I’m in the early planning phase of a funding round for a startup in NYC as a second office for a software company that is headquartered in Germany (ca. 50 employees). For a presentation I’m trying to get a good list of benefits and drawbacks of going international. The following is a rough draft:
Population: Europe 731 mil (Germany 82 mil); USA 308 mil
What are the fields I'm missing? Any additional input is most appreciated.
Benefits Business International
Seems you already have most them ironed out. May I suggest a few things (you may already be taking care of them) :
Once you have this 'model' you can actually navigate through it and see where your risks lie, what assumptions are 'risky' and where might you need 'more' (or less) than what you initially thought.
This should give you (and the investors) a more comprehensive view of what is involved and whether there is value in the undertaking and what it is it and how it could be articulated/quantified/tracked.
Hope this helps!
Under risks I would add the increased amount of paperwork. Even if you're only filing taxes in one country, you still will need to provide information to the other country. If you need a lawyer to complete a trademark for you, that would now have to be done in two countries, by two sets of lawyers.
If you have common development in multiple physical location, make sure those who manage the effort are master communicators. I've seen first hand how projects between the U.S. and another country go sour due to cultural differences. The people in the remote office were given a task, they claimed it was understood and it was really not. they went off on a tangent for weeks before it's picked up by the U.S. office and by then, a huge chunk of useless work had to be simply thrown out. Asking for help, or admitting things were not clear were considered "shame" in that culture.
U.S. and Germany are more similar than the U.S. and that country, but still, something to consider when you have international teams sharing a codebase.