US Market Entry

There are a lot of moving parts to a business, such as finance, client relations, employee relations, accounts payables, accounts receivables, sales, marketing, business development, operations, etc.  Some business owners may be proficient at some of these functions but not others.  A Business Consultant can counsel clients on areas of their business that needs improving.  A Business Consultant can also help clients with matters such as launching a new business, business expansions and new market entry.  Most importantly, a Business Consultant offers a different perspective on how the client’s business operates and offer alternate systems and methodologies that the owner may not have previously considered.

Any business that needs help in a particular area can seek guidance from a Business Consultant.  For example, an entrepreneur who has a concept for a business but may not possess the knowledge or skills to execute their idea.  Some business owners may have already existing businesses but might need help taking their company to the next level.  In some cases, a company’s deficits could be caused by the owner and an in-depth evaluation of the company’s operational system needs to be evaluated to determine how certain functions can be improved.  The goal of many businesses is to generate as much revenue as possible.  However, decreasing expenses can be equally as effective in increasing profits as increasing sales.  Business Consultants are experts in the implementation of total operational efficiency and total quality management.  Advice from an experienced Business Consultant can help business owners break through barriers that were previously holding them back from advancing.

Business owners and entrepreneurs often make mistakes in business.  Mistakes in business are often made when decisions are made based on emotions rather than wit.  A good Business Consultant can help their clients sidestep a few landmines.  Business Consultants can save their clients’ both time and money by avoiding common mistakes that are typically made in business.  Sometimes these savings exceed the consultants fee, making their service invaluable.  Business Consultants are in the business of providing information to their clients.  The information they provide is knowledge and proprietary systems that they’ve acquired or developed over many years of conducting business for themselves including countless hours of research, meetings, talking to business associates, trial, and error.  This information can benefit clients tremendously and save them a great deal of time, stress, anxiety, and aggravation.

Filing for a corporation in the United States is not particularly difficult.  The fee is small and there are only a few different options.  Most corporation types provide different levels of legal liability protection and offer different tax advantages.  The differences between the most common corporate structures are as follows:

1. Sole Proprietor: One shareholder. Doing business as yourself. Offers no legal protection.
2. C Corporation: Taxed separately from the owner. Good for publicly traded companies.
3. S Corporation: Profits/losses pass through the owner who reports profits/losses personally.
4. Partnership: More than one shareholder
5. Limited Liability Company: Easier to form, cheaper to run. Offers personal asset protection. Pass-through tax deductions. Good for companies seeking outside capital.
6. Professional Limited Liability Company: Similar to LLC but for medical services.
7. Limited Liability Partnership: Similar to LLC but with more than one shareholder.
8. 501(c)(3): Nonprofit charitable organization

Foreign companies who rely on suppliers or vendors in their country may need to develop new relationships with similar providers in the U.S.  Suppliers provide companies with necessary products and vendors can provide services instead of the use of internal staff or employees.  U.S. Suppliers and Vendors expect to be paid on-time.  Even if they are willing to provide products or services before payment, they will offer clearly defined conditions (i.e. 30 day payment terms).

Sometimes suppliers/vendors require contracts such as Nondisclosure Agreements (NDA) or Non-Circumvent Agreements.  The purpose of a Nondisclosure Agreement is to ensure confidentiality between parties.  In other words, both parties are required to keep their dealings confidential and not share any details with a third party.  Even just the fact that the two parties are doing business together is not to be disclosed.  The purpose of a Non-Circumvent Agreement is for one party to not circumvent the other party and conduct business directly with a third party.  These Agreements are fairly common when doing business in the U.S.

The United States has a very strong and reliable banking system.  Most U.S. banks will require a business customer to appear in person in order to open an account.  The U.S. Patriot Act  prevents the use of the finance system for criminal activity.

For business accounts, the company has to be formed as a legal entity first.  Once one of the corporate entities are chosen and the filing has been completed, a federal tax identification number or Employer Identification Number is issued.  This number is required for opening a business account along with some type of identification such as a passport, immigration document or government-issued ID.  A small initial deposit will most likely be required by the bank.  Depending on the bank and account type, it could be as little as a few hundred U.S. dollars. US market entry topics such as banking and more is covered by consultants.

In the United States, laws are broken down into regions: Federal, State, County and City/Township.  Criminal law refers to offenses that are considered a crime and are prosecuted on the state or federal level.  Civil law refers to disputes between two parties.

Because of the complexity of the U.S. judicial system, many attorneys specialize in certain areas of law.  Businesses are best serviced by lawyers who specialize in corporate law.  There are also lawyers who specialize in assisting companies with specific areas of their business.  For example Lawyers specializing in Labor law can assist clients with labor unions, Tax attorneys can assist their clients with tax problems, Litigation lawyers help clients go to trial and FDA lawyers can assist clients whose business require them to comply with regulations imposed upon them by the Food and Drug Administration.

Despite a lawyer’s specialty or areas of focus, it’s advantageous to interview individual lawyers prior to hiring them.  If you need a litigation lawyer to help you with in-court appearances, it’s also a good idea to actually sit in on court cases that attorney is in prior to hiring the attorney.  Some attorney’s are great on paper but less effective in the courtroom.

When it comes to payment, it is customary that lawyers request a retainer agreement prior to them working with you.  The Agreement will outline the terms of their relationship with you as well as their scope of work.  It will also include a bulk payment amount that must be remitted prior to the lawyer commencing any work.  For example, if their retainer is $5000 USD and their hourly rate is $250 per hour, you will have a 20 hour credit with them before they send you another bill for additional payment (5000 divided by 250 is 20).

The tax burden in the U.S. is less imposing than many other countries.  U.S. taxation for non-U.S. residents is a very complex matter that requires consultation with an accountant.  However, the 2 main taxes that foreign business owners need to be concerned about is income tax and sales tax.  In addition, the sale of certain products requires added taxes (i.e. liquor/tobacco).

U.S. companies only pay taxes on profits, not losses. If a U.S. company makes no profit for the fiscal year, it is not required to pay any taxes.

In the U.S., the acronym for a tax professional is CPA which stands for Certified Public Accountant.  The acronym for the U.S. government agency that collects taxes is IRS which stands for Internal Revenue Service.

