Doing business in the US
The US is the largest economy in the world and therefore offers
substantial opportunities for your business to expand its
activities and profitability. This guide outlines how to do
business in the US by looking at:
- Why you should look at the US
- Risks
- Getting started
- Regulations
Why you should look at the US
It is the UK's largest trading partner and a key import and
export market. English is the first language there and it has a
sizeable population interested in the range of products and
services popular in the UK. US businesses are also organised in a
similar way to those in the UK. It has a highly skilled workforce
and a work-centric culture. It has excellent transportation links
and communications. Big trading sectors for UK companies include
IT, biochemicals, pharmaceuticals, engineering and
entertainment.
- English is the first language and product popularity often
overlaps with UK
- Business is organised in a similar way and has a work-centric
culture
- Excellent transport and comms
- Good for IT, biochemicals, pharmaceuticals, engineering,
entertainment
Risks
It is a highly competitive market and you will be faced with a
host of local US based suppliers to beat on both price and customer
service which is more highly valued in the US than in the UK. Each
state has different characteristics and business cultures which you
have to understand and adapt to. The population is a melting pot of
different ethnic and social backgrounds which you will have to
market and sell to. You also have to price your products in US
dollars so there is a risk if the exchange rate changes. If you
open an office in the US you may also become liable for US
taxation.
- The US is a very competitive market and you have to understand
its business and consumer culture thoroughly
Getting started
The US is a vast country with a diverse multi-ethnic population.
One common mistake businesses make is to try and take on the whole
market in one go. Instead you should find the most promising region
or state for your product/service. So if you are in manufacturing
then look at the mid-West and if you are involved in IT then look
at California. It's a good idea to start networking at US trade
fairs or after organising a trade visit. Talk to UK Trade
& Investment who can offer a range of support and will put
you in touch with your local trade advisor. Visit their section on
trading in the US for a wealth of
practical information.
- US Trade Fairs are a good place to network and meet
contacts
Regulations
The US has a very litigious culture. You need to be aware of any
US regulations or standards your product needs to comply with such
as product liability. Get US legal advice on this.
Certain products and industries have separate regulations such as
food & drugs and utilities.
States take federal standards on regulations and add more of their
own. Corporate/contract law is set by the States.
- Get US legal advice on the different regulations and standards
that apply there
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