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Case Studies

Here we will give you three real cases which are typical of the individuals or companies who have decided to use our service to incorporate in the United States. Although it will give you only a small insight to what we do and how we help our clients to succeed in their business in the United States, it shows you our attitude towards our clients and might give you the last kick to choose us when you are ready to take this step.

Case 1: US Corporation for expanding into the huge US market

A German company, based in southern Germany, has produced parts for automobile manufacturers for more than 17 years. It employs nine full-time and four part-time staff members. The production is very highly automated but requires specialists for installing, monitoring, and maintaining the machines. Production usually runs 24 hours a day, but there are times when it reduces to one shift as the level of orders fluctuates.

Their customers are mainly German car manufacturers but there are no long-term commitments. The production of each part is newly negotiated and margins are very slim, especially when considering the large investments involved.

The company depends on the success of their clients’ businesses and we all know that the automobile market is fragile. Established personal contacts, developed for over 17 years, are the main base for anticipating future business.

The company is facing several problems: since the margin pressure is mounting, the company can’t invest in new machines and therefore might not be able to compete against other global suppliers — mainly in Asia and increasingly, in Eastern Europe. The company has to live with any changes the automobile manufacturers decide to make. Price talks and the potential for changes in pricing — even when contracts are still in force — are common.

Goal:
Establishing a production facility in the United States in order to
A) leverage currency changes
B) be closer to US customers (which includes the German manufacturer) who are approaching more US suppliers lately
C) adjust to production fluctuations

Process:
A) Incorporate a US Corporation in Montana (better fees) and open up a sales office in Spartanburg, Montana.
B) Feasibility study — One staff member, in six months, visited all relevant clients and prepared a detailed demand list in order to calculate whether a production facility in the United States would be advantageous, or whether the production facility in Germany should be changed.
C) Premise has been to keep the cost for this research as low as possible but still get the highest results.

The company checked the Internet and found — besides many others — Dr. Schilling Consulting. Detailed correspondence and phone calls followed and Dr. Schilling twice visited the factory in Germany. The third meeting took place in the company’s newly rented office spaces: (Dr. Schilling Consulting had found this location). A lawyer from Dr. Schilling Consulting had — at the same time — filed for the temporary visas for the workers and within three months
A) The company was founded, the office in Spartanburg was furnished and ready to go.
B) The visa for the staff member who was chosen to do the job in the United States was granted and he and his family moved to the United States.

This took place in February of 2001. Today, the company manufactures products for two US automobile companies and since the end of 2003, the German factory works three shifts a day. Fluctuations in production are sensitively controlled and adjusted and two workplaces in the United States have been added.

Today the company is in a much better position than it was three years ago. All jobs in Germany were saved and even an apprenticeship could be offered. The necessary investments have been realized so that they are now better positioned for any future market turbulence.

Summary by customer: "The decision to work with Dr. Schilling Consulting has been one of the best we ever made. We highly recommend this service. The staff and the counseling which we received was outstanding, better than any other we have ever experienced.”


Case 2: Establishing an ISP business using a virtual office in the United States

This German Internet Service Provider, in business since the late 90s, operated throughout Germany and rented server space in the United States.

Goal:
In order to become more flexible and independent from their US competitors and to increase their business in the United States, the owners decided to install their own US servers. In order to do this, they would need a US Corporation — preferably in Nevada — where their US virtual office and headquarters would be located.

Process:
In six of the most important US hubs they installed their own servers and signed contracts with leading US providers. This was only possible because they acted as a US corporation. Their US partners would not have signed contracts with a foreign company and if they had done so, they would have charged them more. Since 9/11 and the Patriot Act, it is increasingly more complicated to set up these kinds of arrangements — especially as foreigner.

Dr. Schilling Consulting handled the creation of their US corporation and set up the structure for their office which is virtually usable from any place on the planet where there is an Internet connection.

Dr. Schilling Consulting set up all the meetings with the providers, organized the trips, and even booked the accommodations so that one person from the German company was able to concentrate on and achieve all these objectives in a very short time.

Advantages:
The US customers and the US partners are able to deal with a US company.
The telephone sales and technical departments are answered 24/7 through an 800 service.
The cost for their office in the US — which is a virtual office — is minimized. This is a perfect solution for smaller companies.
More of each dollar earned can be reinvested back into the company — allowing for faster growth.
Technical emergencies are mainly handled via the Internet. For very urgent help they have connected with local companies.

Summary by Customer: "Now, after five years of operating in the United States, we are proud to say that we made the perfect decision when we hooked up with Dr. Schilling Consulting. We couldn’t imagine a better company to work with. It wasn’t only business we enjoyed, we also had a really had a good time with them. Dr. Schilling has become a partner in our company and without his help — financially — and his deep knowledge — we wouldn’t have made it. We are certain about that. We highly recommend Dr. Schilling Consulting and give them a 5 star rating.”


Case 3: Incorporating a financial and investment business in Santa Barbara

This client has three staff members who reside in Germany and work in the financial business area. Since this business is going where the most money can be made, he decided to open a branch in Santa Barbara, California.

In the year 2000, we incorporated that company and located it in Santa Barbara. Dr. Schilling Consulting also handled the office services, taking all incoming calls and receiving and forwarding all mail. We also developed the Web site for that company.

The company was founded with 1 million shares and $0.01 cent par value. Each founder of the company received his/her share in the proportion of their investment. At the second shareholder meeting it was decided to issue another million shares. These were preferred shares which were to sell in Europe for $10/share.

A sales leaflet was produced and reported to the BAFIN (this is a Government department which needs to be informed of a sale of stocks). Within four weeks all stocks had been sold to their existing customer base in Germany. The incoming funds were used to purchase property in Las Vegas and Santa Barbara.
As the real estate market has developed very favorably in many areas of the United States — and especially in Las Vegas and Santa Barbara — the investors’ value has tripled. (within three years!)

That’s what we call a real deal!


 


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