Episode Transcript
WEBVTT
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You were listening to be tob revenue
acceleration, a podcast dedicated to helping software
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executives stay on the cutting edge of
sales and marketing in their industry. Let's
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get into the show. Hi,
welcome to be to be a room new
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acceleeration. My name is Owenian Muki
and I'm yet today we wor when send
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your VP of selves at Bilocity Globore. How are you route today? I'm
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doing great. Or then how are
you doing? Fantastic. Thank you very
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much. So the duplic of today's
if he's ad, is really around the
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tips for companies to remember when expending
globally. She's quite a wide and interesting
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subjects, but before we go into
that conversation, could you please introduce yourself
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a little bit more, Rob,
as well as tell us about what's vilocity
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global is as a company? Absolutely, my name is Rob Wellner, on
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the the senior vice president of sales
at velocity global. I oversee our global
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direct sales, strategic partnership and marketing
teams here at the organization. And velocity
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global is a professional employer organization focused
on international expansion. So our mission,
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in primary purpose, is to expand
our clients capability internationally and allow those companies
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to see business opportunities and growth initiatives
outside of their geographic footprint. Today,
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again, I met to were professional
services form and we help organizations with the
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compliant employment of employee in a hundred
eighty seven countries. Impressive. So,
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as you know, wrote from from
the conversation we had preparations to this episode.
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We had to paradis walk with a
lot of technology companies. A lot
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of these companies receive investments and as
part of that investment the objective is to
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expand geographically, going into new territory, creating Euroindustream indust territories. Obviously they
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need to do it quickly because the
vcas probably won't start to open a quickly
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and effectively. But obviously expending internationality
comes with challenges. So my first question
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to you is really around what are
these elements? What are the elements that
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a company should consider when they starts
planning their global expansional planning, even not
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just a global but planning an expansion
in a new territory? Thank you for
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that question. First and format like
operatic to supporting, you know, high
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growth technology companies velocity global actually supports
I'd say sixty five to seventy five percent
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of our client come from the the
technology space and then the life sciences and
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biotech, and that's strictly because are
not strictly but a byproduct of that.
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Of those types of industries are growing
at a fast page and they need to
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take advantage of market both in the
country that they operate and globally. Right
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and there are tons of considerations to
assess when going internationally, specifically after you've
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raised capital from some institutional investors who
are earmarking specific funds towards that expansion.
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I think to take a step back, it's really, you know, might
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be critical to highlight the advantages and
benefits of expanding internationally. There's a lot
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to consider again, and there are
a lot of benefits. But if we're
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talking to two companies today, we
do this often, there are really like
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three to four key points that they
tend to focus on. The first and
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foremost is the ability to access new
talent pools. So here in the US
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unemployment is that historically low rates and
we're seeing, you know, similar a
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low and unemployment rates globally. So
the ability to actually go out into the
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market outside of where a company has
a legal jurisdiction footprint today and fine,
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top talent has been a critical driver
of the business. Okay. Another case
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would be to go in and and
capture new revenue in a market. Right.
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So again, the company or Technology
Company raises a series of capital.
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Again, those investors not only want
to build the infrastructure up, but they
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want to expand the revenue and diversify
that revenue outside of their, you know,
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again, geographic footprints today, and
so they are allowed to capitalize by
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looking at that. So those they
are like the highlights right when you're when
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you're looking at challenges to that is
you want to first be able to test
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the new market, right. So
status quo previously had been for organizations to
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either set up an entity, whether
they had one employee or tenzero in a
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country, or, on the flip
side, they would actually go out and
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employ contractors, right, which globally
is typically called a misclassified employee if they're
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only focused on serving one client.
So that would be the first for so
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the challenge is is getting into test
the new market. Hiring immediately where you
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don't have a company set up globally
becomes a very big challenge. Intellectual Property
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Protection and then an employee retention.
Okay, so those are the considerations,
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I think, in addition to to
looking at some key focal points of why,
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absurdly, very interesting about the first
point that you mentioned, all the
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one of the Fast Trayo, which
is finding to tenants, we seem to
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see a shortage box really on the
development's site all clients because again, you
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know, I cannot drove my question
to you, to all Studi. He's
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on giving you money and they won't
them when you back or they want your
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review to increase. of Go ahead
and find that your religious train in new
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territory. But I kind of completely
foguts and then you you brought it and
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thank you for green back up into
do the conversation. That actually unemployment law,
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unmbloyments, right, sorry, and
finding top tenanty doors. One was
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a trick. Do you have examples? All? One example, also,
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client that you've seen potentially struggling for
identicity, flying do top talents, you
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know, specific geography, expending successfully
in those all geography and also doing it
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quickly. But most importantly, it
being successfully in finding new students the new
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territory and achieve that God that way. Yeah, I mean. You know,
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there's a good and anecdotal story.
