B2B Revenue Acceleration
B2B Revenue Acceleration

Episode · 2 years ago

41: What You Need to Keep in Mind When Expanding Globally w/ Rob Wellner

ABOUT THIS EPISODE

What are the elements that you and your company should consider when you start planning an expansion into any new territory?

That’s what I talked about with Rob Wellner, Senior VP of Sales at Velocity Global, in this episode of B2B Revenue Acceleration. Rob shared his expertise on the advantages and challenges that come with global expansion, along with a few things companies commonly overlook.

You're listening to be to be revenue,acceleration, podcast, dedicated helping software executives stay on thecutting edge of sales and marketing in their industry. Let's get into the show hi welcome to be to be a roven YEUCceleration. My name is OAM WITT and I'm here today with what Wennow send yourVPF selvs at vilosy superboll. How are you ROK Today, I'm doing Great Orin?How are you doing fantastic? Thank you very much. So the totick of today'sepisod is really around the tips for companies to remember when expendingglobely she's, quite a Widey, interesting subject. But before we gointo that conversation, could you please introduce yourself a little bitmore rob as well as tellus about what verosity global is as a company?Absolutely e? My Name is Rob Welner, I'm the the senior vice president ofSelt at pilocithy global. I oversee our Global Directtale, strateticpartnership and marketing teams. Here at the organization and Velocity Global,is a professional employer organization focused on international expansion. Soour mission in primary purpose is to expand our clients capabilitiesinternationally and allow those companies to see business opportunitiesand growth initiatives outside of their geographic footprints. Today, again, Imention where professional services form and we help organizations witghthe compliance employment of employees in a hundred and eighty seven countriesimpressive. So, as you know, a rob from from the convensation, we hadpreparation, wo, podice episors. We are topariics, walk with lot of technoogycompanies, a lot of those companies receive investments and as part of thatinvestment, the objective is to expend geographically going into you terratory,creating Euroan Istreming thes teritories. Obviously they need to doit quickly, because the Tisis probably...

...wants that to appen a quickly in and aneffectively, but obviously expending internationalty comes with challengesso Y. my first question to you is really around what are these elements?What arethe elements that E company should consider when they startplanning their global expension of planning, even not just a global butpanning an expansion in utiitory? Thank you for that question. First and formotlike operatics, who is supporting you, know: High Growth Technology companies,velocity global, actually supports I'd, say sixty five to seventy. Five percentof our clients come from the the technology space and then the lifesciencis an biotex and that's strictly because are not strictly, but a byproduct of that of those types of industries are growing at a fast paceand they need to take advantage of market both in the country that theyoperate and globally right, and there are tons of considerations to assesswhen going internationally. Specifically after you've raisedcapital from some institutional investors who are earmarking specificfunds towards that expansion, I think to take a step back. It's really, youknow, might be critical to highlight the advantages and benefits ofexpanding internationally. There's a lot to consider again, and there are alot of benefits. But if we're talking to to companies today, we do thisoftend. There are really like three to four key points that they tend to focuson. The first and foremost, is the ability to access new talent pools. Sohere in the US, unemployment is that historically low rates and we're seeingyou know similar aloen unemployment rates globally, so the ability toactually go out into the market outside of where a company has a legaljurisdiction. podprint today and fine top talent has been a critical driverof the business okay. Another case...

...would be to go in and and capture a newrevenue in a market right. So again, the company or a technology companyraises a series of capital. Again those investors not only want to build theinfrastructure up, but they want to expand the revenue and diversify thatrevenue outside of their. You know again geographic pootprint today, andso they are allowed to capitalize by looking at that. So those are like thehighlights right when you're, when you're looking at challenges to that isyou want to first be able to to test the new market right, so status quopreviously had been for organizations to either set up an entity whether theyhad one employee or ten sand in a country or on the flip side they wouldactually go out and employ contractors right, which globally is typicallycalled a misclassified employee if they're only focused on serving oneclient, so that would be the first fore. So the challenges is getting into test.The new market hiring immediately, where you don't have a company set upglobally, becomes a very big challenge: Intellectual Property Protection andthen an employee, betension. Okay. So those are the considerations I think,in addition to to looking at some key focal points of, why absolutely th veryinterested about the first point hat you mentioned, or the one of the fisttredois finding dtalents. We seem to see a shorttage, particularly on theDevropmen side, FO clients. Because again you know I I cannot drove myquestion to you to ANC. thises are giving you money and they want themwoney back or they want your revenue to increase, go ad, an find that your Enitraine in you tarritory, but I kind of completely forcot, and then you broughtit and thank you for bringing tha back up in the do the conversation thatactually onemployment blow oombraymens right, sory and finding doctans thosOnis op trigge. You have examples or...

