5 ways to make the most of your Market Discovery Fund project 

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Learning that your business has been approved for a support like Enterprise Ireland’s Market Discovery Fund is great news. But it is followed by an important question. How can you make the best use of that financial support to maximise its value to your business?

 

1.    Make the most of Enterprise Ireland’s resources

Use all of the resources available to you as a company supported by Enterprise Ireland while you carry out the project and conduct your research.

Your Development Adviser 

Stay in touch with your Development Adviser throughout the project. Let them know you’re interested in attending relevant market and sector events and they will keep you top of mind.

39 overseas offices* 

Make time to visit Enterprise Ireland’s most relevant overseas offices as part of your project. With offices in 39 locations worldwide, our advisers have expert knowledge of the markets and sectors of most importance to Irish exporters.

If you alert the in-market team to your visit well in advance, they may be able to arrange meetings with valuable local contacts. After your visit, remember to stay in touch with the market advisers you know to stay up-to-date with local opportunities and developments.

(*39 correct as of 3 December 2019, date of publication)

Market Research Centre

Conducting the right market research is vital to maintaining your competitive edge and enjoying successful export growth – but it can also cost time, money and resources for which your business must budget.

The information specialists at Enterprise Ireland’s Market Research Centre offer a wealth of experience available to guide you to the most relevant reports and databases for your needs, and to provide support before and during your visit. They can help you to access current market research reports from some of the world’s leading publishers, such as Euromonitor International, Frost & Sullivan, and Mintel. The Centre is available free-of-charge to companies supported by Enterprise Ireland across the regional office network.

 

2.    Focus on your most promising markets

One important rule of thumb is to consider no more than three markets within a Market Discovery Fund project. Carrying out a market prioritisation exercise and comparing the potential of two or three markets within a region can be a smart use of this type of support.

Whichever markets you consider, remember that internet research alone will only take you so far. Travel to each market you are considering where feasible. You will learn far more on the ground than you can from behind a screen.

Also think carefully about the bandwidth (covering both people and finance) required to manage the project. Projects such as this typically take no more than six months, unless you recruit a graduate or entry-level executive to undertake a more substantial piece of research.

 

3.    Assess trade fair options

If you are planning to exhibit at a trade fair, try to visit the year or season before, so you can assess if it really is a good fit for your business. The most important factor to look out for is if the right kind of buyers and decision-makers attend.

If it is a big fair, spend some time establishing which is the right hall for your company to exhibit in. Being in the wrong hall is a waste of time and resources and can leave you and your team feeling frustrated.

If you decide to exhibit next time around, get in touch with the organisers as early as possible to find out costings or packages in addition to availability, as previous exhibitors are likely to be given priority.

 

 

4.    Know the claims process and track everything

You can find all the information and forms you need to submit your claim(s) to the Market Discovery Fund here. This includes:

  • Instructions for making your claim
  • The claim form
  • A claim form checklist
  • A timesheet template
  • A Director’s Statement template
  • A progress report form
  • More information on the claims process.

 

While at this point your application has been approved, it is vital to keep detailed records of all expenditure relating to your project. This can include:

  • Timesheets for employees, as relevant wages and salaries can be covered, subject to conditions outlined here
  • Receipts and invoices for all foreign travel and subsistence expenses directly related to the project. Remember these must be incurred by company employees supported on the project
  • The cost of purchasing reports and databases relating to a new market or sector (when relevant and not accessible through the Market Research Centre).

 

5.    Understand the value of what you learn

At first, it might seem disappointing if research indicates that a valid opportunity to bring your product or service to a particular market or markets does not exist. But it is actually a great lesson.

It is far better to be aware of this insight before committing fully to a market, as discovering a lack of potential later will cost your business much more.

Knowing which markets not to prioritise can be just as important as understanding which ones are most worth investing your time and resources. Refining your overall market strategy is a valuable outcome of a successful Market Discovery Fund project.

Remember, you must contact your assigned Enterprise Ireland Adviser to discuss your Market Discovery Fund application before you submit it. If you’re a first-time applicant, you need to register on the Enterprise Ireland Online Application System.

To discover how your company can take the step into new markets, visit: globalambition.ie/steps.      

Help your company grow by using the Market Research Centre

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With Brexit a reminder of the importance of diversifying and discovering exciting new export opportunities, Enterprise Ireland’s Market Research Centre can help.

Conducting the right market research is vital for businesses to maintain their competitive edge and enjoy successful export growth. According to a recent Enterprise Ireland survey, more than four out of five businesses plan to diversify into the Eurozone – a smart move given its potential export market value of €38bn alone.

Enterprise Ireland-supported companies can benefit from support in their plans to expand their reach. Here are five ways that our Market Research Centre can help.

 

1. Access world-class market research

Conducting market research before exporting into new markets can cost time, money and resources for which your business must budget. The Market Research Centre can help by providing access to up-to-date premium market research reports from some of the world’s leading market research publishers, such as Euromonitor International, Frost & Sullivan, and Mintel.

The Centre provides access to:

  • Country reports
  • Global company profiles
  • Industry sector reports
  • Trend forecasts.

The Centre is available free-of-charge to companies supported by Enterprise Ireland across the regional office network.

With some individual reports costing tens of thousands of euro, the potential value of using the service is immense.

 

2. Know your markets

When planning to export, the most important step is to learn as much about your new target market as possible. Accessing the latest research available through the Market Research Centre will help you to understand potential export regions and the competitors already operating there. Questions you should consider include:

  • What is the size of the market?
  • Who are the big players?
  • Is there a dominant brand in the market

       

      3. Know your channels

      When Abcon, an abrasives and industrial hose manufacturer from Co. Cavan wanted to increase exports to the Eurozone after the Brexit referendum, they needed to understand the markets that would help to grow the business.

