Exporting Ideas

At the outset please let me invite anyone who sees an opportunity with one of my inventions to email me... if you are an entrepreneur that would like the opportunity to run with one of these inventions, just say the word... I'm up for anything.

That said I am also looking to set up a professional pipeline that takes patented technologies and ideas from Australia to the US in the most efficient way.

The normal path to international success is to build your business here, and then once the product is proving itself, set sights on the US. Unfortunately in my mind this is like committing corporate suicide.

You can only raise money and you only have so much equity to trade for funding and before you know it you've used all your money and all your equity before you even get to the market that really matters.

The approach I am developing and hope to set up for others to use is a strategy where Australia is only used for initial development and some limited market testing, with the main market entry occurring in the US.

Why?

Because any success you get in Australia will only amount to a fraction of the potential success of the US. So sales success in Australia is no indicator for the people you need to help fund you in the States. In fact they will probably use the sales figures against you asking much larger equity positions based on not wanting to fund your team while they learn to deal with and sell to the US market. Its just not worth the blood and sweat.

This is what I propose:

Think about US market entry from the inception of your business. After you know your technology works and can be scaled up for production, immediately start to look for Australian businessmen who have some experience in the US and who can help you vet the team that you eventually choose to do your market entry. However, only use their experience to help you choose the right team in the US. You may get out of having to spend as nuch of your life as I have overseas!

In my case I am exploring a business structure where an Australian holding company is 51% owned by the inventor/ founder and 49% by the management team and investors who supply enough funding to allow a US based market entry team to produce a business plan that in turn can attract 1st round funding from the US.

If everyone does their job you end up with a successful US business that is more than 51% owned by the Australian Holding company which in turn you retain majority control. The American team get's a fair share of equity at 49% or less of the of the successful US entity.

If you like the idea of what you see here please feel free to speak to me via email at ric.r@r2labs.com .