East meets West in Northern Ireland business
Posted: Wednesday, May 5th, 2010 at 12:54 pm
Opportunities and challenges of doing business in US
America may be the land of opportunity – but in business that requires an understanding of the market place and an appreciation of its culture. Writing from Boston where she is based ALICIA RECUPERO, vice president of marketing with Belfast company Axis Three which specialises in 3D imaging for people undergoing plastic, cosmetic or reconstructive surgery, looks at the subtleties involved in a successful transatlantic business relationship
FOR many export orientated companies in the technology sector, the United States of America offers the single largest market prospect. This realization offers both opportunity and risk. Many companies, dazzled by the bright lights of far off shores can very easily drown on the crossing, burning precious cash in the process of trying to bite off more of the big apple than is practical. The American market needs fundamental understanding and real presence to produce success. The old adage, two nations divided by a common language is very true. Believing that because we both speak English will make for some easy sales in a huge market is often the first mistake (and potentially the last) many would-be exporters make. Establish your business in your home market first, plan your expansion thoroughly from both logistics and finance perspectives and allow for “cracking” the US market to take longer than you initial anticipate; is sound advice.
But don’t let the challenges put you off, with proper foresight; there are huge opportunities in the USA awaiting the savvy entrepreneur. Axis Three did not have the luxury of building a home market first. Focus on the plastic and cosmetic surgery markets meant we had to come to terms with the fact that the local market could not singularly sustain us. Detailed plans backed by adequate funding and experienced leadership were required, to bring 3D simulation to the third of the global market, concentrated in North America.
As Steven Covey suggests, “understand before trying to be understood”, is key to export success. Local markets in the US are as diverse as the countries of Europe. Developing the correct pitch for each can decide your sales successes. Texas in the south, Boston in the east, Los Angeles in the west or Chicago in the mid-west all have distinctive culture and style. A “Yankee” print advertisement can be offensive to someone in the “deep south” and vice versa. The culture, language and focus of people are quite different; never mind the economics of the federal system throwing up roadblocks and pot holes that can derail the unwary traveler. Axis Three took time to “personally” understand our customer base, asking questions of key representative individuals, listening and really understanding their needs.
So, in a nutshell, the size and scale of the USA presents great opportunity but with these opportunities come challenges, both cultural and commercial, that require careful consideration. Local knowledge is key, so utilize people with experience, those who have “been there and done that”. Establish a presence; America is really quite insular and generally prefers doing business within its own borders. Less than 4 per cent of US companies actually export and over 2 per cent of these only export to Canada and Mexico!
Without the backing, advice and handson assistance of Invest NI and Belfast based VC fund manager’s Crescent Capital, Axis Three’s success as a Northern Ireland net exporter may have been very short lived. US headquarters was established in Boston, with native team members, like myself, accruing the local knowledge and “face” of the company in America, necessary to succeed.
In any business, good communications are essential; introduce 3,000 mile of ocean and good communication becomes critical. Avoiding creating two dysfunctional companies out of one – the “them and us” syndrome – requires thoughtful and thorough action. More communication is better than less to ensure a single team persists. While there’s no substitution for face-to-face meetings, Axis Three relies on the telephone as well as more cost-effective communication methods such as VoIP and Skype. In the funding world, differences with size, scale and culture are also oceans apart. The comfort factor of having a Northern Ireland VC when seeking US funding cannot be underestimated. In the Northeast and California, it’s not untypical to see funding applications versus offer ratios in the region of 300:1! Axis Three is focused on leveraging the best mix of local and American talent to maximize the US market opportunity. Our small team comprises eight different nationalities, based in three countries – a wealth of culture, skill and experience to draw on; the building blocks of a truly dynamic and winning export business. So back to the language subtleties between the US and Northern Ireland, which present sometimes unexpected and sometimes humorous results; think before you speak is the advice; that way you avoid misunderstanding at best or offence at worst. Americans tend to be prone to hyperbole and can seem overly enthusiastic. Unless you fully understand the implications of a fender bender, carrying garbage in your trunk, the shape of your buns, or worse, be conservative in your conversations, and speak extra slowly!