Limited Liability Companies (LLC) only pay taxes based on the tax status of the owner.  If the owner is not a U.S. resident, there is technically no income connected to the United States.  This means the company would owe no taxes to the US IRS.

Every U.S. registered company is assigned by the IRS a unique 9 digital code that is referred to as an EIN or Tax Identification Number.  EINs are issued to U.S. companies for the purpose of tax administration and can be acquired at the time the company is formed.

Like most countries, United States utilizes its own currency known as the U.S. dollar or colloquially known as bucks. The most common denominations of cash are the $1, $5, $10, $20, $50 and $100 bills.  The most common coins are 1 cent known as a penny, 5 cents known as a nickle, 10 cents known as a dime and 25 cents known as a quarter.  There is the equivalent to 100 pennies, 20 nickles, 10 dimes or 4 quarters in one U.S. dollar.

When bringing the money your company earns in the U.S. back into your country of origin, remember that foreign exchange rates fluctuate from time-to-time.  The differential can take a bite out of your profits if done at the wrong time.

Intangible creations such as art, literature, music, inventions, unique names and phrases, etc. are known as intellectual property.  These creations belong to the creator and are protected by law.  Theft of intellectual property is considered a crime in the United States.  Patents protect the rights to inventions, Copyrights protect the rights to art and trademarks protect the rights to goods and services.  The rights to intellectual property can be licensed to a third party with written agreements.  Payment for such licenses is typically required.

The act of unjustifiably distinguishing between individuals predicated on certain qualities is considered  to be discriminatory and is prohibited by law in U.S. businesses.  It is a violation of labor laws to discriminate against employees based on age, race, gender, gender identity, national origin, ethnicity, disability (mental or physical), marital status, sexual orientation, medical history or political affiliation.

Shipping products from overseas into the U.S. is expensive and not particularly speedy.  For product-based businesses in other countries who need to ship product to U.S. destinations, finding a warehouse that can store your product and fulfill orders is necessary.  These warehouses are located all over the United States.  They will store your products and charge you by how much shelf space they occupy.  When you receive orders, they will package the product and ship it out.  Computer connectivity can provide the warehouse with access to your orders directly.  US market entry topics certainly can include warehousing products.

Merchants in the U.S. use payment processors to facilitate financial transactions each time their clients place an order with a credit card.  Once the financial institution confirms the transaction, funds can be transferred to the Merchant’s bank account.  If a cardholder disputes a charge, they issue a chargeback and request an investigation into the posted payment.  The payment processor may withhold the disputed amount until a decision is made.  It may be difficult for the merchant to open an account with a payment processor if they have bad credit.

Importing products to, and exporting products from, the United States is a complicated process.  Products are generally transported by ocean freight (boat) or air freight (plane).  Ocean freight is less expensive than transporting products by plain but ocean freight takes a lot longer.  From port-to-port, ocean freight typically takes 30 days whereas air freight typically takes just a few days.  When shipping products by ocean freight, products are stored on pallets and in containers.  If you’re not shipping an entire container, your pallets of products will have to be shipped by a consolidated freight company that will send your pallets in the same containers as other smaller shipments.

Shipping costs become more cost effective with volume.  For example, it costs more per item to ship a pallet of product as it would an entire container.  The weight of the products can also play a role in the cost of the shipment, especially for abnormally heavy items.

If the products being transported are regulated by a U.S. agency, certain regulatory measures may be required.  The regulatory agency may also chose to inspect and approve products being imported into the United States, and they have the right to do so.  In rare circumstances, the regulatory agency may require a sample of the product to be sent to a lab for closer inspection.

The Food and Drug Administration is a U.S. government agency that is a division of the Department of Health and Human Services.  The FDA is tasked with the responsibility of protecting U.S. consumers by monitoring the safety of food and the safety and efficacy of drugs.

International counterparts and FDA equivalents are as follows:

• Canada: Health Canada
• UK: Medicines and Healthcare products Regulatory Agency (MHRA)
• France: Sanitary Safety of Health Products Agency (ANSM)
• China: China Food and Drug Administration (CFDA)
• Brazil: National Health Surveillance Agency
• Japan: Japanese Ministry of Health and Welfare
• Germany: Ministry of Health
• Mexico: Federal Commission for the Protection Against Sanitary Risks (COFEPRIS)
• India: Central Drugs Standard Control Organization (CDSCO)
• Greece: Hellenic Food Authority
• Italy: Italian Ministry of Health
• Russia: State Institute of Drugs and Good Practices
• Spain: Ministry of Health and Consumption
• Ireland: Food Safety Authority
• Poland: Ministry of Health and Social Security
• Hong Kong: HK Department of Health
• Korea: Korean Food and Drug Administration
• United Arab Emirates: UAE Ministry of Health

With almost 4 million square miles, the United Sates covers a lot of territory.  It’s common to encounter different cultures from one state to another.  Not knowing the culture can make you appear awkward and could possibly offend some people.

The following are some general customs that people doing business in the U.S. should be aware of:

