This is the second and the concluding part of entering the U.S. market series. The first part appeared in the August edition of siliconindia.

In the first part we examined 4 of the 8 Strategies for Success that every international company can employ to reap the rewards that the U.S. market offers.

This month we will examine the remaining 4 Strategies for Success including planning for long-term success, projecting a professional image, realism in the sales cycle, and developing U.S. references quickly. These strategies can apply to every international company to ensure the greatest levels of success in the U.S. market.

Plan for Long Term Success
In the enthusiasm and excitement to expand into the U.S. territory, many international companies expect a relatively short sales cycle. This is especially true with companies entering the U.S. market through unsolicited transactions initiated by U.S. buyers. Too often, international companies enter the U.S. through a brief acquaintance with a potential partner or consultant that offers a quick market entry approach.

These relationships may actually pay dividends. However, before moving forward, consider the long-term goals for the U.S. market. Have you clearly defined your target customer? If so, will a large majority of them buy your product or service through this prospective partner?

How will this one-time opportunity position your company for future expansion into the U.S.? Will it hurt or help your expansion? If you take the deal, how will you service and support the customer appropriately? Would this deal support those goals? It is almost never enough to take the first deal that comes along especially if it undermines your company’s long-term strategy. Choose your customers and partners carefully.

Project a Professional Image
While a company’s technology or service may be top notch, entering a new market without the benefit of mind share or brand awareness makes it even more challenging.

One has to build and project credibility and having professionally written materials specific for the U.S. market goes a long way towards building that credibility. The U.S. is a noisy, over-communicated market with the average American exposed to thousands of commercials and advertising messages daily. Cutting through that noise and clutter is the first step to building a sales pipeline.

Working with professional writers, printers, translators and graphics designers, who know and understand the U.S. market and preferably the prospective customer base, will improve corporate image and the chances of success in the U.S.

The company should also be prepared to support English-speaking customers in many different ways, beginning with an English version of the corporate Website and multilingual individuals answering the company’s telephone and handling support inquiries. Use the Internet, leverage message boards, blogs, online news sources, search engine optimization, and third party Websites to create awareness. Be polished.

Be Realistic About Sales Cycles
The U.S. business culture is deliberate, calculated and focused on return on investment (RoI). While engaged in the sales process with a prospect, understand how long it can take. Emphasis is placed on due diligence especially for larger technology product or service contract investments and it may take much longer than accustomed at the company’s home market.

As a new entrant to the market, the company is unknown and requires an additional level of due diligence. Major customer deals can take more than 3 months to over 1 year to close. And since the U.S. is a very litigious society, be prepared for rigorous contract negotiations. Make sure the company is represented by an excellent lawyer, preferably a U.S.-based lawyer, familiar with the U.S. legal system and experienced in negotiating the type of deal the company deals with. Be realistic about the added costs that come from this longer sales cycle and do not count on immediate revenue from the U.S. market for survival. Be realistic about the sales cycle.

Develop U.S. References Quickly
In all likelihood, the company has established itself and developed references in the home market and elsewhere in the world. Unless that customer base is comprised of well-known multi-national corporations, do not assume that those references will be sufficient to guarantee credibility in the U.S. market.

Before entering the U.S., consider selling the product or service to a local subsidiary of a multi-national corporation. They need not be large projects. Even a small purchase or project with a well-known company will generate more initial credibility for the company than a highly profitable project with a customer or client that is unknown outside the U.S.
If that is not feasible, look for pilot customer opportunities in the U.S. with large or strategically important customers. Pilot projects are typically smaller, limited in scope and sometimes not that profitable. If the opportunity for a pilot project arises, manage the project with great care and attention to ensure the customer implements quickly and has a high level of satisfaction. By carefully targeting the right pilot customer(s) one can establish credibility in the U.S. market. U.S. customer references are very important.

Conclusion
The U.S. market holds tremendous opportunities and financial rewards for international product and service companies. Take the time to prepare and plan accordingly for expansion by establishing a team of employees as the market entry team. Carefully research prospective customer and plan for long-term success. Be realistic about the length of sales cycle, the importance of a polished image and the value of U.S customer references.

Most of all, set expectations accordingly for the level of financial, personnel, time investment required for success. A complex market like the U.S. demands it. Above all this will help the committed and well-prepared international company reap the many rewards of a large and compelling market such as the U.S.