B2B Revenue Acceleration
B2B Revenue Acceleration

Episode · 3 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 were listening to be tob revenue acceleration, a podcast dedicated to helping software executives stay on the cutting edge of sales and marketing in their industry. Let's get into the show. Hi, welcome to be to be a room new acceleeration. My name is Owenian Muki and I'm yet today we wor when send your VP of selves at Bilocity Globore. How are you route today? I'm doing great. Or then how are you doing? Fantastic. Thank you very much. So the duplic of today's if he's ad, is really around the tips for companies to remember when expending globally. She's quite a wide and interesting subjects, but before we go into that conversation, could you please introduce yourself a little bit more, Rob, as well as tell us about what's vilocity global is as a company? Absolutely, my name is Rob Wellner, on the the senior vice president of sales at velocity global. I oversee our global direct sales, strategic partnership and marketing teams here at the organization. And velocity global is a professional employer organization focused on international expansion. So our mission, in primary purpose, is to expand our clients capability internationally and allow those companies to see business opportunities and growth initiatives outside of their geographic footprint. Today, again, I met to were professional services form and we help organizations with the compliant employment of employee in a hundred eighty seven countries. Impressive. So, as you know, wrote from from the conversation we had preparations to this episode. We had to paradis walk with a lot of technology companies. A lot of these companies receive investments and as part of that investment the objective is to expand geographically, going into new territory, creating Euroindustream indust territories. Obviously they...

...need to do it quickly because the vcas probably won't start to open a quickly and effectively. But obviously expending internationality comes with challenges. So my first question to you is really around what are these elements? What are the elements that a company should consider when they starts planning their global expansional planning, even not just a global but planning an expansion in a new territory? Thank you for that question. First and format like operatic to supporting, you know, high growth technology companies velocity global actually supports I'd say sixty five to seventy five percent of our client come from the the technology space and then the life sciences and biotech, and that's strictly because are not strictly but a byproduct of that. Of those types of industries are growing at a fast page and they need to take advantage of market both in the country that they operate and globally. Right and there are tons of considerations to assess when going internationally, specifically after you've raised capital from some institutional investors who are earmarking specific funds towards that expansion. I think to take a step back, it's really, you know, might be critical to highlight the advantages and benefits of expanding internationally. There's a lot to consider again, and there are a lot of benefits. But if we're talking to two companies today, we do this often, there are really like three to four key points that they tend to focus on. The first and foremost is the ability to access new talent pools. So here in the US unemployment is that historically low rates and we're seeing, you know, similar a low and unemployment rates globally. So the ability to actually go out into the market outside of where a company has a legal jurisdiction footprint today and fine, top talent has been a critical driver of the business. Okay. Another case...

...would be to go in and and capture new revenue in a market. Right. So again, the company or Technology Company raises a series of capital. Again, those investors not only want to build the infrastructure up, but they want to expand the revenue and diversify that revenue outside of their, you know, again, geographic footprints today, and so they are allowed to capitalize by looking at that. So those they are like the highlights right when you're when you're looking at challenges to that is you want to first be able to test the new market, right. So status quo previously had been for organizations to either set up an entity, whether they had one employee or tenzero in a country, or, on the flip side, they would actually go out and employ contractors, right, which globally is typically called a misclassified employee if they're only focused on serving one client. So that would be the first for so the challenge is is getting into test the new market. Hiring immediately where you don't have a company set up globally becomes a very big challenge. Intellectual Property Protection and then an employee retention. Okay, so those are the considerations, I think, in addition to to looking at some key focal points of why, absurdly, very interesting about the first point that you mentioned, all the one of the Fast Trayo, which is finding to tenants, we seem to see a shortage box really on the development's site all clients because again, you know, I cannot drove my question to you, to all Studi. He's on giving you money and they won't them when you back or they want your review to increase. of Go ahead and find that your religious train in new territory. But I kind of completely foguts and then you you brought it and thank you for green back up into do the conversation. That actually unemployment law, unmbloyments, right, sorry, and finding top tenanty doors. One was...