      With a high volume of sales driven by internet searches, accurate information about the names of products in local languages proved essential to underpinning successful international digital marketing tactics.

      Lyn Sharkey, Sales and Marketing Director for Abcon, says that the Market Research Centre’s information specialists helped the company to obtain such information, in addition to lists of potential leads and trade events to attend – all of which would have been far more difficult to source alone.

       

      4. Insights about your customers

      Understanding the demographics of a market and the competitors already succeeding there is of little value unless you also understand your new potential customers, and how your offerings should be tweaked or positioned to best appeal to them.

      One of the most vital considerations for any company is: “what does your customer want, and how does it differ from what you’re already doing and delivering?”.

      When Irish Dog Foods, the Naas-based pet food manufacturer, was planning to enter the South Korean market, they asked these same questions. The company turned to the Market Research Centre to learn which customers it should sell to.

      “One of the things we learned during our market research is that there are practically no large dogs in Korea,” says Darren Keating, Marketing Manager of Irish Dog Foods. “That meant we specifically targeted the owners of small dogs. That information came from the Market Research Centre.”

       

      5. Guidance from information specialists

      The Market Research Centre’s information specialists have a wealth of experience and are available to guide you to the most relevant reports and databases for your needs, and to provide support before and during your visit.

      Sometimes the best support is reassurance from a specialist that you are heading in the right direction, allowing you to use your time efficiently.

       

      Contact Us

      Contact the Market Research Centre to discuss your research request and to arrange a visit to our centre in Dublin or to any of our eight regional office hubs.

      Phone: +353 (1) 727 2324

      Email: market.research@enterprise-ireland.com

      Opening Hours: Monday-Friday 9am-5pm

      edtech

      Edtech for the workplace: opportunity or obligation?

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      As AI and automation change the nature of work and jobs rapidly over the coming years, edtech innovations must be ready to help people and organisations keep pace.

      Jean Hammond of LearnLaunch, an edtech accelerator and innovation hub based in Boston, was keynote speaker at a conference organised by Enterprise Ireland and The Learning Forum in Dublin in June. At Impacts and Future Trends in the EdTech and Corporate Learning Landscapes, Enterprise Ireland-backed companies met industry experts and investors, to hear how education is changing, and the opportunities that change presents.

      As automation becomes more widespread, the importance of soft skills – including complex problem solving, critical thinking and teamwork – will persist. In her keynote presentation, Jean asked: “Why do we call them soft skills? Because they’re really, really hard.”

       

      Edtech is an unstoppable force

      Edtech innovation is accelerating, as the ways people learn in school, university and the workplace undergo a major transformation. Workforce education is about to become intricately entwined with people’s careers, Jean explained: “We’ve had a history of thinking that there was a period of time, four years in college, and then you worked for ten years and then maybe went away for two weeks, or went back to education for a year, but that’s not what the world looks like now.”

      This is a challenge facing society as a whole, Jean noted. She advised delegates not to solely focus on the next great start-up or innovation: “Don’t spend all your time thinking about the innovators. Think carefully about the innovation adopters. What does it take to adopt change?”

      Industries must interact with edtech entrepreneurs and signal what they need, in order for start-ups to create the solutions required. If the market fails to tell innovators what it wants, it’s extremely unlikely that innovators will be able to develop the right solutions.

      Jean described her role linking companies with start-ups: “I have probably seen over a thousand different edtech start-up business plans over the last ten years. We know what people are out there trying to work on.”

       

      Impact of big data and machine learning

      Technology has moved at an amazing pace over the past few decades. Jean advised that big data and machine learning will drive change even faster: “Machine learning can analyse any system and find out where there are problems, where there are issues, and then go and provide a way to address these.”

      The challenge for edtech is to react to change in time, so that people can transition into new roles before their old tasks become automated or obsolete. Jean commented, “We need to make the systems and processes of learning and deliver them where we need them.”

       

      Today’s edtech market

      She explained that only about 2.7% of the global education market is currently digitised: “Probably it will max out at around 12% because we’ll always have teachers, we’ll always have humans as a part of the system, but across the next few years, there will be a lot of change.”

      The market globally is worth around US $5.75 trillion, with that value projected to rise to US $10 trillion by 2030. Jean explained that education is the biggest sector to ever undergo digital transformation.

      Delegate John O’Donnell of Irish curriculum management company Akari Software asked Jean about lifetime learning and how it may disrupt universities. Jean noted that a level of transformation is inevitable but that universities provide quality credentials and should start offering “bites of learning that can be delivered over and over again into a set of stackable credentials.”

      After reaching a high in 2015, venture capital investment in edtech fell but is now rising again. A LearnLaunch study looked at where funding for edtech resides: “Clearly there are some things happening in formal education to bring an increased amount of skill training into the higher education and community college, or sometimes even high school. Then the workplace is delivering both functional skills and soft skills, with a high rate of company formation in technology.”

      Jean said that some of the most intriguing innovations were the next generation of learning management systems (LMSs), new e-learning tools, advanced ways of looking at assessment and analytics, and credential management.

      Companies who have never invested in edtech previously are entering the market (such as Walmart) and long-time funders are entering the process earlier. Jean explained that earlier engagement is intended to “push those start-ups in the direction that they need because start-ups will listen if you tell them what to do. They care about your opinion so they will be steering themselves to try and meet your needs.”

