Unfortunately too many European companies enter the US domestic market relying solely on their own in-house resources (with the idea to save money) and count heavily on a high percentage of DIY. They forget that DIY is a hobby, not a profession.

It is important to surround oneself with the expertise one does not possess – it is important ‘to know what you do not know’ and not to remain blissfully ignorant. For immigration issues use an Immigration Lawyer who can advise on the right choices between all the possible E’s, L’s, P’s, R’s, H-1B’s,… . For tax issues get a CPA on board who knows both the US and European legislation, and can help you steer clear from issues such as double taxation. For recruitment use a partner who understands the requirements of the European parent and the needs of the American candidate. Outsource when possible it will accelerate growth.

The same logic applies to the business development efforts, the concept of “I will learn as I go along” is flawed – you will learn all right but your potential partner or client will have little or no patience for your learning at their expense. They will take their business somewhere else and will not come back. Although it might be commendable to want to try it on your own – after all it is part of the entrepreneurial DNA – but it is bad business practice.

Focus on your strengths – complement your weaknesses.

Unfortunately I ignore who said it first, but the proverb “fail to plan then plan to fail” is particularly appropriate in the case of a European business starting or growing its presence in the US.

Starting or significantly expanding one’s presence on the US market is not a tactical but a strategic endeavor that requires ample preparation. It also means that whatever worked in Europe might (will probably not) work in the domestic market place. Take time to check what part of the “magic marketing formula” can be transposed and what needs to be adapted, build a detailed timeline and adhere to it, assign a project manager who understands the pitfalls and give him/her the decision power to make the alterations for success. And once you move from planning into execution stick to the plan, review and adjust continuously but only change at preset intervals.

When the plan has been based on a thorough Market Feasibility Study these adjustments will never be strategic but tactical, swift and quick in nature. The secret sauce to start-up success.

6 keys for European companies to be successful on the US Market

Entering the U.S. market is a strategic Business decision that requires preparation, planning and excellent execution to achieve the desired success. It is critical that all the stakeholders in this Business Development venture are in sync and are 100% committed to its outcome.

Over the years having worked with a multitude of Small and Medium Enterprises (SMEs) it is clear that these 6 keys are the same for every foreign investment into the US, but more particular to European based companies who have a tendency to underestimate their importance. COGNEGY has seen the good, the bad and the ugly, but also we have seen many ventures succeed mainly because they included all of the following 6 key contributing factors:

1. Full awareness of the differences between Europe and the US
2. Launched the project after meticulous preparation
3. Considered the project as Business Strategic and provided Executive backing
4. Backed the venture with sufficient funds for success
5. Defined a great Value Proposition for the market
6. Brought the right partners on board early

We will discuss these factors individually in our upcoming blogs.