Venturefest 2016 Presentation: How to Sell into America

Back in the Summer 2016, Venturefest hosted a series of presentations aimed at fast-growing businesses in the Oxfordshire region keen to expand. This particular presentation focused upon breaking into the US market

How to Sell into America

Summary: Post-BREXIT, the UK is staring to turn its attention to bilateral trade deals with other countries. Hence, this presentation on how to do business with America was particularly interesting; many commonalities exist, but so do the differences between the ways in which we do business.

Speakers:

• Hugh Bettesworth – CEO Mirada Medical. Hugh started off as a technical person, but was able to explain complex technology easily and so was promoted to Sales, and thence to CEO.

3 Key points

1. The US is not a single market – it is 50 separate states
   • Although there is 1 Federal Tax, there are a multitude of other local taxes – State, City, Parish, and often various others!
   • Each State has its own rules regarding registration, account filing, taxes…etc – best to get a local expert to advise you
   • Although anybody can obtain an ESTA (to solicit business in the US) and begin selling relatively easily (one US employee could be hired as a consultant), once you ‘get going’ things become more complicated – you will need a ZIP code, hence a US office (not a post box address), and decent advisers.
2. The US is a good market to do business – it is similar to the UK…but very different
   • Everybody speaks English, the legal system works well, and once you are set up to do business, it works relatively smoothly
   • However, don’t think that just being English or from Oxford will give you a huge advantage – it helps, but somebody from, say, Stanford University will be treated with just as much respect on account of their academic reputation
   • US people love sport – it’s a great ice-breaker – but avoid politics if possible – people are either Republicans or Democrats and fiercely committed to their party!
3. The US loves and welcomes selling…..but the competition is fierce so you have to be committed
   • Everyone in the US promises that their product will do one of 3 things – make you rich, make you sexually attractive, make you super-healthy.
   • Reticence does not go down well in the US – it is interpreted as a lack of faith in your product
   • You need to stress the advantages of your product over your competitors….you can be sure that they will be doing likewise!
   • A ‘Differentiation Table’ is a great way of demonstrating this; i.e. showing the features/benefits your product has over the competition