I recently asked several of my U.K. clients a series of questions about their efforts to break into the American market. Their replies were very insightful into the strategic decisions that were necessary for their successful entry into the American market. Plus, they provide an excellent starting point for a discussion of the legal issues and strategic decisions that you should consider. This is the first in a series of posts about the insights of my U,K. clients.
Industrial Equipment Supplier
This U.K. supplier has been in business for 22 years and began selling in America three years ago. The company has an annual turnover of GBP 26 Million to GBP 28 Million.
1. What led to your decision to sell to the American market?
“A) Our product is relatively new to USA but is being used more and more. We have since found that the potential is much more than we first thought. B) In our opinion, USA companies are quite poor regarding service, quality, documentation and being competitive.”
2. What key factors were considered in making this decision?
Response: “Finding the right guy to run the business. Obviously you need a product or niche, and can the profit cover the annual outlay.
3. Briefly describe why the American market represents an opportunity for your company?
Response: “Our main industry is oil and gas and now desalination. Our product is now being used in the USA market.”
4. What one issue/concern/problem kept you up at night? Why?
Response: “Ability of local guy to do the job. Have since sent him on courses to understand the financial issues better. Should have done this earlier.