Each department and/or team within your organization will determine the questions and issues to be investigated during their audit process. Sample questions are provided below for each department/team to help you begin the audit process.

Sales Team

Americans are famous for their “buy and try” attitude.

The Sales function can be the most difficult to replicate outside of your home market. Each of the target areas outlined needs careful attention at each step of the process. Yet, the good news, as expressed by United States President Calvin Coolidge in the 1920’s, is that “the business of America is business.” At times, it will seem that the possibilities for selling your software are indeed limitless. Harness the potential of even a few of the myriad sales opportunities and techniques, and you can begin to develop the potential of the U.S. market.

Prior to entering the U.S. market, your web site should be set up for easy access to product information and product sales in American, not British, English. Companies in the United States have become very successful at selling products in a price range as high as US$50,000 or more on the web through direct marketing and telesales, as long as customers believe that a product will help them solve a specific problem(s). Americans are famous for their “buy and try” attitude. Leverage the web to ensure that your company does not miss this opportunity, but remember that timely and courteous follow-up is critical to sales success in this arena.

The essential factor for your success in the U.S. market will be your direct sales force if your company markets software at the enterprise level.

If your company develops and sells software at the enterprise level, the essential factor in your success or failure in the U.S. market will be your direct sales force. Develop the exact profile needed for the U.S. sales force and then work with a successful sales recruiter in the United States to hire the people. According to Lori Trippel, former President and CEO of IXOS Software, Inc. in the U.S., “The U.S. sales force will probably have an older profile and more account management experience than that of the home country. It will pay off in the end because this group of people will present an American face to your first accounts. This is critical when you are trying to gain those first reference accounts in the U.S.” [A reference account means that a company is willing to speak with potential customers and to be quoted in press releases with regards to your products and services.]

Just the Tip of the Iceberg (Part 2) In part 1 of this series, we promised to provide links to trade development office and international business incubators. Here they are: Examples of Trade Development Offices and Web Sites 1. The California Office of Foreign Investment (OFI) NOTE: Most states in the U.S. have an office like this, though the name may be different. Your own embassy/consulate can provide this information to you. http://www.InvestCa.com 2. The Canadian Consulate Trade Office for the San Francisco Bay/Silicon Valley region http://www.dfait-maeci.gc.ca/can-am/menu-en.asp?mid=14&cat=213 3. Enterprise Ireland http://www.enterprise-ireland.com/english.asp 4. Korea http://www.kotra.or.kr/unicenter/TC010S.jsp?world_cd=9300 5. Listing of many types of internationally related government and business organizations in Silicon Valley http://www.mbita.org/export_directory/resources_index.html 6. United Kingdom http://www.trade.uktradeinvest.gov.uk/ Business Incubators 1. The International Business Incubator of Silicon Valley is a project of the San José Redevelopment Agency and of San José State University. It is designed to be a first home for international companies expanding to the U.S. for the first time, and it welcomes companies from any industry and any country. http://www.ibi-sv.org/ 2. JETRO, the Japanese External Trade Organization, sponsors the U.S.-Japan Business Incubator Center (U.S.-Japan BIC), with offices in Silicon Valley, Chicago and Washington, D.C. http://www.jetro.org/sanfrancisco/ 3. iPark is an incubator with offices in Silicon Valley and Boston that support Korean information technology software companies that wish to sell their products in the U.S. Sponsored by Korean’s Ministry of Information and Communication (MIC). http://www.iparksv.com

The best way to find a sales recruiter is through (1) networking with executives from other companies from your local market that have already set up their U.S. operations, and/or (2) accessing the resources of your government’s U.S. consular and/or business development office (if available).

Once you have a few reference accounts, it will be easier to gain the attention of potential distributors. One of the biggest mistakes made by companies entering the U.S. market is to rush into a distribution agreement without first selling directly. Once you know your U.S. customer base and have had time to observe potential U.S. distribution partners, you can make more informed decisions about setting up the appropriate distribution channel.

By all means, take the time to properly qualify potential partners. Due to the openness of the U.S. business sector, companies disappear as quickly as they appear. You can protect your company by asking for references from a few of the distributor’s current clients. If these preliminary inquiries are satisfactory, move forward to obtain credit reports from commercial services and/or financial lending institutions.

U.S. companies are remarkably unconcerned about buying products from a lesser-known foreign company.

