7 tips for an entrepreneur entering the US market

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

You cannot do without sales skills, excellent knowledge of English and a developed customer base. And think carefully if you really need to go to Silicon Valley.

Bringing your startup to the American market is perhaps the dream of any entrepreneur. But, as with any big goal, you need to think it over carefully.

Over the past three years, more than 70 startups from Russia and Eastern Europe have gone through our New York program. Most of them face the same problems, many of which can be solved by following a few simple tips. Collected seven of them, which will be useful to any entrepreneur thinking about entering the American market.

1. Decide on the location

Each founder of a technology startup has his own "silicon dream": in my experience, almost any Russian entrepreneur plans to start expansion into the American market from the Valley. But you need to understand that moving there is not a panacea and not a direct ticket to a bright future for your company.

Silicon Valley is now overflowing with offers, and not all of them are in demand.

If you want to reach a specific client or investor who is based in San Francisco, then you can try to get there. But in reality, it is easier to enter the US market, for example, from New York: here the competition is lower, and there are enough investors.

2. Get the support of an immigration lawyer

Moving to the States is a difficult and resource-intensive business: it is not enough just to buy a one-way ticket. Problems can arise already at the stage of obtaining a visa: even in tourist B-1 and B-2, due to the current political situation, you may be refused. And getting a working O-1 without an invitation, most likely, will not work at all.

But the list of legal problems is not limited to visas: you have to register a business in a new country and do it so that there are no problems with investors in the future.

And also - it is banal to rent an apartment, which no one will hand over to you without a credit history, to issue a bank card and open an account for a legal entity, which, too, cannot be done right away. In general, there are a lot of subtleties that cannot be understood without a deep understanding of local laws and regulations.

All these problems are, of course, solvable, but dealing with them is much easier if you have a reliable assistant, such as a local lawyer. In addition, a local acceleration program can be a good platform for starting a new market: they not only help to resolve issues related to moving to the States, but also give money to start a business in a new market. The accelerator provides coaches in each area of the company's work, which would cost the founders $ 100-120 thousand a month to hire on their own - this is the salary of an experienced specialist in the American market today.

3. Learn sales. A cool product isn't everything

Most Russian entrepreneurs have one problem in common: they are great techies, good inventors, but they generally don't know how to sell and develop a business. The Americans, on the other hand, are good at this. Therefore, in the American market, you will either have to learn perseverance and more aggressive sales (and not back down after the words “No, I don’t need your kettle”), or look for local specialists for your team (but I have already warned you about the level of salaries in the market).

4. Stop blaming others for your failures

You have been "sawing" your product for a long time and are finally ready to show it to the world! We came to a new market with the confidence that your project will be able to solve all the problems of potential customers - and then suddenly you hear that everything is wrong with the product in which you have invested so much effort: from the target audience to functionality.

It's frustrating, but most likely the people who tell you this - if they are the experts at the accelerator or your potential clients - are right.

In such a situation, it is tempting to close down and say that everyone around is mistaken and does not understand anything. But this is a direct path to failure. Therefore, it is important to be open to feedback, not take criticism with hostility and make the most of the very opportunity to communicate with your client directly.

5. Recognize that you know nothing about this market

A lot of founders from Russia, if at home they have already managed to achieve something, star fever appears. And this is quite natural: they managed to bring their idea to a working business with decent turnovers and first exits - that is, they did what, even at the local level, not all entrepreneurs succeed. However, the American market is very different. It is super competitive: entrepreneurs from India, China, Indonesia, and European countries come here.

Here you will have to compete not with a few compatriots, but literally with the whole world.

Therefore, your "stardom" must be discarded on the way to the airport. Get ready for the fact that again, as at the very start, you will have to “go out into the fields”, learn to sell again, and most importantly, admit that you know nothing about the market or about customers. And this ability to get out of the comfort zone and realize in time that absolutely everything will have to learn from scratch, in my experience, is key for a founder who can achieve something in the American market.

6. Grow your customer base

Before entering the American market, your company needs at least some confirmation that its product is in demand on the market. That is, before moving, you will have to accumulate at least a minimum client base, the amount of money that comes to the company's account from clients. In addition, the product that you make must initially be global: if you came up with a Kazakhstani analogue of Uber, it makes no sense to bring it to the American market.

7. Learn English and prepare for stress

In the USA, you will have to talk a lot, and not only support small talk, but also be able to interest literally everyone you meet in a conversation - because you never know who can become your investor.

The minimum level of language proficiency for this is Upper Intermediate, less for active networking in the States, in my experience, will not be enough.

In addition, moving, new working conditions, great competition - all this is incredible stress that will come down on you from the very first day. In order not to give up what you started halfway through, it is better to assess your strengths and capabilities in advance. But if you are ready to fight, not give up, no matter how difficult the situation may seem, learn from your mistakes and be persistent, then it is definitely worth a try.