When entering the US market, think about the cost

Entrepreneurs around the world often grossly underestimate what it takes to enter the US market. Take for example technology or software, sectors that I know. Attracted by the size of the American market and the potential opportunity to raise millions in capital that is not available home, entrepreneurs decide to take the leap and create a beachhead.

Conventional wisdom around Europe and Asia is that a local parent company will keep its engineering and product development home and “open a Silicon Valley office to market the product/service/technology”.¬†Perfect. Until you get down to assessing what resources are required. And assessing you must, least finding out later in the game that you are grossly undersized for the challenge.

I may cover legal costs, accounting, infrastructure, rent and other investments another time. Now I want to focus on talent, the scarcest of resources, even in this market.

Continue reading “When entering the US market, think about the cost”