INFOGRAPHIC : DOING BUSINESS IN THE USA
Birthplace of international tech giants such as Apple, Amazon, IBM and Microsoft, the United States is recognized for its culture of innovation and entrepreneurship. With policies and programs that support the development of talent and the creation of small and medium enterprises, the country has been the leader in unicorn startups births globally.
Fourth largest country in the world, the United States has a population of 325,7 million people (2017), which makes the country the third most populous in the world after China and India. The Gross Domestic Product (GPD) per capita reached $59,495 in 2017, the eight biggest in the world, rising at a rate of 2.2%. Inflation and unemployment are at 2.1% and 4.4% respectively.
America’s growth is driven by the sectors of IT Systems and Services, Health and Social Services, Construction, Building Equipment and Civil Engineering. Three quarters of Americans are internet users and 77% own smartphones. Social network users represent 69% of the total population.
Net Inflows of Foreign Direct Investment haven’t 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 shown in the infographic, the United States ranks 3rd for resolving insolvency.
An advantage of doing business in the USA 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. Our local partner, G2 Experience, helped us list some Do’s and Don’ts of doing business in the US:
- Open conversations with small talk
- Keep communication 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 interrupt
- Don’t compliment people on their appearance
Sophie Lechner, founder and CEO of G2 Experience, a company that accelerates global expansion of companies, by helping them successfully enter new markets, give us 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 forgrowth.
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.”