Stampede: U.K. Immigrant Finds Opportunity in New Markets

Name: Mark Wilkins | Country of Origin: U.K. | Emigrated to the U.S.: 1997 | Launched: Stampede Presentation Products 1998 | Annual Revenues: $120 million | Jobs Created: 85

Like countless immigrants before him, Mark Wilkins came to the United States because it offered limitless opportunity. Wilkins, who headed a British audiovisual company, moved to the U.S. seeking new markets for his firm in 1997.

Using his industry expertise and well-honed business acumen—and making the most of the entrepreneurial spirit in the U.S.—Wilkins created a thriving enterprise, Stampede Presentation Products, that now generates  $120 million in revenues and employs 85 Americans.“There’s a huge opportunity for companies in Europe to come here,” says Wilkins, “But many don’t know how to do it—or they just don’t have the guts for it.”

Here’s his story:

Looking for a New Challenge

It all started in 1993, when Wilkins formed Maverick, an audiovisual distribution company in the U.K. During the next four years, according to Wilkins, he grew the business to be one of the largest in the country and, he says, “I was looking for new markets and the next challenge.”

“There’s a huge opportunity for companies in Europe to come here, but many don’t know how to do it—or they just don’t have the guts for it.”

Coming to America

That meant scouting for countries in which to expand operations. At first, Wilkins studied Europe. But, although distribution systems were well-developed, there was a problem: Each country had its own way of doing business but wasn’t a potentially big enough market to make conforming to those requirements worth the effort. When Wilkins turned his attention to the U.S., however, he realized he’d hit pay dirt—a large market with the ability to tap a standard distribution system operating throughout the country. What’s more, as a distributor specializing in audiovisual equipment for professionals rather than consumers, his company had few existing competitors in the country. He approached his board and got its approval.

“There’s just so much opportunity to grow in the U.S.  You just have to be willing to take a chance.”

Poach American Talent

But Wilkins figured that, if he was going to set up shop in the U.S., he needed to be there to guide the enterprise. To that end, he studied the market for the biggest technology distributor in the country, with the intention of moving to wherever it was based, the better to poach its employees. In the distribution business, Wilkins knew, his competitive advantage lay in his salespeople’s savvy and connections. And it was better to hit the ground running with veterans than to start from scratch. The company was in Buffalo, N.Y., so Wilkins decided to move there. “Distribution is about people,” he says. “If you recruit the right people, life is much easier.”

“Distribution is about people,” he says. “If you recruit the right people, life is much easier.”

Setting Up in the U.S.

It took about three months to get the operation ready for prime time. The first thing Wilkins did after settling in was to search online for a lawyer, looking for attorneys who seemed to be highly recommended. That person, in turn, helped Wilkins find an accountant and introduced him to a banker. Total time to firm up those relationships: about a week.

Getting Manufacturers on Board

Through those initial contacts, Wilkins then found a landlord willing to strike the right flexible terms, offering the ability to move to bigger space as Stampede grew. At the same time, Wilkins met with the U.S. divisions of Hitachi, Sony, and Mitsubishi—the manufacturers he represented in the U.K.—and presented his business plan, selling them on the value that the new operation, as a specialist in professional audiovisual equipment, could bring to their businesses. In some cases, the decision was made at central headquarters; in others, by the U.S. unit. But, no matter which office had the final say, Wilkins knew it was still important to meet the U.S. division and establish important relationships with them. “When you want to expand across borders, you need to make sure you have support from local manufacturer representatives, as well as the head office,” he says. And he found an ad agency, as well as a recruiting company, to help him hire his first salespeople.

“You need to make sure you have support from local manufacturer representatives, as well as the head office.”

Making Money

With that, Wilkins was ready to do business. Since his target market was retailers for audiovisual equipment, he tracked down a database of 2,000 dealers in North America. Then his four salespeople started manning the phones, calling every name on the list, following up with e-mails, and emphasizing the new products they offered and the opportunities they promised. After about a month, they got their first sale from a small dealer.

