GATEWAY TO US MARKET
Even with the most successful business model in its market, a foreign company will have to discover a new cost-effective way to open the US market for its products or services.
Before the first sale is transacted, the company has to identify to whom, how and where to offer their value proposition. It requires a thorough competitive assessment and a budget that not only funds a successful start-up, but also keeps the business fueled until it is fully established.
There are many steps to achieve success. In this process, the company provides the product and market experience and COGNEGY complements with cross-cultural and business development expertise.
The market entry process consists of three phases: idea validation, market feasibility and actual business development.
Idea Validation
Through desk research and network contacts:
- Verify the proposed Business Model
- Validate the offer concept
- Check for governmental tax credits and/or subsidies
- Set decision criteria for market feasibility
Market feasibility
Identify all the potential hurdles and pitfalls the business might face, and answer one main question: "Does the business model work and should the company proceed?"
- Situation Analysis
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- Identify logistical, legal and other business-related problems and solutions
- Identify potential business partner relationships
- Critical Success factors - list all elements needed to make the business work
- Financial impact calculation
- Strategic recommendation
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- Evidence the validity of the business idea to ownership/management
- Validate the investment to outside investor or bank
The feasibility study serves as a solid foundation for the business plan.
Business Development Platform
Backed by business and operational plans the company enters the US market, supported by three possible levels of business development activity by COGNEGY:
- Export Sales Support
Deploy sales and marketing activities through a (virtual) sales office
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- customer acquisition
- implementation of sales channels and business strategies
- management of client relationships and local partner activities
- subsidiary management - set up and management of local entity
- OPTIONAL - Business Services platform
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- coordination of third party providers of operations, finance, marketing, recruitment, IT, immigration, legal, public relations, competitive intelligence, lead generation systems, HR services,…
- focus investment on productive activities vs. fixed costs
- Sales Office to Full Office
Deploy sales, marketing, finance and distribution activities through a local subsidiary
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- subsidiary management - set up and management of local entity
- creation of free trade zone warehouse and distribution facilities
- interaction with parent company supply chain
- purchasing and sourcing support to meet local industry standards and US regulation
- building an alliance with a partner
- setting up local assembling operations or distribution channels
- OPTIONAL - Business Services platform
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- coordination of third party providers of operations, finance, marketing, recruitment, IT, immigration, legal, public relations, competitive intelligence, lead generation systems, HR services,…
- focus investment on productive activities vs. fixed costs
- Alliance, Joint Venture or Acquisition
When economically or strategically critical, the ultimate step is to facilitate non-organic growth, and COGNEGY provides
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- local representation for parent company management due diligence on any potential partner
- development of partnership through Joint Venture (51/49), acquisition or alliance
- greenfield investment - pilot program support
- post acquisition integration support
- bridge between US implementation and teams in parent organization
- introduction to fund sources - angel investor, venture capitalist, secured lender, private equity to finance the deal
- operational support, supply chain, treasury and fiscal consolidation
COGNEGY's GATEWAY USA programs support cross-border ventures and allow foreign companies to:
- Follow their clients to North America
- Mitigate the risks and lower the overall capital investment
- Accelerate profitable business growth
- Access effective local leadership skills
