#AskJason @ Microsoft Global Startup Roadshow: Azalead Nick Heys on expanding sales Paris- U.S.

TL;DR

A company based in Paris is looking to expand their B2B software sales to the US and is seeking advice on whether to establish a sales team in New York or San Francisco.

Transcript

hi jason hayes hey Nick hey I'm based in socialist France which social country based in Paris ah magnifique one of my favorite countries really you speak French as your pile and petite poo City on CB yeah so I work for I found that a company called as a lead software we're in the b2b marketing space okay we build software for account-based marketin... Read More

Key Insights

• 🎅 The choice between New York and San Francisco for a European company expanding to the US hinges on customer location, personal preference of the CEO, and fundraising goals.
• 🎅 New York is cheaper in terms of cost of living and salaries, while San Francisco offers better talent but more competition.
• 🤨 Raising funds is significantly easier in San Francisco compared to New York or Europe.
• 🧑‍🤝‍🧑 Setting up a small sales office with a few people in either city, coupled with remote teams in cheaper locations, can offer cost savings and access to a broader talent pool.
• 😤 Flexible work arrangements, including remote sales teams, are becoming more popular due to the lifestyle benefits they offer.
• 🧑‍💼 Consideration should be given to the cost of living and expectations of sales executives based on the location of the sales office.
• 🤨 European companies often face challenges raising funds and getting high valuations from VCs compared to companies in Silicon Valley.

Questions & Answers

Q: Should the Paris-based company prioritize personal preference or customer proximity when choosing between New York and San Francisco?

While personal preferences matter, the location of the majority of the company's customers should be the primary factor to consider. If most customers are in New York, setting up a sales office there makes sense for face-to-face meetings. However, remote teams can also be effective for sales.

Q: Is New York or San Francisco more cost-effective for a European company?

Surprisingly, New York is 25% cheaper than San Francisco in terms of the cost of living and salaries. While San Francisco may have better talent for enterprise software, it also means facing intense competition from established companies like Salesforce and Microsoft.

Q: Where is it easier to raise funds, New York or San Francisco?

Raising funds in San Francisco is significantly easier than in New York. Silicon Valley offers a vibrant startup ecosystem and a high concentration of venture capitalists. European companies often struggle to raise money and receive lower valuations.

Q: How should a small sales office be structured when expanding to the US?

A small office with 2 or 3 people can be established in either New York or San Francisco. However, hiring remote salespeople across the country, particularly in places like Utah, Texas, Chicago, or Boston, can be cost-effective. Many top sales executives prefer working from home, offering flexibility and lifestyle benefits.

Summary & Key Takeaways

• A Paris-based B2B software company has achieved $1 million in ARR within 18 months and wants to expand sales to the US.

• The CEO is considering whether to establish an enterprise sales team in New York or San Francisco.

• Factors to consider include customer location, cost of living, talent availability, competition, raising funds, and the flexibility offered by remote teams.