Choosing Where to Go
for Business Success in the U.S.
Finnish companies, regardless of international experience
or size, recognize the United States as a prime
destination for expansion due to its massive consumer
market and economy. A particularly friendly business
environment, predictable legal system, and entrepreneurial
and competitive culture all enable global
businesses to find success in America, yet among the
pressing questions leaders ask when considering a
U.S. entrance is “Where should we operate within the
50 states?”
The fact is you may miss out on better opportunities
if you restrict yourself to popular sites, like New York
or California. It’s easy to underestimate the magnitude
of difference between states and cities across the
country, and location determines many important operational
factors, such as ease of product distribution to
attracting top talent. While your leadership team may
know where it wants to operate, this might not be the
best location for your customers, job market, budget
or business model.
Amcham Finland’s Launchpad USA program is
designed to guide the U.S. market entry process, but
here are some key points to consider throughout early
stages of planning:
1. Industry types have shaped certain regions of the
U.S. throughout history, and some states are well
known for industries themselves. For example,
California is famous for its technology, Massachusetts
for healthcare and education, Ohio for
auto manufacturing, and Kansas for agriculture.
Although technology and communication advancement
have blurred the lines between borders,
founders still tend to seek a location that fits their
broad industry.
2. Geographic distances can affect logistics costs and
ability to find the best people for your company’s
needs. The U.S. is huge, and interstate travel for
manufactured goods can be measured in days,
not hours. Your industry type, whether industrial
or service oriented, will likely have an impact on
how relevant these distances are.
3. Tax laws vary by state, which have their own tax
regimes and laws related to organizational structure,
employment, and investment plans.
4. Cost of living is incredibly diverse. Not only is
this relevant for relocating founders, but also for
a company looking to hire. Home prices are often
used to reflect overall cost of living. For instance,
median home prices of San Francisco, California
and Austin, Texas are $1.3 million and $382,000,
respectively. While both are considered significant
tech hubs with large pools of technology
professionals, they have very different offerings
and characteristics as cities.
5. Salary is tied to cost of living. In general, wages
for industry experts, executives, and business
development personnel are significantly higher
in the United States than Finland. Be prepared to
cover an employee’s salary for one entire year. The
average company can expect to see revenue flow
from between 6 to 12 months after investment,
and profit may come in after 18 months.
6. Startup financing is sometimes necessary for
smaller companies, and it’s easier to access an
investor in New York City, New York than Austin,
Texas.
7. State regulations affect environmental standards,
ease of transportation, data privacy, security,
and more.
8. Cultural differences are highly relevant for sales,
business development, and hiring options.
Where are you customers located and how does
the location you’ve chosen support your unique
strategic goals?
These focus areas require serious commitment and
consideration, and their in-depth exploration will yield
results far greater than those gained by making unsubstantiated
decisions. I encourage you to reach out
to Mike Klyszeiko, Director of Launchpad USA, via
email at mike.klyszeiko@amcham.fi for more information
about establishing a business presence in the
U.S. market.
ALEXANDRA PASTERNAK-JACKSON, CEO at Amcham Finland, is working to make Finland a more open and
international place to do business and to help Finnish companies navigate the US market. She has taught on the
importance of networking as well as held non-profit board positions, both in Finland and the US. Alexandra holds
an MBA from Haaga Helia University of Applied Sciences and a BA from the Elliott School of International Affairs
at the George Washington University. She lives in Helsinki with her Texan husband and two kids.
SAM MAGAZINE 4/19 | 9
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