Preparing to Expand in USA
USA Business Experts
USA related forum posts
I have been trying to get a loan for some time now due to the large sum amount of the money to expand my business in Finland but i was unable to get a loan due to my credit score All other corporation/bank turned me down. Till i was introduced by start up overseas to Discovery Investment LOANS and i was able to get a loan from them without any delay. So i am using this opportunity to inform ev
Total Posts: 1 Last post by blessing865631
Hi, I would be interested in knowing whether it would be a good move to expand my cleaning company to the US. How would you go about doing this?
Total Posts: 2 Last post by vroomr513
Preparing to Expand to the US
If your product or service is a success at home, expanding a business in the USA market offers great potential. The only way of knowing if your business is truly ready and this can't be overstated enough is by doing meticulous market research. Never underestimate the temperament of a market. Never be so confident to envision a perfect transition that's not how it works. It works through shrewd understanding of new customers: their characteristics, impulses and patterns. Once done, you will then need to build a structured business plan and market entry strategy. These are golden rules, obviously valid researching the American market.
Business Plan for the USA
Traditionally considered the key to success, a good business plan should never be underestimated. Encompassing your objectives, forecasts and routes, a plan should provide clarity on how you intend to take your business from paper to profit and expand a business to the USA. A well-structured business plan for the USA can often be the difference between success and failure.
Ultimately, your business plan should be able to answer three questions: What am I trying to achieve? How am I going to achieve it? When am I going to achieve it by?
Here is a quick guide to follow:
Summary of your business essential if you are showing your plan to potential investors.
Description of your company; its products or services; why you are selling them; who you are selling them to.
Finance your costs and forecast: this is where your intentions turn into figures.
Companies and experts exist who can help formulate a business plan for USA, taking you step-by-step through methodology and performance management. Blueprinting a plan for UK business is one thing; blueprinting for overseas operations is another. If you don't feel confident drawing one up yourself, get in touch with one of the many international business-planning services out there.
Market Entry Strategy
Essentially the blueprint for the delivery of your goods or services to your market and end user. Market entry is concerned with your customers and your competition: What's already out there? Can you offer competitive products / services / prices? Do you offer an angle your competitors don't?
Here are some basic tips for planning market entry:
Identifying the best potential customers, locations, sales leads and channels
Calculating rough sales volumes
Identifying the best distribution channels
Studying your competitors their products, services, distribution channels
Deciding on specific entry points and niches
Having a good understanding of current and future political and economic climates
Calculating the initial cost and risk factor
Acknowledging your business's operational and logistical needs and contextualising them with your candidate country
Recognising the duties, regulations and other restraints if any to your operations
Undertake a market test to understand the viability, transferability and profitability of your product(s) or service(s)
Analyse the market. Will your marketing techniques, product image and its associations be transplantable?
Evaluate what help and funding may be available
Market opportunities, risks and environment
Speak to distributors and producers about pricing and the market: its obstacles and opportunities
Youll want to know what your rival companies are up to. For instance, if they are offering products or services cheaper than you are, it is important to find out why.
The fundamental questions you will want to ask are:
Who are my competitors?
What products and / or services do they offer?
How do they price their products and / or services?
What advantages do they have over you? What advantages do you have over them? And can these be overcome and maintained, respectively?
You may be interested in conducting a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis, too. This will not only juxtapose your business with your competitors, but contextualise it with the market.
How do you find out about your competitions? Well, the three main methods are:
Find out what they say about themselves, through advertising, literature, websites, press releases, exhibitions, road shows, business accounts, etc.
Find out what others say about them, through the media, customers, clients, suppliers, reports, market researchers, etc.
Find out through commissioned market research.
Researching the American market
Market research deals exclusively with the investigation of a consumer market, segregating it by every means necessary in order to juxtapose it with your product or service.
Market research taps into and analyses the patterns and habits of consumers, giving you an insight into who are the type of people that buy your product or service, how frequently they do so, and the markets reaction to your goods. This is the key to expand a business to USA.The scope for division and categorisation is vast.
Who are my customers?
What groups and social leanings do they fall into?
What is my potential number of customers / market reach?
Will your customers already be familiar, or used, a competitors products or service?
What is the basis / criteria that a customer will use to buy your product or service?
How can you guarantee the customer will return?
What are the times, places, seasons, moods, etc, they prefer to buy?
Researching the American market may take long, but it will be a major boost to your chance to expand a business in USA successfully.
Organisations that can assist with Preparing to Expand
PEO Worldwide is an international PEO offering employer of record, payroll, employee benefits management, HR and compliance services throughout the world.
The Global Trade Professionals Alliance (GTPA) is a global trade organisation dedicated to the development of international standards to harmonise and facilitate inclusive and trusted trade.
Starthub helps companies establish a legitimate presence in the US through Virtual Office Solutions. Set your presence instantly, at very low costs and be visible to US customers and prospects.
GrowthXceleration helps companies accelerate revenue and profit growth by analyzing and optimizing their direct and indirect revenue channels. The US Market requires local, proven, and analytic sales and business development expertise. I operate as part of your team respecting your solution and your brand.