...a trick. Do you have examples? All? One example, also, client that you've seen potentially struggling for identicity, flying do top talents, you know, specific geography, expending successfully in those all geography and also doing it quickly. But most importantly, it being successfully in finding new students the new territory and achieve that God that way. Yeah, I mean. You know, there's a good and anecdotal story. Is We support again a several UNICORNS, you know, Technology Unicorn companies. So when we first supported this one organization, they're actually headquartered here in the United States, they had reached out a velocity global looking for a solution to to tap into the Asian market and specifically into Tokyo, where they they had identified a top engineer and they wanted to hire that person immediately. They however, they couldn't write 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, we want to hire this person today, because the competition is circling it is interested in the same candidate. However, we don't have the capability to do that. Can you help us? And so we were actually able to. There was a local national in Tokyo. We were able to hire that person and within five business days on the behalf of our client. Right. That was the first case study to use with this, with this one company. Since then, this company has grown to a Unicorn Times twenty and we have supported upwards of a hundred employees for them as a strategic deployment on the behalf of them, right. So they recognize the solution. They then also were able to, after much conversations with their executive, see how we could be a strategic play for them as they start to expand globally. So the next country that they thought about using US was in Europe, where they want it's on board eight engineers,...

...midlevel engineers, to higher midlevel engineers and then scale up as quickly as they could to around twenty. We were able to help them accomplish that and then transition those employees off of our solution into their own corporate entity in that country, right. So that's another case study specifically for another region. But they've done this globally, right. They do it for top technology engineers. They also look at us as an opportunity to get into a new market today and start to capture that revenue so their investors can recognize a return on the investment faster. That's an impressive story up. Thank you very much, fault while showing this business well, as you know, was you can hear I'm French, O guys, so in Frost we are known for us of things during wine, cheese and order that, but we also known for complexifying a lot of things, such as setting up a business, setting of an entity, creating an entity in front, which have done once, was extremely painful. About the opportunity to do is in England's right, it's but she's, you know, but in frosty was relatively painful. These a thinity is relatively painfully in force. Is Employment Law. So, but also well, I'm not too sure to any would be good if you can tell us a little bit more about where your responsibility stop in the most entity set up in tab of employment, Rue and or that. So just coming back to the question. So the the when expending you see there issues, as I just mentioned regarding frost around Employment Law, setting of the entity and rest of things. Can you please show his audience the importance of the elements that are often overlooked? Sure, I think. Yeah, I think the question is like you've got a lot of considerations from the legal and compliance issue. You brought up grant right, like friend as you know, right, being French, is extremely friendly to the employees and, yeah, very prohibited to employers. Right, they want to make it challenging if you don't already have an operation set up. Don't in our experience, what we've seen over the years is like...

...companies over often overlook a few things, right, and there is, I say, five critical thing, you know, critical element. There may be more better, probably a lot more, but I mean, if I'm thinking about what we see universally around a client page is one is the language barriers and cultural differences they don't often take into account, right. So, just speaking about French, right, there's language, there is cultural differences. You like your wine and cheese. In England they like their beer and crackers. Right. So you know they've got some of the those differences. There's also, you know, the looking at it and setting up an entity right, which theoretically, across the globe, to get a tax ID is relatively easy. It is cost prohibitive, it can be very time consuming, but to just have the tax identification number is perceived as not that complex, which I would tend to agree. However, in order to have those entities up and operational, you need to take into account bank account you know, bank accounts. You need to take into consideration having resident directors in those countries. You need to take into consideration having human resources individuals that have a working knowledge of the employment laws right in France, as you mentioned, which is extremely challenging to terminate. I also would also come to mind is Brazil, right. So Brazil again is not uniquely but the typically geared towards defending or helping to defend their employee based so they have a very high cost of doing business, and what I mean by that is you have to take into consideration social systems in each country. If you're looking at employing in the UK, social contributions might cost the company are around fifteen percent. When you go to France, you're talking in the load amid S, and then when you go to Brazil you're talking upwards of seventy percent just to get into the social system. There are also the employment contract in each country. Right. In each country they...

