Published in the SAP HANA Startup Focus Newsletters
In my last blog I talked about what startup entrepreneurs are getting wrong. This blog is looking into the ten most important questions you should ask yourself before you enter the US market.
Most startups I have been working with over the last 15 years wanted to come to Silicon Valley. But why the Bay Area? Why not New York or Atlanta or Chicago? I don’t think there is just one right answer to these questions; however, if you are in the ICT business I want to give you a few good reasons why you should start here in the Bay Area.
Big companies like Google, Apple, Facebook, Twitter, Oracle, Cisco, Salesforce.com, Yahoo and others are a good source for talent, early-adopters, and capital.
Major universities like Stanford and Berkeley supply intellectual capital, talent, and training, however, before you take the next step, you should ask yourself:
- Current Environment
How large is the new market and is it big enough to positively affect your business?
What other companies are competing within the new market already and is there really an opportunity for you to bring something different to the market that will enable you to steal market share?
How much of a financial investment is required to enter the new market and operate effectively within it now and in the future?
Can your existing business afford to re-route money, employees, and other resources to the new market opportunity?
What kinds of technology investments in equipment and training are required to enter the new market and can you afford them?
- Future Potential
The new market might look attractive today, but what is its potential in the future?
- Legal and Compliance
Are there any legal or compliance issues that could negatively affect your success entering or operating in the new market?
Are the consumers in this market an appropriate match for your existing brand and products or will you need to launch new brands and products?
What are the barriers to entry into this market and can you overcome them quickly and affordably?
Why do you want to enter this market? Is it truly right for your business? Does it match your business goals?