Wilkins credits much of his early success to a focus on sales performance measurement. “I measure people to the nth degree,” he says. His salespeople’s compensation wasn’t based on revenues during those first months; instead, he based it on activity—how many calls were made per day. “I knew that it took 40 phone calls a day to make a sale,” he says. By the end of the first year, he’d hired another four salespeople to work with about 300 retailers. By the fifth year, he’d hired 20 reps, selling to about 1,000 stores, and was making $39 million.

“I knew that it took 40 phone calls a day to make a sale.”

Advancing North and South

About the same time, however, Wilkins realized that he needed to look beyond U.S. borders to boost expansion. What’s more, he could use his base as a springboard to move into  nearby countries. In 2002 he bought a Canadian distributor based in Toronto. And more recently he set up operations in Miami, which, with its large Spanish-speaking population closely tied to Latin America, could become a base from which to target that area. He’s already in Colombia, Brazil, and Argentina, among others. For now, the U.S. still accounts for about 80% of Stampede’s revenues.

Taking Control

But in 2004, Wilkins faced a crossroads, when he and the investors of his original company had a disagreement about what to do with profits. According to Wilkins, he wanted to reinvest the money to boost growth, while they favored taking profits out of the company. It seemed to be an irreconcilable difference. Then, at a meeting of Vistage, a CEO-networking group he belonged to, Wilkins learned about a mechanism called mezzanine financing. An approach not widely used in Europe, it allowed a lender to convert its stake to an ownership or equity interest in the company if the borrower didn’t pay the loan back on time. Working with a private equity firm, Wilkins arranged a five-year term and was able to buy out his share of his original company for an undisclosed amount of money. More Funding Advice 

Growth

More recently, Wilkins decided to go in another direction, by expanding into complementary product groups. This year he bought Aspire Global, a videoconferencing-equipment distributor. “As technology develops, new opportunities come along,” he says. He’s hoping the acquisition will help him achieve an ambitious goal: to double the size of the company during the next three years.

Says Wilkins: “There’s just so much opportunity to grow in the U.S.  You just have to be willing to take a chance.”

Lessons you can use from Mark Wilkins’s story

1. Get the support of your client’s representatives

If you sell or distribute for a manufacturer it’s critical that you develop a strong working relationship with the company’s local representative. Do that by taking the time to meet with them, explain how you can help them accomplish their goals and how you bring value to the relationship. If done correctly, they’ll generate sales leads for you, introduce you to their industry contacts and become an important ally within the company.

2. Measure and hold accountable

Wilkins credits much of his early success to a focus on sales performance measurement. “I measure people to the nth degree.” He knows it takes approximately 40 calls to close a sale. You need to have the same understanding of your sales process.

It’s not enough to set yourself a monthly revenue/sales goal. Work backwards. You have to understand how many calls and e-mails it takes to secure a sales meeting (in person or virtually) with a buyer. How many objections you have to overcome, the number of follow-ups and length of time it takes to close. Once you have that information, you can build a sales model and then set your sales team goals appropriately—number of calls per week, number of e-mails per week, number of  sales presentations per week, follow-ups per week and, finally, closed sales per week. And hold them accountable. Reward those that hit your goals. Get rid of those who don’t—quickly.

3. Poach experienced American talent

If you can, hire Americans who know the market, have good connections and can fast-track your sales efforts. As Wilkins states, his competitive advantage lay in his salespeople’s savvy and connections. And it was better to hit the ground running with veterans than to start from scratch.

However, buyer beware, there’s a lot of so-called experienced sales hacks out in the market. Especially in this job market. Test them before committing—give them a month, some leads and measure their activity and performance.

4. Join ready-made business networks

Its tough developing a network of business associates from scratch—especially if you’re new to the country. One solution is to do what Wilkins did and join a CEO group like Vistage. Other options are ethnic-based chambers of commerce where you could meet immpreneurs from your home country. Check our Resource Channel for chambers in your state.