Should I use advisors when entering the US market?
Entering the US market is tough, even for bigger companies. This SW development company in MedTech makes 10M€ revenue and has several major European corporates as customers. To get business started in the US they needed to find well networked advisors who could make introductions to potential clients. We found them 7 candidates out of which they selected two who become members of their advisory board.
It can be beneficial to use advisors when entering the US market, as they can provide guidance and expertise on navigating the local business environment. Advisors can help with issues such as market research, business strategy, financial planning, and regulatory compliance. They can also help connect you with relevant industry contacts and resources.
There are several challenges that companies may face when entering the US market, including:
- Competition: The US market is highly competitive, with many established companies and new entrants vying for market share.
- Regulatory environment: The US has a complex regulatory environment, and companies may need to navigate various rules and regulations at the federal, state, and local levels.
- Intellectual property: Protecting intellectual property (IP) is important in the US, and companies may need to secure patents, trademarks, and copyrights to protect their products and ideas.
- Market research: Conducting market research and understanding consumer preferences and behavior is critical for success in the US market. Companies may need to invest in market research to understand their target market and develop effective marketing strategies.
- Cultural differences: The US is a diverse market, and companies may need to consider cultural differences when entering the market. This may include adapting products and marketing strategies to meet the needs and preferences of different cultural groups.
- Distribution channels: Establishing effective distribution channels is important for companies looking to enter the US market. This may involve finding the right distributors, wholesalers, or retailers to sell their products.
- Financing: Companies entering the US market may need to secure financing to cover the costs of entering the market, such as market research, product development, marketing, and distribution.
Advisors may well help with all these challenges. A good strategy is to get started with an advisor that has broad knowledge on market entry. This advisor is typically very helpfull already in the planning phase. Once market entry has started, company typically notices unexpected challenges or issues that need to be solved. In case this issue is urgent, using a consultant may be the best option - although likely very expensive. If it is estimated that need for skills within this domain are more long term, advisor could be better alternative.
Overall using advisors to enter the US market has several benefits and greatly increases the likelihood of success.
- What things should be considered when using advisors to support growth and expansion to global markets?
- Is it a good idea to search for foreign advisors or board members?
- How to use advisors on global market entry?
- How to utilize advisors when entering a new field of business?
- How to use advisors for growing the company?
- When is the right time to start using advisors or external board members?
- What are the benefits of using advisors or external board members?