There are many advantages for international clients to establish a U.S. company. Two that are top on the list are to help you develop more trust with the largest consumer market in the world ($158.3 BILLION in online sales in 2010) and to help establish joint ventures with the U.S. market. A U.S. consumer would much rather prefer to do business with a U.S. company. If you are in Australia, the UK, or New Zealand, you appear offshore to the U.S. consumer…and that means potential problems when it comes to recourse, or for other issues. If you are overseas, it may be very expensive to get basic issues handled with customer service or refunds. In this case, the U.S. business owner or consumer would rather do business with another U.S. company. That is where you can come into play if you are international. You can establish a U.S. company (your U.S. Cash Machine) to access this market.
There are a few tips to help you do more business in the U.S. Market:
1. Utilize your U.S company. Actually, set up the merchant account, have revenue going through it, file U.S. tax returns and get the ball rolling. Don’t just wait until a big launch comes along. Operate it as a real separate company.
2. Promote your U.S. company online (just as you would your main company). It will look better if both your home country company and your U.S. company both have a lot of articles, videos and traffic online vs. just your U.S. company used like a “shell” just to store money from a launch you did in your home country. This gives the impression as someone searches on line that the U.S. company is for real!
3. Protect Your Name in the U.S. If you have a name that can be trademarked (listen to the August 2009 Top 5% Club call with Chris DeMassa on the process of trademarking your name). This will add more value to your company and set you apart because you are protecting your name. Even most American internet marketers and small businesses do NOT trademark their names. This will send a message that you are for real!
4. Promote Joint Ventures Through Your U.S. Company. Even if you normally do all your JVs through your home state country, start establishing joint ventures (host/beneficiary relationships) through your U.S. company, which will establish that as a separate business and identity. This will help you with U.S. JVs in the future, plus help separate your business assets from your home country and what you have going on in the U.S. market.
5. Consider U.S. Vendors. This will put your business in the position that your team is not totally “offshore” and will connect you with more U.S. businesses. Especially if you have a customer service team or call center that is remote from your business, in the U.S. we would prefer to hear from U.S customer service. Yes, it is true that many U.S. companies outsource to India and other countries (it is different when a big telephone company does that vs. a small entrepreneur).
The U.S. is a huge market that is going to need more of your support and solutions. The debt crisis may only get worse, as banks are not lending to small U.S. businesses and individuals are having difficulty securing credit. That means if you are offering solutions for businesses or how to make more money (especially online), you may have a goldmine in front of you.
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About The Author: Scott Letourneau is the CEO of Fast Business Credit, Inc. When it comes to securing cash and vendor lines of credit and avoiding costly mistakes his company is the authority. For further assistance regarding the development of business credit go to http://www.FastBusinessCredit.com or call FBC at 1-888-313-6333 or 702-977-5246.