Going Global? Lessons Learned from A Startup

Going Global

Lessons Learned From

A Startup

Starting Up

Andy [email protected]

Wish you were here

Agenda

Lessons LearnedFrom Starting up

Globally

We Have Launched, What’s Next? New Global

OpportunitiesFor All of Us

WHAT WE LEARN FROM STARTING UP GLOBALLY - GUPPERS.COM

Start with Observations

Billions of Te

xting Delivered

Everyday, Everywhere in the world!

Why Texting Is Always P2P?

Would Group Texting Be Better?

How About Directory Services for SMS?

How about Premium Content?

Exclusive Membership?

Prototypes, Hypothesis Validation

Cloud Services

People in a few pilot countries really like the service

But What’s Wrong?

• Dealing with local telephone provider was hard for a startup.

• They protect their cash cow. They’d rather build services internally, as opposed to form a partnership.Lesson #1

Dependency on large companies is the kiss of death for many startups*

*unless you know the key players inside the company

But What’s Wrong? (Cont’d)

• End consumers in many countries arevery cost-conscious

• Credit card is not usedto pay bills in many countries. Mobile payment is not as easy to integrateLesson #2

Think thru end-to-end customer experiencefor each region

One Door Closes, Another Opens..

• Businesses are using our service!– High stickiness – Many usages that we’ve never

thoughtbefore

• Less issue on payment and prices. Credit cards and invoice are common

Lesson #3Do not resist opportunities, even if your

product is not design that way Each region presents unique opportunities

Unexpected Shift Happens

Global EconomyMeltdown 2008-?

Promise ofCloud

Computing(Cost Elasticity)

The Rise OfSocial

Computing(Productivity)

Lesson #4Ride the global wave early, offer compelling solutions

MobilityAccelerate

d

…Back to Drawing Board

Cloud Computing ReadyThe Use of Social

Computing Heavily Focus on Mobility Effortless Collaboration,

just use your daily tool (SMS, Email, Browser)

Social Media Ready

The new Guppers.com was born…

Does this work? It’s early to tell, but we’re hopeful from looking at the data

OK, Let’s Find Beta Customers..Easy, Right? Not really. • In Asia, especially, often personaltrust is pre-requisite to using your

service• In Europe, it has much higher

expectation on your services, even it is in beta/alpha form.

• Tight hand-holding is required Lesson #5Expect to spend more time and resourcewith customers in different parts of the world. US is not the barometer

Understand Their Daily LifeWork

DayEvening

Hours

Social Engagementcontinues well into the

night

Guppers Usage By Region

Asia

SMSEmailIMOnline

United States

SMSEmailIMOnline

Europe

SMSEmailIMOnline

Online and Email dominated

Mix SMS and Online

MostlySMS

Does Social Media Work Outside US?

Although Asia has the highest Internet population and growth, US companies have little tractions. Online services are dominated by local online services (CyWorld, Baidu, Mixi)

In Asia and Europe, co-workers’,friends’ recommendations are much more

important

Lesson #6

Distribution Channel: What Work For Us Outside US?

Local Connectors, Influencers

Lesson #8Partner or hire local connectors

Why Is Hiring Local Very Important?

• They know the local market heartbeat: what sells and what’s not

• Business is very personal in many different countries; without body, you’re nobody

• They know local laws and regulations• Do not under-estimate the cultural

differences between regions, such as business ethics, deal making process

How To Find Local Connectors,Influencers?

Your ex-university classmates

Your ex co-workers

Best to find them at prestigious, highly diversified universities and companies

How To Find Local Connectors and Influencers? (Cont’d)

Secondary Option:

Issue: Unknown personal quality

Getting Your Business Funded

Global organic growth is possible, but it’s unlikely in the first year

VC Funding dries up in the US, Why not outside US?

Money Waiting To Be Invested

In Asia, unprecedented amount of savings ready to be invested.

However, they’re wary of US recent economy meltdown

Your Customers Are PotentialInvestors

• A few of our loyal customers approach us for investment opportunities in the company

• In Asia, personal trust is especially important Lesson #7

Earn trust, Customers will

come, they might be your

best investors

Other Source of Funding:Government Grants

• Many foreign governments (Europe, Asia) have grant programs to encourage entrepreneurship and create jobs

• Establish local a company with your local member and hire local.

• It’s a win-win situation

OK, WE’VE LAUNCHED– WHAT’S NEXT?

Does Localization Matter?

• US, UK, and Scandinavian Countries : English

• French, German, Italy, Spain: Localize it • Asia: It depends -• Business App, High Tech, Highly

Educated: English Acceptable• End-Consumers: Must be localized

Lesson #8Localization matters, but not for all countries and not for all customer segment . Keep your cost low

Single or Multiple Hosting?

• Connections to US frequently are

not reliable in a few countries• If you build an online service, consider for hosting serversin a few countries. • Europe requires

some data toreside in Europeancountries.

Lesson #9As you design the system, take into account the possibilitiesthat you have to host your servicesin a few countries. Cloud Computing will help in the future

The “Digital Divide”

• The prevailing view: “The Have vs Have Not”access to digital and information

technology• This view becomes less and less accurate• Cell phones are very affordable

in many countries. • It is also common to see

a person carries more thanone cell phone

Our View Of “Digital Divide”

Next interesting problems to solve

SMS

How to Bridge the Digital Divide?