      This is advanced strategic thinking, which will help ensure companies have the tools they need to upskill their workforce: “I don’t just think edtech is the opportunity of the decade, I think that we have to do this.”

      Learn how Enterprise Ireland invests in new technologies with our range of innovation supports.

      John Ferguson Ambition Asia Pacific 2

      ‘Phenomenal’ middle class growth in Asia Pacific an opportunity for Irish companies

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      The growth of the middle class throughout Asia Pacific presents ambitious Irish companies with unprecedented opportunities, delegates at the recent Ambition Asia Pacific conference in Dublin heard.

      Some 23 million new ASEAN households are on track to earn more than US $35,000 a year by 2030 in what is “the fastest-growing, most dynamic region in the world,” said John Ferguson, Director of Country Analysis at the Economist Intelligence Unit, who provided an overview of growth trends and opportunities in the region.

       

      Growth rates in Asia Pacific countries

      In China, major strategic programmes such as Made in China 2025 and the long term Belt and Road construction initiative “are not going away”, he said.

      “Chinese growth is still just very modestly slowing down to around 6%,” he said. The government there is using monetary goals and fiscal policy to maintain that growth.

      Even allowing for the challenges facing China, “it’s still going to grow pretty reasonably well over the next couple of years,” he said.

      Growth prospects in Japan, at 1%, are much smaller, however. As a huge, developed and rich economy, it’s one in which there are still “a lot of opportunities” for Irish companies, he suggested.

      Much of that opportunity relates to Japan’s Society 5.0 initiative, the Japanese government’s focus on artificial intelligence, sensor technology and automation.

      “This is a huge initiative for the Japanese. That’s where some of the growth opportunities will present themselves in Japan, already a highly developed economy but really trying to push themselves with this fourth industrial revolution.”

      India represents a particularly “bright spot” in the global economy, said Ferguson, who predicted growth of around 7% on average likely over the next five years.John Ferguson Ambition Asia Pacific

      This compares with global growth of around 2% and Asian growth of between 4% and 5%. India’s growth outlook is “extraordinary”, he said.

      The primary opportunity in India, as in Asia Pacific countries such as Vietnam and Cambodia, is one of population development and subsequent growth in demand for consumer goods and services.

      With predicted growth levels of 5% and a large population, Indonesia is another really strong performer, again driven by the fast growth of its middle, or consuming, class, he said.

      Indonesia’s five-year growth rate forecast is almost double that of Singapore’s, at 2.9%. However, the additional opportunity in Singapore comes from its ease of doing business and its popular status as a launchpad from which to do business elsewhere in the Asia Pacific region, he said.

      So, while Singapore is growing a more slowly than some of the less well developed countries in the region, it’s still growing at “a pretty impressive rate of growth for economy at its stage of development.”

      South Korea is another mature market but still likely to show average growth of 2.7% over the next five years. “In our view, that’s a pretty reasonable growth for a country at that stage of development.”

      “The rising middle class in the Asia Pacific region is phenomenal. The world is moving east.” Kevin Sherry, executive director Global Business Development, Enterprise Ireland

      Australia – another frequent launchpad into the wider region for Irish companies – and New Zealand are both stable economies but, cautioned Ferguson, both are seeing climate change and immigration becoming significant political issues.

      Kevin Sherry at Ambition Asia Pacific Conf.For Irish businesses looking at these markets, either as part of their supply chain or as end markets, it’s worth keeping an eye on regulatory initiatives in relation to either, he said.

      Enterprise Ireland is working with more than 600 companies who are doing business in the Asia Pacific region.  “Irish companies are used to winning in the Asia Pacific markets,” said Kevin Sherry, executive director Global Business Development at Enterprise Ireland.  “The rising middle class in the Asia Pacific region is phenomenal. The world is moving east.”

      Depending on what happens in October in relation to Brexit, Ireland may be the only English speaking country in the EU, a fact that presents challenges but opportunities too, he pointed out.

      Enterprise Ireland is expanding its footprint in the Asia Pacific region to help support Irish companies looking to capitalise on the growing level of opportunities there, opening new offices in Auckland, in Ho Chi Minh City, Vietnam, in Melbourne, Australia and in Shenzhen, China, he said.

       

      Read more Global Ambition articles on the opportunities for Irish companies in Asia.

      Map of EU with padlock

      GDPR and Data transfer to or through the UK

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      The General Data Protection Regulation (GDPR) came into force on 25 May 2018 and unifies data protection law throughout the EU. It gives individuals control over their personal data and requires businesses and other organisations to put in place processes that protect and safeguard that data. The regulation also addresses the transfer of personal data outside the EU and EEA.

       

      Dealing with the UK, USA and other third countries

      GDPR came into sharp focus this year as a result of the UK’s withdrawal from the EU. GDPR still applies in the UK, however as it is now a third country it is subject to the GDPR rules governing the transfer of data outside the EU and EEA.

       

      Data transfer to/through the UK

      The first thing for firms to do is to establish exactly where their data goes. Companies may not realise that their cloud storage provider is actually located in Britain or Northern Ireland. Their pension schemes, payroll, healthcare plans may all be run out of the UK and involve the regular transfer of personal data. Workplace benefits databases could also be held in Britain or Northern Ireland. Even translation services might be covered if personal data is included in the material to be translated.

      Having established that data is being transferred to the UK, the next step is to decide if that needs to continue. There may be options to look for another service provider in Ireland or another EU Member State and these should be explored.