• The minimum age to consume alcohol is 21.
• Most public areas prohibit smoking.
• Business meetings are typically formal and individuals typically dress in formal business attire which would be a dark colored suit, white or blue button-down collared shirt with a necktie and shoes for men and a dress, slacks, button-down shirt or skirt with closed-toe shoes (3 inch heal or less) for women.
• Motorists/Drivers wear a seat belt when driving by law.
• Texting while driving is illegal.
• Drinking alcohol before or during driving a moving vehicle is illegal.
• Americans eat with their mouths closed (no burping).
• It is considered rude to arrive late to a meeting.
• Make eye contact when speaking to a person (sun glasses off).
• A firm handshake is customary when meeting someone formally (no hugs or kisses).
• A light first bump may be an alternative solution to a handshake if one or both parties are concerned about germs.
• The formal salutation for a male is Mr. (Mister) and their last name (surname).
• The formal salutation for a woman is Ms. (Miz) and their last name (surname).
• In formal settings, a person may request that you address them by their first name (given name).
• When it comes to hygiene, Americans typically shower every day and don’t like to be around people who have any type of body odor.
• At restaurants, tipping is customary (15%-20% of the bill amount) this is a gratuity that goes to the server as a show of appreciation for his/her good customer service.
• Food is eaten with a fork, knife or spoon unless it’s a sandwich which is eaten by hand.
• With the exception of shaking hands, there should be no unsolicited touching.
• In formal settings, men can be addressed as, “Sir” and women can be addressed as, “Madam” or the abridged version, “Ma’am.” Younger women can be addressed as, “Miss.”
• The most celebrated American holidays are Christmas (December 25^th), Thanksgiving (Last Thursday of November), Easter (floating Sunday March 22-25), Independence Day (July 4^th), New Year’s Day (January 1^st).
• Informal salutations are, “Hi” or “Hello.”
• “How are you?” and “How are you doing?” are sometimes considered rhetorical questions and used instead of “Hi” or “Hello.”  An appropriate reply can either be saying hi or hello back or by simply saying, “Fine, how are you?” or “I’m doing well.”
• The recreational use of nonprescription drugs is illegal.
• Questions pertaining to an individual’s weight, salary or age are sometimes considered too personal.
• Other certain topics are considered sensitive or divisive and should be avoided, such as abortion, politics, religion, racism, homosexuality, gun control, civil rights, September 11 terrorist attacks.
• Americans are very patriotic and will get very offended if you speak negatively about their country.
• Racial slurs are usually offensive to Americans.
• It’s not uncommon for Americans to conduct business in locations out of the office, such as a golf course or restaurant.
• When sitting, it’s considered polite to stand when meeting someone or being introduced to someone.
• When eating at a restaurant, Americans put their napkin on their lap.
• American’s drink a lot of coffee.
• It is customary for women to use their husband’s last name (surname) after marriage.
• When at a restaurant, the inviting party usually pays. If a business meeting is held at a restaurant, the party seeking business from the other usually pays.  Sometimes it’s customary to split the bill.
• In the U.S., women don’t play as much of a subservient role as they do in other countries. American women are independent and are sometimes in dominant positions in business.
• Doctors (particularly medical doctors) use their professional salutation before their names in stead of Mr., such as Dr. (doctor) and their last name (surname).
• In addition to restaurant servers, it’s also customary to tip other service workers such as valet parking attendants, Taxi/Uber drivers, limousine drivers, barbers, bellhops/porters, bartenders.
• Spitting in public areas is frowned upon.
• Littering is not permitted.
• Staring is considered rude.
• People around you will think you’re bored with their company if you yawn excessively.
• Cover your mouth when you cough or sneeze to prevent the spread of germs.
• Americans don’t usually share their food, especially in a formal setting.
• Give people their personal space.
• The metric system is almost never used in the United States.
• When someone shows gratitude by saying, “thank you” the appropriate response is, “your welcome” or, “it’s my pleasure.”
• Sometimes greetings are time related. For example, good morning, good afternoon or good evening.  These greetings can be repeated in response out of courtesy.

Americans don’t need a relationship to conduct business.  However, relationships are important for continued, ongoing business between parties.  It is customary that negotiations be mutually beneficial in a business deal.  Animosity can develop if a deal is unilateral.  Both parties want favorable terms and benefits that will lead to either profits or functional business advantages.

Like many cultures, Americans feel that time is money.  They don’t like their time wasted and want business dealings to move expeditiously.  The electronic/digital age is making business cards obsolete but there’s no specific protocol on this.  Some people still use business cards while others rely on their email signature or text messages to pass along their contact information.  While giving or taking a business card, it’s not necessary to do so with both hands the way it is in some cultures.

The strange thing about the English language is that not everything can be translated literally.  Idioms and metaphors make things especially difficult for foreigners because they have different meanings than the words being used and should be taken figuratively, not literally.  Americans take these sayings for granted and may inadvertently use them when speaking to a non-U.S. resident assuming that if they speak English, they will also know these meanings.

Common sayings, euphemisms, metaphors, slang, colloquialisms and idioms are as follows:

• Ace in the hole: A hidden advantage
• Tricks up my sleeve: strategies for use at a later time
• Achilles’ Heel: A weakness or vulnerability
• All kidding aside: Bringing the conversation to a more serious note
• Armed to the teeth: well equipped
• As the crow flies: A straight line between 2 locations
• My wit’s end: state of frustration
• End of my rope: No other options left
• Ax to Grind: a complaint that needs to be discussed
• Square One: the beginning
• Back to the drawing board: devise a new plan
• Bad blood: ill feelings
• Barking up the wrong tree: taking the wrong approach
• Beating a dead horse: over-discussing a topic
• Hit below the belt: unfair tactic
• To bend someone’s hear: talking too much
• Beside myself: distraught
• Between a rock and a hard place: difficult situation
• Bigwig: very important person
• Hard pill to swallow: difficult to accept
• Black and blue: bruised
• I wasn’t born yesterday: I’m not stupid
• I have a bone to pick with you: disturbing issue to discuss
• Both feet on the ground: logical, practical, realistic
• Bottom of the barrel: least desirable
• Brainstorm: To devise creative solutions
• Bull in a china shop: Reckless
• Under the weather: not feeling well
• Hang in there: stay optimistic
• Bite the bullet: accepting the inevitability of a situation
• Hit the sack: go to sleep
• Speak of the devil: someone you were just talking about
• The last straw: final breaking point
• On the ball: describing smart person
• Blessing in disguise: Seemingly bad but actually good
• Out of hand: out of control
• Win win: mutually beneficial / good for both parties involved
• Best of both worlds: The most desirable outcome of 2 situations or scenarios
• Wrap my head around it: to gain clarity and understanding
• Pulling my/your leg: being facetious or statement made in a joking/non-literal manner
• Let me/you off the hook: absolve from responsibility or blame
• A dime a dozen: common, abundant, lacks individuality
• 6 to 1, half a dozen to another: the same when comparing 2 things
• Break a leg: to wish someone good luck
• Benefit of the doubt: An indication of belief or trust
• Bent out of shape: to become disturbed over an issue
• So far, so good: progress is going well
• Adding fuel to the fire: making something worse
• From the frying pan into the fire: from bad to worse
• Ballpark figure: an estimated amount
• A bite to eat: food
• Bite the hand that feeds you: betrayal of someone who is helping you
• Ground Zero: the epicenter of a disaster
• Bend over backwards: making an extreme effort to accommodate someone
• Burst into tears: crying
• Crack of dawn: very early in the morning as the sun rises
• Down in the dumps: depressed
• Getting carried away: The act of exaggerating
• Cold feet: Experiencing trepidation or doubt
• Getting something off your chest: admitting something difficult to discuss
• Getting something off your back: relieved of a burden
• Going over something with a fine-toothed comb: extensive audit or examination
• Hit a snag: encountered a problem
• In the same boat: in a similar situation or predicament
• Jack of all trades: individual who is proficient at many skills
• Keep a low profile: inconspicuous
• Flying under the radar: inconspicuous
• Kick back: relax
• Knock on wood: Superstitiously optimistic
• Under the weather: sick or not feeling well
• It’s not rocket science: it’s not difficult to understand
• Cut corners: reduce expenses or effort
• Kick the bucket: die
• Head hunter: employment agency

