L-1 Visa: Would You Like to set up a Branch or Subsidiary Business in the U.S.A.?

[Yvonne]

We started planning a long time ago.

First to get my daughter and grandson settled in the U.S. (they are on a L visa.)

Then we looked at the feasibility for ourselves to be able to come and go in the U.S. at will.

We were a family owned business, Husband, myself and daughter, so it was difficult for the business, but not impossible!

Our daughter left the company in 2007 and came to work for the same franchise in the U.S. but as an employee on transfer.

Major loss to our company, but we survived.

Then we started handing over any aspects of our own responsibilities which required us to be on-site, from about a year ago.

So a long term strategy is crucial for anyone wanting to go the same route we have.

The largest problem is that we have insufficient profit to enable "understudy" employees! so we have to do everything we can to retain our present experienced employees.

Another challenge facing any business trying to operate remotely is trust.
Fortunately at this time we have total trust in our managers, and have given them a small shareholding to try to ensure they have a vested interest.

It is the "day to day control" that will be the most difficult, if one of our employees should not be available for any reason, so realistically at this point we do have substantial problems!

To work remotely - we put in a server, and aimed to set it up so that we had a finger on everything through processes and procedures. Purchased a C.R.M. program, to date that is not operational though! so lots to still achieve.

I have a strange routine whilst here in the U.S. in that I try to be available from 3.am. - 9 a.m. - South African time 11 a.m. to 5 p.m. I am still the only one to have the password to "alter" any accounting issues. Confirmation of Instructions for banking etc.

We are extremely fortunate in our specific niche market, which permits the possibility of "remote" control.

I was here in the U.S. for six months last year, and my husband and I have both been here for two and a half months as a trial period.
We return next week to South Africa - So far, so good?
Our employees assure us that there are no problems, so we hope that they are not keeping any problems or bad news for our return!

The real feasibility of retaining and operating our business in South Africa will depend totally on our employees, so we have to sell them the concept that they truly "own" their own jobs.
One issue we have is to develop an incentive program for employees which will not be seen as a disadvantage, should we decide it is not feasible to work remotely and wish to sell the company.
So employee incentives without any "unintended consequences" has to be developed.

We have also had to set up a small "cushion" of cash flow, but will without question not operate the business "at risk", our main criteria will be a constant check that the business remains financially viable.

This is quite a liberating aspect, as previously "everything" was tied up in the company, the constant fear of staying viable was massive!
As with many SME owners, we had made the mistake of thinking our business would "look after our retirement", this is not true as basically we "owned our own employment".
The fear of course has shifted to will we earn sufficient to fund ourselves in the U.S!

We are torn apart at leaving South Africa, at no time, even when most of our friends decided to leave, did we ever think we would even consider it!
Risking everything, including our business was just not a consideration, but now we feel whatever our financial cost, we want other options!

We used to say that when we felt a need to carry a gun, we knew it was time to leave! We still have no desire to carry a gun! but definitely feel a need for protection!

Having our grandsons future as our ultimate priority, and wanting to be around to watch him grow, made the decision easy in the end.

Taking him to baseball practise at night, parking on a dark field, walking to the vehicle without fear! Standing chatting without watching that there are still lots of cars around, it took some time to stop checking behind trees and bushes!
We walk to a nearby restaurant at night!
These are the small things that make our future worthwhile.

Whether we are making a major mistake or not, we are now committed, and now have the challenge of a lifetime to keep the South African business viable.

Yvonne