An American success.
Enorama Pharma Inc. Part 1.
Enorama Pharma U.S. affiliate Enorama Pharma Inc comes out of a well prepared, yet secretive effort. Out of competitor consideration of course, but also to have been able to thoroughly consider every part of the upcoming U.S. market possibilities offered the Enorama production and offer.
Situated in Santa Barbara, California, Kristoffer Rönngard act as General Manager U.S. Operations, Enorama Pharma Inc. Through a series of articles, we have asked him to give his view on the path towards official subsidiary status in the U.S. His story on the labor creating the much recognized sales start of Enorama own brand NIC-S and the way forward.Kristoffer Rönngard lets us tag along. Starting off with the birth of a business.
- The very purpose of starting up Enorama Pharma Inc. stemmed from recognizing that there’s a huge potential in the US for tobacco-free and other harm reduction alternatives to tobacco products. We are seeing very promising trends towards new-age non-tobacco products in the U.S. and given our background as a pharmaceutical company we felt the need to be present in the U.S. with our background and vision of a smoke-free society.
We knew, early on, that it was important to have boots on the ground to have a realistic chance at breaking into the largest economy in the world, the question wasn’t if but when and in what capacity should we be present.
There are numerous differences between Sweden, EU and the US. Everything from demographics, consumption patterns, product recognition, let alone legal regulations are vastly different so it was determined early on that this endeavor could not be managed successfully from Sweden. If you then also consider the U.S. as a whole, you’ll quickly realize it’s a country made up of fifty some individual regions, each with their own laws, traditions, and ways of doing things. Still, being the land of opportunity is no myth. It’s very much a reality. A lovely one I must say.
Another point that was recognized early on was how important it is to have a legal entity in place from a liability and insurance perspective. We hade noticed during a few different meetings how important it is for our customers to conduct business with domestic entities as opposed to foreign companies since they run at a higher risk. There’s a sense of safety blanket knowing we are here and operating from the same country with the same set of expectations and rituals that come with it.
Generally speaking, the U.S. has a very encouraging business climate where you can start and operate businesses with relative ease. There’s certainly some red tape to go through but overall, there’s a positive spirit around business
endeavors and entrepreneurship, more so than perhaps anywhere else in the world. Innovation is very much fostered as something positive in this country.
With this being said, we also know that with the relatively open market you also take on more of the risk and the liability on yourself. We did a thorough due diligence prior to setting up shop by properly ensuring all legal requirements, incorporations, insurances, banking issues etc., were setup prior to conducting any sales. By doing this homework, which might seem daunting at first, we have been able to confidently enter business agreements and look positively to the future.
The legal landscape, especially those issues regarding interstate items, can be very tricky to navigate so one definitely needs to have a local knowledge and expertise on how to navigate this rather vast jungle of both threats and opportunities.
One thing I have learned through the years is to leverage your contacts. Making good connections is perhaps the most important lesson I have learned. Even if you think that a certain connection might not be of value, you’ll never know once that person’s expertise will come in handy. I have been fortunate to have worked with numerous of talented people in all types of fields, who were an invaluable bouncing board both in terms of providing advise and input but also practically assisting by connecting me with the right people.
Another resource I really want to highlight is Business Sweden. They’re a branch of the Swedish Trade Commission, who’s sole purpose is to foster Swedish companies’ growth abroad. They offer everything from consultancy to ready to go solutions for everything from incorporation to finance and controlling. Their services are immensely valuable since they can relate from both a Swedish and American perspective and thus tailor optimal solutions for both parties.
It is with a sigh of relief and a feeling of an eager anticipation that we are on our way to something great. While the practical setup of the organization wasn’t too troublesome, it was still a decision that had been brewing for some time and knowing that we were officially up and running was a cause for a bit of celebration and allowed us to look forward, and we hit the ground running real fast by launching NIC-S to our U.S. audience.
Commercial potential, indeed.