The Hidden Costs of Developing Business in the US
You are a successful European company in luxury goods or other retail, and you want to get into the US. What do you need to know?
At ACCUR Recruiting Services, we’ve worked with more than 100 companies over the past 12 years, and this is what our experiences teach us:
Adjust Your Expectations about US Salaries
The biggest issue we see with our clients is an overly optimistic assessment of what US workers will want to command for their work. We’re in the midst of a very tight labor market, and as such, the best American workers know they can command top compensation.
With that in mind, make sure your assessment of what salaries you will need to budget for is in the line with the region you are seeking to target. A simple currency conversion is the wrong approach. Costs of life are not the same, taxes are not the same (and not that low in the US), benefits, education, just to name a few issues.
Mind Your Expansion Strategy
Many of our European clients have become accustomed to hitting multiple country markets at once. While their marketing strategies may differ, they know they can get a lot of bang for their buck in a tightly populated European market.
The costs of advertising in the United States can come as shock therefore. The sheer geographic reach of the United States, not to mention the differing cultural regions within it, can be a bit like dealing with a group of countries. For that reason, we recommend a divide and conquer strategy.
Think locally: Find the local markets, regions, or even cities that matter most to your business and target them one by one. Once you’ve realized success, apply the lessons you’ve learned to another region.
Understand the Cultural Differences
When you are conducting business on the other side of the world, it’s essential to make sure that you make hires who understand both the local market and the values of your company. We explain how to approach that delicate balance here.
While it can be tricky, we see European companies making this transition all the time. All it takes is a little planning and the willingness to learn to bridge different cultures.
What to know before you plan your American expansion:
- What you can realistically spend on your American hires
- How you plan to expand business in the united states
- A real understanding of the cultural differences
How we can help:
ACCUR Recruiting Services provides a comprehensive set of executive search solutions to the global luxury goods, travel retail, apparel, perfume, watch, food, wine, spirits and cosmetic industries.
What we offer our clients:
- The right relationships: With a strong partnership with CFR Global Executive Search, we have access to highly qualified candidates in all of the major markets worldwide, including the US and Canada, Latin America, Europe and Asia.
- Global expertise: As your business expands into new markets and territories, we have the deep expertise and experience in multiple business cultures that will help you bridge the gap.
- Individualized attention: With processes that work to deliver the best candidates on a tight timescale, rely on us to always apply a sophisticated understanding to any hiring challenge.
Working with an extensive list of highly seasoned contacts, we work with you to fill executive positions in sales, marketing, finance and many other areas.
Contact us to set up a consultation.