Taking your startup to USA Starting a business
Taking your start-up to USA Starting a business is a tough job. Starting a business abroad is even harder. Your business conducted on foreign soil means additional regulations, laws, and taxes. Your business extension means a new market, new opportunities and it Dr. Alex Kosik means new responsibilities. President, GRAVi. TONUS, Inc.
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Taking your start up to U. S. Market Pros: Foreign markets is a global village out there, with marketplaces outside Russian borders beckoning as never before, even to small and startup companies, without a burden of debts and revolutionary innovations. Technologies such as the Internet and cheap telecommunications truly have shrunk the world to a point where it’s much easier for a entrepreneurs to get their arms around it. Cons: But opportunity isn’t everything when it comes to entering foreign markets. It remains a big step for most companies. Going abroad will require a significant investment of time and money, and requires lots of patience before you see success. So, what do I do? : One answer here – brainstorm. There should be a strong business rationale for your decision to export your products, market your services on another continent or even set up an operation across the sea. Here are factors to consider as you strategize your leap abroad:
Step 1: Get a good feeling of your competition Identify competing solutions. Your competition will indicate whether your field is already saturated or your niche company has room for growth. While the market for inexpensive payment terminals might be too crowded in Russia, such a business might be received well in the USA, where it’s almost non existent. Document competitor strengths. If IBM has been in business for 50 years, and you want to set up a new office for your new quantum computer in USA, assess why this old company is so successful. Note its marketing strategy, distributors and materials suppliers to start with. Document competitor prices. Calculate your business's cost of production and match it to the retail value in the country. This will give your profit margin if the retail value is less than production cost. If your costs are higher, you will need to find cheaper materials, lower wages or change other business decisions to make a profit and be competitive.
Step 2: Get some research on a target market done Resources. Assess which states possess necessary resources for your business. Identify each step in your supply chain and match which states best satisfy those needs. For example, target states with the lowest wages like Oklahoma for manufacturing, or keep yours in Russia. Select states with the highest market to sell your products first. Research government regulations. Record tax rates of operating a business. Japan has the worlds highest corporate tax rate, the U. S. has the second-highest rate, while Ireland, Hungary and Iceland have some of the lowest corporate tax, but insane personal income taxation. The tax rate will affect your company's bottom line and yours net worth. Note critical economic conditions. Even if your Russian company promises the lowest cost for materials or wages, as long as you keep your warehouse in a place where it might succumb to a ‘Maski-show’ coup, the lower cost might not be worth the instability. Choose locations with a stable political landscape.
Step 3: Think twice about your business model Coordinate your activities. Set up communication methods between your old company and a new one abroad. This is especially important if your business extends between multiple countries. Delegate head contacts in each group and request daily feedback to better oversee operations. Strategize your sales and marketing. Assess tastes and preferences of consumers in each market. Though the Russians like heavy mustard, Americans may not like this traditional flavors and end up in ER after tasting one. Pay a visit to the country beforehand for the best picture of how consumers make purchases. Select business partners. Hire a resident of the country to be your partner. He/She will know more about the language, culture and laws than you. At the very least, hire a consultant to assist you while you become comfortable with your new business abroad.
Last minute Questions before you take a leap a. Why are you considering expanding your business abroad? b. Are you ready for the complexities of a foreign market? c. Do you have the business down pat? d. Are you ready for the extra costs? Bottom Line: Parachuting into a foreign market can add growth, profits and excitement to your startup. Just be sure your business is prepared for the extra volume, additional costs and intensity of effort that this will involve and you will survive and possibly thrive.
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