...one example of a crying that you singedentially struggling for idontifying these top talents in a specificgeography, n expending successfully Ie notogography, and also doing it quickly,but was impostably a being successful in finding thes, pedents Eneidterritory and achieve than go that way. Yeah I mean you know, there's a good.An anecdotal story is wwe support. Again several UNICORNS. You KnowTechnology Unicorn companies. So when we first supported this oneorganization, Theyre actually headquartered here in the United States,they had reached out to velocity global looking for a solution to tap into theAsian market and specifically into Tokyo where they had identified a topengineer and they wanted to hire that person immediately. They, however, theycouldn't right. They didn't have a subsidiary or company set up in Japan,so they came to us and said we have this. We've identified this person. Wewant to hire this person today, because the competition is circling. It isinterested in the same candidate. However, we don't have the capabilityto do that. Can you help us, and so we were actually able to? There was alocal national in Tokyo. We were able to hire that person within fivebusiness days on the behalf of our client right. That was the first casestudy to use with this with this one company. Since then, this company hasgrown to a Unicorn time twenty and we have supported upwards of a hundredemployees for them as a strategic deployment on the behalf of them right.So they recognize the solution. They then also were able to after muchconversations with their executive, see how we could be a strategic play forthem, as they start to expand globally. So the next country that they thoughtabout using US within Europe, where they wanted to on board eight engineers,midlevel engineers, Tho hiher, midlevel...

...engineers and then scale up as quicklyas they could to around twenty. We were able to help them accomplish that andthen transition those employees off of our solution into their own corporateentity in that country. Right so that's another case study specifically foranother region, but they've done this globally right. They do it for toptechnology engineers. They also look at us as an opportunity to get into a newmarket today and start to capture that revenue, so their investors canrecognize a return on the investment faster that'San. Impressive Story Rubthank you vermch for for sharing this business, but, as you know what you canhear, I'm French okay. So in France we are known for us of things in Realinwine, ches and all that, but we also loan for complexifying a lot of thingssuch as setting up a business setting O manentity, creating an entity in Francewhich Ave don one was extremely banful. Amanthe Tebotri to do is in Englandwere wis but she's year, but in fross was was rrensively painful. The otherthing is right. I repainful infrances enployment glow so, but also Whel, I'mnot too shocked to me. Andy would be good if you can tell us a little bitmore about whe your responsibiity stop in Tum of antt senturk temof omployen,ro anontat. So so just coming back to the question, so the the when expandingwou se there is issues hat are just mentione, reyonding froncs around orplayment glow sitting on Geenti tenrs of thing. Can you please show hisaudience the importance of these elements that are often overlooked.Sure I think yeah. I think the question is like you've got a lot ofconsiderations from the legal and compliance issues. I brought up crantsright, like France, as you know, right being friench is extremely friendly tothe employees and yet very prohibitive to employers right. They want to makeit challenging. If you don't already have an operation set up, don't in ourexperience. What we've seen over the...

...years is like companies over off andoverlook a few things right and there's I'd, say five critical thing. You knowcritical elements, there may be more bher, probably a lot more, but I meanif I'm thinking about what we see universally around the clientise is oneis the language barriers and cultural differences. They don't often take intoaccount right. So, just speaking about French right, there's language, thereis cultural differences. You like your wine and cheese in England. They liketheir beer and crackers right. So you know they've got some of thosedifferences. There's also you know the looking at it and setting up an entityright which, theoretically, across the globe to get a tax ID, is relativelyeasy. It is cost prohibitive. It can be very time consuming, but to just havethe tax identification number is perceived as not that complex, which Iwould tend to agree. However, in order to have those entities up andoperational, you need to take into account bank account. You know bankaccounts, you need to take into consideration having residencedirectors in those countries. You need to take into consideration having humanresources, individuals that had a working knowledge of the employmentlaws right in France, as you mentioned, which is extremely challenging toTermany. I also would also come to mind as Brazil right so Brazil again is notuniquely but specifically geared towards defending or helping to defendtheir employee base, so they have a very high cost of doing business, andwhat I mean by that is, you have to take hinto consideration social systemsin each country. If you're looking at employing in the UK socialcontributions might cost the company around fifteen percent. When you go toFrance you're talking in the load of mid s and then when you go to Brazil,you're talking upwards to seventy percent just to get into the socialsystem, ther're also the employment contract in each country right in eachcountry, they have their own unique...

