Companies that are thriving in their own countries often consider branching out globally, with many eyes firmly on making a success of their business in the United States. They believe that if they can become successful in the U.S., they will have the proverbial golden ticket. And considering the fact that the U.S. enjoys continued growth year on year, it is no surprise that so many companies want to make it big here. Unfortunately, many of these companies just do not enjoy the same success that they do in their own countries. Why is this the case?
The Problems Facing Foreign Companies in the U.S.
Those businesses that are used to dealing with the laws in their own country often do not realize that the United States consists of more than just one market. With each state having its own laws, it is important to understand this before you try to enter the American market. Depending on the business, there may be strict rules that apply, which could prevent foreign companies operating without a local partner.
A failure to understand the buying habits of locals is another reason many foreign companies fail in America. It is worth finding out what locals value and then placing importance on this rather than trying to focus on the values of consumers in another country and expecting the same results.
Competition is also a major factor when trying to do business in America. Having one of the most competitive markets in the world, it is easy for new products or services to get lost.
It is important to also understand tax laws and regulations both at federal and state level. You should also be aware of the labor laws in the state in which you are setting up your business. According to the expert attorneys at immigration law firm Graham Adair, the laws relating to non-U.S. employees are extremely complicated, and a failure to abide by them could have huge consequences for the employer.
How to Be Successful in the United States
Before even considering setting up business in the United States or trying to branch out there, it is vital that you learn as much as possible about the business market as well as the difference in buying habits between U.S. shoppers and those in your own country.
You need to make sure that you have a handle on the various tax laws and regulations at every level. The IRS is extremely strict when it comes to enforcing tax laws, and failure to comply could mean disastrous consequences.
Provided you know and understand how things work in America, you are more likely to have success. You should remember that things may be hugely different here to the way they are in your home country. For example, most workers in the U.S. do their job and nothing more. It is just how things are done here, while in Europe workers are more likely to go above and beyond their job description in order to get the job done.
The rigid rules of conduct in most American industries are there to be adhered to and it is not usually acceptable to try to bend these rules. If you are expected to place orders from a supplier for the following year by a set date, placing the order late may mean your order does not get filled.
It is advisable to work within the rules and laws, regardless of whether you think they make sense or not. Even if you believe something can be done differently with better results, it is much easier to follow the rules.