5 tips to break into the US market

Creating a business in the United States can be the single most rewarding outcome for any local producer. The potential is huge. The US is the world’s single largest market.
Developing a business in the US is the ultimate planning exercise. A common mistake is to assume that the US is one big market. It isn’t. The US comprises thousands of markets in different locations with different regulations and requirements.
These markets may differ greatly from one side of the country to the other, and from culture to culture.  Working your way through this maze requires insight from people who understand how best to get ahead.  Industry and Investment NSW has highly experienced operatives with long-time experience in assisting local companies promote their capabilities in the US.
Here are  five tips from Industry and Investment NSW to get you started in your US export drive:

Take a hard look at your business capabilities

An essential first step is an honest assessment of your business. Developing export markets takes time:  it is not unusual for producers to spend three years of focus, energy and expenses before gaining a first order. So while you are focusing on your export business, you need to ensure your local operations are operating smoothly.
Gaining export success can create volatile demand forecasts leading to overstocking or understocking as well as production variations that limit the capacity to complete orders on time. Exporters need to be aware that ‘niche’ and ‘small’ in the US is very different to Australia.
For example, if you win a contract with a ’boutique’ supermarket with 10 stores it might sound very manageable, but it’s not unusual for boutique” supermarkets to pull in over $300 000 a week in revenues.
Scaling up production quickly to meet increased demand ultimately requires increased investment for additional equipment, inventory, logistics, staff and marketing. Also, exporting adds an extra complexity to normal business cashflow management, particularly when costs outstrip export sales returns.