...challenges or statutory requiredlanguage that must be in there. Companies don't often consider thatbecause they want to be able to utilize the employment contract that they havein their home country and that's not always doable right. What we're able todo is use Ike, customizable solution. That capture is both the statutorylanguage and you know, afford organizations to still protect theirintellectual property and data collection when you're talking abouttechnology companies and then finally, I think you know another item that isoften overlooked is: are there supplemental benefits to compliment thestate, health systems or pension systems, and that's often somethingthat employers will dose employees to because they haven't taken that intoconsideration if they don't already have a company set up there? That'sgreat! So Ie is miting me to toan the next question. So when you take allthats into consideration and then from your Dersonat EXPINC, I'm probablyasking you for an opinion Heeso, it Maya everyone's opinion, but for fromyou Jospectility, you know been a professional in that in that, in thatstet of expanding internationally for little wile, which region from yourpospective is the toughet to Expanin TN and why there are two regions, actuallythat come to mind right n and there people often think Europe, which iseverywhere, is tough right. But I think, if I'm thinking about two reasons thatare extremely difficult- it's Africa, the African region and Latin Americaand there's really three reasons why? Right? If you have a lot ofbureaucuracy, you know both of those regions, you do everywhere, but thebureaucracy tends to slow things down significantly right. So, if you'reactually going to set up your own company in Lasham or Africa, it's goingto take a considerable amount of time. It's going to take a considerableamount of executive team interaction, not only with the people on the ground,but they're, probably going to have to...

...get on an airplane and get into thosecountries to make sure that that entity, if they're going that route is set upand there's around that bureaucracy, there's also so much uncertainty. WhenI think of Africa right so in Africa we often seen the political andscapechange on a dime and what that means is there might be change in labor lawsfrom different administrations. There you know, t the certainty, level reallyget volatile cost and what I mean by cost is again: I alluded to it in theprevious question. Is's, the social sekit security xystem Latin America isnotoriously high. You know it starts anywhere in in the teams, but itquickly accelerates up into the s right when you're thinking about Argentinaand Brazil yeah and then in Africa those social systems, the cost is loweragain, but we're dealing with the bureaucracy in the uncertainty and thenin both of those regions. You have significant diversity and culture right.You know the culture in Brazil is significantly different than theculture in Argentina, which is significantly different than theCulture in Columbia. When you go to Africa, the countries are even morediverse than they are in Lastham, and those are considerations that arequickly you know, overlooked and and causees not problems but challengesright, and so what we're kind of able to afford organizations is the abilityto overcome Thos, because we've got the expertise in those regions and we'reallowing them to enter those markets on a very light footprint kin to like whatwe're out there doing is we're allowing organizations to leverage ouroperational capabilities and get into region. So we give them not only theknowledge and expertise but the platform to go out and operate in thoseregions, technically an s that makes that makes pelf lic sense, wet rops. Athank you ve much for your insight, O the thank you. Yiu Kno definity, a veryinteresting conversation from my...

...pespective, so we always ask Coquostion to trow our gas pecesion Ol. If any of or audience want you toconnect with you discuss with yourself, Froo or even to discuss about bee citygrobal and our velosity Gogol could Shi poem to explain internationally. Whatis the best way to get intotrizh ourow sure they can. The best way would be toreach out to me BIA email, I believe, which is rob, Rob Welner, wel. L N isan Nancer at pilocity, globalcom right many shings. Once again rub. He wasgreat. I thanks so much for having be. I really enjoyed our conversation andyou know. I hope that your audience can find some nuggets of wisdom in there asthey look to sees or capture new markets globally. I'm sure they wayit's like you again. operatics has redefined the meaning ofrevenue generation for technology companies worldwide, while thetraditional concepts of building and managing inside sales teams in househas existed for many years. Companies are struggling with the lack of focus,agility and scale required in today's fast and complex world of enterprisetechnology sales. Seeo operatics can help your company accelerate pipelineat operatics. Dot Net you've been listening to be to be revenueacceleration to ensure that you never miss an episode subscribe to the showin your favorite bodcast player. Thank you so much for listening until nexttime.

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