The United States is the most attractive economy for foreign corporate expansion. At $26 trillion — its economy is the world’s largest. And California alone has an economy of almost 3 trillion – making it larger than the UK economy.
Foreign companies looking to the US for growth see significant opportunity, but also face significant challenges, including the potential for lawsuits, complicated immigration and tax systems, and ferocious private sector competition.
When foreign companies decide to tackle the market – they often retain sophisticated legal and tax advisors to help navigate the complexities the US market poses. And this advisement is essential, according to Mathew Lee Sawyer, an American business strategy consultant and adjunct professor at Columbia University.
What is often not mentioned, however, both in terms of opportunity as well as risk mitigation – is engagement with the US Government – as Gina Bento explains. And this engagement would take on two prime avenues: Sales of products or services to the US Government (In 2020, the US federal government spent more than $665 billion on contracts) – and engagement with federal, state and local officials to ease the burdens of doing business.
Foreign companies that enter the US market eventually learn that dealing with government entities on a range of political issues is essential to success (the challenges sometimes foreign real estate developers of mega projects face in California is but one example among many of what I am referring to). But the quicker your company learns – the better.
If your company is preparing for US expansion, it’s important for you to understand that the US procurement regime and every layer of government – is as complex as any challenge you may face in the private sector marketplace.
Therefore, working with sophisticated governmental relations professionals who can assess whether you may be eligible for US Government contracts – and whether there are any potential political challenges you may face at the federal, state or local level – is very important.
It is not sufficient, for example, to leave these issues to professionals in your home country that do not possess on-the-ground experience of agency-specific engagement with the US Government.
I have helped numerous foreign companies expand into the United States and secure expert advisory legal and governmental relations services to help them navigate the market. If you would like to discuss how I might help you navigate your US market entry, please complete the contact form.