Are You Strong Enough to Do Business in America?
If you’re thinking of boosting your organization’s revenue by expanding to another region or country, you must be strong. If you’re thinking of boosting revenue for your non-U.S.-based company by entering the American market, you must be super strong. Some might call you foolish or crazy, but I’m not one of those people. I think doing business in America is your smartest move. However, it’s not for the ill-prepared or those not fully committed to the venture.
First, let me tell you why the United States should be international companies’ top choice for business expansion. Yes, there’s no doubt that America’s image has diminished over the past decade or so. Some might say our gold standard brand has tarnished. Certainly, we’ve had plenty of problems: divided political tribes; intensified racial unrest; deeper income disparity; and too many guns. Heck, even Superman has shied away from being a U.S.-only superhero. In 2021, DC Comics announced that it was changing the Man of Steel’s motto from “Truth, Justice, and the American Way” to “Truth, Justice, and a Better Tomorrow.”
Image source: DC.com
Nonetheless, the United States is particularly attractive, as it offers tremendous revenue and profit potential. It has the world’s largest economy at $26 trillion. It has the most stable economy, which has held steady at 25% of the global economy for the past four decades. America has the largest pool of wealthy consumers and business customers. In addition, its federal and local governments are pro-business and eager for foreign companies to locate in their states and cities.
WHAT IT TAKES TO MAKE IT IN AMERICA
When I conducted research for my book, Make It In America: How International Companies and Entrepreneurs Can Successfully Enter and Scale in U.S. Markets, I talked to over 150 people from 40 countries. Many were senior business executives and company founders. They unanimously said that strong and resilient leaders were critically important to succeed in the American market. Here are the top requirements that were deemed essential by a wide range of business leaders and advisors to senior management.
1) SET CLEAR GOALS AND MEASURABLE OBJECTIVES
It’s essential to establish clear goals for your business in the United States. Goals that are both aspirational and achievable. Clear goals that will guide your company’s critical business decisions on complex issues. Goals that will attract, motivate, and inspire employees. Bruce Buchanan’s goal for ROKT was to be the leading eCommerce optimization software in the world. He recognized that conquering the U.S. market was important, because of its size and abundance of eCommerce players.
In addition to clear goals, companies need measurable objectives with defined timelines. Well-communicated objectives are important to both guide activities and refine tactics. Progress towards achieving these objectives need to be closely monitored. The metrics will indicate when to make an adjustment in tactics. For example, a drop in sales leads would trigger a change in marketing investment and tactics.
2) FULLY COMMIT TO U.S. EXPANSION
You must invest the necessary capital, resources, and time to succeed in the United States. Board directors need to view this investment as a five or ten-year commitment, because of its exponential upside potential. Companies need to send top executives to America to demonstrate their commitment to American customers, suppliers, and partners. And these executives must have the determination and commitment to overcome the inevitable challenges and obstacles that will arise.
For early-stage companies, it means sending a founder to establish their U.S. business operation. Bruce Buchanan, Founder and CEO of ROKT, transplanted his company and his family to New York from Sydney. He said, “If you take a market seriously, you have to be in it. The work requires absolute commitment.” The ten-year-old company was recently valued at nearly $2 billion.
Bruce Buchanan, Founder and CEO
3) BE READY TO BUILD A STRONG LOCAL NETWORK
In addition to hiring qualified employees and building a solid U.S. operation, you’ll need experienced advisors and partners to help you understand the U.S. market and ways of doing business. Certainly, it is important to retain legal and accounting experts to navigate the complex U.S. legal, immigration, and tax systems. Local marketing and research experts are needed to gather intelligence on the local consumer tastes and your competition. Local advisors and partners can connect you with the necessary suppliers and other needed resources.
“The early days are rough. It’s hard to get traction and credibility. You don’t have a network; you don’t have access to people that can help.”
4) BE RESILIENT AND FLEXIBLE
Many international companies have tried to enter U.S. markets only to give up in a few years, having lost significant money, time, and reputation. Their executive boards didn’t want to invest any more in the competitive American market. Most start-ups fail after a few years, too. One reason is that international businesspeople and entrepreneurs underestimate the difficulty, cost, and length of time required to enter and grow in the U.S. market. The competition can be fierce, and customers are often fickle as they face many choices. In addition, there is the challenging of living and staying in the U.S., because of the high cost of housing and living expenses.
Source: Txture.io, an Austrian cloud transformation software company
“It’s difficult to grasp the gravity of these challenges until you’ve experienced them. After I lived it, now I know.”
IT’S WORTH IT!
In my book there are the stories of dozens of business executives and entrepreneurs who tried to enter the U.S. market. They were from countries including Belgium, Colombia, Denmark, France, India, South Korea, and the United Kingdom. Some were successful, others not so successful. Despite the challenges and difficulties, nearly all of the business executives told him that bringing their business to the U.S. was worth the effort. Entrepreneurs unanimously said the United States was the best place to start their business. In addition to the huge potential for profits in the big and lucrative U.S. market, there is the opportunity to achieve a rewarding and satisfying life for them and their families.