Americans often use acronyms as words in their regular communications.  An acronym is a word that is formed by utilizing the letters of a group of worlds or a saying.  Some acronyms have worked their way into regular conversations and are so common, some people don’t even know they’re acronyms.  Some common acronyms that Americans use regularly are as follows:

• Snafu: acronym for situation normal, all fouled up
• Wifi: Wireless Fidelity (internet connection)
• AC: Air conditioning
• ASAP: As soon as possible
• PIN: Personal Identification Number
• WASP: White anglo-saxon protestant
• POTUS: President of the United States
• FOMO: Fear of missing out
• GIF: Graphics Interchange Format
• JPEG: Joint Photographic Experts Group
• LOL: Laugh out loud
• YOLO: You only live once
• OEM: Original Equipment Manufacture
• FOB: Freight on board/Free on board
• IOU: I owe you
• ATM: Automatic Teller Machine
• K9: Canine (dog)
• AM: Anno or Ante Meridiem (morning, before noon)
• PM: Post Meridiem (afternoon/evening)
• BTW: By the way
• BRB: Be right back
• IDK: I don’t know
• OMG: Oh my God
• TTYL: Talk to you later
• MIA: Missing in action
• REIT: Real estate investment trust
• UN: United Nations
• DOB: Date of birth
• DOA: Dead on arrival
• ESL: English as a second language
• FAQ: Frequently asked questions
• ID: Identification
• OTC: Over the counter
• PPC: Pay per click
• UFO: Unidentified foreign object
• SUV: Sports utility vehicle
• TBD: To be determined
• AKA: Also known as
• CC: Circulating copy/carbon copy
• BCC: Blind circulating copy
• DBA: Doing business as
• ETA: Estimated time of arrival
• FYI: for your information
• HR: Human resources
• NASDAQ: National Association of Securities Dealers Automated Quotation
• PR: Public Relations
• EST: Eastern Standard Time
• PST: Pacific Standard Time
• POS: Point of service
• AA: Alcoholics Anonymous
• NBA: National Basketball Association
• NFL: National Football League
• MLB: Major League Baseball
• PGA: Professional Golf Association
• TBA: To be announced
• RIP: Rest in peace
• DIY: Do it yourself
• IQ: Intelligence Quotient
• PC: Personal computer
• OCD: Obsessive compulsive disorder
• ie: id est (that is, in other words)
• MD: Medical doctor
• NASA: National Aeronautics and Space Administration
• SCUBA: Self Contained Underwater Breathing Apparatus
• CAPTCHA: Completely automated public turing test to tell computers and humans apart
• AWOL: Absence without leave
• EOD: End of day
• FBI: Federal Bureau of Investigations
• NSFW: Not suitable for work
• GMO: Genetically modified organism
• TGIF: Thank God it’s Friday

If you plan on starting a business in the U.S. or expanding your existing business into the U.S. but remaining a non-U.S. resident, this section may not apply to you.  However, for foreign business owners who plan on establishing residency somewhere within the United States, there are some states that don’t require income tax.  This may influence your decision.

States with no income tax:

1. Alaska
2. Florida
3. Nevada
4. South Dakota
5. Tennessee
6. Texas
7. Washington
8. Wyoming
9. New Hampshire

This is no guarantee that you will be exempt from paying federal income tax.  You may still have to file a tax return to the IRS and should consult a Certified Public Accountant.

Out of all the U.S. states, Delaware offers the most flexibility and protection when filing for a new corporation.  There are many advantages to choosing a Delaware LLC when starting a new business in the United States.  Here are a few:

• Personal asset protection against creditors
• Statutory limitations on personal liability
• Beneficial tax advantages
• Minimal startup requirements
• Low cost formation and annual fees
• Member/Owner Privacy
• Freedom of contract
• No state income tax
• The business operation does not have to actually be located in Delaware (with registered agent)
• Flexible structure
• Separate court for business matters

It may be difficult for an international company to hire staff from overseas, especially if there’s a language barrier.  There are employment agencies in the United States that match employers with employees.  In the U.S., employment agencies are also called recruiters, staffing agencies or head hunters.  Video conferencing has also made the interviewing process easier for employers who are in different locations than their interviewees.

When hiring employees in the United States, it’s important to remember that labor laws may be different than in other countries.  Anti-discrimination, immigration, disability and confidentiality laws exist.  When interviewing potential staff, there are certain questions that are illegal to ask.  Prospective employees should not be asked about the following topics:

• Age
• Race/ethnicity
• Sexual orientation
• Marital status
• Disability or other health conditions
• Their accent
• If they plan to have children
• About childcare

The most common contracts used in business are Nondisclosure, Non-compete, Non-circumvent and Service/Sales Agreements.  The purpose of a Nondisclosure Agreement is for both parties to not discuss any of their business dealings with a third party.  It’s also a promise not to steal proprietary information.

Non-compete Agreements are typically between employer and employee.  If an employer spends a lot of time and resources training or educating an employee regarding a particular function or skill, they may not want that employee to leave the company and work for another employer where they can share trade secrets.  Non-Compete Agreements typically have a time stipulation.  For example, an employer may require that an employee is prohibited from participating in any competing activity for a period of 5 years after termination of employment or while employed.

Non-Circumvent Agreements are to prevent one party from circumventing another party and doing business with a third party.  For example, a broker typically brings buyers and sellers together and is given a commission for doing so.  A Non-Circumvent Agreement would prohibit the buyer and seller from cutting the broker out and doing business with each other without offering the broker the commission that they’re due.