      Standard Contractual Clauses

      If it is not possible or if it is too difficult to take this option, there is a ready solution to hand. There is a tool that can be used to solve this problem and it is available on the Data Protection Commission website. It is known as the standard contractual clauses (SCCs). This is a set of off-the-shelf clauses developed by the European Commission and which are recognised as an appropriate safeguard to ensure that firms remain compliant with GDPR.

      The SCCs are already written and only require firms to fill in the blanks with their details. They can be appended to existing contracts and come into force when both parties sign them. Once signed, this enables firms to continue transferring data to the UK in full compliance with GDPR, and people still have their rights.

      The data subject is also given certain specific rights under the SCCs even though they are not party to the relevant contract. Firms are also advised to update their privacy statements to indicate that the data is transferring to the UK under the terms of the SCCs.

      The SCCs will cover most situations, but there are certain more complex cases where they may not apply. These are relatively rare, but firms in doubt should consult the Data Protection Commission or seek their own legal advice  to check out their particular situation.

      There are also certain situations where the data transfer is not covered by contract. These include cases where data is being transferred from a UK Controller to an Irish processor for processing and then transferred back to the Controller. This has been a relatively routine process up until now, as the data remained within the EU at all times. The best advice for firms based in Ireland who find themselves in this situation is to look at the clauses within the SCCs and insert them into the service level agreement governing the activity. This will demonstrate an intention to be GDPR compliant in the new situation.

      The same will apply to Irish shared services centres carrying out global back and middle office functions for multinational parents. They should update the terms of service to UK-based affiliates to include the SCCs.

       

      Data Protection Policies

      Some very large organisations use what are known as Binding Corporate Rules (BCRs). These are legally binding internal codes of conduct operating within a multinational group, which applies to transfers of personal data from the group’s EEA entities to the group’s non-EEA entities. The approval of BCRs can take a significant period of time and also, given the cost and complexity of BCRs, they are not a suitable transfer tool for most Irish companies.

      The only remaining questions for Irish firms transferring data to the UK concern adequacy. Certain ‘third countries’, such as Japan, have received what is known as an ‘adequacy decision’ from the European Commission. This allows a cross-border personal data transfer from the EU to that country because it has been determined to have an adequate level of data protection safeguards compared to the EU. It could take some time before the European Commission completes its negotiations with the UK Government in order to deem the UK adequate as a jurisdiction to which data can be transferred under GDPR. Therefore, companies need to explore the options available to them when transferring data to the UK.

      Irish companies banking United States

      How to manage US banking, employees and legal fees

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      Two challenges that Irish companies sometimes experience when preparing to export to the United States for the first time involve banking and employment. The following pointers will help you to prepare.

      Download the full Going Global USA: Learn your Legals guide now.

      All US banks require an Employer Identification Number (EIN) confirmation letter, also known as Form SS4, before opening a business account in your company’s name.

       

      How to apply for an Employer Identification Number

      You can apply for an EIN online on the Internal Revenue Services website, if you already have a US social security number (SSN), or an individual taxpayer identification number (ITIN).

      If you don’t have an SSN, you can apply for an EIN from the IRS by fax or have a lawyer act as a ‘third-party designee’ to prepare and process an EIN application on your behalf.

       

      If you have an EIN

      Some banks will accept a copy of a fax from the IRS assigning your business entity with an EIN. Others will need to see the EIN verification letter sent by the IRS, which can take weeks to arrive.

      Most banks will also require a copy of the company’s formation documents – US business address and annual statement of officers and directors.

      To comply with mandatory anti-money laundering legislation, US banks need to verify the identity of those opening business accounts under Know Your Customer (KYC) rules. There are several ways the requirement can be met:

      • Get a visitor visa to travel to the US and personally open an account at your bank of choice
      • Use third-party services to help you set up an account
      • Some banks will set up an account without the relevant corporate officer being in the United States. If acting on a referral from a legal representative, the process can be completed via email.

       

      Employment considerations

      Irish companies should carefully plan their approach to hiring personnel in the US as there are a number of potential pitfalls to be aware of. For example, if you hire someone as a consultant or independent contractor, it could later be determined that they are actually an employee under US law. Improper classification risks exposing a company to penalties and liabilities, including the withholding of taxes, benefits, and the possibility of being sued by the employee.

      Laws governing US employment and benefits are complicated, which makes it vital for potential exporters to seek the advice of legal professionals.

      As US benefits packages vary widely and differ significantly from those in Ireland, companies should seek advice on what employees in specific roles are likely to expect when considering a job offer.

       

      Legal costs

      For small companies using a lawyer or legal service provider for help with company formation and setting up, fixed fee packages in the range US$3,000 to US$5,000 are available. Packages usually include general counsel, registration fees, and the creation of incorporation, confidentiality agreements and stock issuance.

      In general, you can expect to pay additional fees for operating and shareholder agreements, as they can be highly complex. While legal assistance with IP transfers can also be costly due to complexity, many Irish companies keep IP rights within the Irish parent, with the US entity established as a servicing company.

       

      Access more insights on doing business in the US.

      winning contracts US

      Negotiating the non-negotiables: Tips for winning contracts in the US

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      In a David and Goliath business encounter, David stands a better chance of success if it is obvious that he is good at what he does, said Sally Hughes, CEO of the International Association for Contract & Commercial Management (IACCM), speaking at this year’s E3 Entrepreneurship Export Exchange conference, organised by Enterprise Ireland and Global Situation Room.

       

      IACCM is a not-for-profit organisation dedicated to raising the value and integrity of trading relationships worldwide, working side-by-side with both buyers and suppliers and with both mega-corporations and SMEs.

      In her presentation, Hughes covered three lists:

      • the most common terms included in standard US contracts
      • the most important terms included in US contracts
      • strategies that SMEs need to adopt when dealing with major corporations.