Is We support again a several UNICORNS,
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you know, Technology Unicorn companies.
So when we first supported this one
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organization, they're actually headquartered here in
the United States, they had reached out
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a velocity global looking for a solution
to to tap into the Asian market and
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specifically into Tokyo, where they they
had identified a top engineer and they wanted
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to hire that person immediately. They
however, they couldn't write they didn't have
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a subsidiary or company set up in
Japan. So they came to us and
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said, we have this, we've
identified this person, we want to hire
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this person today, because the competition
is circling it is interested in the same
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candidate. However, we don't have
the capability to do that. Can you
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help us? And so we were
actually able to. There was a local
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national in Tokyo. We were able
to hire that person and within five business
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days on the behalf of our client. Right. That was the first case
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study to use with this, with
this one company. Since then, this
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company has grown to a Unicorn Times
twenty and we have supported upwards of a
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hundred employees for them as a strategic
deployment on the behalf of them, right.
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So they recognize the solution. They
then also were able to, after
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much conversations with their executive, see
how we could be a strategic play for
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them as they start to expand globally. So the next country that they thought
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about using US was in Europe,
where they want it's on board eight engineers,
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midlevel engineers, to higher midlevel engineers
and then scale up as quickly as
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they could to around twenty. We
were able to help them accomplish that and
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then transition those employees off of our
solution into their own corporate entity in that
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country, right. So that's another
case study specifically for another region. But
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they've done this globally, right.
They do it for top technology engineers.
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They also look at us as an
opportunity to get into a new market today
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and start to capture that revenue so
their investors can recognize a return on the
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investment faster. That's an impressive story
up. Thank you very much, fault
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while showing this business well, as
you know, was you can hear I'm
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French, O guys, so in
Frost we are known for us of things
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during wine, cheese and order that, but we also known for complexifying a
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lot of things, such as setting
up a business, setting of an entity,
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creating an entity in front, which
have done once, was extremely painful.
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About the opportunity to do is in
England's right, it's but she's,
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you know, but in frosty was
relatively painful. These a thinity is relatively
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painfully in force. Is Employment Law. So, but also well, I'm
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not too sure to any would be
good if you can tell us a little
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bit more about where your responsibility stop
in the most entity set up in tab
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of employment, Rue and or that. So just coming back to the question.
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So the the when expending you see
there issues, as I just mentioned
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regarding frost around Employment Law, setting
of the entity and rest of things.
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Can you please show his audience the
importance of the elements that are often overlooked?
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Sure, I think. Yeah,
I think the question is like you've
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got a lot of considerations from the
legal and compliance issue. You brought up
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grant right, like friend as you
know, right, being French, is
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extremely friendly to the employees and,
yeah, very prohibited to employers. Right,
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they want to make it challenging if
you don't already have an operation set
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up. Don't in our experience,
what we've seen over the years is like
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companies over often overlook a few things, right, and there is, I
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say, five critical thing, you
know, critical element. There may be
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more better, probably a lot more, but I mean, if I'm thinking
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about what we see universally around a
client page is one is the language barriers
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and cultural differences they don't often take
into account, right. So, just
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speaking about French, right, there's
language, there is cultural differences. You
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like your wine and cheese. In
England they like their beer and crackers.
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Right. So you know they've got
some of the those differences. There's also,
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you know, the looking at it
and setting up an entity right,
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which theoretically, across the globe,
to get a tax ID is relatively easy.
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It is cost prohibitive, it can
be very time consuming, but to
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just have the tax identification number is
perceived as not that complex, which I
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would tend to agree. However,
in order to have those entities up and
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operational, you need to take into
account bank account you know, bank accounts.
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You need to take into consideration having
resident directors in those countries. You
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need to take into consideration having human
resources individuals that have a working knowledge of
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the employment laws right in France,
as you mentioned, which is extremely challenging
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to terminate. I also would also
come to mind is Brazil, right.
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So Brazil again is not uniquely but
the typically geared towards defending or helping to
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defend their employee based so they have
a very high cost of doing business,
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and what I mean by that is
you have to take into consideration social systems
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in each country. If you're looking
at employing in the UK, social contributions
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might cost the company are around fifteen
percent. When you go to France,
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you're talking in the load amid S, and then when you go to Brazil
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you're talking upwards of seventy percent just
to get into the social system. There
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are also the employment contract in each
country. Right. In each country they
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have their own unique challenges or statutory
required language that must be in there.
