Doing Business in the U.S. (infographic)
Do we really need to introduce the USA? From independence to becoming the global superpower we know today, the country has been a major cultural and political influence setting the “American Dream” as a goal in the minds of millions around the world. The USA’s influence also exerts itself through its innovations and exports. Birthplace of most international giant companies, the country’s growth and capacity to amaze is never fading.
3rd biggest country in the world, the States has a population of more than 326 millions. The GPD per capita reaches $59,500, rising only at a rate of 2.2%. But inflation and unemployment are low at 2.1% and 4.4% respectively. America’s growth is driven by IT Systems and Services, Health and Social Services, Construction, Building Equipment and Civil Engineering. Surprisingly, only 76.2% of Americans are internet users but 77% own smartphones, and social network users barely reaches 69% of the total population.
We can’t say that the Net Inflows of Foreign Direct Investment have been stable over the years. But apart from a drop after the 2008 financial crisis, the imports of Goods and Services have been exponentially rising.
The World Bank ranks USA’s Easy of Doing Business in the top 10, at the 6th place over 190 countries. As you can see in the infographic, the States wins points everywhere but specifically thanks to the country ranking 3rd for resolving insolvency. An advantage of doing business in the US, is that records on land ownership are part of public record, which is only the case in 27 out of 190 economies. But difficulties arise when we start looking at the differences between states, for example, the cost of enforcing a contract can double from one state to another. Unfortunately, minority investors are less protected because of low shareholder’s rights, ownership and control, and lower corporate transparency.
When Doing business in the States there are specific points to keep in mind. Thanks to our local partner, G2 Experience, you can find below some Do’s and Don’ts of doing business in the USA.
Open with a little small talk
Keep communications short and bite-sized
Begin with your conclusion and explain afterwards
Show enthusiasm and passion
Follow-up/respond within 48 hours
Don’t worry about your English
Don’t disappear! Keep in touch even if no news to share
Don’t show too much humility (it’s OK to be openly proud)
Don’t compliment people on their appearance
The fragmented aspect of the United States can be intimidating when looking to develop there. Sophie Lechner, founder and CEO of G2 Experience, a company that accelerates the global expansion of companies by helping them successfully enter new markets, gave us very interesting insights on targeting a niche and expanding from there:
“The U.S. population is large but don’t approach it as one single big market. There are big differences across states, regions and cities, and between demographics.
Identify a narrow segment (think “Minimum Viable Audience”) based on a specific pain point or interest. Go beyond basic segmentation to find a group with a unique need, often over-looked and under-served.
Understand that small audience in great depth: their desires, frustrations, ideals. Your in depth customer knowledge will allow you to delight them, and gain reputation and trust as a platform for growth.
Address what drives them with a tailored, laser-focused and easy to visualize message. To your niche audience, that message will be compelling, making you the expert with the differentiated offering.”