Doing business across the Atlantic

One of the challenges of launching a global business from South Africa is that it's literally half a world away from one of the biggest markets, the United States (US). A couple of South African startups have managed to bridge this gap. Read on to find out why and how.

Why look for a market in the US?

"In general South Africans are usually not the first to adopt web-based services so there's a real challenge at home if you're doing something really innovative. The US is an advanced and forward-thinking market for software, and a massive sales opportunity. Quite simply it's the potential to make more money, faster," says Sheraan Amod, CEO of Personera.

Start at home

The first phase of selling in the US begins at home. "Get in touch with your investors and advisors and explore their networks as much as possible. An introduction from them is the fastest way to establish credibility," says Sheraan. You can start virtually while still at home, but the important thing is to start to understand the market and to build your frame of reference.

Identify the people you'd like to work with

The next step is to identify your ideal customers and partners. If you can't do this then it's too early to be thinking of moving into the US. It's best if you can be introduced to these people; this is where phase one pays off, as it's very difficult to establish credibility if you're approaching someone cold. As Sheraan explains, "Personera's partnership with Facebook can be traced back to an introduction that Vinny Lingham made to someone senior within Facebook, who then championed the company internally."

Take a trip

"As soon as you can afford it, get on a plane and spend as much time as you can face-to-face with these people - that's the only way that true trust is built," says Sheraan. "This can be done relatively inexpensively if you take care." Sheraan recommends timing your trips to coincide with conferences and other events if possible, as they are an excellent way of meeting a large number of people in a short space of time.

Speak up

Sheraan offered a tip to South Africans looking to connect with people they meet in the US: "Raise your voice to at least double the volume you would speak at in South Africa, otherwise you won't be heard. I've done loads of public speaking and never had a problem, but in the States I was told, for the first time in my life, I was soft-spoken."

Maintain the relationships

Once you've established these relationships they can be maintained digitally from home, but periodic face-to-face contact is still necessary.

Establish a workable structure

Sheraan and Personera have adopted this company structure:

• Their development team is located in South Africa.
• Sales (that's Sheraan) travels to the US regularly.

"This is beneficial, because it is less expensive to develop your product in South Africa than the States, although searching for specific web expertise can be more difficult in South Africa," says Sheraan.

Be prepared to work hard

Travelling back and forth between South Africa and the US leads to a gruelling schedule for a CEO. Sheraan tries to make sure that his key contacts see him at least every two months and that he's always available for calls late in the South African night and early morning (US afternoon). He keeps a phone with an active US number on him at all times, even in South Africa. He sums up his lifestyle: "It's not glamorous and it's not a party. There's plenty of sacrifice but in the end I believe it's worth it."