advanced manufacturing companies scale in the U.S., I’ve always been able to find skilled workers or add additional training when needed. Finding a labor force that meets your needs is certainly possible just about anywhere in the U.S.” For more expert advice on overcoming the challenges of U.S. market entry, check out our interview with Lance Scott titled: Navigating the Challenges of the American Market: The Impact of a Vast Geographic Territory. To check out all MEET’s webinar content on how to successfully scale your company in the U.S. market, subscribe to our YouTube Channel. About
 MEET (meetroi.com) helps international B2B growth companies soft-land and scale in the U.S. through trade shows and in-person events. MEET’s processes help its clients ramp-up sales quickly and maintain a steady stream of high-quality prospects going forward.  Contact Bill Kenney for a no-obligation conversation: bill@meetroi.com or +1 (860) 573-4821.