6 Things You Should Do Before Entering the US Market
You wouldn’t take a road trip without a map, so why try to navigate your business in the US without a detailed Market Map? Market Maps can help guide you through the competitive landscape and to better understand consumer demands and market dynamics. And Market Maps can help you locate opportunities and avoid problem area for penetrating & expanding in the US.
Market Maps enable you to gain traction more quickly and with better results. The investment of time and money for market intelligence and planning is necessary, as it is difficult for foreign-based companies to find sustainable revenue streams in complicated USA markets noted for intense competition and demanding consumers.
“We’ve seen many European and Asian companies struggle with their US expansion. Often, they’ll send over a few business development and sales people who struggle for months, because they haven’t performed a proper Go-to-Market Strategy ” explains Christophe Garnier, Founder at Spark Labs.
Of course, you should get local experts gather information and insights on consumers, competitors, and business environments. Ideally, these experts should have experience in your business category. They should also have experience working with foreign-based companies, and they should have a wide network of contacts and industry resources.
Your Market Map should include 6 components:
1) Market Size and Growth Dynamics — What are the total sales in the market? Are sales growing or declining? What are the key drivers for sales? Are there environmental, legal, or other external factors impacting market growth.
2) Competitive Assessment — Who are the current competitors? What are their strengths and weaknesses? What other companies might enter the market.
3) Customer Discovery and Insights — Who are current and potential customers? Are they grouped into distinct segments? Why do they need or desire your product or service? How do they decide what to purchase? Who do they listen to for advice and information?
4) Product and Business Review — What are the strengths and weaknesses of your current products and services? What are your technology’s advantages and disadvantages? How does your business model compare with other companies in the market?
5) Partner Assessment — Who are potential partners in areas, such as: sales, distribution, customer support, and marketing? What does a typical partnership or collaboration agreement look like? What are possible pitfalls?
6) Acquisition Targets — If your company is committed to enter the USA quickly, an acquisition might be the best option. Then, who are the best candidates? What might be pitfalls?
So, should you want to enter or expand in the USA market get a proper Market Map. The investment in market mapping is well worth the time and effort to minimize your risk and improve your chance for success.
**About the Author**
Matthew Sawyer is Managing Partner of Rocket Market Development LLC, which helps B2B, technology, and foreign-based companies launch new products and enter new markets in the USA by identifying market opportunities and providing market intelligence and go-to-market strategies for sustainable revenue growth. Matthew is an Adjunct Professor of business strategy and entrepreneurship at Parsons School for Design and strategic communication at Columbia University.
**About Spark Labs**
Spark Labs is the global network for innovation. We believe that fostering great businesses starts with having the right environment, team, mentors and local connections. Being entrepreneurs ourselves, we know that launching or expanding a company into the US can be difficult. That’s why we’ve decided to develop a revolutionary ecosystem for entrepreneurs with a very strong focus on community, network and relationships. You can read more about Spark Labs on our website spark-labs.co.