The biggest challenge people have in breaking the US market: Navigating the legalities of the regulation is not impossible

The United States has a split legal system. Basically, there are different rules and regulations between states and on the federal level. These differences can mean that the legalities of business, taxation and related legislation are difficult to navigate, even for a company based out of the US itself. For a company launching in the market for the first time, it becomes even more difficult. 

As your product evolves, the regulations are going to be tantamount

One of the reasons for this is that if you are attempting to grow quickly, and you cannot continue to introduce incremental changes to your product because of the legal challenges, you won’t be able to remain agile, and you could be on the back foot against your competitors.  

Once your product has matured to the stage where it meets the needs of the customer, and the marketing operation is able to support that version of the product, how do you plan for a future version and a future expansion that isn’t going to run the risk of challenging opposing legislation? What does your plan look like? How are you anticipating how this experience would change over time?

In the New York market, you might find that the way you’re building your product doesn’t gel with how you’ve built it at home, or it doesn’t meet industry specific requirements. You might that even if it does, it could run afoul of federal requirements. And a product that is still evolving will come up against this all the time. 

But it’s not just the product; it’s your business model

As your company grows and needs to sell more, the business model sometimes has to change, and you need to have the knowledge and skills necessary to navigate how those changes are going to stack against your regulatory responsibilities. You don’t intend to be the company that simply decides to ditch or alter their product at the first sign of legal or logistical difficulty. 

You would naturally like to establish yourselves in the marketplace and develop a quality product, and confidently build on it with a sustainable and responsive business model. But just as companies like Uber have run into differing regulatory issues due to their model, you’re at risk of finding out that your approach isn’t acceptable or needs to be modified or compromised. And as an outsider, your risk is definitely higher. 

However – it’s a challenge, not an obstacle

Overall, entering the US market is daunting. And we don’t try to steer away from that. Our job isn’t to make it look easy, it’s to highlight the practicalities and guide you through them. A successful entry is always going to be possible with the right connections, the right forward planning, and research in advance that can provide you with the information you need. 

This is one of the challenges that we try to work through with the FD Global Connections: NYC Immersion Program; on one level, our goal is to provide the insight and knowledge that could help you as you start to navigate complex systems. We’ve been through it ourselves, and we’ve been through it with our cohorts, and we speak the languages of a complex system. 

But on another level, we have access to and are able to tap into a network of experts on the ground who are also able to offer their guidance, insight and introductions where possible to support your entry into the regulatory system. That’s something that can save you from costly and difficult mistakes.