Global Team? Good Idea?Guppers team members span over 5 different time zones

Working Globally: Communication

• Time and Space are virtually compressed with today’s communication tools• Tools are effectively free or

inexpensive• Nothing beats human face to face

meetings; but today’s tools are good enough

Live Meeting

GroupConferenceCall

EmailHosting

Screen Sharing

Conversation viaSMS, Email, OnlinePersonal Status

What we’re using….

Take Advantage Of Cloud Computing

• Cloud Computing is perfect for startup• The cost of building and maintaining

data center is too expensive for startups• Cloud Computing offers “Pay As You Go”

model, which works well for usWhat we’re using

(pilot)

Lesson #10

Eat Your Own Dog Food!

• Use your product daily• At Guppers,• We’re THE #1 customer• We heavily depend on this product to run our business• Catch core scenario bugs, regression before

our customers

Lesson #11

24/7 Customer Support?

• If you have team across the world, why don’t turn them into the 24/7 Customer Support Team?

• Skype allows online users to talk directly to you

Lesson #12

Go After Countries in PhasesLesson #13

• As a startup, don’t spread too thin

• Pick only a few countries

• Ensure the end-to-end scenarios work first

• Expand to the other regions slowly

• Go after the simpler region first

Go After Countries in Phases(Cont’d)• US, Canada, UK,

Ireland, Scandinavian Countries

• Early Adopters, they adopt new US services quickly. For examples, Twitter, FB, Skype

Go After Countries in Phases (Cont’d)

• Southeast Asia: Indonesia, Thailand, Malaysia, Singapore,Philippine, etc

• Eastern Europe: Romania, Ukraine, Poland

• Germany, French, Spain, Italy

They’re more of Followers. Once the service is proven to be excellent in US, they’re more receptive

Go After Countries in Phases (Cont’d)

• China, Japan, South Korea

• Huge Market Potential• Hardest to penetrate• Best bet is to work

with local company• Main issue: Generation

saving attitudes

Far-East

The Dragon and Elephant

• China and India: home to 37% of world population. That’s 2 for every 5 people.

• China web users alone, outnumber US population

• Have to visit to understand the magnitude of opportunities, threats, and progress.

• Think of mass resources and market

THE OPPORTUNITIES 2009-201?

Layoffs Hit US and Europe

Some best and brightest

are forced to start their

own business

Re-Migration• Many US foreign graduates decide to

return back to home countries, instead of looking for a job in the US

• Some of layoff workers are H1B holders. They have to return to home country if they can’t find other job

Global Economic MeltdownAffects Countries Differently

• Asia Market recovers early• Some countries still grow,

even at slower pace• Competition to produce

cheaper goods & service become fiercer

• Still huge appetite forsavings andinvesting

Putting All of Them Together

Get brightestaround the worldfor ideas, prototype

Funding possibilitiesoutside US

Work with Connectors, Influencersaround the world

The Investment Model

• The cost of building product/services is dramatically reduced compared to10 years ago, thanks to open source, much better tools, cloud computing.

• The cost could be further reduced by outsourcing to certain parts of the world who have the expertise.

• Investors no longer need to come up with a large fund.

All Great, But…It’s Easier Said Than Done

• How do we find others? • How can I trust this person? • How do I know if this person

is real expert?• How do I know I could work well with this person who is 12,000 miles away

But we have to start somewhere!

For Entrepreneur

• The hardest hurdle is to start - “Just do it”• Presenting your

ideas is no longer good enough.

• You must have a working prototype,and ideally customers

For Connectors, Influencers

• Global opportunities are as good as it gets • Build connections,

relationship to entrepreneurs, investors where they live online (Twitter, Linked-in, Facebook)

For (Individual) Investors• Some of best and

brightest are behind startups

• Typically, requires no heavy investment

• Allows to diversify to many different startups

• Still high risk, but it could be high reward

Global Business is Personal

Focus more on quality, instead of quantity

My Personal Experience

• Incredibly rewarding to work with people all over the world

• At personal level, regardless of countries, the pattern is consistent : many good apples, couple bad ones.

• Appreciate many cultures so much more. Always expect the unexpected

• Love to learn more and connect many more people

Going Global - Yes, You Can

• The World is Flat – Thomas L. Friedman.• Playing field has been leveled• Time and Space have been compressed

• The cost of going global is a possibility even for a startup and a small business.

• The biggest challenge remains• Building and maintaining relationships

to your partners and customers• Cultural gaps; law, regulations and

ethics.

Finally

Call To Actions

• Expect more updates to this presentation as we learn more

• If you would like to contribute, please share your experience; we’ll update & credit your contributions

• Join discussions in a Linked-in new group. Click here• We hope we can network entrepreneurs,

connectors, investors, influencer from all over the world.

• Spread the words, let’s network• If I can be of any help, please contact me

[email protected] and twitter:@harjanto

Pictures – Creative Commons LicenseMaps - Microsoft Maps (maps.live.com)

Credits