
How do you expand an SME into the US market?
America is the land of promise for many small British businesses. The population is generally fairly well off and there’s almost five times as many people as there are in this country. The potential to sell many more of your products and services there is enormous.
But it also seems fraught with difficulties. Regulations that change from state to state. Learning new marketing techniques. The country’s sheer physical size.
But Mike Lord’s transformation of Stiltz from a small West Midlands homelift company into an £80 million business shows that it can be done. The firm’s growth under Mike’s leadership has been driven to a large extent by its ability to break into America, 11 years ago. It now sells twice as many lifts there as it does in the UK, with plans to double its US operation by 2030.
So what can other SMEs learn from Mike’s experiences and success? Here, he shares his insights.
Research your sector carefully
We may have many cultural similarities, but the American market can be very different to the US, in any sector from food to consumer electronics.
Before you put too much time and money into US expansion look closely into whether American consumers need or want your product or service. Is it a particularly British or European thing? Conversely, is there anything too similar already available in the US?
I realised that homelifts could actually do better over the Atlantic than in the UK, because the homes are bigger so there’s more room for the homelifts and installation will be easier.
Establish a local presence quickly
Remote operations have limitations. Stiltz initially sold through US dealers from the UK but we quickly realised we needed someone in an American office running the US operation. We only had person, to start with, but having a representative there who understands the nuances of US business and regulations and isn’t focusing on any other part of your company is invaluable.
Get someone who already works in America, if you can, though sending someone you really trust from the UK can work fine. Go for an employee with a strong sales background who can get trade up and running in the US quickly.
Dealing with dealers
The US market's geographical vastness means you will almost certainly have to work through dealers or retail stockists, at least to start with. You can’t do everything from one New York or LA office. The dealer approach may, of course, reduce profit margins, but dealers bring invaluable local knowledge of trading regulations, tax requirements, and necessary permits for things like installing homelifts.
Stiltz operates with approximately 60 active US dealers, but we recently started our first direct-selling operation in Denver. This dual approach will allow us to compare effectiveness and refine strategy.
Know the rules
American regulations differ not only from UK standards but often vary between states and even counties. Research thoroughly what rules apply to your specific product or service, whether it's cookery equipment, beauty products, or children’s toys.
If one state's regulations are complicated or costly to overcome, it’s probably best launching operations elsewhere in the country.
We consulted an American engineer before applying for certifications, to try to ensure compliance and smoother approval processes.
Remember that tax structures, including sales tax, can vary significantly by location.
Modify products strategically
Product and service adaptation should be purposeful, not comprehensive. Stiltz changed plastic drums to metal ones for compliance and adjusted electrical voltages for American standards, but we maintained our core design aesthetic and features.
Resist the urge to completely Americanize products, unless market research tells you differently and you can afford the modifications for what might yet be a small market for you. British design and quality can serve as selling points rather than obstacles.
Adapt marketing but stay authentic
American marketing requires tactical adjustments without complete overhaul. Consider practical differences: brochure sizes vary, terminology differs, and consumers expect .com websites rather than .co.uk addresses.
Engage a US-based marketing consultant to review your materials, but don't feel pressured to change everything immediately. Clear, understandable UK materials can work initially. You can refine them gradually, based on your experiences and customer feedback.
If you're a premium brand in the UK, maintain premium positioning in America. If you compete on price domestically, do the same across in the US. Your established strengths will probably translate well to the new market.
Wear your Britishness with pride
Your nationality can be a competitive advantage. Americans generally respond positively to British businesses, viewing them as offering something different from domestic alternatives. This cultural cachet can help in negotiations with suppliers, dealer and when talking to customers, too. So don’t be afraid to sound as BBC as possible or even throw in a few British clichés!
Understand workplace differences
By and large, treating employees well in the US is the same as it is in the UK. But be aware that Americans can be more used to a hierarchical structure and will look for clear guidance and decision-making, rather than taking the initiative. They do tend to be incredibly positive, though.
Employment laws can be quite tough, in some places, with sacking on the spot for no strong reason possible. But, again, taking a British approach to staff relations will mean you become quite a sought-after company to work for.
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