      She also described an example of an unnamed SME owner who negotiated a life-changing deal with retail giant Walmart and discussed how Irish firms could follow their example.

       

      Show you’re an expert in your field

      “In an environment where one side has significant buying power, as a supplier you have to demonstrate great quality and value,” she says. “More importantly, you need to present yourself as an expert in your field.

      “The one area where there will inevitably be negotiation is price but it’s critical not to get dragged down in those discussions early on. In fact, in the first few meetings you don’t want to be negotiating price at all. The key to meaningful negotiation, and to the effective management of risk, is to get to know the buyer well.”

      In Hughes’s Walmart example, the successful SME supplier spent 18 months getting to understand the retail giant’s needs. Notably, when the supplier was offered a contract with Walmart’s non-negotiable conditions, his lawyer warned him that the terms were ‘too risky’ and could cause the collapse of his business but the supplier continued to negotiate a deal.

       

      Negotiating contracts in the US

      According to Hughes, the terms most commonly negotiated in standard contracts in the US include:

      • Limitations of liability
      • Indemnification
      • Price, charges and price changes
      • Termination of contract
      • Scope and specification
      • Warranty
      • Performance guarantees and undertakings
      • Payment terms
      • Data protection, security and cyber-security
      • Liquidated damages.

      Indeed, the IACCM chief said that, very often in contract negotiations, the areas that partners battle over the most are not always the most important. Hughes advised that the most important contract terms to focus on are those that will contribute most to your success, largely:

      • Scope and goals
      • Responsibilities
      • Prices, charges and price changes
      • Service levels
      • Performance, guarantees, undertakings
      • Limitation of liability
      • Payment terms
      • Warranty
      • Product specification

      In the Walmart case, the SME owner believed he had to be better than the competition at accepting and managing risk. As part of his deal with the retailer, he requested access to sales data so that he could assume responsibility for ensuring that his products moved off the shelf.

      “Success depends on the quality of the information flow from buyer to seller,” said Hughes. “Transparency is key and is in both parties’ best interest. This is about a partnership, no matter what your relative side.”

       

      Winning business in the US

      If you want to win business from bigger customers than you have ever had before in the United States, Hughes advised following these strategies:

      • Be better than your competition at accepting and managing risk
      • Demonstrate your expertise and educate your buyer – before discussing price
      • Get the buyer emotionally involved in your product or service
      • Demand quality information flows between you and your customer
      • You might not be able to negotiate ‘boilerplate’ – the standard terms and conditions listed at the end of most contracts – but you can ensure you implement good governance through communication protocols and problem-solving techniques
      • Even if it seems like a David and Goliath scenario, it is about a partnership. Big buying power doesn’t have to mean big negotiation power – that is down to you.

      “Selling in the US market takes planning and it takes persistence,” added Hughes. “You need to understand who you are selling to, what rules and procedures they’ll be following, how will they measure value and what weightings they’ll apply to selection criteria.

      “You’ll also need to have developed a negotiation strategy, how you will convince them that you are a reliable supplier committed to the market, that you are an expert in your field, that you are passionate about your product or service and that you understand fully the nature of your competition. You need to educate your buyer.”

       

      Read more on doing business in the US market.

      Languages Connect logo

      The importance of multilingualism

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      The drive for new markets shines a light on the importance of multilingualism. Julie Sinnamon, CEO Enterprise Ireland outlines why language matters.

      Ireland’s small, open economy depends heavily on being able to trade internationally. The global dominance of the English language has worked to our advantage but with Irish companies looking to export into even more diverse markets, the need to acquire more languages has never been more important.

      Recognising the cultural value of communicating in the buyer’s local language and developing a workforce with foreign language expertise can improve relationships and increase efficiency when entering new markets.

      Learn how Enterprise Ireland can support your business with the Market Discovery Fund

       

      Channel sales

      Channelling Success with Channel Strategy

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      Máire P. Walsh, SVP Digital Technologies at Enterprise Ireland’s Silicon Valley office, explains how an effective channel sales strategy can give Irish companies a wide international reach.

      The business plans of start-up companies often focus on direct sales, aiming to sell as many products and solutions to as many consumers and end users as possible. The right channel sales strategy can, however, give Irish companies of all sizes and stages of maturity a wider reach, helping them to grow more quickly than a business plan that relies on direct sales alone. A successful channel strategy enables Irish exporters with unique technologies to harness sales opportunities at scale, driving business results in the US market and beyond.

      Enterprise Ireland recently held a Sales and Channel Strategy Seminar in Dublin, which featured US industry thought leaders and senior executives, and was designed to advise and guide high performing Irish start-ups to expand into the US through the channel ecosystem. World-class experts on sales planning and channel strategy shared tips and success stories, while the event showcased a number of Irish companies that are already capitalising on the potential of the channel ecosystem to drive rapid growth.

      Irish companies can apply insights shared by the event’s global speakers to use a smart channel sales strategy to quickly grow their business.

      A “Best Practices in Channel” panel featured Kevin Morata, Global Channel Strategy at Dell EMC, Gerard Sheridan, Global OEM Sales Director at DataStax, and Kurt Hoppe, Global Head of Innovation at GM. The panel discussed how true collaboration is key to building successful relationships with channel partners. Companies should be aware that not all channel partners are created equal. With 20% of partners driving 80% of sales, Irish companies should allocate more time and resources to partners that will help to maximize business results. One tip for building trust is to feed leads to new channel partners at the beginning. That will allow them to gain experience in selling your product while developing a strong understanding of your value proposition.