Service Agreements are made between a service provider and a client to outline the terms of the service being provided.  Such terms can include pricing, conditions, deadlines and other details pertaining to the scope of work involved.  Service Agreements help to clearly define the relationship between the client and service provider and prevents any disputes that may occur between the two parties. Sales Agreements are very similar except for a product is being sold rather than a service.

Entering the U.S. market may require a certain amount of research because the particular vertical market you’re in may be different in the U.S. than it is in your country.  Market research can be outsourced to a Research Analyst who can perform a number of tasks in an effort to collect data that is relevant to your business in a particular region.  Research analysts collect their data by conducting interviews, focus groups, surveys, observing actions, evaluating systems, field studies, social experiments, quantitative studies, etc.

Whether using a Research Analyst or conducting market research on your own, the most common data to research to thoroughly understand a particular market includes identifying market trends, feasibility, viability, forecasting revenue potential, determining consumer interest, identifying competition, analyzing supply and demand, determining need, etc.

In the United States, some industries are regulated by government agencies who have imposed specific rules or laws associated with providing certain services or manufacturing certain products.  Regulations can vary from region to region and from industry to industry.  Regulatory commissions issue licenses allowing individuals or companies to offer certain services or products.  Depending on the industry, these regulations can be monitored by the federal government, state, county or city/township.

Violating regulations can lead to various punishments including citations, infractions, fines, revocation of licenses or imprisonment.  Sometimes a regulatory agency may issue a warning to the offending company that is in violation of a regulation.  Such a warning may require the implementation of a formal corrective action plan to remedy the violation within a predefined period of time.  Some companies employ what’s known as a compliance officer to monitor the company’s regulatory compliance and ensure regulatory violations do not occur.

In its simplest form, logistics refers to the flow of products from their point of origin (such as a manufacturing facility or distribution warehouse) to its point of consumption (such as a retail store).  In other words, logistics involves the procurement, handling and transportation of goods in order to meet the needs of customers.  The management of how materials, resources, equipment and inventory are stored, transported and acquired is complex and requires an efficient system to keep costs and time to a minimum.

Some companies chose to outsource logistics.  Establishing a relationship with a reliable logistics partner can be the difference between success and failure.  Logistics companies may be better equipped at scheduling transportation, associated regulatory matters, fleet management, labor unions and everything else that comes with bringing products to market.

All businesses require a certain level of risk.  Minimizing exposure to risk is important.  There are several strategies to mitigating risk.  If you are exposed to regular and continuous risk, it’s good to work within a good risk to reward ratio.  In other words, make sure the advantage of taking the risk is greater than the risk itself.  It’s also important to identify opportunities to avoid risk altogether, whenever possible.  There also may be circumstances that would allow you to transfer risk to someone else.  Monitoring risk is also applicable at times because knowing when to cut your losses can reduce overexposing yourself to further risk.

Marketing a company in the United States could be drastically different than marketing a company in another country.  American’s as any other country and culture, think differently, they behave differently, they have different habits, different preferences, different needs, different routines, different styles and different interests than many other cultures around the world.  Instead of trying to understand all of these differences in order to properly engage in an effective marketing campaign, it might be more advantageous to work with a marketing agency within the U.S. who understands all of these differences. This can certainly be included in US market entry topics covered with a consultant.

Aspects of marketing that may be different in the U.S. versus other countries are the the branding message, level of formality, colors, images, etc.  Americans value quality, pricing , aesthetics and convenience.  Many Americans also own credit cards or may be receptive to financing arrangements.

The internet is the more efficient and cost effective way to get recognized in the U.S.  Americans love using the internet, especially the younger generations.  A company’s website is their best tool to breaking into the U.S. market so the English must be clear and the website must be easy to navigate.  American’s don’t like to be inconvenienced and if they can’t figure something out quickly, they are navigating their way off one website and onto another.

One big mistake that many international companies make is not having a quality website.  If a company’s website looks cheap or homemade, consumers will associate that company with a lack of quality.  Amazon controls about 55-60% of all e-commerce activity.  So for a customer to want  to place an order a company’s website rather than Amazon, they must be able to look at that website and see quality.  Otherwise, they won’t feel comfortable with the company’s products or shopping cart.

Many employers in the United States offer their employees health insurance as an incentive to stay with the company.  Health insurance is expensive and usually requires a monthly payment.  Some employers cover the entire monthly premium while other employers offer to pay a percentage, such as half.  This would require employees to contribute the other half of the monthly payment.  Through the Cafeteria Plan (section 125), the IRS allows these employee contributions to be deducted from their paycheck before taxes which is beneficial to the employee because their paycheck is being taxed on a lower number and they will be responsible for less taxes.

Employee health insurance in the U.S. usually covers major medical procedures and doctor visits.  Dental appointments are separate.  Some employers offer health insurance that covers medical as well as dental procedures while others only offer medical coverage.  Vision coverage can also be carved out of some plans.

The process in which products (and sometimes services) flow from the beginning stage to being purchased by the end user is known as Supply Chain Management.  Before products become a finished product, the process begins with raw materials.  These raw materials are sold to manufacturers by Suppliers.  After purchasing raw materials from Suppliers, Manufacturers turn them into a finished product that is retail ready.  Manufacturers rely on distributors/wholesalers to sell the products to retail stores who ultimately sell the products to consumers.  Logistic companies are used to transport products between the suppliers of raw materials to manufacturers and then to distributors and retailers.  This is the complete supply chain.

