Expanding into new markets is the one way to grow your business. And the US is an excellent place for expansion. Businesses from all over the world are drawn to here because of its large and profitable market. Additionally, you’ll get easier access to capital investment, talent and innovation, and an opportunity to widen your reach. So, this is an ideal place to boost your reputation as a global player. If you have to choose a place to begin in the US, there’s only one logical choice – the Big Apple. Therefore, today we’re talking about everything you need to know about expanding your business to New York.
Right from the start, we need to clarify that this isn’t something to take lightly. There are a lot of things to consider, and all this work can be labor-intensive. So, read the instructions to make wise decisions, and you should be ready to begin the research that will propel you to stardom.
Understand your potential customers
The first step of expanding your business overseas is to understand your customers. And here we mean your American customers. It’s a smart idea to perform thorough market research and analysis. In it, make sure to focus on things like demographics, location, common interests, and the needs of the people you’re targeting.
Find out if the NYC market has an untapped space waiting for your presence. If there’s a gap between what customers want and market delivers, it’s the ideal time for you to step in.
All this information will help you find an ideal place within New York for your new offices. Depending on what you do, different locations will work better. If you go with Manhattan, you’ll have to deal with much higher rent, but you’ll be in the middle of the finance capital of the world. However, you’ll have a lot easier access to suburban families in case you choose Queens. It all comes down to what you need. But, to make a proper decision, first, you need to know everything about the market.
Develop a strategy for expanding your business to New York
The next thing you want to do is create an action plan. In it, you should specify how you will reach your new customers and how you’ll achieve a competitive advantage within the NYC market.
Here, you again have to think about what’s important for you. If you need a lot of space, you may want to look for more affordable options regarding the rent. Perhaps you’re all about the location. Maybe you can even detect an area bound to be the next hot spot but still affordable. In cities as big as New York, you never know what you can stumble upon.
Work with local influencers
It’s advisable to look for local influencers and develop a relationship with them before expanding your business to New York starts. And when it comes to these people, don’t think small. As experts love to say, look around you and look everywhere. Take time to build your network so you can source or develop your ideas from it later on. While you’re building these relationships, think if they’ll make a good partner in your expansion or you want them to serve more as mentors. You can learn how your business can grow through SEO, but influencers are the ones who can teach you how to do business in the US. So, these connections can be crucial for your final jump.
Identify resource needs
If you do everything by the book, you won’t have any problems achieving early market success. However, sustaining it will depend on identifying resource and skill gaps early on. It goes without saying that you also have to know how to fill these gaps as soon as you identify them.
In this part of the process, you need to think about what the expansion would entail and how it could affect operations. The biggest thing here is to figure out everything about managing a new office located far away from home. It’s undoubtedly a smart move to be there physically. So, perhaps moving will be necessary. Nowadays, it’s not difficult to handle the relocation across the globe. You never know how long you will have to stay. Also, it’s always smart to have a home away from home when you come to visit your new offices.
Hire some legal consultants
Although working with influencers can give you a nice headstart and offer you some exquisite market insights, you’ll still need a couple of hired consultants.
An attorney of law
First of which should be a US attorney. This person should help you determine how you want to establish yourself. For instance, setting up a US branch office is an easy option. But, it comes with a few pitfalls. If you do it this way, your business will be exposed to taxation on your entire corporate income, not only on the branch’s income. And that already is a good enough reason not to do it.
That’s why most companies choose to set up a subsidiary company. However, because of the complexity of each case, we’d advise you to talk to an attorney before you make your decision. He or she will help you decide which path you should follow to achieve the ceaseless improvement in New York.
A tax consultant is necessary when expanding your business to New York
The second person you want to hire is a tax consultant. This is someone who knows taxation from an international perspective. And the international part of it is essential here as this is the person that will advise you on:
- How to pay tax in the US
- What kind of documentation you’ll need
- How various legal structures determine the amount of tax you’ll pay
These are all important things when expanding your business to New York, and you shouldn’t dive into them without some professional guidance. Hiring someone who knows this complicated landscape will ensure you’re doing everything by the book and that you’re not paying more than you need to.