R ODU C T I O N
The United States (U S ) is the largest consumer market in the world, albeit by narrowing margins.1 For non - American tech nolog y companies, success ful U S . market presence is integral when looking to scale operations globally and substantially grow revenues In addition , the U S ’s standing as a leading global tech innovator renders it a par ticularly p er tinent market for these companies Gaining access to American tech exper tise and inventiveness can precipitate the kind of cutting edge produc t / ser vice enhancement s that help companies p osition themselves as market trailblazers
icant , there are numerous challenges that must be addressed when planning a success ful launch in the U S American corp o
ties and concisely explained how we at Momenta Par tners can help companies tackle them . These obstacles may seem daunt ing , but embracing them will help instill a stronger understanding ny ’s initial launch
I N T
© 2 019 | momenta.one W H I T E P A P E R 7 Mistakes W hen Entering the U S Market
When establishing their U S presence, international companies often under fund their marketing and sales programs Common reasons for this are:
• Executive management’s general relucatance to spend money on marketing and sales efforts. Even in their home countries, companies are often hesitant to commit ade quate marketing capital and this cautious approach is even more glaring in a new market. With limited or no funding for PR, basic marketing, trade show participation, and direct marketing programs, international companies rarely generate the “buzz” and brand awareness necessary for a successful launch. As a result, their U.S. operations struggle – or even fail – to drive revenue and build market share.
• Executive management teams often believe that sales can be generated by commission-only U.S. sales representative
efforts. Management also believes that because they’ve been successful internationally, there’s no need for U.S. -
• Executive management teams frequently underestimates the amount of time, effort, and funds necessary for de veloping sales leads. Even worse, they sometimes believe that a lead - generation plan is entirely unnecessary To be sales prospects which is tougher to achieve when lacking an adequately focused and funded plan.
SOLUTION
Momenta Par tners can help companies prepare U. S . market
es and an entr y timeline. We utilize our ex tensive market and industr y exper tise to evaluate market opp or tunit y, comp etitive landscap es, and grow th areas. Once strateg y and budget are
lishing a market presence This enables companies to quickly secure new customers and revenues O ur team then prepares and executes a tac tical go - to - market sales plan that includes direc t and/or indirec t channel focused programs.
S A L E S T E A M
L E A D E R S H I P
When an international company is ready to enter the American market , deciding who will drive U S business development and lead domestic sales is an absolutely crucial decision S everal options are usually considered:
• Relocate a current executive to the U S This strateg y seems ideal because that p erson is highly familiar with the company ’s produc t s, corp orate personnel, and challenges However, this executive often doesn’t know the U. S . mar ket ’s nuances, such as the comp etitive environment , avail able sales channels, and demographic makeup In addition , he or she does not usually p ossess the existing enterprise, channel, or distribution relationships that are critical to
hurdles that need to be considered
• contrac ted agent . This option entails the company entrust ing it s U S brand recognition , market share, and revenue to
such as miscommunication or simply overpromising and under delivering can quickly complicate market entr y For an international company, this kind of sales out sourcing is ideal for complementing an already established domestic in house sales depar tment
• Hiring someone who’s already U S based Perhaps the most suitable option of all, this approach can work if the person is knowledgeable on a par ticular industr y ’s comp etitive landscape, can quickly master the company ’s p or tfolio, and has the relationships necessar y to line up sales channels and close deals Unsurprisingly, such talent
For example, the new executive may be undermined by why strategies that worked in other countries won’t trans late to the U. S . In these situations, new hires usually sp end more time addressing corp orate communication issues rather than focusing on customer acquisition . It is abso lutely key that any U S based hire is vetted and thoroughly evaluated to ensure that they will be a construc tive par t of U S expansion
SOLUTION
Momenta Par tners has the industr y relationships and resources
candidates that will ease their U S . market entr y The Momenta team can assist in streamlining a company ’s U. S . talent search address their needs
F U N D I N G C O N S T R A I N T S F O R M A R K E T I N G & S A L E S
© 2 019 | momenta.one W H I T E P A P E R 7 Mistakes W hen Entering the U S Market
Momenta is the leading Digital Industry venture capital + growth firm accelerating deep-tech innovators across energy, manufacturing, smart spaces, and supply chain. For over a decade, our team of deep industry operators have helped scale industry leaders and innovators via our award-winning executive search and strategic advisory teams. 3 Practices Hyper Focused on the Enterprise IoT. Executive Director: ken@momenta.one Email: info@momenta.one EU: +41 41 562 00 07 US: +1 917 765 3600 To read the full report DOWNLOAD HERE TABLE OF C O N T E N TS I N T R O D U C T I O N 1 | F U N D I N G C O N S T R A I N T S F O R M A R K E T I N G & S A L E S 2 | S A L E S T E A M L E A D E R S HI P 3 | N AV I G AT I N G T H E L E G A L & R E G U L AT O R Y E NV I R O NM E N T 4 | C U LT U R A L D I FF E R E N C E S & A D A P T I N G M E S S A G I N G 5 | FA I L U R E T O L A U N C H PR O D U C T Q U I C K LY 6 | L O C AT I O N 7 | U N R E A L I S T I C F I NA N C I A L E X P E C TAT I O N S & A S S U M P T I O N S C ON C L U S I O N 3 4 4 5 5 6 6 7 8
