Is it a good idea to expand your business in the United States?
The USA has always been seen as one of the best marketplaces to do business and live for those who start things anew. It is packed with various types of businesses and opportunities that can help you grow your enterprise at a faster rate.
Irrespective of whether you have a small-scale business, fresh startups, or large companies, getting into the American market could be an avenue to make more money.
This guide will discuss why it would be great to expand your business in the US, the pros of doing so, and what kind of issues you may face. Also, we will cover how to start and expand a business there.
On this page
Why should you expand your business to the US?
There are many good reasons why companies may want to expand to the US. It has the biggest economy in the world, worth $26 trillion. For instance, California alone has a GDP of $2.7 trillion.
Moreover, the US economy is so consistent that it has been 25% of the global economy for about forty years. Additionally, there are a lot of wealthy people and businesses there.
The population of the United States stands at almost 336 million people. Compared with lots of different places, they have excellent lives and money to spend.
The US government welcomes foreign companies at both the federal and local levels.
Because of this fact, many businesses find the USA an excellent place for selling their products as well as expanding their business to new groups of customers, leading to business growth.
Advantages of accessibility to supplies and innovation:
The US has always been open to trading with other nations. Therefore, businesses in the US can access supplies from all over the world and collaborate with firms from different parts of the globe.
All of these help your business find more growth opportunities.
The United States is also known for its innovation. By learning from American business culture, your team could assist your organization in creating unique products and services that will attract a large following.
Advantages of branding and networking:
Being in America makes your brand seem fantastic and respected by people throughout the world.
America has many large corporations as well as new startups. Hence, you get in contact with them and cooperate. This is for you to gain new clients, partners, investors in the company, etc.
Having skilled workers and resources:
In America, there are various intelligent people who can work for your firm. By having local experts and team members there, it will be easier for your business to grow in that region.
Money access:
The US is big on investing in businesses from other countries. In 2020, they invested a huge $4.6 trillion in foreign businesses. Also, in 2021, US venture capital firms put $160 billion into over 10,000 businesses.
Challenges in the US market:
The United States of America is tough for small businesses in that they are uncountable. Almost all American companies, 99.9%, are small businesses.
There are more than 33 million of them in the US, which employs almost 62 million people. Each month, there are hundreds of thousands of new applications for business, leading to cut-throat competition.
However, it may be difficult for companies to deal with much smaller areas because the USA is so huge.
It consists of 50 states, each of which has its own laws and regulations. Therefore, if you operate a business in different states, you might need to follow different rules. Additionally, there are national rules that can make things even harder, especially when it comes to businesses that have just entered the US market.
When you make up your mind about starting a new company in the United States of America, your plan for growth and expansion should take into consideration every regulation pertaining thereto.
Understanding these various parts and problems is not always simple. That is why it would be wise to seek advice from an experienced business service provider and consultant.
They will help you navigate through any challenges that may arise during such times. It will be very important for you to have someone who understands what happens in the local business world if you want success.
How do I expand my business in the US?
Expanding into the US might seem scary, but it has its rewards.
If you feel this is a viable option, here are some basic steps to take when establishing a business in the US:
Make sure you have adequate funds:
Before you start doing business in the US, make sure that your finances are organized. Setting up a company there can be more expensive than you expected.
So, consider how much money your business has and what it owes. Additionally, consider things like marketing and shipping expenses. If you run out of money, try to get more. Here’s a clear breakdown of the financial requirements for operating a business.
Some other things to consider:
Here are some other things to think about when you’re getting into US business:
- Money for start-up: You need money for expansion purposes. For instance, importing stuff requires cash, and so does taxation; hiring personnel also incurs costs. Additionally, there could be costs for new equipment like buildings, technology, as well as online presence.
- People: It’s smart to have experts like lawyers, bankers, and accountants who know about doing business across borders.
- More Expenses: Think about things like marketing in the US, shipping stuff, and flying your top bosses around.
- Getting Money: Once you’ve made a plan, figure out how to get a loan from a bank or find investors. Any extra cash you can get will help a lot.
- Making Money: Look into how much money you could make selling your stuff in the US. Knowing this can help you decide if it’s worth spending money to expand.
Explore new markets:
Always remember that customers decide if your business does well. Have you thought about what American customers might like from your business? Is there something missing in the market that your business can fill?
Look into which market is best for what you’re selling and figure out how to stand out. Think about who you want to sell to, how you plan to sell, and how you can be better than others.
It might also help to see what your competition is doing and learn from them. You’ll probably need to change your marketing plan when you move your business to a new country.
Complete legal requirements:
Expanding your business to the US is a bit like starting a new business there. You have to pick what type of business you want, register with the right agencies, and pay the right taxes.
Lots of businesses set up a subsidiary company, like a corporation or a limited liability company (LLC). To make sure you do everything right and don’t pay too much in taxes, it’s a good idea to hire a US lawyer and a tax expert. They’ll help you follow all the rules and regulations.
Establish a solid local network:
Understand this: Nothing is as important as having people who understand the ropes of the US market. You will need smart consultants and collaborators.
Furthermore, there should be legal and accounting authorities that are well-versed with US laws and taxes. They can help in avoiding legal issues or financial challenges.
Moreover, you will require local individuals who have knowledge of marketing and research. They will help you know what the customers like and what your competitors are doing too.
These advisors and partners can also introduce you to suppliers and other important contacts.
As Bruce Buchanan put it, “Starting out can be tough. It’s hard to get noticed and trusted. You don’t have connections, and you don’t know people who can lend a hand.
Think about hiring American employees:
Having American employees at your new location can really help your business. They know how things work in the American market, and they can be a reliable contact for your new customers.
The US has a strong workforce with skills in many different industries, so you can trust them to do a good job. Hiring American workers will make it easier for your business to expand into the US.
Create a strong online presence:
Your business website needs to be built in such a way that it will attract users while also making them feel at ease with its easy operation. Also, make use of the internet and connect to your customers by using digital marketing, social media engagement, and e-commerce capabilities.
According to Statista, out of the nearly 8 billion people in the world, 5.35 billion of them, or around 66% of the world’s population, have access to the internet.
A strong online presence will help you reach millions of people worldwide as well as cross borders, and build a wider customer base.
Additionally, to expand your business and reach billions of potential leads on Google, it’s essential not to overlook the importance of investing in SEO services.
As of 2024, almost all people in the United States—about 95% or roughly 322,563,519 individuals—can get on the internet, according to the US Census.
E-commerce has gained considerable momentum in recent years. Global retail e-commerce sales are expected to reach $8.1 trillion by the end of the year 2024.
This means you need to be visible online to attract more customers and expand your business in the US. Nowadays, people use the internet a lot for shopping instead of going to stores. So, it’s important to have a good marketing strategy in place.