Expanding abroad – Step 2:

This is the second part of a series on steps to take while planning, beginning and executing your expansion abroad.

As mentioned in my last blog entry I am sharing the experiences we gain at Hull Speed Associates as we assist our clients in expanding abroad. The experiences I share are real situations of how we encourage our clients, and the pragmatic steps we take to help them in this process. I urge you to share your comments by clicking the comments button below. Oh, and please subscribe to the blog if you have not done so already ;-).

The second step is the beginning of the expansion phase, choosing a location(s) to establish the legal entity(s).  As all seasoned and successful business people would agree, execution is where the rubber meets the road so getting this right at this phase will save time, money and headaches in the future.

The successful result of the first step is gaining enough traction to where you are comfortable enough to take that next big step and that is……… setting up a legal entity. This is a lot like getting married. You enter into a legal arrangement, you take on tax and legal liability, you are financially accountable to a higher being, you have to do a lot of things you normally don’t like to do and you have accountability. Is this a big step…? Oh yeah!  This can be a terrifying experience unless you have the right expertise or engage the right experts and have the right people on board. We cannot cover every example but I would like to cover a few of the more popular “destinations”. So over the next few entries I will highlight a few examples and possibly co-write a few with the input and help of some of the people I have worked with over the years.

I would like to start off with the “American Invasion”. I can hear it now “Oh god no! Another American invasion…?”.  As a number of people predicted, Europe has started to see an increase of US companies begin re-entry into Europe after a rather long -for US standards – retreat as a result of the recession.  What strikes me is how similar their patterns are compared to 15 years ago.  Instead of first focusing on a location that would be a better fit to their market, they first look to countries where native English is spoken, or to countries which are darn close. Is this a mistake…? Yes and no, but we won’t solve this question on this entry. I would like to first focus on the most popular venue I have experienced over the past 15 years, the UK.

In the next entry I will start to lay out a description of each type of entity we found, the pros of each entity and the related cons.  So please subscribe to the blog so you don’t miss out.

Regards,

Bill

bill.hite@hullspeedassociates.com

About expandingabroad

William (Bill) K. Hite Following a successful twenty-four career with Venture Capital backed IT companies, financial services and public accounting industries, Bill Hite founded Hull Speed Associates to meet a clear market need: assisting companies in expanding abroad with a comprehensive range of services including Back Office, Technical Advisory and Professional Services. Working, living and traveling in Europe for the last 17 years, Bill built upon his experience and knowledge of doing business in Europe, Asia and the USA. He founded several IT businesses, held a key role in a successful NASDAQ IPO and has solid experience in M&A activities, international expansion and corporate restructurings. In working closely with a number of clients over the last years to build and expand their businesses globally, Bill noticed a need for key services that could be bundled to benefit companies expanding abroad. Apart from the cultural and linguistic barriers that companies expanding abroad may face, there are many financial, legal and tax implications in deciding to expand operations to Europe, Asia or the USA. Hull Speed Associates works in tandem with each client to define their immediate and long-term needs, and how Hull Speed Associates can best support each client to ensure cost and time efficiencies. Working with a skilled team of specialists within his extensive network in Germany, the Netherlands, the UK, France and the USA, Bill operates on the principle of a single point of contact for his clients’ senior management. Bill began his career with Coopers & Lybrand in Boston, Massachusetts, and he holds a BS in Accounting from Oklahoma State University. He has held senior positions at TLP Leasing Programs, ON Technology Corporation, Networks Unlimited and Collax. He currently lives in the Bavarian countryside south of Munich with his lovely wife and 2 kids, but can frequently be found at airports across Europe and the USA
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2 Responses to Expanding abroad – Step 2:

  1. Jerome F. Bonser says:

    I am really enjoying your posts!! I was part of a small team that was tasked to create a new sales and distribution company in Brazil for a major U.S. corporation. By reading your words, I am taken back to the excitement of working every day to create something new but can also remember the endless “to do” lists and constant decisions to be made. Looking forward to your next post!!

    • Good morning Mr. Bosner,
      Thank you for your comment and for being a subscriber. It is always nice hearing from another “been there, done that” person. One of the things I personally have enjoyed over the past 15 years is exactly what you mention, creating something new and the endless “to do” lists. Expanding your business abroad is exciting and exhilarating. We are in the midst of expanding our own business into Brazil. This is an exciting time for Brazil and a number of prospects are looking in that direction so we want to be ready.
      Thanks again for taking the time to comment and I will very soon post the next entry.
      Servus aus Bayern!
      Bill

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