If your company develops and sells retail business software, the U.S. market will seem extremely competitive. Your best bet is to sell the product on the web and hire a few key salespeople to penetrate strategic U.S. accounts to gain them as references. Almost all companies entering the U.S. are surprised to find that larger U.S. companies are remarkably unconcerned about buying products from a lesser-known foreign company. As long as the product solves a real problem and is backed by a professional organization with good technical support in the U.S., you will find that this holds true.

Marketing Team

Don’t forget the translators.

Marketing is, perhaps the area of U.S. expansion most likely to conform to your domestic market profile. If you reflect on the history of your business, you will probably find more similarities than differences. For instance, what has been the time correlation between new product introduction and sales response? Or, what ad campaigns or other sales promotions have been most successful? And, what avenues of customer service have been most useful; conversely, what hasn’t worked?

Provided below are some “starter” questions that will help determine the readiness of the various marketing teams within your company to enter the U.S. market.

• Don’t forget translators. U.S. Although it often may seem that the U.S. vernacular is the sworn enemy of linguistic diversity, you will be surprised quite often by the subtle (and sometimes not-so-subtle) nuances of American English. So, check, double-check and check yet again when preparing product literature, presentations, etc. The extra time and effort expended are well worth it if you avoid even one embarrassing or offensive gaffe.
• Is your product marketing team set up to communicate product specifications and/or feature requirements demanded by the U.S. market?
• Does your channels marketing team know how to adapt what they have done in your local market to the U.S. arena?

Engage a web-savvy and very aggressive marketing agency in the U.S.

• Are your marketing communications and advertising teams ready to do whatever it takes to compete with their American counterparts? Do they understand the budgetary commitment that this will entail? The best way to prepare your teams is to engage a web-savvy and very aggressive marketing agency in the U.S. These on-site experts can quickly teach you what is important and what is not. It is not enough for the agency to simply bill itself as “high tech,” by the way. It should have documented experience within your specific industry and market. Client references are definitely required in this case.

Technical Support Team

Prompt, friendly, efficient service is expected.

The key issue to resolve in the area of technical support when expanding into the U.S. is to determine the cost recovery model to be used. In other words, how will your organization recover its technical support costs? If your product is mission-critical to your customers (that is, critical to their ability to make revenue), you may choose to charge for support only. If your product does not fit into this category, then you must include the cost of support in the price of the product.

This may seem self-evident, but it should not be overlooked: your staff must be able to provide support in (American) English. In the short term, use the Web to provide answers to frequently asked questions (FAQ). You can provide technical telephone support from your local time zone, as long as extended hours are available. As you plan, keep in mind that almost all companies eventually set up a local support organization in the U.S. to be closer to their customers. Prompt, friendly, efficient service is expected and will be rewarded by customer loyalty and referrals.

Research and Development (R&D) and Product Marketing Teams

If your R&D and Product Marketing Teams aren’t on the same road, fix it now!

If your R&D and Product Marketing Teams are already working smoothly together, then expanding into the U.S. will not require many changes in the R&D organization. The more integrated these employees, the easier your transition will be into the U.S. marketplace.

However, f the two teams are not working smoothly together, then you and your managers need to identify the impediments and change the process and/or the people. If you do not, it will be difficult to meet U.S. market expectations in the medium- to long-term.

Some of your developers should be able to communicate in verbal and written English. Be sure to schedule regular travel time for local developers to visit U.S. customers on a regular basis and/or to attend U.S. training courses and tradeshows.

A quirk that may work in your favor: U.S. software buyers are much more forgiving of slipped product schedules than those in markets such as Germany or Japan. However, if your organization can deliver what it commits to, on time, then you will have an advantage over many U.S. competitors.

Stay tuned for part three, in which Ray will discuss how to audit Operations. She will also provide guidelines for developing an action plan and recommendations on how to determine if your organization is finally ready to enter the U.S. market.

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Rebecca Ray has been a pioneer in designing, testing, adapting and marketing software outside of the U.S. for companies such as IBM, Netscape Communications, Symantec and Sun Microsystems. She is the Global Business Editor for the Globalization Insider and can be reached at Rebecca@lisa.org.

Editor’s Note: This article has been adapted from Doing Business in the USA: Marketing and Operations Strategies for Success, co-authored by Rebecca Ray and published by Sun Microsystems.