Companies offer employees various forms of compensation that is separate and apart from wages.  These forms of compensation are known as employee benefits or fringe benefits.  Examples of employee benefits are as follows:

• Paid vacation time
• Social security
• Perks and bonuses
• Allowances
• Health insurance
• 401(k)/retirement plan
• Child care
• Personal leave
• Employee discounts
• Achievement/Appreciation Awards
• Stock options
• Life insurance
• Employee assistance programs
• Work from home options
• Student loan/tuition assistance
• Gym membership
• Coffee/water
• Expense accounts
• Pensions
• Memberships/subscriptions
• Transportation

The benefits listed above are optional for employers to consider offering to employees.  There are also certain considerations that employees are entitled to in the United States.  These are not optional and are required to be provided by all U.S. employers.  Examples of employee entitlements are as follows:

• Maximum of 38-40 hour workweek
• Overtime for hours over 40 hours per week (1.5 times the regular wages)
• Safe, non-hostile work environment
• Anti-discrimination policies
• Right to unionize
• Maternity leave
• Jury duty
• Sick leave
• Community service leave
• Religious holidays
• Meal breaks
• Equal pay
• Family medical leave
• Workers compensation

Since the advent of the internet, companies have been trying to sell products online. The major benefit to an online store is that it’s available to a worldwide audience, rather than just the local residents of a brick-and-mortar store. The main difference between an e-commerce website and a non-ecommerce website the ability to process credit cards and shopping cart technology.  Driving traffic to an e-commerce website involves marketing strategies such as SEO, social media marketing, paid advertising, etc.

Once an e-commerce website has visitors, there are strategies that can increase the conversion rate.  Converting visitors into paying customers requires a certain level of psychology.  If a website is difficult to navigate or the pages load too slowly, prospective customers might lose patience and leave the site without placing an order.  Sometimes customers will add an item to their shopping cart but not place the order.  This is called shopping cart abandonment and it may indicate a client who is interested in placing the order but also uncertain for some reason.  These customers can be given incentives to actually follow through with the order.

Other e-commerce strategies to improve a website’s conversion rate could be offering a loyalty program, free shipping, good customer service, specials and deals, etc.  One of the most effective ways to ensure an e-commerce website is successful is to develop a good quality website design.  If product images are not clear, if the website design looks cheap if the user interface is difficult, your conversion rate will be low. This can in detail be covered with US market entry topics addressed by a consultant through consulting services.

Companies that seek financing for their expansion efforts into the U.S. market may encounter challenges but options are available through grants, loans, private investors, venture capital, etc.  Most private investors and VCs in the U.S. require business plans in English and should contain financial projections, a marketing plan and details on the execution of the expansion.

Before seeking any type of startup capital, it’s important to project your expenses.  Estimating startup costs should include the following:

• Payroll
• Rent
• Utilities
• Inventory (if applicable)
• Supplies
• Insurance
• Equipment (if applicable)
• Licenses/permits
• Marketing
• Miscellaneous

The United States has approximately 330 million residents and growing.  24% of the population is under the age of 18.  37% is between 18 and 44, 27% between 45 and 64, 12% over 65.  The average life expectancy is 77.3 years of age.  The infant mortality rate is 6 out of 1000.  The most densely populate U.S. cities in order are as follows:

1. New York
2. Los Angeles
3. Chicago
4. Dallas
5. Houston
6. Washington D.C.
7. Miami
8. Philadelphia
9. Atlanta
10. Boston

Race distribution in the United States is as follows:

11. White: 60%
12. Hispanic: 19%
13. Black: 13%
14. Asian: 6%
15. Native American 1%
16. Mixed: 1%

The United States allows employees to unionize.  For as inconvenient as this may be to employers, it’s the law.  When unions were first allowed to form, they were meant to protect employees from abusive employers.  However, over the years some unions have become somewhat corrupt.  They have a way of unnecessarily turning employees against their employers.  Some unions are benign in the sense that they don’t cause too many problems and are only interested in collecting dues from their members.

In accordance with U.S. law, it’s illegal to penalize employees for their interest in organizing a union.  The best course of action it to hire an attorney who is versed in labor law.  He/she will provide instructions on how to discourage your employees from organizing in a legal way.  Dealings with the union will be moderated by the National Labor Relations Board (NLRB) which is a U.S. government agency.

In order for the union to represent employees at a company, there must be a vote.  The NLRB will send someone to your office to administer the vote.  In the time leading up to the election, business owners have the opportunity to lobby against the union by presenting reasons to your employees as to why unionizing will not be beneficial to them.  The lawyer will assist in this process.

Employers are legally permitted to negotiate with employees in an effort to prevent the union from interfering. Benefits to employees not organizing a union would be that a portion of their paycheck has to go to union dues.  Even though employers are required to cooperate and negotiate with elected unions, the employer is not required to agree to any of the union’s terms.  If the union decides to strike, employees are required to go on strike without pay.  If an employee doesn’t agree to strike, the union can impose penalties to the employee.  The length of time of the strike is usually a test of endurance between who can hold out longer, employees without pay or the company without employees.

It’s important for employees to know that they can be replaced by nonunion, temporary employees while they are on strike.  This could be a disadvantage to the unionized employees as their positions may not be readily available to them if they decide to give up on the strike.

The United States is a vast territory with many different types of climates.  Depending on the type of business, the climate may have an impact on your business. Certain regions of the U.S. are susceptible to more extreme whether conditions.  For example, Florida and some east coast states experiences hurricanes during summer and autumn months.  Mid-west states occasionally encounter tornadoes and the west coast has been known to have earthquakes.  Northern states experience extreme cold temperatures and snow during the winter months.

The cost for electric and water can play a role in some businesses.  Companies that require refrigeration or manufacturing can be greatly effected if they chose to operate in a state where electricity is expensive, such as New York or Hawaii.  States with lower electric bills are Washington, Idaho and Nevada.  For farmers and other agricultural businesses, water expenses are a consideration.  States with the highest water bills are West Virginia, Connecticut and California.  States with the lowest water bills are Florida, Wisconsin and Vermont.

Sometimes high utility expenses are associated with outdated or inefficient fixtures and other equipment.  Updating this equipment can lead to a significant reduction in both electric and water bills.  All things considering, USA has lower utility bills than some other countries such as Germany or Spain.

Having equity in real estate can be very lucrative but purchasing property is cost prohibitive for some businesses wanting to do business in the U.S.  Renting is an option if purchasing property is less desirable.  The American real estate market fluctuates from time-to-time.  If you’re expanding into the U.S. and want to purchase real estate, it’s important to know the general condition of the real estate market at that time.  It could make the difference between overpaying for a property or getting a good deal.

Real estate agents and brokers can assist international companies in finding the best real estate options.  The most expensive real estate markets in the U.S. are states such as New York, New Jersey, Connecticut and California.  The least expensive expensive real estate markets in the U.S. are states such as Alaska, Virginia and New Mexico.