...have their own unique challenges or statutory required language that must be in there. Companies don't often consider that because they want to be able to utilize the employment contracts that they have in their home country and that's not always doable. Right. What we're able to do is use like a customizable solution that captures both the statutory language and, you know, affords organizations to still protect their intellectual property and data collection when you're talking about technology companies. And then finally, I think you know, another item that is often overlooked is are there supplemental benefit to complement the state health systems or pension systems? And that's often something that employers will lose employees to because they haven't taken that into consideration if they don't already have a company set up there. That's great. So I guess he's leading me to a next question. So when you take orders into consideration, and then from y'all, does not expires, and I'm probamus you full opinion here. So maybe everyone's opinion, but from your perspectivity in a professional in that's in that in that state of expending in the nationally far into the why? Which region, from y'all dose they see these their tough sets to expanding to an and why? There's two regions actually that come to mind right, and they're people often think Europe, which is everywhere, is tough, right, but I think if I'm thinking about two regions that are extremely difficult, it's Africa, the African region, and Latin America. And there's really three reasons why. Right, if you have a lot of bureaucracy in both of those regions. You do everywhere, but the bureaucracy tends to slow things down significantly. Right. So if you're actually going to set up your own company in Latham or Africa, it's going to take a considerable amount of time, it's going to take a considerable amount 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 those countries to make sure that that entity, if they're going that route, is set up. And there's around that bureaucracy. There's also so much uncertainty when I think of Africa. Right. So in Africa we often seen in the political landscape change on a time and what that means is there might be change in labor laws from different administrations there. You know, the certainty level really gets volatile. Cost, and what I mean by cost is, again I alluded to it in the previous question. It's the Socialist Kiss Security System Latin America is notoriously high. You know, it's it starts anywhere in in the teens, but it's quickly accelera rates up into the S. right when you're thinking about Argentina and Brazil, yeah, and then in Africa, those social systems, the cost is lower again, but we're dealing with the bureaucracy in the uncertainty. And then in both of those regions you have significant diversity and culture, right. You know, the culture in Brazil is significantly different than the culture in Argentina, which is significantly different than the culture in Colombia. When you go to Africa, the countries are even more diverse than they are in Latham. And those are considerations that are quickly, you know, overlooked and and cause the not problems but challenges, right. And so what we're kind of able to afford organizations is the ability to overcome those because we've got the expertise in those regions and we're allowing them to enter those markets on our very light foot print. Kinto like what we're out there doing is we're allowing organizations to leverage our operational capabilities and get into regions. So we give them not only the knowledge and expertise but the platform to go out and operate in those regions technically and us that makes that makes stuff expense. We're upset. Thank you very much. Foil in sight that I think you you know, definitly, I'm very interesting conversation from my...

...despective. So we always ask cushion too toward all. Guess which is you know. Any of fall audience wants you to connect with you because because Yalls and froumble ill even to discuss about the fantasy to grow up board an ow vanocy to good goods, Bob, to explain internationally, what is the best way to get into trees? Your roup sure they can. The best way would be to reach out to me via email, I believe, which is Rob Rob Wellner we ll and is a Nancer at velocity globalcom right. Many things. Once again, rob it was great. Thanks so much for having me. I really enjoyed our conversation and, you know, I hope that your audience can find some nuggets of wisdom in there as they look to see or capture new markets globally. I'm sure the way it's like you again. operatics has redefined the meaning of revenue generation for technology companies worldwide. While the traditional concepts of building and managing inside sales teams inhouse has existed for many years, companies are struggling with a lack of focus, agility and scale required in today's fast and complex world of enterprise technology sales. See How operatics can help your company accelerate pipeline at operatics dotnet. You've been listening to be tob revenue acceleration. To ensure that you never miss an episode, subscribe to the show in your favorite podcast player. Thank you so much for listening. Until next time,.

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