      Tiffany Wagner, Global Head of Sales Planning at SAP, described how a successful strategy must focus on your value proposition, rather than on the features and functions of your solution. At SAP, design thinking is key to well-orchestrated enterprise sales planning programs. All enterprise sales require a “3 x 3” influence model – three decision makers and three influencers must contribute to the process.

      Insights were shared by Irish companies, including AltoCloud, Channel Mechanics and PlanNet21 Communications, that have scaled by partnering with the channel ecosystem. Kenneth Fox, Channel Mechanics CEO, described the three points of the channel triangle:  vendors, distributors and partners. The Channel Mechanics solution sits at the centre of the triangle, providing automation that runs the entire ecosystem.

      Barry O’Sullivan, AltoCloud CEO, described how his company was formed with the channel in mind. Leveraging the business and personal relationships of partners has allowed AltoCloud to build a strong partner channel. One tip for Irish exporters is to have a ‘corporate vendor resources’ presence in the US and not attempt to drive it from Ireland.

      When launching as an ambitious company almost 20 years ago, PlanNet21 Communications convinced partners to accept them into their channel program. The strategy has delivered revenues close to €50m, with the company on a mission to hit €100m within the next two years. Denise Tormey, co-founder of PlanNet21 Communications, described the strategy that drove their success, “Trust is hard won. We manage communication face-to-face, over the phone and by mail, to build those interpersonal relationships. We listen. We respond in a timely manner. We ask ‘Why?’ We care. We are true partners.”

      The insight echoed the guidance of many of the day’s Irish and US speakers. A foundation of trust must be established to build effective relationships. Otherwise channel partner alliances are destined to fall flat and fail to deliver the growth promised. For channel strategy support, contact Enterprise Ireland’s Strategic Marketing Review program, which acts as a mechanism to review and develop your market development strategy overseas.

      This article was originally published in the Sunday Independent.

      Spotlight on Skills

      Skills in the Spotlight for Irish Companies

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      Helen McMahon, senior executive for client skills at Enterprise Ireland, describes what Irish companies can gain from focusing on the critical skills required for growth.

      With national and international competition for talent heating up, it is becoming increasingly difficult for Irish companies to attract and retain talent, across all functions of their business. Most Irish companies know that their performance and growth could benefit dramatically from access to a skilled workforce.

      Many find it more difficult to define the critical skills they need to align with their strategic priorities. Companies can also find it challenging to assess which specific skills could have the greatest impact on the immediate and long-term growth of the business.

      Enterprise Ireland has partnered with the Irish Management Institute (IMI) to deliver Spotlight on Skills, a series of one-day workshops that are run regionally and designed to help ensure that each company’s workforce has the capabilities required to support export growth and long-term strategic development.

      Spotlight on Skills is supported by the Department of Education and Skills and is designed to help companies to get a response to their needs from national and regional education and training providers.

      To date 76 companies, employing 10,012 people, have taken part in the workshops. Outcomes are both immediate and long-term, with the focus falling on identifying critical gaps across the whole company.

      Kevin Clarke, General Manager at Green Isle Foods, describes the benefits of the programme for firms. “Our company’s growth and development is clearly impacted by our access to a skilled workforce,” he said. “The Spotlight on Skills workshop supported us to strategically explore the critical skills we need now and into the future for business growth. It helped us to define the actions we need to put in place for staff-resource planning into the future.”

      Roisin Johnson, Head of HR at Ammeon, described the programme as “a practical workshop that provided a toolkit of techniques to help us identify our training needs and support the achievement of our strategic goals by building our company and our people’s capabilities. Spotlight on Skills is a straightforward framework that can be brought back into any workplace and used over and over again. We highly recommend the workshop to Irish companies.”

      Spotlight on Skills also helps participants to think strategically about how they can attract and retain talent and develop career pathways for existing employees. Opportunities to upskill and reskill an existing workforce are highlighted and actions that can help to attract the talent needed to drive growth are identified. If a company is suffering from the loss of skilled staff who are departing for rival firms for career reasons, developing avenues for progression within the company can be impactful. Creating opportunities for staff to progress their career within the company can also be attractive to new talent.

      Embracing opportunities to upskill and reskill existing employees can reduce the time required to onboard new talent to address shortages. The company report developed through Spotlight on Skills may indicate that existing employees could benefit from mentorship, coaching or other development opportunities. Companies are advised about programmes that can help meet skills needs quickly and get an opportunity to influence the development of new programmes to develop a skills pipeline.

      In the longer term, Spotlight on Skills will help to bridge the gap between the priorities of Irish enterprise and the curricula of education and training providers. After a company has developed its report, the Spotlight on Skills team can facilitate contact with regional skills managers working for the DES who can help them to engage with education and training providers in their region.

      The programme gives companies a strong voice on their needs. As a significant volume of critical skill needs is identified, providers can be encouraged to update their curricula, create programmes and develop additional apprenticeships or more learning opportunities.

      This article was originally published in the Sunday Independent.

      Local Enterprise heroes

      Following in the footsteps of Local Enterprise heroes

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      For many companies, becoming an Enterprise Ireland client is a significant step on a journey that started at a regional level. Local Enterprise Offices throughout Ireland provide supports, advice and training to start-up companies and existing micro-enterprises of up to ten employees. It is in this environment that experience is gained and vital lessons are learned which allow companies to prepare for growth and to take their ambition global.

