U.S. Market Entry Guide
Welcome to the SACC-USA U.S. market entry guide! The U.S. market entry guide is a brief collection of important things to think about, as well as answers to frequently asked questions, when exporting to the U.S. This includes a review of relevant laws and regulations, how to raise capital, how to find your micro market and distribution/logistics issues. This guide will help prepare for success in your business venture. We know that local knowledge and personal contacts many times can be the difference between success or failure for a new-comer to the U.S. market. By being a member of SACC-USA you will be connected to a grass-root network of widespread experts on the areas below.
1. Finding your micro market
The United States is the world’s biggest market. If you choose to restrict yourself to New York, Chicago, California or Florida, you may be missing out on better opportunities elsewhere in the country, for example in Boston, Minneapolis, Texas or North Carolina. It is crucial that you first identify the type of customer you hope to sell to, find the areas where they are most densely clustered, and how those customers like to buy their products. Just as important is to find an area with a suitable labor pool. The city you would most like to export to, or be based in, is not always the city that would be the most profitable. Finally, different states have very different regulations and tax levels, and many might be able to work with a custom made solution for your company. The regional SACC chambers around the U.S. usually work closely with state governance and state officials and can provide more information about the state, and introduce you when you find your preferred state or city.
2. How to raise capital for your investment
The amount of money required for a successful investment will inevitably vary depending on what sector your company is interested in. However, as with much else in life, what you pay for is what you receive. An average company should at least expect to pay the equivalent of an employee’s full-year salary. It is better to invest the money needed to ensure that your business will succeed than to use only a minimal amount and have the venture fail. Capital can be raised through a number of sources, including private investors, venture capitalists and loans. Know that an average company can expect to start seeing a revenue flow 6 to 12 months after investment, and a real profit within than 18 months.
More about raising capital on Currents >>>
3. Developing a strategic market-entry plan
Exporting to the United States requires a serious amount of short, medium and long-term planning and investment. As Patrick Dine, CEO of the market entry consulting company PSD Global, commented “The US market is very competitive and large. To succeed here, homework is important.” Do not hesitate to utilize the services of a consultant – in fact, it is probably wise to do so. Having the assistance of a company or individual who knows the market and regulations of the country is invaluable.
I know my market, I have raised money, and I have a detailed plan! Now what?
4. Understanding customs, tariffs and laws on foreign investment
It is extremely important for any company interested in investing to conduct extensive research on the rules and regulations regarding the specific product they are hoping to produce or sell. The government has placed regulations and restrictions on the sale of a fairly large number of items. This is another area where obtaining outside help from an expert would be of great use. However, as an EU member, Sweden is not subject to some U.S. tariffs and regulations that other countries are.
Read more about the Made in America Standard >>>
Read more about these laws at the Customs and Border Patrol website! >>>
5. Intellectual Property Rights, Contracts and Agreements
When you are selling in America, you must ensure that your company does not unknowingly sell a product that is already protected by a U.S. patent. Intellectual property is different than most other forms of private property. It is more difficult to prove, and not as easy to define. Whoever first conceived of a product and first filed for the patent is, by law, the legal owner of the “intellectual property” of that product. It is important that you ensure you have all of the proper paperwork in place before you set up shop in the U.S. It is also wise to sign contracts with your employees laying out your own company’s position on intellectual property within the organization.
Read more about IP, contracts and agreements in the U.S. >>> or here >>>
6. Join SACC-USA
We help our company members to get in contact with the right experts, partners, suppliers, officials, and customers through our network of 19 regional chambers. The SACC network work with programs and trade missions for exporting companies that will support your talent exchange overseas, help you set up meetings and events, get visibility in the U.S. and more. We also connect you with other Swedish exporters who all have valuable lessons and connections to share.
Are you Export Ready? Print the checklist here >>>
Contact SACC-USA through memberservices@sacc-usa.org for more information
