Startups are exciting. The race is on to find a repeatable business model that solves a problem and can scale quickly and efficiently. It isn't easy though. While fast paced, its a high risk world where the likelihood of failure dwarfs the chance of success.
At a recent Deloitte Private Club meeting, Deloitte's Darren Johnson spoke with US based Kiwi entrepreneur Claudia Batten about her successes in the US market which lead to two notable exits - Massive Inc, sold to Microsoft for a reported US$200-$400 million, and Victor & Spoils.
Whether you're a startup or a successful local business looking to expand into the United States, these tips below may just turn the tables in your favour.
What does a Kiwi need to know about doing business in the US?
The dynamic of the American market is extraordinarily complex, and it’s not really until you get in there that you start to appreciate what you need to do differently.
What economic issues are there?
The US is going through a mid-series crunch right now, where whatever you want to call it - series A/B or just series B - companies are getting seed capital no problem, they’re getting a follow on from that relatively easily and then the minute they need those expansive, big funds in the series A/B, the market’s contracting around there.
How do I get ahead in the US?
Most sales in the US come from having the Rolodex, having the network, having the connections and having the awareness of the industry.
The fact that each startup hub is such a unique ecosystem with its own set of dynamics and key players means the advice from seasoned entrepreneurs like Claudia is fundamental to the success of your startup or export lead business. If Silicon Valley is your destination, talk to those that have done business there and if Boulder is on the cards, understand what makes it unique.
We love to see companies going global and helping startups like yours plan for the future. Find out how to join the Deloitte Private Club here and see how we can support you moving forward.
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