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Companies don't often consider that because they
want to be able to utilize the employment
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contracts that they have in their home
country and that's not always doable. Right.
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What we're able to do is use
like a customizable solution that captures both
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the statutory language and, you know, affords organizations to still protect their intellectual
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property and data collection when you're talking
about technology companies. And then finally,
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I think you know, another item
that is often overlooked is are there supplemental
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benefit to complement the state health systems
or pension systems? And that's often something
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that employers will lose employees to because
they haven't taken that into consideration if they
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don't already have a company set up
there. That's great. So I guess
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he's leading me to a next question. So when you take orders into consideration,
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and then from y'all, does not
expires, and I'm probamus you full
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opinion here. So maybe everyone's opinion, but from your perspectivity in a professional
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in that's in that in that state
of expending in the nationally far into the
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why? Which region, from y'all
dose they see these their tough sets to
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expanding to an and why? There's
two regions actually that come to mind right,
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and they're people often think Europe,
which is everywhere, is tough,
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right, but I think if I'm
thinking about two regions that are extremely difficult,
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it's Africa, the African region,
and Latin America. And there's really
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three reasons why. Right, if
you have a lot of bureaucracy in both
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of those regions. You do everywhere, but the bureaucracy tends to slow things
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down significantly. Right. So if
you're actually going to set up your own
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company in Latham or Africa, it's
going to take a considerable amount of time,
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it's going to take a considerable amount
of executive team interaction, not only
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with the people on the ground,
but they're probably going to have to get
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on an airplane and get into those
countries to make sure that that entity,
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if they're going that route, is
set up. And there's around that bureaucracy.
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There's also so much uncertainty when I
think of Africa. Right. So
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in Africa we often seen in the
political landscape change on a time and what
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that means is there might be change
in labor laws from different administrations there.
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You know, the certainty level really
gets volatile. Cost, and what I
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mean by cost is, again I
alluded to it in the previous question.
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It's the Socialist Kiss Security System Latin
America is notoriously high. You know,
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it's it starts anywhere in in the
teens, but it's quickly accelera rates up
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into the S. right when you're
thinking about Argentina and Brazil, yeah,
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and then in Africa, those social
systems, the cost is lower again,
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but we're dealing with the bureaucracy in
the uncertainty. And then in both of
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those regions you have significant diversity and
culture, right. You know, the
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culture in Brazil is significantly different than
the culture in Argentina, which is significantly
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different than the culture in Colombia.
When you go to Africa, the countries
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are even more diverse than they are
in Latham. And those are considerations that
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are quickly, you know, overlooked
and and cause the not problems but challenges,
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right. And so what we're kind
of able to afford organizations is the
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ability to overcome those because we've got
the expertise in those regions and we're allowing
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them to enter those markets on our
very light foot print. Kinto like what
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we're out there doing is we're allowing
organizations to leverage our operational capabilities and get
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into regions. So we give them
not only the knowledge and expertise but the
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platform to go out and operate in
those regions technically and us that makes that
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makes stuff expense. We're upset.
Thank you very much. Foil in sight
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that I think you you know,
definitly, I'm very interesting conversation from my
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despective. So we always ask cushion
too toward all. Guess which is you
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know. Any of fall audience wants
you to connect with you because because Yalls
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and froumble ill even to discuss about
the fantasy to grow up board an ow
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vanocy to good goods, Bob,
to explain internationally, what is the best
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way to get into trees? Your
roup sure they can. The best way
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would be to reach out to me
via email, I believe, which is
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Rob Rob Wellner we ll and is
a Nancer at velocity globalcom right. Many
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things. Once again, rob it
was great. Thanks so much for having
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me. I really enjoyed our conversation
and, you know, I hope that
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your audience can find some nuggets of
wisdom in there as they look to see
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or capture new markets globally. I'm
sure the way it's like you again.
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operatics has redefined the meaning of revenue
generation for technology companies worldwide. While the
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00:17:02.440 --> 00:17:07.119
traditional concepts of building and managing inside
sales teams inhouse has existed for many years,
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00:17:07.519 --> 00:17:12.359
companies are struggling with a lack of
focus, agility and scale required in
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00:17:12.400 --> 00:17:18.670
today's fast and complex world of enterprise
technology sales. See How operatics can help
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00:17:18.710 --> 00:17:26.269
your company accelerate pipeline at operatics dotnet. You've been listening to be tob revenue
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00:17:26.269 --> 00:17:30.579
acceleration. To ensure that you never
miss an episode, subscribe to the show
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in your favorite podcast player. Thank
you so much for listening. Until next
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time,
