Lower Your Costs
When you seek help from experts with long experience in the markets
you intend to pursue, you can control your costs and avoid many of the
missteps that can distract your management group from core activities.
Take the example of Firetrust Ltd., a leading creator of email security
products. Proudly 100% New Zealand owned, its highly acclaimed MailWasher
and MailWasher Pro anti-spam tools have helped millions of PC users
to rid the world of spam.
As the demand for spam filter technology escalated worldwide, Firetrust
saw an opportunity to build on the installed base of its client software
product to attack the corporate market with a server-based technology.
This move would not only create significant revenue streams from a new
market segment, but would allow Firetrust to expand its presence to
new international markets. The challenge: To prioritize the most promising
markets and to develop a market entry strategy which would be successful
as well as cost-effective.
"We knew that moving into the enterprise market would require a different
business model," said Firetrust CEO Nick Bolton. "Unlike the consumer
market, businesses often resist buying large licenses online, and they
usually have more sophisticated needs that have to be supported locally.
So we were concerned about how to get the product into their hands,
as well as providing a high level of support to this critical market
segment. We came to the conclusion that the best way forward would be
to recruit a network of professional resellers and channel partners
who would take on the responsibility for sales and marketing, as well
as first-line technical support. However, we had little idea about which
markets were the most appropriate for us to target and how to do the
whole thing properly, such as recruiting and managing the resellers
in order to optimize the distribution side of things."
The York Group filled the knowledge gap perfectly for Firetrust. After
an intensive consulting session with The York Group's experts, Mr. Bolton
was convinced that they would be the perfect guide for his international
growth plans. He asked The York Group to help develop a detailed international
channel program for successful global expansion.
"You could talk to lots and lots of people and they would give you some
ideas, but no one tells you exactly what you should do and then shows
you how to do it," Mr. Bolton explained. "We could have tried to do
it without The York Group, and just learn from our mistakes, but an
extended learning curve could result in missing our window of opportunity
in what is a very competitive market.
"Instead, we feel that we have benefited from The York Group's ten years
of experience, and the result of their professional advice has been
tremendous. Before bringing them on board we were anticipating as much
as $400,000 per annum in additional expenses for personnel, travel and
marketing support. But the channel program delivered by The York Group
is so comprehensive, self-explanatory and well-documented that we have
been able to implement it in less than two months using our existing
staff.
The net result for Firetrust is that we have been able to shorten our
business development cycle by two years, dramatically increased the
likelihood of success, and reduced our anticipated expenditures by hundreds
of thousands of dollars per year. And the cost to us was equivalent
to less than three months salary for a mid-level sales person."