With the presidency of Donald Trump from 2016 to 2020, the United States of America is living a period of growing nationalism and isolationism.
With Democrat Joe Biden’s victory in the recent presidential elections, the country’s internal policies are expected to undergo substantial changes that will bring about fluctuations to economic markets.
The expected political trend that lies ahead, provides for favorable conditions for job creation, investments in national industry, high technological development, and of course globalization and the introduction of players in the market.
According to Oxxford Information Technology, an information services company in Hagaman, New York, nearly two million American companies closed in 2020, mostly small businesses. This opens the door to a new wave of innovation and entrepreneurship since a market full of ideas needs companies to develop them.
The USA is one of the destinations most sought after by Portuguese companies with international growth strategies because of its large and thriving economy.
The strategic decision to invest in the US market should begin by considering the geographical location of where we want to invest. The USA is not one market, but 50 markets, each with its own rules. When choosing a location, you should look for a state that has favorable conditions for your business, namely taxes, rules, proximity to strategic customers, access to qualified labor, and business incentives. The size of the country requires frequent travel and therefore a location close to an airport with good domestic connections brings many advantages. At an early stage where there is no such thing as enough support, choose a location that minimizes the impact of timezone and distance with the parent company.
In addition to defining the location during the process of international business expansion, one should be aware that entering the US market requires a sizeable investment primarily due to the high cost of labor and services. It is important to manage expectations throughout the process since market penetration can be lengthy.
In the advent of a new administration there is some expectation that company expansions to the US will become easier however, it does not invalidate the need to keep these recommendations in mind.
It’s All about the people…
It is the people who make an organization, and in the process of expanding your business, it is crucial to put together a team of individuals that are fully aligned with the business growth strategy in the region and well-versed in the market offerings to be presented. A dynamic team staffed with local hires is fundamental in order to understand the US business culture, identify key industry players and enter into strategic relationships.
With the “reopening” of the American market to the world, a door is again open for international companies and talent.
An excellent ally for international expansion to the US is the Portuguese Chamber of Commerce supporting Portuguese companies through their local network and by organizing regular networking events.
The process of entering the US market is not easy, but with preparation, a dynamic team and focused market offerings, the probability of success increases significantly.
InnoWave, a technology services company based in Lisbon, began its expansion to the land of “Uncle Sam” in 2018, but has been developing solutions for North American customers from Portugal since 2012. On this journey, the company has faced difficulties and made mistakes that it has been able to overcome and use to learn and improve.
This article reflects the vision of a Portuguese professional who heads up the American subsidiary, closely following the reality show episodes taking place during President Trump’s time in office, hoping to provide some insight that will help those that are looking to embark on their “American dream”. The USA is and will continue to be the land of opportunities.
Marco Carreira, Managing Director of North America at InnoWave
Source : Dinheiro Vivo