How can we help with US market expansion?

We let you see under the hood of one of our clients.

We were the first point of contact and a first partner in the discussion about planned U.S. market expansion for one successful Czech technology company. CEO and CTO of XLAB were looking primarily for verified market information and patient listeners. They had a lot on their minds with this important decision and it turned out we had just the experience they were looking for.

What did the company start with?

XLAB was already sure about the new market. They knew the US market expansion will take some time, so they hunkered down. They suspected that the endeavor would take a significant investment, but they were also absolutely sure that it would pay off in the end.

American dream

Every company that reaches out to us has different needs and expectations. But they have a common dream. The American market. Competitive, harsh, yet profitable. For many technology companies, it is even more profitable than any European market.

The businesses usually have some idea about the opportunities overseas. They are however grappling with many questions. Be it those technical in nature:

Which legal entity to choose?
How to secure operations and where to find employees?
What is truly necessary to start a business in the USA?

Or those truly existential ones:

Where and how will we find clients?
How much will it cost to fund the US market expansion?

The core of our business is to be able to answer these and many later questions clearly and concisely.

For XLAB, it actually began on the CEO’s family vacation, who standing on the busy Fifth Avenue conceived an ambitious plan to once own a beautiful apartment overlooking the Central Park.

His plans, however, did not stay only in dreams about real estate. Together with the CTO, they already had a clear idea of the services they would offer in the American market. They even had previous clients in the market. They had a foundation to build on.

2017

First steps of US market expansion

We met in the Czech Republic and outlined cooperation. We started light. We first evaluated the ownership structure and the company’s mid-term goals in order to advise on the legal structure. All owners were individuals and company’s income was based on smaller but stable sources, we decided to form an LLC (limited liability company) based in New York.

We took on all the administrative work and laid the foundation to the back-office. As business partners, there were no complicated employee relationships. This eliminated considerable time and financial costs.

Two are better than one

You most likely remember what it was like to start your business in your home market. Awake nights. Working weekends. Constant uncertainty.

It is similar with market expansion. Some companies may choose providers of one-size-fits-all solutions, where they may get the formation of a company of their choice or turnkey accounting. US market expansion, however, demands much more than these seemingly ready-made solutions.

American business requires personal contact. Knowledge of language, culture, and customs. Appropriate ad targeting. Connections. Having someone on your side who has been through business beginnings in the US and can provide a quality safety net, will free your hands so you can focus on growing your business and delivering the best possible services and goods. That is what it really is about.

Ask us how

As soon as the company existed and the processes were set up, we also took over the rest of the back-office agenda, including accounting, tax returns, and reconciliation of tax jurisdictions the company newly belonged under. Thanks to tax optimization, we mitigated the impact of administrative and tax load on both the company and its owners.

In the long run, this has proven to be a big win for the company, because poorly chosen entity or wrongly set processes could also endanger the cash flow of the foreign headquarters.

2018

Completely unlocking the market potential

It was marketing and building brand awareness time. We chose the appropriate language of communication, set the content strategy and its connection to the existing home market brand. We took over the contact center and became a reliable point of contact for all American clients. We started our efforts to raise awareness of the company’s services, organized several industry workshops and within a few months, we have started working on new projects.

It became immediately necessary to bring over specialized technicians who would supply critical know-how for the new projects. Therefore, we have arranged E-2 investor visas for the CEO and two engineers. This way they have been easily coming to the United States to implement projects on a regular basis.

We didn’t stop with the visas. We have taken over the coordination of the ongoing local projects. We have become a crucial communication point between the clients and the company’s European headquarters. A place of information convergence driving the US market expansion. We also started taking care of the company’s US logistics and equipment transportation between projects.

The most important thing was that we took care of the project management and communication during the first steps. This gave the new clients unique confidence and enabled the entire operation to settle down.

2019

What part do we play today?

The initial simple consultations and assistance with choosing the right legal entity has gradually grown to responsibility for all company operations in the United States. We provide services ranging from accounting and marketing all the way to presentations and direct contact with clients and business partners.

It sounds a bit like a fairy tale but there is actually a lot of work behind it. For us, it meant understanding XLAB’s business to the very core. We have also become quite decent experts in the fields of audiovisual broadcast and organizing large corporate events. Thanks to this synergy, we have saved the company countless resources and helped it achieve current success.

2020

Yearly revenue growth of nearly 100%

The American branch of the company is a self-sufficient unit after three years of existence. Its revenue grows nearly 100% every year and it generates about 50% of the entire company’s profit.

Our initial modest role has grown into the backbone of the company’s entire US business. It is with great joy, but also with humility, that we accept the fact that together we have managed to win a stable position in one of the most competitive markets in the world.

Just like our client in the beginning, we too have a clear goal. It is to help other determined and hardworking business owners to conquer the world. We are already working with some of them but we are always on the lookout for more.

Is that you? We would like to talk. Give us a shout.

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