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Corporate structure for exports to the USA: possibilities and advice

Posted by SI-LOG on 08/05/2019
SI-LOG

Corporate structure for exports to the USA: possibilities and advice

SI-LOG 08/05/2019 pubblicato in english, internationalization


Having underlined the opportunities these markets represent, it’s also important to understand the factors that dominate any expansion strategies to newer geographies. We have already talked at length about the considerable advantages that the process of corporate internationalization can bring.

We must specify, however, that the success of the expansion of one's business can only take place if a correct strategy is planned. Also, while evaluating an internationalization opportunity, it’s also important to bear in mind that investments with strong capital create winning combination for realising international potential.

Last and the most critical ingredient for a successful expansion is the first partner and this can actually prove to be a deal breaker. Hence, it becomes imperative to ensure that the first partner shares traits similar to that of the founding team, and, at the same time, needs to be local enough to devise smart on-ground strategies.

In order to enter a foreign market, the entrepreneur will have to take into account two factors: the first concerns the choice of interlocutors to turn to in order to open a company, the second concerns the methods of business expansion.

In this article we want to focus on the topic of the different opportunities that the entrepreneur may have to enter a foreign market.

 

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Corporate structure in the USA: the possibilities

There are mainly three ways to internationalize your company in the United States:

 Sales through export;

  • Creation of a direct presence on the market;
  • Online sales through e-commerce.

Often the entrepreneur, still inexperienced in American bureaucracy, finds himself having to decide which of the three options is more advantageous. Is it better to open a branch in a foreign country or look for an efficient distribution channel to be able to transport your products? Here are some tips:

Be independent

The creation of an independent structure seems to be the best way to secure entry into the United States.

Although most Italian entrepreneurs are convinced that it is not entirely necessary to open a company, US laws assert the opposite.

Starting up an “American company” has in fact become one of the prerequisites for overcoming barriers to entry into the US market. Those interested in opening a shop or restaurant will have to find, therefore, the right resources to be able to open abroad. Are you thinking of opening a branch in the US? Talk with our Key Account Manager.

Believe in your product

The establishment of a company in another country does not only have economic advantages: the cultural side of this choice must also be taken into consideration. It’s a sales maxim that believing in the value of your product or service is essential. Logic dictates you should believe in what you sell. When your prospects and customers trust you, they are more likely to buy from you. In fact, when negotiating, no American manager or investor will take you too seriously if you say you are interested in the American market, but do not want to set up an actual company.

The American businessman has a highly pragmatic and concrete approach, so on the other hand he will expect the same modus operandi. It appeals to business people because they associate it with being practical and getting things done, which is a goal of business. Be confident of your choices and carry on with seriousness, also by trusting a partner who can advise you on the best moves!

Find a trusted and knowledgeable partner

In spite of all the benefits of internationalization, going global is not easy. Timing and who you choose as strategic partners is crucial. In order to interact with large distributors, small foreign entrepreneurs are required to activate an American bank account, explicitly requesting the incorporation of a company in order to work together.

For this reason, we recommend finding collaborators and interlocutors who can guide you through all the red tape and paperwork.  A partner who will help you find those solutions which best suit your need and help you access the American market, all round. When the moment is right to make the jump, get in touch with us if you think the US might be your target market! Would you like to learn more? Read "Interacting with American culture: the SI-Log Network solution".

We have seen how the starting up of a new company is not a trivial thing especially for an entrepreneur who has already spent time and resources in Italy. With these little tips we encourage companies to believe in their potential and entrepreneurs to be ambitious: following these steps, internationalization in the United States will not be a concern! Read about just a few of the many successful internationalizations in the United States by clicking on the image below.

 

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