American’s tend to have certain design preferences when it comes to labels, packaging and websites.  The original designs an international company has in their country may not be accepted by U.S. consumers.  Some aspects to consider regarding this topic are as follows:

• Color psychology
• Typography
• Language
• Use of negative space
• Simplicity vs. Complexity

The best way to get an idea of American designs is to look at existing designs of American companies and see how they differ from that of designs in your country.  Take notice of these differences and consider them when creating the new designs for American use.  It may also be beneficial to utilize design professionals within the U.S. who are already familiar with the type of designs that are most accepted.  Don’t just assume that the same designs you have on your products, website or brochure will be equally as effective when you expand your business into the U.S. market.

Most businesses in the U.S. require some type of license and/or permit in order to legally operate.  Licenses and permits vary predicated on region and industry.  Some may be as simple as completing an application and paying a fee while others require adherence to extremely specific regulations.  Licenses and permits must be obtained by applying to the appropriate regulatory agency or licensing division.

A list of industries and corresponding federal government licensing divisions are as follows:

• Agriculture: U.S. Department of Agriculture
• Alcohol: Alcohol and Tobacco Tax and Trade Bureau
• Aviation: Federal Aviation Administration
• Firearms, ammunition, and explosives: Bureau of Alcohol, Tobacco, Firearms and Explosives
• Fish and wildlife: U.S. Fish and Wildlife Service
• Commercial fisheries: National Oceanic and Atmospheric Administration Fisheries Service
• Maritime transportation: Federal Maritime Commission
• Mining and drilling: Bureau of Safety and Environmental Enforcement
• Nuclear energy: U.S. Nuclear Regulatory Commission
• Radio and television broadcasting: Federal Communications Commission
• Transportation and logistics: U.S. Department of Transportation

If your industry isn’t on this list, your business may need a license or permit issued by a state, county or local municipality.

Similar to a supply chain, distribution channels are a string of companies that goods or services pass through on their way to the end user/consumer.  Distribution channels include suppliers, distributors, brokers, retailers, the internet, etc.  When a company assumes the role of multiple distribution channels, it’s known as vertical integration.  This is done for one company to capture the profits that would normally go to intermediaries. Learn more about US market entry topics through consulting services. Call a consultant today.

The United States is a large geographic region.  The difference between U.S. states is similar in distance between European countries.  Therefore, consumer preferences could vary based on their geographic location.  For example, homeowners in the Northeastern states may prefer darker colors when designing the interior of their homes while homeowners in the southeastern states my prefer brighter colors.  A person living in Florida may not be interested in purchasing a 4-wheel drive vehicle because it never snows there.

A very effective way for international companies to enter the U.S. market is to exhibit their products or services at trade shows.  Almost every industry has related trade shows, giving manufacturers, distributors, wholesalers, brands and service providers an opportunity to network with retailers, buyers and sometimes consumers.  These conferences and events make it easy to introduce products to a wide audience while also allowing companies to identify their competitors.  Most companies who exhibit at these trade shows leave with a treasure trove of leads and new contacts. US market entry topics such as trade shows can be assisted with by consultants.

In certain cases, it may make more sense for a company expanding into the U.S. to form a subsidiary rather than expanding their existing operation.  A subsidiary is a company owned or controlled by another company.  International companies may want to keep their U.S. operation legally separate from the original company for various reasons rather than just having a U.S. branch office.  A foreign subsidiary can also afford the parent company the opportunity to bring in additional investors to help facilitate the expansion.

The main reason why international companies attempt to penetrate the U.S. market is to increase their customer base and sales volume.  There are 2 main ways to penetrate the U.S. market: online and off line.

Once the localization process is complete and a company website is translated into English, a multi-pronged approach is necessary to get search engines to list the website in a way that it is visible to U.S. internet users.  An effective SEO campaign will kick start this process.  English keywords need to be indexed and ranked so that the website appears on the appropriate search engine result pages.  Americans like social media so this is another approach that should not be overlooked.  Content is king when it comes to websites and search marketing.  Blogs are the best instrument for educating U.S. consumers about your company’s mission and product efficacy.

An off line approach to entering the U.S. market involves multiple distribution channels.  Retail stores are not easy to get into.  Manufacturers reps, brokers and sales agents are instrumental in this process as they’ve already developed relationships with the various buyers and category managers at retail stores.  Distributors and wholesalers can also play a role in getting products into stores.  Some retailers prefer buying their inventory from distributors rather than directly from manufacturers.

For business owners who are not U.S. residents, a registered agent can allow them to file an LLC in a U.S. state.  A small fee for this service is usually paid to the registered agent by the member(s) of the LLC.  Registered agents can also be used for U.S. residents who want to form an LLC in a state that they don’t live in, such as Delaware, which is known to have more favorable options than LLCs formed in other U.S. states.

Also known as Workers’ Comp is an insurance offered by employers that provides wages, medical coverage and vocational rehabilitation to employees who are injured on the job.  When employees access worker’s compensation benefits, they give up their right to sue the company for their injuries.  In the U.S., it is required that employers offer this benefit.

An alternative to a company having their employees perform a particular task is outsourcing it to a third-party vendor.  There are many advantages to outsourcing certain functions but only one disadvantage.  Because the outsourced function is not performed onsite, the company loses a small amount of control.  However, this only becomes problematic if the third-party outsourcing agency is not trustworthy or proficient at the task they are hired to perform.

The benefits of outsourcing are mostly centered around cost efficiency and expertise.  Because the third-party outsourcing agency performs the functions for many other companies, they can usually take advantage of economies of scale which bring the cost down.  In other words, the outsourced agency may be able to perform the function better and cheaper than the company that hired them.  This allows the company to focus more on their core operations.

Because employees can often be difficult to manage, any opportunity to pass that difficulty onto an external source is favorable for many companies.  Let the outsourcing agency deal with employees coming in late, getting sick and causing problems.  Sometimes the outsourcing agency has more staff or more experience with certain functions that the hiring company and its employees may not have.  This is another major advantage to outsourcing.

Vendor relations is an important consideration when outsourcing because not all outsourcing agencies are good. It takes a certain amount of due diligence to research and seek out the best vendors for the function you want to outsource.  Search for reviews on the outsourcing agency and understand their terms of service so you don’t get locked into using a bad vendor for longer than you have to.  When vendors are good, they work out very well.  When they’re bad, it could be a nightmare and very disruptive to business.