      A recipe for successful growth to €21 million annual turnover

      It was in 1993 that a young man from Clonakilty got in touch with his Local Enterprise Office (LEO) in West Cork to ask if they could help him turn his business idea into a reality. Diarmuid O’Sullivan wanted to produce traditional churn-made yogurts. He knew how to make yogurts but he didn’t have enough funding to get the venture off the ground.

      “I had the idea but not enough money,” Diarmuid recalls. “I heard there was funding available from the Local Enterprise Office, so I contacted them and put in an application. The maximum support they could provide at the time was £50,000 and the LEO in Clonakilty was able to help me put my ideas into a business plan to help secure funding.

      “I also received quite a lot of mentoring and coaching. That was all done at concept stage – I hadn’t even identified a production site – but the support meant that I was able to get Irish Yogurts up and running by March 1994.”

      Diarmuid’s yogurt-making idea was a recipe for success. His company grew quickly and its products were soon on the shelves of Irish food shops and supermarkets.

      “In one of those early years, we grew by about 78.5%. That brought its own challenges, with regard to working capital. The Local Enterprise Office suggested that I move onto Enterprise Ireland, where there were financial supports for fast-growing companies which were creating jobs.

      “We hadn’t really focused on exports, not at that stage. That came after we started working with Enterprise Ireland. Our first export customer in the UK was Tesco.”

      This progress was recognised in 1998, when Irish Yogurts was named winner of Ireland’s first ever National Enterprise Award. In just a few years, it had gone from being a bright idea with insufficient funding to becoming an award-winning food producer.

      Today, Irish Yogurts employs 160 people at its Clonakilty base and sells to every major supermarket chain in the UK and Ireland. Its annual turnover has grown from €300,000 to €21 million, with exports accounting for 30% of their business.

      “We appreciate the input of the Local Enterprise Office and Enterprise Ireland, who supported us and our staff every step of the way,” Diarmuid says. “We still work with them and avail of supports and advice. Enterprise Ireland is very much a part of our team.”

      A roll of honour

      Irish Yogurts is one of hundreds of companies from every corner of Ireland that have transferred from Local Enterprise Office support to become Enterprise Ireland clients. Last year, 80 companies made the move. In 2016, the figure was 40. The roll of honour includes 10 other former winners of the National Enterprise Awards:

      It is a track record that the Local Enterprise Offices are proud of. Oisín Geoghegan, chair of the network of Local Enterprise Offices, said, “It’s one of our targets to transfer companies to Enterprise Ireland – it’s progression. Companies which transfer into Enterprise Ireland are companies with growth ambitions to be exporting and creating jobs, which is incredibly important, particularly for the regions. So we would see it as an indicator of success when a company moves on to Enterprise Ireland.”

      Local expertise supporting global ambition

      Engineering services provider Obelisk engaged with their Local Enterprise Office in Cavan, even before they set up the company in 1996. Four years later, Obelisk won the National Enterprise Award.

      Founder director Colm Murphy said, “We were looking to capitalise on the growth of mobile phone usage by offering installation services for operators. The people in our LEO understood the idea that opportunity was coming down the track. That gave us the confidence that our idea was good and could to grow into something big.

      “They had an incubator office which we were able to rent and provided grant aid for early employees. They also provided us with advice about how to set up a company, and other supports such as training and mentoring – there was a lot more to it than financial support.”

      The support has been paying off ever since, Colm says. “Last year we turned over €27 million. Employee numbers are between 250 and 300 people. We’ve expanded to include infrastructure solutions for fixed telecoms and the energy sector in Ireland, the UK, and South Africa.

      “We want to continue growing. We’re looking for further investment. Over the next two to three years, we’re looking to hit the €100 million mark in sales. Exports are currently a third of our turnover but we expect that to become a 50/50 split.”

      So what part did being able to access business expertise and support at a local level play in the company’s success? “Back in 1996-97, we would have found it difficult to kick-off from a zero base,” Colm explains. “We were just a couple of guys with an idea, and sometimes going for funding and that kind of stuff can be daunting. But when you get the kind of support that we did from the Local Enterprise Office, that’s a massive kick start.

      “I would recommend that any company should be in touch with their Local Enterprise Office. They’ve always been good at describing the product set they have and how they support you. If you don’t ask, you don’t get and if you’re not engaging with them then you won’t necessarily be aware of new supports that are on offer.”

      Reassurance and support

      The view that “if you don’t ask then you won’t get” is shared by John Lynch, Chief Technology Officer of Acutrace. The Dublin tech company provides software and hardware which allows companies to control and monitor their energy usage. They count the likes of Google, Twitter and IBM among their customers.

      Founded in 2015, Acutrace wasted no time in contacting their Local Enterprise Office in South Dublin. John says, “We reached out to the Local Enterprise Office immediately and they were brilliant. They gave us an employment grants and we managed to employ two engineers under that scheme. Within the first three months, we were exporting to London.

      The company was growing quickly and the Local Enterprise Office was instrumental in steering Acutrace towards Enterprise Ireland’s High Potential Start-up (HPSU) programme.

      John says, “Once we learned the criteria for the HPSU, we used that as our yardstick to reach for. We knew we had to have significant exports, we knew we had to have a scalable product that would generate employment and we needed to have the magic number of a turnover of €1 million, so it was a good objective to hit and we exceeded the target that year.

      “By the end of 2016, we had turned over more than €1.5 million and we were exporting 40% of a product that was created in Ireland to the UK.”

      The advice, professional support and reassurance they received has left a lasting impression on John and Acutrace.

      He says, “I’m coming off the back of 20 years in the industry and so is my business partner Aidan, but it’s a little bit different when it’s your own enterprise – the risks are higher and there’s an isolation you feel, it can be profound. Then you engage with your Local Enterprise Office and you feel part of something, that you’re being protected or mentored.

