10 Ways European B-C Companies Can Reduce the Cost of a US Launch
Do upfront quantitative research among prospective US customers to determine which brand descriptors have the most impact, what your optimal customer price is, and what demographic your product most appeals to.
Focus on a specific segment of the market; be it working moms, upscale baby boomer men, or Gen Z women and work hard to establish an initial beachhead.
Within your target demographic, determine which sub sector is the most passionate about your product. Make them a priority target and do what is necessary to encourage their evangelism to others and secure quality testimonials.
Have a compelling, credible and concise brand narrative that clearly stakes out your value proposition and why you are different from existing competition.
Hire a good public relations firm for $8k per month or less. There are hundreds of viable PR targets in the US for almost any product or service, and PR lends credibility to new companies since it's communicated through a third party journalistic lens.
If you can, form an LLC in the state of your choice via an online legal service such as Legal Zoom. An LLC is a legal business entity that generally costs less than $1,000 to create and will provide personal liability protection and eliminate double taxation (i.e. both company and personal taxation). Note VC funding may mandate a C Corp structure.
Hire independent contractors versus employees whenever possible. Generally contractors work for 20 hours or less per week and have other clients. Importantly contractors cover their own health care and social security taxes. Upwork is a good source for quality skilled contractors.
Create your own direct to the consumer E-Commerce site even if you also want a retail channel. Having a direct relationship to the customers will not only mean greater gross margins but will provide insights into their buying habits and enable a closer long term relationship.
Hire a US marketing consultant to oversee marketing and operations for your first year, even if you have a company person from Europe in place. He or she will prove invaluable in fostering contacts, Americanizing your European marketing message for a noisier US market, and otherwise reducing any operational red tape.
Plan on a slower, longer runway for success (i.e. becoming cash flow positive) so you can use your cash wisely and determine which marketing tactics and message have the greatest ROI as you move forward. Do not try to do too much too soon and waste money along the way.
Atlantic Partners is a leading boutique consulting group based in Europe and the US that is dedicated to helping European companies with compelling products or services succeed in the USA. For more information, visit our website or email Ralph Fascitelli at Ralph@atlanticpartners.us.