FINAL WORD
Across every sector , ambitious businesses see huge potential in expanding beyond their domestic borders . Replicating local success on the international stage is a logical step in the growth journey of organisations everywhere and can often be a prerequisite for delivering on business objectives and growth plans .
In many ways , today ’ s highly connected , digital ecosystem means it ’ s easier than ever to grow into new markets and territories . For UK and European businesses looking at the enormous opportunities that exist in the US in particular , the prospect of competing in one of the world ’ s richest and most competitive economies can be attractive and daunting in equal measure .
Yet , the opportunities are arguably greater there than almost anywhere else . According to the Office for National Statistics , the US is one of the UK ’ s largest export markets for goods and services , accounting for 18.9 % of total UK exports in the year ending Q1 2019 . The US also ranks 6th for ‘ Ease of Doing Business ’, according to 2019 data from the World Bank , an assessment that looks at a variety of factors from starting a business to getting credit .
Clearly , there are a huge range of factors to consider when entering the US market . Getting the basics right , however , will play a fundamental role in determining how effective any strategy designed to build a presence in the US will be . Some of the major opportunities and potential pitfalls include :
Embrace commonalities but recognise the differences
There is a huge amount of shared history and culture between Europe and the US . For English speakers , working without a language barrier delivers a tremendous head start . It doesn ’ t take long , however , for companies newly arrived in the US market to see the huge range of subtle and major differences that exist in the way the countries conduct business .
From employment law , visas and tax to payroll , compliance and a myriad of other operational issues , it ’ s vital to research the rules and requirements that are specific to the US . In some respects , the differences are narrowing and in recent years , the UK has become much more entrepreneurial – something which has long been much more common in the US . But overall , while it ’ s tempting to jump right in , especially if an exciting growth opportunity appears , failing to understand the fundamental differences can lead to serious problems down the line .
Hire local talent
The growth of remote working and the advantages offered by ubiquitous digital connectivity means that – in theory – it ’ s never been easier to identify opportunities for growth in markets like the US and hire people , irrespective of where they are located .
While it ’ s possible to build a customer base from thousands of miles away , in many circumstances , there remains no substitute for ‘ on the ground ’ knowledge and experience .
Hiring local talent can have a transformative impact on the ability of a business to build credibility and presence in the US marketplace . Take the technology industry , for instance , which is a hugely competitive sector , but also offers new entrants the chance to quickly build sales momentum . In this context , organisations with the resources to build local teams – even small ones – will almost always be better placed to understand the domestic US market than those looking from the outside in because it gives them a much better insight into key issues such as sales practices , much bigger contact networks and the irreplaceable knowledge around simply how to get things done .
Business leaders should also remember that building trust via a local team does not mean they can then work at arm ’ s length . UK and Europe-based management must show long- term commitment by supporting their regional teams in person as travel rules allow .
Build effective partnerships
It ’ s a similar story with partnerships , which can operate on a few levels to help nascent international businesses supercharge their efforts to crack US markets . Innovation is a major part of the US business psyche and there are organisations in every sector that are open to working with businesses from the UK and Europe to bring new ideas to the local market .
ONE OF THE BIGGEST MISTAKES A UK OR EUROPEAN BUSINESS CAN MAKE IN FOCUSING ON THE US IS RUNNING BEFORE THEY CAN WALK .
Danny Lopez , CEO at Glasswall
www . intelligentcxo . com
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