Five essential steps to enter USA market
Why should International companies be interested in the USA market?
For the same reason that Apple, Starbucks, FedEx, Caterpillar, Microsoft, Walmart, McDonald's and others are interested in the global market.
Most of their future growth will come from that market. In small to medium size companies, it may come as revenue growth and an opportunity to increase the value of their company
There are right ways and wrong ways to approach international business development, which I have written about extensively on my web site https://sites.google.com/site/cuoirent/home
some of the wrong ways include – trying to sell and support directly, lack of understanding of the local culture and laws, failure to meet local requirements, underestimating localization, and failure to determine which selling techniques works best ?
So why should International companies be interested in the USA market?
*USA is second to China in fixed wired internet subscriptions
*USA is first in mobile cellular subscriptions
- Develop a Strategy and Business Plan
Define short, medium, and long-term strategy. Set reasonable goals to measure progress and cost/benefits.
Define goals, objectives, and success metrics.
Complete the business model and structure.
Develop a top down annual budget.
Develop a tactical project plan with commit dates.
2. Establish USA Business Development Team
Many global companies try to launch with executives from the parent company or rapidly build a local team from scratch. This is time consuming,risky, and slows time to market. Using proven senior executives allows the company to hit the ground running, quickly validate assumptions,and drive key readiness initiatives.
Establish the financial infrastructure—to outsource this to local business development team.
Very important to form agreements with integrators and distributors based on USD and USA laws
3. Product Readiness
Based on the product gap analysis, take the necessary steps to market ready your offerings to achieve high impact product differentiation.
Review government and industry specific regulations to ensure that compliance and certifications are obtained if needed.
Partner with an advocate of your product.
Determine what localization of the product is needed.
Initiate testing and quality assurance review based on industry standards.
Consider distribution networks.
Show that system works and handles all the interfaces (API’s) to all the necessary equipment.
Remember you are selling your expertise in the vertical market as well as the technology.
4. Organizational Readiness
Cultural differences, whether it is language, regulations, or customs, requires a firm to be flexible in the policies and procedures implemented in an international operation to ensure employees are engaged and executing on the company’s plans. The “one size fits all” mindset can have short-term benefits but will have negative long-term effects.
Evaluate the organization structure needed to successfully execute your strategy.
Develop policies, procedures, and handbooks that comply with local requirements while maintaining balance with overall company policies.
Develop competitive benefits programs to attract qualified local employees.
Develop competitive compensation packages based on local standards and customs.
Develop a local information technology infrastructure that is compatible with your domestic infrastructure.
Manage payroll and human resource functions—again, a process that lends itself to outsourcing.
5. Establish a Go-to-Market Strategy
The effective selling and marketing of your products or services requires a comprehensive, cohesive strategy that addresses sales strategy, sales delivery, branding/value proposition, marketing strategy, marketing programs, and pricing, which together create clear market differentiators that propel market acceptance and revenue growth.
Determine your optimum sales model: direct, indirect, OEM, distributor, hybrid?
Determine your sales methodology: solution, feature, consultative, price?
Determine if a new brand will be created or whether you will use the parent brand.
Develop a comprehensive marketing plan.
Evaluate your pricing model