      “There’s funding and that’s important, but it’s also having that extra bit of confidence that there’s someone else behind you who has your back, that if you are going to create employment, well there’s someone there who’s grateful for that and they’re helping you, and they’re encouraging you.”

      “You might be destined for Enterprise Ireland but until you hit that criteria the LEOs will mentor you and steer you in the right direction.”

      Working hand in hand

      That direction involves advice and supports, which evolve and change to meet the needs of encouraging start-up companies and other micro enterprises of ten or fewer employees, says Oisín Geoghegan.

      “We provide a very broad range of supports – initial business advice, information and guidance, training and mentoring, and financial supports such as feasibility, priming or expansion grants. It can include money to employ people or towards marketing costs, business development, and so on.

      “We also point entrepreneurs and companies in the direction of other supports that are available, such as the New Frontiers incubation programme and Innovation Vouchers from other agencies such as Failte Ireland, Intreo, Bord Bia and Microfinance Ireland.”

      “For companies with strong growth ambitions, we work hand in hand with Enterprise Ireland on their journey and ensure that they make that contact at an appropriate stage so their development continues to be supported.”

      US flag - exporting to the US

      Top 10 Tips for Exporting to The USA

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      Ireland enjoys a unique advantage in trading with the US because of our deep historical links. Relations between the two governments are exceptional; and cooperation at an institutional level is excellent including in areas such as research, innovation and education.

      There is, without doubt, huge opportunity in the US. Around 700 Enterprise Ireland client companies are exporting there and companies like Aerogen, Fenergo, Cylon Controls, Candidate Manager and Rubicoin have set up offices and accelerated exports in the past 24 months. To date, over 20 clients have won contracts worth over €500,000.

      1. Preparation

      Before entering the US market, extensive research at home is strongly advised. Make contact with State agencies, relevant support organisations and companies who currently export to the US, if possible. Targeting the US usually requires additional financial and human resources, so to keep costs and operations manageable in such as geographically big country, first-time entrants are advised to segment the market and target a particular region or state. Give careful consideration to the resources needed to serve the selected market, for instance, will the operation use a direct or indirect sales channel. Some companies hire locally and others (often in the early stages) put a C-level member of the team in the market for a short period to get things off the ground.

      2. Legal

      Corporate – Confirm your corporate structure. Typically setting up a US subsidiary makes sense both for tax and liability reasons. Your US subsidiary also will need to appoint a registered agent, and “qualify to do business” in every state in which you have an office or similar presence.

      Intellectual Property – Address US trademark issues defensively (confirming that no one else has prior registered or unregistered rights in respect of name and key brands); and offensively (by filing a US trademark application). Patent issues may need addressed depending on the business.

      Contractual Terms and Conditions – These must be converted to the laws of a US state, for legal and commercial reasons.

      Employment – Get professional employment advice locally. Most US employees do not have employment contracts but employers are bound by offer-letter terms, employee manuals and other undertakings. Also, ensure confidentiality and IP assignment agreements with all employees are established.

      3. Tax Structuring and Compliance

      Establish appropriate arm’s-length arrangements between the Irish parent and US subsidiary to separate taxable income. This is particularly important because US corporate tax rates (federal and state), totalling about 40% are typically three times the level in Ireland. Have appropriate compliance procedures in place to address federal and state corporate income tax, as well as other potentially relevant tax regimes (sales tax, personal property tax, etc.), particularly at the state and local level.

      4. Trends

      US import trends indicate high potential for Irish exporters. Meat imports were valued at €9.4bn which was the second fastest-growing import; while dairy went up over 40% to €2.8 billion. The US also imports pharmaceuticals worth $86.1 billion; medical and technical equipment worth $78.3 billion and organic chemicals worth $52.1 billion. These are all among the top 10 Irish exports by category. It is also a big importer in sectors such as aviation and aerospace, mechanical and electronic equipment, insurance and ICT services – all of which are growing in Ireland.

      5. Banking

      It can be difficult for a non-US company to set up banking for its US subsidiary. Some banks are particularly focused on banking high-growth companies on a trans-Atlantic basis, which can help ease the process.

      6. Immigration

      Most Irish companies exporting to the US find it critical to establish a presence in the market. This is particularly true in software and high-tech. An estimated 65% of Irish exporters to the US have a full-time presence, ranging from a single-person sales office to manufacturing operations with thousands of employees. Route-to-market decisions are crucial and the role of agents and distributors cannot be ignored. Buyers rarely purchase directly from manufacturers, particularly those from overseas. So fulfilment centres have become increasingly important in the supply-chain, especially since the growth of e-business. This approach is better suited to non-perishable items and consumer products.

      7. Insurance

      The US is a high-risk environment. Get an insurance broker with trans-Atlantic experience to advise on types of cover, terms and limits.

      8. Recruitment

      The most difficult aspect of setting up in the US is finding the right people. Obtaining recommendations from trusted people including investors and advisors is often the best way. Otherwise get professional support (especially with sales people). Consider outsourcing for book-keeping, employee tax withholding, HR and mandatory employee insurance and benefits, and similar matters. Also note that visas permitting Irish personnel deployed in the US to work are needed. Allow three to four months to sort this out.

      9. Offices

      Get professional advice on office space and other properties such as co-working spaces (like WeWork), accommodation offices (like Regus) or renting an individual premises.

      10. Incentives and Supports

      US supports should not be overlooked. Federal, state and local development agencies and international chambers of commerce can provide very useful support. State and local incentives for investment and job creation also may be available.