Outsourcing certain functions to U.S. vendors could give an international company wanting to penetrate the U.S. market certain advantages.  U.S. vendors will already have a good understanding of how business is conducted in the U.S., taking a lot of pressure off the international company.  It could also eliminate the need for hiring staff. More can be discovered with consulting services and US market entry topics discussed with experts.

Partnerships don’t always have to be equity partnerships.  Referral partnerships and strategic alliances make sense in business because two companies working together in a synergistic manner can be mutually beneficial.  This concept works best when one company identifies another non-competing company in the same industry who has the same type of clients but offers different services as to avoid any conflicts of interest.  Companies like this can refer business to each other or if the referrals are unilateral, a profit share or commission structure can be agreed upon.

Partnerships and alliances can strengthen a company’s position in a particular market.  These types of cooperative relationships can be more profitable than the companies involved working separately.  For international companies wanting to do business in the United States, having U.S. partners could create opportunities that would otherwise be difficult or impossible otherwise. US market entry topics such as partnerships and alliances are and can be covered by consultants.

We can learn a lot from our competitors so it’s always a good idea to carefully observe what they’re doing.  To do so, first identify who your competitors are and then try to analyze their website and extract information about their products, services, pricing, marketing, etc.  Participate in a reconnaissance mission by subscribing to their newsletter and following their social media pages.  You can also create a Google Alert to be notified every time something appears anywhere on the internet in your competitors’ name.  This allows you to see if they are doing anything that your company isn’t doing.

When analyzing your competitors, if you identify things they’re doing right, you can learn from them.  If you identify that they’re doing something wrong, it can provide opportunities.  If your company is not an American business but you’re interested in entering the U.S. market, analyzing similarly situated businesses within the U.S. can give you an idea of how you can execute your expansion plans into the United States.

The United States government welcomes and encourages foreign direct investments.  In some cases, the government offers foreign companies incentives to do business in the U.S.  There are also incentives available on the state and local levels as well.  These incentives can come in the following forms:

• Grants and loans
• Reduced, deferred or exempted taxes
• Preferential treatment
• Reduced regulatory requirements
• Property tax abatements

Incentive programs for foreign direct investments can be found here:

• Federal Incentives
• State Incentives

At this time, the federal minimum wage for covered nonexempt employees is $7.25 per hour.  This means that employers are not permitted to pay their employees less than this hourly rate.  Some states provide greater employee protection.  Employers must comply with both federal and their respective state laws.

Tipped employees (such as restaurant servers and bartenders) who receive more than $30 per month in gratuities are viewed differently.  Employers can pay these employees a minimum of $2.13 per hour in direct wages in addition to their tips. If the employees’ tips combined with the $2.13 per hour tip credit provision is less the minimum hourly wage, the employer must make up the difference.

Interns are voluntarily unpaid employees who work for free in exchange for work experience.

Generally speaking, children under the age of 14 cannot be employed by U.S. employers outside of the agricultural industry.  Some exceptions are actors, performers, babysitters and newspaper delivery jobs.  Children of the age of 16 and older can be employed for unlimited hours in any position other than those considered to be hazardous by the U.S. government (such as mining, excavating, firefighting, etc.)  Employees of the age of 18 and older are no longer protected under this provision.  Children of any age are permitted to work for businesses entirely owned by their parents. More about this and other information is available with US market entry topics covered by consultants.

The United States has clearly defined laws pertaining to the collection, storage and dissemination of sensitive and private information.  Unfortunately, there isn’t any one law that governs data privacy in the U.S.  Notable information privacy laws are as follows:

• COPPA: The Children’s Online Privacy Protection Act governs the collection of information of minors.
• HIPAA: The Health Insurance Portability and Accountability Act governs the protection of health information.
• GLBA: The Gramm Leach Bliley Act governs personal information collected by banks and other financial institutions.
• FCRA: The Fair Credit Reporting Act regulates the collection and use of credit information.
• Communications Act of 1934: Data protection for cable operators and satellite carriers.
• Computer Fraud and Abuse Act: Prohibits the unauthorized access of computers.
• Video Privacy Protection Act: Protects privacy for video streaming.
• Federal Trade Commission Act: Prohibits unfair or deceptive acts or practices.
• Fair Credit Reporting Act: Regulates the collection and use of data in consumer report.

Some individual states also have separate data privacy laws.

Many business owners exert great efforts on the development of strategies that lead to the generation of more revenue.  However, altering operational systems in a way that allows a company to reduce expenses is equally as important and can contribute to an increase in profits.  Ways of achieving more efficient operating procedures are as follows:

• Benchmark: Create standards or points of reference to gauge outcomes.
• Reduce Waste: Identify areas of waste and develop protocol to reduce or eliminate overspending or overuse.
• Monitor Progress: Analyze reports and track results to develop areas of improvement.
• Automate: Whenever possible, minimize manual operations and work towards automation.
• Utilize Technology: Take advantage of computers, software, the internet and equipment whenever possible.
• Scrutinize Payroll: Salaries are usually the largest expense for any company. Make sure employees aren’t being overpaid or working when they shouldn’t be.
• Manage Supplies: Employees have a tendency to waste and steal supplies.
• Analyze Protocol: Every company has different systems. Critique the process and devise more efficient ways of executing business functions.

There are many factors that contribute to market trends in the United States and around the world, such as interest rates, politics, natural disasters, consumer preference, industrial specifications, technological advances, supply and demand, the zeitgeist, etc.  Every industry has its ups and downs, some of which can be anticipated while others are unforeseeable.

Amid the vast amount of misinformation and disinformation available on the internet, the best way to spot these trends is to utilize a variety of metrics and indicators.  The closer you look, the more you will identify gaps, opportunities and needs that exceed the supply.  Don’t forget to recognize patterns.  Always remember that history often repeats itself.  What has happened in the past may very well happen again at some point in the future.

Another way to be a trend spotter is to look at what the big companies are doing and emulate their systems.  These big companies spend millions of dollars on research that you can benefit from if you look carefully enough.  Subscribe to newsletters, read blogs, use social media, talk to people, ask questions and take advantage of online tools that are available to you. US market entry topics such as market trends are assisted with by consultants.