Why Doing Business in the United States of America

By From www.Gasgoo.com| Feb 12 2007
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Business Expansion beyond the borders of one's home country is probably on every company's long term to-do list. The United States of America has always been on the top priority list for foreign markets to do business in. What are the motivational factors for doing business in the United States? In this article, we highlight the Top 7 Factors why businesses typically address the U.S. Market.
  
Why doing business in the United States?

There is no question, that there are good reasons to get your business physically established in the United States – but what are the major points? A motivation to establish an operation of that dimension is typically derived from a variety of factors. Unless you are operating in a pure non-profit organization, the major motivation for every business should be to generate, grow and maintain revenues and profits. Everything else is more or less directly derived from those objectives. When it comes to establishing an US operation, some reason to get started in this market could be any of the Top 7 Motivational factors below

Top 7 Motivational Factors for doing Business in the United States


§ Motivational Factor #1 - Visibility in the US market: Many companies may have had past success by simply exporting some of their products to the United States. However, clients in the United States are typically very America-centric. That does not mean that they are refusing to work with foreigners, but it is expected that companies doing business in the United States have an on-site location with an American address. Often a non-US address is equivalent with being non-existent.

§ Motivational Factor #2 - Addressing the biggest domestic market in the world:There are no doubts that the United States is offering huge market potentials. Hundreds or even thousands of companies are selling products into the same markets your products could fit in. Would you want to leave that field for your competition?

§ Motivational Factor #3 - Improving your international reputation: Business is global and all writings on the wall are saying that business is getting more global every single day. When competing in the international market place it is highly beneficial to be able to outline an international strategy. Think about typical customers: they may have locations – or even their headquarters – in the United States. It could be some serious hurdle in projects if you are not having any local representation in the United States.

§ Motivational Factor #4 - Balancing profits and risks: How will your home country or continent will develop over the next decade(s)? What are the long-term perspectives of your country in comparison to the United States? Nobody can predict future developments exactly, but some basic thoughts with unbiased information about both countries should give some ideas in which directions each country may develop.

§ Motivational Factor #5 - Improving economics of scale: An additional business unit in the United States can improve the way given resources are utilized. The new operation can for example deliver important first-hand data about new trends in the United States. A large portion of marketing materials and presentations can be used from one another. The overall leveraging of resources is typically greater with a business operation in a different country. Setting up an operation in another country is never equivalent with hiring some extra persons or create a new business unit in the respective home country. Its impacts are far greater and the potential benefits too.

§ Motivational Factor #6 - Be closer to the "market makers": America is often considered as a market-maker in some key industries. A lot of leading developments are having their origin in America and influence the markets vastly. Even with the Internet where information and developments could spread worldwide within a couple of seconds; being at the source is always an advantage.

§ Motivational Factor #7 - More positive environment to do business in: America is the land of the entrepreneurs. Success in business is highly appreciated and socially awarded whereas the same success in other countries is often getting punished by higher taxes and endless debates about "social fairness". There is far less government control and restrictions in the United States as in other countries. Of course there are a large number of regulations, bureaucracy and serious tendencies to market regulations. Labor Unions for example are having important influences in various states. Still, business and personal taxation are low; redistribution of income is not hurting as bad as in other countries and paying into (as well as benefiting from) socialized systems is far more a question of choice than in any other county.

To be continued

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