Transcript HYVA - global american technology alliances blog

Starting a business in the
USA
NAF Breakfast
Introduction
 Marcel Birkhoff – 38yr, married and a daughter
 Business/Marketing & technical background,MBA
Marketing management
 13 years with Hyva on international business
development – pioneering new markets
 Moved in 2005 to USA & Since 2005 managing
director of Hyva Corporation
NEXT
PREVIOUS
Contents:
 Company History & activities
 Our move to the USA
 Main prerequisites
 Main obstacles
 Cultural differences!
 Long term <-> short term
 Surprises
 Main tax implications
 Main Lessons & conclusions
 Questions
NEXT
PREVIOUS
The Hyva Group
From a tiny spot on the
map in 1979…
NEXT
PREVIOUS
… to a world leading company in 2008
…
NEXT
PREVIOUS
Hyva moves your world!
Companies everywhere in the
world
NEXT
PREVIOUS
Technamics B.V.
Hyva China
Hyva India
Hyva altatec Australia
In 29 years Hyva reached
 Export to more than 130 countries
 28 fully owned subsidiaries
 2000 employees
 Sales of 135.000 telescopic cylinders (2007)
 Sales of 15.000 tipper bodies per year (India)
 Sales of 2.500 Hyvalift systems (2007)
 Turnover of € 475 mio in 2007
 Expected turnover of € 600 mio in 2008…
NEXT
PREVIOUS
Hyva is producer of
Hydraulic telescopic cylinders
Hydraulic truck kits
Hyva Lift container (un)loading systems
Hyva Floor horizontal (un)loading floors
Truck mounted cranes
NEXT
PREVIOUS
Hyva on USA dumptrailer
NEXT
PREVIOUS
Hyva Hydraulics
 hydraulic kits
 super structures
 all necessary components
NEXT
PREVIOUS
Major drivers of our business
 GDP development of countries
 Infrastructural investments & projects
 Mining & heavy off road tipping applications
 Environmental developments
 Developments of labour costs
 Sales numbers of trucks & trailers
NEXT
PREVIOUS
Our move to the USA
 Started from Chicago apartment in beginning 2005
 Company founded in end of 2005
 “Corporation” as legal entity, registered in Delaware
 Main office in Chicago, with various satellite
warehouses
 Usd. 6 mio Estimated sales - 2008
 Market-scope is US and Canada
 Currently serious market decline in USA
 Constant growth – increasing market share
 Hyva has far more modern & efficient product
NEXT
PREVIOUS
Prerequisites to enter NA
 Safeguard yourself against currency fluctuations risks
 Investigate product liability risk
 Structure the company in such a way that parent
company can not be touched
 Have patience and full stakeholder support
 Local presence & fast product availability
 Product offering must have an competitive edge
NEXT
PREVIOUS
Main obstacles
 Geographic size & regionalism
 Difference in technology & market standards
 Different customer expectations
 Not “Made in USA”
 Liability issues
 Different laws & regulations on company and
employees
 Reluctance to deal with foreign companies
 Don’t fall for the transatlantic trap!
NEXT
PREVIOUS
Transatlantic vicious cycle
Entry
Product introduction
Positive initial response
Reconfirmation of the
American’s Concern
about European Commitment
Withdrawal of the
European from the USA
American Concern Regarding
priorities / US Commitment of the
European
Refusal to Purchase
Due to Perception of
Lack of commitment
Investment limit reached
Disappointment
of the European
NEXT
PREVIOUS
Cultural differences
 There is a bigger culture difference than most
people think
 US customer is polite, and does not say no
 Dutch people can be perceived as too direct and
pushy
 Intercultural training definitely helps!
NEXT
PREVIOUS
Short term<-> Long term
 US is short term focused, NL long term
This emerges in different areas:
- Economy has higher highs & lower lows
- Quality & technical sophistication is less important
- Lower price is more important then lower cost
- Shorter timeframe on ROI’s
- More importance on short term shareholder value
- The dollar is paramount!
NEXT
PREVIOUS
Surprises
 US customers generally perceive European products
as superior – nice!
 Banking system old fashioned and inefficient in Dutch
view – majority payments with checks
 Certain industries very low tech, others very high tech
 Lower environmental awareness & concerns
 More bureaucracy than you expect
 VISA application process not so easy anymore
 Canadian market presence eases introduction in US
NEXT
PREVIOUS
Tax issues
 Consider international transfer pricing rules
 Consider federal tax and state tax
 Sales in different states = paying tax in different
states
 You need good local advise and global tax strategy
NEXT
PREVIOUS
Lessons & conclusions
 Do not underestimate geographic size
 Setting up takes 3x longer and cost 3x more as in
business plan!
 Good preparation on all fronts is key
 Cover your self against currency/liability risks
 Focus on long term and be patient
 Sustained local presence is key in breaking the
transatlantic vicious cycle
If you succeed the rewards are great!
NEXT
PREVIOUS
Thank you for your attention!
Any questions?
NEXT
PREVIOUS